Groupe Bruxelles Lambert SA · EURONEXT:GBLB
Groupe Bruxelles Lambert SA — H1 2023 Earnings Presentation
26 slides from Groupe Bruxelles Lambert SA's earnings presentation, Aug 1, 2023
Slide 1: Delivering meaningful growth
Delivering meaningful growth
Slide 2: H1 2023 Results Presentation
H1 2023 Results Presentation August 1, 2023 2
Slide 3: Table of contents
Table of content Table of contents 1. Business update 4 - Portfolio rotation 6 - Listed assets 7 - Private assets 8 - GBL Capital 10 - NAV per share 11 2. Financial update 12 3. Outlook 16 4. Appendix 19 3 3
Slide 4: Business update
Business update 4
Slide 5: Agile strategy execution
Business update Agile strategy Dynamic asset Private asset Broad-based Attractive execution rotation(1) milestones value creation shareholder returns In a market environment that remained challenging €1.1bn + €0.6bn €279m fair value increase share buybacks NAV per share increase: + 3% creation of li
Slide 6: Dynamic asset rotation
Business update €1.1bn Dynamic asset rotation H1 2023 asset rotation(1)(2) (2) (2) Disposals(2) Acquisitions(1)(2) Investments Investments €808m €34m (3) €154m €27m (4) (5) Returns Capital gains €104m €116m (1) Excluding share buybacks (2) May include other assets; examples may be non exhaustive (3)
Slide 7: Highlights: Listed assets
Business update Highlights Listed assets (64% of the portfolio) • New management actively • Strong pricing power and • Announcement of the addressing the 2022 sales and EBIT growth British lithium project on challenges across regions the back of the French lithium project, • Launch of the next posit
Slide 8: Highlights H1 2023 Sales: Private assets
Business update + 16% (1) Highlights H1 2023 Sales Private assets (21% of the portfolio) Strong double-digit sales growth €1,321m €421m €270m €395m + 13% + 18% + 22% + 19% (1) Consolidated private assets 8
Slide 9: Healthcare platforms are exceeding expectations
Business update Healthcare platforms are exceeding expectations Sales growth Sales growth - Integrations are proceeding smoothly + 18% + 22% - Both companies are performing ahead of plan EBITDA growth EBITDA growth - Double-digit sales evolution is driven by a healthy + 28% + 40% mix of organic grow
Slide 10: Value creation: + €131m
Business update (14% of the portfolio) Value creation: + €131m NAV Value NAV €m Returns Investments 12/31/2022 creation 6/30/2023 Balanced value creation, with healthy contributions from both the Non-digital and External funds & Digital portfolios 1, 790 90 (103) 23 1,800 direct/co-investments Value
Slide 11: NAV per share growth
Business update NAV per share growth NAV NAV Listed assets: - Increase in fair value of + €588m, per share €116.18 +3% per share €119.30(2) driven by double-digit share price increases of adidas and €m Pernod Ricard, offset by: 17,775 17,501 - Exits of Holcim and Mowi - (180) 6 (224) (516) (1) 181 -
Slide 12: Financial update
Financial update 12
Slide 13: Sound financial position
Financial update Sound financial position Loan To Value remains well below our upper limit of 25% and offers flexibility to execute the group’s strategy over time Liquidity profile Loan To Value €m Dec 22 June 23 Change in net debt 20.0% Gross cash 1,397 1,754 Gross debt (4,068) (4,028) Net debt Net
Slide 14: Consolidated net result of €450m
Financial update Consolidated net result of €450m Consolidated net result H1 2023 consolidated net result of €450m, compared to €(329)m in H1 2022 In € m H1 2022 H1 2023 Δ Cash earnings 384 388 +4 This result is primarily driven by: Mark to market and 137 57 (80) other non-cash items - Cash earnings
Slide 15: Cash earnings of €388m
Financial update Cash earnings of €388m Cash earnings Increase, from €384m to €388m, including: - higher net dividends from investments of €407m, boosted by In €m H1 2022 H1 2023 Δ an exceptional dividend from Imerys Net dividends from 325 407 + 82 investments - interest expenses being primarily imp
Slide 16: Outlook
Outlook 16
Slide 17: Enhanced shareholder returns: €810m FY 2023
Outlook Enhanced Accelerated share buyback program shareholder and cancellations(1) FY 2023 returns Accelerated share buyback program underscores the group’s confidence in €810m dividend per share the re-rating potential of its share price Total share buybacks estimated in FY 2023 vs. €643m in FY 20
Slide 18: FY 2023 outlook
Outlook FY 2023 outlook GBL’s priorities remained unchanged Priorities Thanks to a solid balance sheet and liquidity of of GBL’s teams - portfolio value creation €4.2bn - development of recently-acquired businesses Delivering - assessment of new opportunities is well positioned meaningful to seize n
Slide 19: Appendix
1. Appendix 19
Slide 20: A diversified portfolio with growth and resilience
Appendix A diversified portfolio with growth and resilience Thanks to active portfolio rotation, GBL’s portfolio is concentrated, yet well-diversified Listed Private Alternative Other(1) HQ consumer services consumer sustain- sustain- diversified digital health- health- consumer leisure digital dive
Slide 21: Webhelp & Concentrix: creating a global leader
Appendix Webhelp & Concentrix: creating a global leader The two groups have entered into an agreement which: creates a global leader generating $1.6bn of EBITDA in the customer experience (“CX”) sector combines two attractive and complementary companies enhances the global footprint and capabilities
Slide 22: Webhelp & Concentrix: demonstrating GBL's ability to create value
Appendix Webhelp & Concentrix: demonstrating GBL’s ability to create value for its private assets Under the terms of this deal, GBL will: be paid in Concentrix shares receive earn-out shares get a seller note for: - 12.9% of Concentrix’s outstanding common stock - earn-out shares that could give acc
Slide 23: Valuation of consolidated private assets
Appendix Valuation of consolidated private assets (1) €m Acquisition MoIC(2) NAV NAV NAV Variation Variation Major drivers 6/30/2023 3/31/2023 12/31/2022 (3 months) (6 months) Industry-wide de-rating, largely driven by investors’ perception of the negative impact of generative AI. The impact on the
Slide 24: ESG recognition
Appendix ESG recognition S&P Global Ratings Moody’s Investor Sustainalytics MSCI PRI CDP Services First CIS-1 9.4 1.5°C Top scores A- investment (positive) negligible aligned holding risk company to get an ESG Tied for first place MSCI Implied For several modules 2022 Climate score, evaluation out o
Slide 25: Disclaimer
Disclaimer Disclaimer This presentation has been prepared by Groupe Bruxelles Lambert (“GBL”) exclusively for information purposes. This presentation is It is therefore obvious that a modification of the conditions prevailing in the financial markets will have an effect on the figures present incomp
Slide 26: For more information
Groupe Bruxelles Lambert (“GBL”) is an established investment holding company, with over sixty years of stock exchange listing and a net asset value of €17.5bn at the end of June 2023. As a leading and active investor in Europe, GBL focuses on long-term value creation with the support of a stable fa
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