Groupe Bruxelles Lambert Sa · EURONEXT:GBLB
Groupe Bruxelles Lambert Sa — Investor Day (November 2024)
60 slides from Groupe Bruxelles Lambert Sa's investor day presentation, Nov 7, 2024
Slide 1: Delivering meaningful growth
Delivering meaningful growth
Slide 2: Strategic update, November 7, 2024
Strategic update November 7, 2024
Slide 3: Table of Contents
Table of Contents 1. Introduction 2. chi investment portfolio: focus on value creation _ : Listed investments 7] i Direct private investments af / Ill Indirect private investments IV. Asset management j p Capital allocation & financial policy es ESG update é Conclusion i . |
Slide 4: 1. Introduction
1. Introduction Ian Gallienne | mm CEO Tt oo Fae ee i = ~— ea = he —@ep « =, a B all
Slide 5: GBL's differentiated approach
Introduction GBL’s differentiated approach * Through-the-cycle investor » Flexible holding period and exit horizon » Stable shareholders » Focus on direct private investments, with the ability to remain opportunistic on listed » Not dependent on fundraising » Four priority sectors, while maintaining
Slide 6: Significant portfolio rotation with growing emphasis on private investments
Introduction Significant portfolio rotation with growing emphasis on private investments 2021-2022 Seized multiple opportunities in an active market 2023- YTD 2024 Active, yet more focused on disposals 2025+ Outlook Increasingly active Portfolio Investments Disposals Investments Disposals rotation €
Slide 7: Objectives communicated at the 2021 Capital Markets Day
Introduction Objectives communicated at the 2021 Capital Markets Day Targets 2021 Capital Markets Day Objective 2021 Assessment today I Listed investments High single digit, ~ (eistiity at several Investments Il Direct private investments High teens v ae eet ae wes ut adieceerateimvesmeea) Mittens O
Slide 8: Diversified portfolio of ~€17bn, composed of high-quality companies
Introduction Diversified portfolio of ~€17bn, composed of high-quality companies Listed investments “) ~63% @@e@eece- with GBL as #1 shareholder BA r) ° . for ~78% ) of listed NAV SGS ——wncthicas adidas wrys —umicoré” concentrix Qute Direct private investments Majority owned | Minority owned 19% @ @
Slide 9: Strategic objectives and priorities
Introduction Strategic objectives and priorities Targeting (i) growth in NAV / share and (ii) increasing distribution to shareholders, leading to double digit TSR p.a.2 2027E target Priorities Weight® Returns I Listed investments Actively support companies and opportunistically monetize upside ~50%
Slide 10: Illustrative unlocking of value in the holding discount through disposals
Introduction Illustrative unlocking of value in the holding discount through disposals @ Discount : Ci Unlocking value Differential between » Crystallizing proceeds from a disposal and (i) intrinsic value of an asset and y distributing these to shareholders (ii) its implied value in GBL’s market cap
Slide 11: Committing to growth in NAV/share and double digit TSR p.a.
