Experience. Our greatest asset - GBL
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Experience. Our greatest asset.
March 2019
BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Overview of GBL p.2
Business update p.8
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management
2
BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Leading investor in Europe focused on long-term value creation
>60 years €18bn 10 €14bn
Indicative
Stock exchange Disclosed investments in listed Market
Net Asset Value
listing in 1956 assets, leaders in their sector capitalization
(“NAV”)
2nd 50% €484m €2.5bn
Largest listed investment Stable and supportive Solid liquidity profile
Dividends
company in Europe (after ownership by the Frère from cash and
distributed in 2018
Investor AB) and Desmarais families undrawn credit lines
€16bn 2018 11.2% 3.6%
2012-19ytd annualized
Asset rotation carried out ESG commitment
Total Shareholder Return Next-12-month
since the initiation of our to
(“TSR”), vs. 7.6% for GBL’s dividend yield
new strategy in 2012
reference index
Note: All information as of December 31, 2018 with the exception of indicative NAV, market capitalisation and dividend yield as of March 8, 2019
3
BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Solid core values
Active and
Patrimonial
Engaged
• Through-the-cycle investor
• Creative, challenging and supportive board
• Permanent capital with long-term member aiming at unlocking long term value
investment outlook (strategy, selection of Chairman & CEO,
remuneration policy, capital structure, M&A)
• Conservative net financial leverage
• Willing to tackle complex situations
• Solid and stable family shareholder base
We create value Flexible
Focused
mandate
• Equity investments ranging in size from
• Team sourcing a sizeable deal flow but €250m up to €2bn
selecting and overseeing a limited number • Majority stakes or minority positions with
of core investments influence
• Geographical and sector focus • Public or private companies
• Growing exposure to alternative assets
• Demonstrated co-investment capability
4BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
A broad and flexible investment mandate in Europe
Investment universe Investment themes
• Target companies are headquartered in Europe and may be listed or private; Anticipating megatrends and
upcoming disruptions
• Equity investments range primarily between €250m and €2bn, potentially in
co-investment alongside other leading investment institutions;
Shift in global economic power
• GBL aspires to hold a position of core shareholder in the capital of its portfolio towards emerging countries
companies and play an active role in the governance, through majority stakes or
minority positions with influence;
Demographic shift
• GBL intends to reinforce the diversification of its portfolio by pursuing the
(e.g. ageing population)
development of its alternative investments through its subsidiary
Sienna Capital.
Health & lifestyle
Key sector focus
• Consumer • Industry/manufacturing • Services • Healthcare
– Luxury – Green economy Accelerating urbanization
– Entertainment – Natural resources
– E-commerce/digital – Sustainability
Technology & digital
Out-of-scope sectors
• Utilities • Real Estate • Regulated industries
Sustainability
• Oil & Gas • Telecom • Biotech & resource scarcity
• Financials
5BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
A portfolio of solid companies, leaders in their sector, where GBL is influent
Process
Sports Wines & Cement & Specialty Materials Hygienic Leisure Alternative
Sector TIC Oil & Gas technology
equipment Spirits aggregates minerals technology consum. parks assets
food sector
Sector ranking #2 #2 #1 #1 #1 Top 3 Top 5 #1 Top 3 Top 3 n.a.
GBL’s ranking in
#1 #3 #1 #2 #1 #1 #16 #3 #1 #2 n.a.
shareholding(1)
Date of first
2015 2006 2013 2005 1987 2013 1998 2017 2015 2017 2013
investment
Board
representation n.a.
GBL’s
7.83% 7.49% 16.60% 9.43% 53.91% 17.69% 0.61% 8.51% 19.98% 21.19% 100%
ownership(1)
Market cap.
36.6 38.0 15.0 21.7 3.3 8.6 121.9 4.1 1.5 0.9 n.a.
(€bn)
Value of GBL’s
2.9 2.9 2.5 2.1 1.8 1.5 0.7 0.3 0.3 0.2 1.4
stake (€bn)(1)
(1) Figures as of December 31, 2018, except where superseded by more recent public disclosures
6BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
High-quality assets being well-diversified
% of
17% 17% 15% 12% 11% 9% 5% 2% 2% 1% 8%
portfolio value(1)
Ratings(3) BBB / n.r. / BBB / BBB / A+ / n.r. / BB /
-(4) 1.2x(4) 3.3x(4) n.a.
(S&P / Moody’s) Baa2 A3 Baa2 Baa2 Aa3 Baa2 Ba2
Bloomberg
N.A.
consensus reco(3)
Sectorial exposure Geographic split Investment type Asset cyclicality
Sienna Capital &
others 9% Other Counter-cyclical 2%
Energy Spain 1% 9% Sienna Capital & Yield 5%
5% France others 9% Resilient
Services Growth Sienna
Belgium 33% 50%
15% Growth/ 46% Capital &
11%
yield others
15% 9%
Germany
19% Cyclical
Consumer Switzerland Value 39%
Industry 34% 37% 27% 25%
(1) Figures as of December 31, 2018
(2) 1-year average as of December 31, 2018 in terms of ADTV (Average Daily Trading Volume)
(3) Ratings and consensus as of March 8, 2018 7
(4) Net debt to EBITDA ratio (based on recurring EBITDA for Umicore) as of December 31, 2018 (September 30, 2018 regarding Parques Reunidos)BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Overview of GBL p.2
Business update p.8
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management
87.0% 7.0% 7.3%
6.2% 6.3%
BUSINESS INVESTMENT
OVERVIEW APPENDIX 4.1
UPDATE CASE
2.7%
2018 highlights
2012- 18 5 years 10 years 15 yea
Key milestones TSR
Net asset value of €16.2bn at year-end 2018 11.2%
10.7%
GBL Stoxx Europe 50
negatively impacted by: 9.9% 9.9%
− The general market trend
− The underperformance of the cyclical values 7.6% 7.3%
7.2%
6.9% 7.0% 7.0%
notably exposed to the automotive and 6.2% 6.3%
construction sectors
4.8% 4.5%
Strategic focus maintained throughout 2018 on: 4.1%
− Pursuing our asset rotation strategy through 2.7%
€1.9bn of transactions of acquisitions and
disposals
− Developing our influence in support of our
portfolio companies 2012-
2012- 18
19ytd 5 5years
years 10years
10 years 15years
15 years
− Starting to execute the buyback of treasury shares
authorized in October 2018 in the limit of €250m
GBL
GBL Stoxx
StoxxEurope
Europe5050
Dividend yield
ESG approach further structured Exceeding the portfolio’s weighted average
5.6%
4.9% 5.1%
FY18 Dividend 3.5%
3.8%
4.0%
3.2%
FY 2018 gross dividend proposed at €3.07(1) per 2.4% 2.3%
2.2%
share, up 2.3% versus prior year 1.8% 1.8%
Dividend yield of 4.0%
Payout ratio of 108.6% (FY 2017: 113.5%) adidas Pernod SGS LH Imerys Umicore Total GEA Ontex Parques Combined GBL
Ricard Reunidos
(1) Dividend subject to the approval of the General Shareholders’ Meeting
Note: TSR, NTM dividend and stock price yield as of December 31, 2018, with the exception of the 2012-19ytd TSR being at March 8, 2019 (source : Bloomberg) 9BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Volatility of our net asset value in a complex market environment
3,300
121
121
3,200
04/20/2018 12/31/2018 03/08/2019 116
116
3,100 NAV at a 10-year NAV down 14.3% +11.9% recovery
high (€122.37) vs. Y/E 2017 vs. Y/E 2018
(€100.35) (indicative NAV at (€ p.s.)111
111
3,000
3,300
EUR 112.27) 121
2,900
3,200 106
106
10/31/2018 116
2,800
3,100 Share buyback
approval 101
101
2,700
3,000 111
2,600
2,900 96
96
106
01/02/18 04/02/18
04/02/18 07/02/18
07/02/18 10/02/18
10/02/18 01/02/19
01/02/19
2,800 Net asset value
value per
per share
share (rhs)
(rhs)
Stoxx Europe 50
50 (rebased)
(rebased) 101
2,700
2,600 96
01/02/18
Y/E 2017 04/02/18 07/02/18 10/02/18 01/02/19
Y/E 2018
Net asset value per share (rhs)
Source: Bloomberg (March 8, 2019) & GBL
Stoxx Europe 50 (rebased)
FY18 NAV bridge showing contrasting dynamics within the portfolio
Successful integration of
Sienna Capital contribution
Strong
0.23 stock
0.05 Decline in Other
Kerneos and divestment of
1.69
1.70 performance stock prices: Paid dividends
the Roofing division
(€ p.s.) (0.40) LH by 23.8% Received dividends
€ p.s. +9.1% +8.6% (0.93) Withdrawal from the
125
(1.04) and Negative stock/volume
Sienna Capital effect
contribution ceramic proppants market
0.23 (1.14) Other stock/volume effect
1.69 0.05 (1.24) Imerys by Positive and “care and maintenance”
120 1.70 Paid dividends
46.5% program for Namibian
(0.40) (0.93) (3.37) Received dividends
115 (1.04) 0.92 Negative stock/volume effect natural graphite assets
(1.14)
06 (1.24) Positive stock/volume effect
North American talc
110 (3.37)
(9.16) (0.24) (0.12)
subsidiaries filing for
105 0.92 (3.00) (0.65) US chapter 11 protection
117.06
(0.12) 100.35 to seek permanent
100 (9.16) (0.24)
(3.00) resolution of their historic
(0.65)
talc-related liabilities in the
95 100.35
United States
90
Y/E 2017 Y/E 2018 10BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Solid performance of our largest investments completed since 2012
Capital Capital
invested gains Dividends NAV TSR
New
€3.0bn €0.6bn 49% 14%
investments
€6.3bn including €2.9bn received(2) of GBL’s combined
since 2012
(incl. 6 disclosed) unrealized(1) since 2012 indicative NAV(3) TSR(4)
New investments
with current stake value exceeding €1bn
2013 €2.2bn €0.7bn €0.4bn 15% 8%
2013 €0.9bn €0.8bn €0.1bn 9% 21%
2015 €1.3bn €2.0bn €0.1bn 18% 35%
(1) Unrealized capital gains taking into account all impairments accounted until December 31, 2017 (i.e. before the entry into force of the IFRS9 standard), calculated based
on (i) ownership as of December 31, 2018 (except if superseded by more recent public disclosures), and (ii) stock prices as of March 8, 2019)
(2) Dividends received since inception of new names
(3) Information as of March 8, 2019
(4) TSR computed since investment date until December 31, 2018 (in terms of ownership) and March 8, 2019 (in terms of stock price), with the combined TSR including all
new investments since 2012 until more recent disclosure
11BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
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
Our underperforming assets have an average holding period of only 2.6 years
As a comparison, 3 years into our Umicore investment, our TSR was still slightly negative.
Meanwhile since then it has reached 21%
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
Influence developed further in 2018 with our portfolio companies
Reinforced governance Acting as an active and engaged director notably in support of
GBL’s increased New strategic plans
representation
Joined Ontex’ Audit Committee New organization by Business review initiated
and Nomination & Remuneration market to further in 2018 and having led to
Committee leverage the group’s the comprehensive
successful repositioning transformation program
Received a second seat at Parques as a specialty minerals “Transform to Grow”
Reunidos’ Board of Directors company announced in March 2019
Joined GEA’s Supervisory Board Strategy 2022 – “Building “Transform & Accelerate”
for growth”
Evolution within Balance sheet strength Return to shareholders
Boards of Directors
Deleveraging policies Increase in payout ratio and share
buyback
Executive Management
Capital allocation focused on long-term value creation
upgrades
Acceleration of growth External growth through
investments to add bolt-on and/or
production capacity for transforming
cathode materials in acquisitions
China and Europe to
2019 2019
meet strong demand
13BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Sienna Capital increasingly contributing to laying base for future growth
First direct
As of December 31, 2018
investment
€1.6bn
Cumulative capital invested in 7 fund managers since inception
• Commitment of €250m by
€1.3bn €2.3bn €1.0bn
Sienna Capital
Stake value + Distribution received
• Co-investment alongside
1.4 x • Carve-out of Unilever’s global
Implied money multiple on invested capital spreads division
• €3bn of pro-forma sales in 2017
€0.5bn
• Closing completed in July 2018
Remaining callable capital
€48m
Contribution to GBL’s cash earnings (up 15% vs. €42m in 2017)
14BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Overview of GBL p.2
Business update p.8
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management
15BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
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% 3.6% 25.0%
Dividend yield exceeding the TSR(1)(vs. 7.6% for Discount to
Dividend yield
portfolio’s weighted average) our reference index) indicative NAV
Solid financial Sound Efficient cost
position governance structure
€2.5bn 4.2% 18bps 51% ~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)
Note: Information as of December 31, 2018, with the exception of discount to indicative NAV, TSR and dividend yield calculated as of March 8, 2019
16
(1) TSR calculated on an annualized basis with reinvested dividends, as from year-end 2011 until March 8, 2019BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Discount to NAV, a relevant element of our investment case
Discount evolution 25.0%
25.1%
over 10 years 10-year average Discount to
discount to NAV indicative NAV
35%
32.4% on June 12, 2009
Discount
30%
€4.5bn
25%
Indicative Market Rest of
20% NAV cap. NAV
16.3% on December 31, 2015 €18.2bn €13.6bn
15%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Note: Information as of March 8, 2019
Discount influenced by Downward trend supported by
• Portfolio features (asset quality, • TSR outperformance vs. reference index
diversification, exposure to listed and liquid • Diversification strategy implemented from 2012 onwards through a dynamic
assets as well as private investments) rotation of the listed investments, as well as the development of unlisted
assets through Sienna Capital
• Management track record and remuneration
• Experienced management team having delivered increased shareholders’
• Financial communication
return through their influence in the governance bodies of the participations
• Financial leverage • Solid liquidity profile granting significant investment means
• Holding structure costs and tax leakage • Efficient cost structure at holdco level and no material tax leakage
• Stock liquidity • Increased financial communication
17BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Overview of GBL p.2
Business update p.8
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management
18BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
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
A rebalanced portfolio in terms of sectors and geography
Beginning of 2012 December 31, 2018
Sienna Capital & Energy 5%
Sienna Capital others 9%
3%
Consumer Energy
15% 54% Services
15%
Sector
€20bn
Industry Consumer
28% 37%
Industry
34%
Other 9%
Other Spain 1% France
3% 33%
Belgium
Geography
11%
France 97% Germany
19%
Switzerland
27%
Note: Asset split presented in terms of portfolio value 20BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
A rotation towards growth assets and a higher resilience through the cycle
Beginning of 2012 December 31, 2018
Yield 5%
Sienna Capital
Growth
& others 9%
Sienna Capital 3% 46%
Growth Growth
Asset type
15% /yield
15%
€20bn
Value
26% Yield
56%
Value
25%
Counter-cyclical 2%
Sienna
Other 3% Capital &
Resilient Resilient
15% others
50%
9%
cyclicality
Asset
Cyclical
82% Cyclical
39%
Note: Asset split presented in terms of portfolio value 21BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Overview of GBL p.2
Business update p.8
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management
22BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
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
- improvement of the retail Hockey)
Downside protection operations
Potential for 23
improvementBUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Stock performance since 2014
adidas’ performance has been very robust, leading to an unrealized gain of c.€2bn
€1.3bn adidas share price
(January 2014 to March 8, 2019)
Capital
invested
+265%
250 Since Jan. 2015
211
€3.3bn 200
+ 127%
Stake
value
150
+ 32%
€2.0bn 100
New management team
Unrealized - CEO: Kasper Rorsted
capital gain - CFO/COO: Harm Ohlmeyer
50 Market share gains in Asia and the USA
Operating margin improvement
Contrarian
investment Valuation rerating
35% 0
Enhanced cash returns to shareholders
Annualized total Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19
shareholder adidas Stoxx Europe 600 Consumer Goods (rebased)
return
Source: Bloomberg as of March 8, 2019
24BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
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 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 21%(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. In
• Since its acquisition in 2006 for ~€3bn, Reebok 2018, Reebok was back to 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
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
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 (supply chain, speed
• Shareholder remuneration program)
– 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
Overview of GBL p.2
Business update p.8
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management
27BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Overview of Sienna Capital
Sienna Capital is a platform for GBL to invest in alternative assets in partnership with external managers
and also via direct investments and co-investments
Several benefits
to GBL
Earn attractive risk-adjusted returns
Contribute to growing GBL’s NAV and dividend
7 external Direct investment/
managers Co-investment Part of an ongoing diversification of GBL’s portfolio
and revenue stream
Attract talent around the activities of GBL
and serve as a best ideas factory
Provide co-investment opportunities
14 funds
8%
~100
Underlying Contribution to GBL’s Net Asset Value
operating
companies
28BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
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 €621m €242m €593m €337m 1.5x
2005
Private Equity Sagard I, II, 3 €385m €263m €121m €286m €180m 1.7x
2002
LBO Debt KCO III & IV €300m €211m €90m €75m €209m 1.4x
2013
Mérieux
Healthcare
Participations €75m €55m €20m €0m €62m 1.1x
Growth Capital
2014 I&2
European
mid-cap public PrimeStone €150m €150m - - €153m 1.0x
2015 equities
Long-term
capital to
BDTCP II €107m €59m €50m €2m €72m 1.2x
closely held
2015 businesses
Digital
Backed 1 €25m €20m €5m - €27m 1.4x
technologies
2017
€250m €250m - - €275m 1.1x
2018
(1)
Cumulative €2,155m €1,629m €528m €970m €1.315m 1.4x
Note: figures as of December 31, 2018 29
(1) Difference between Sienna Capital’s stake value of EUR 1,315 million and its net asset value of EUR 1,374 million primarily corresponding to Sienna Capital’s cash positionBUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Overview of GBL p.2
Business update p.8
Investment case p.15
Appendix p.18
1. Asset rotation
2. adidas case study
3. Sienna Capital
4. Management
30BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Ian Gallienne – Co-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 Co-CEO since 2012.
He obtained an MBA from INSEAD in Fontainebleau.
Mr. Gallienne serves as a Director of Imerys, Pernod Ricard, SGS and adidas.
Colin Hall – Head of Investments
Mr. Hall began his career in 1995 in the merchant banking group of Morgan Stanley. In 1997, he joined
Rhône Group, a private equity firm, where he held various management positions for 10 years in New York
and London. In 2009, he was the co-founder of a hedge fund, sponsored by Tiger Management (New York),
where he worked until 2011. In 2012 he joined, as CEO, Sienna Capital, a 100% subsidiary of Groupe
Bruxelles Lambert, which regroups its alternative investments (private equity, debt or specific thematic
funds). In 2016, he was also appointed to the role of Head of Investments at GBL.
He holds a BA from Amherst College and an MBA from the Stanford University Graduate School of
Business.
Mr. Hall serves as a Director of Imerys, Umicore and GEA.
31BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
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).
32BUSINESS INVESTMENT
OVERVIEW APPENDIX
UPDATE CASE
Disclaimer
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