Introduction Committing to growth in NAV / share and double digit TSR® p.a., by redeploying into new assets and attractive return to shareholders Generating ~€7bn Redeploying & returning ~€7bn Cumulative FY 2024-2027 Cumulative FY 2024-2027 ~€1.7bn Disposals executed » : ~€3bn (crystallization of ad
Slide 12: Focus on uses — Deploying in new assets and return to shareholders
Introduction Focus on uses — Deploying in new assets and return to shareholders REINVESTMENTS IN NEW ASSETS RETURN TO SHAREHOLDERS priority to direct private, opportunistic on listed re-k ig DPS + op unistic buyb * Rationale: * Rationale: ee more impact on company strategy, more agility and crystall
Slide 13: Ambitions supported by a strong set-up
Introduction Ambitions supported by a strong set-up INVESTMENT TEAM GBL ECOSYSTEM 20+ Investment 5 Offices Vast investing professionals across Europe experience Ian Gallienne Frédéric Oudéa Michael Bredael Luca Bucelli CEO Senior Executive Advisor Partner Partner 25+ years experience 30+ years exper
Slide 14: 2. GBL investment portfolio: focus on value creation
2. GBL investment portfolio: focus on value creation Senior Executive Investment Advisor Partner
Slide 15: Proven playbook for value creation, with significant upside
GBL playbook GBL investment portfolio: focus on value creation Proven playbook for value creation, with significant upside Listed Direct \ gpyincirect\ Asset Tinvesim, \ HT private MI private. \ IV mgmt. Drive further value creation in current and future portfolio * Strategic roadmap * Strengthen sa
Slide 16: ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 17: Listed investments — Value creation: SGS case study
GBL playbook: Listed investments GBL investment portfolio: focus on value creation je mes was Listed investments — Value creation SGS case study YTD Q3 2024: +€789M or +28% Z The world leader in testing, inspection and certification " * The global number one provider of testing, inspection an ~€3.6b
Slide 18: Listed investments — Value creation: SGS case study
GBL investment portfolio: focus on value creation Listed investments — Value creation SGS case study Continuous growth... due to resilient organic base SGS @ ..With strong value levers backed by a solid balance sheet Governance: strengthened management team Appointed a new CEO and implemented a new
Slide 19: Listed investments - Significant upside
GBL investment portfolio: focus on value creation Listed investments - Significant upside High-quality growing, resilient and diversified, leaders in their respective sectors Value creation potential Upside potential operational levers and re-rating EWEBITDA NTM® Leverage % of NAV 5Y avg. Spot Lates
Slide 20: Direct private investments — Investment priority going forward
GBL investment portfolio: focus on value creation GBL playbook: Direct private investments Listed co 6 . Direct private investments — Investment priority going forward More value creation potential in an environment requiring more agility Positive proof points strong performance across the portfolio
Slide 21: GBL deal typology
GBL investment portfolio: focus on value creation Direct private investments —- GBL deal typology GBL playbook: Direct private investments re rela EA 6 |e wise Headquarters Europe with potential global reach Equity tickets €300m to €1bn Ownership Priority to majority, could consider significant mino
Slide 22: Differentiated sourcing capabilities
. d . GBL playbook: Direct private investments GBL investment portfolio: focus on value creation Direct private investments — Differentiated sourcing capabilities Indirect Asset Mi private \ LV mgmt. Different, disciplined and successful I Different Differentiated positioning on sourcing: Permanent
Slide 23: Differentiated sourcing capabilities
GBL playbook: Direct private investments GBL investment portfolio: focus on value creation Direct private investments — Differentiated sourcing capabilities IV ign Limited Benefit from GBL DNA Moderate auction & relationships leverage only select # of parties fit with family or founder, no dependenc
Slide 24: Value creation: Affidea case study
GBL playbook: Direct private investments GBL investment portfolio: focus on value creation io . —— Direct private investments -— Value creation Affidea case study YTD Q3 2024: eet The pan-European provider ~€1.4bn of advanced diagnostics and outpatient services NAV » Leading provider of integrated h
Slide 25: Value creation: Affidea video
GBL investment portfolio: focus on value creation Direct private investments — Value creation Affidea video
Slide 26: Affidea case study: doubled EBITDA with untapped upside
GBL playbook: Direct private investments GBL investment portfolio: focus on value creation io ‘wa Direct private investments - Value creation 1V Fagin. Affidea case study Doubled EBITDA... ... With untapped upside since GBL entry (<2.5Y) () from various growth initiatives Strategy: transformative in
Slide 27: Affidea — Guy Blomfield, CEO
Affidea Guy Blomfield, CEO
Slide 28: The largest provider of Out-of-Hospital care in Europe
GBL playbook: Direct private investments GBL investment portfolio: focus on value creation io ‘wa The largest provider of Out-of-Hospital care in Europe narecl\ py Asset Hise @ sffidea Company snapshot Service and delivery model i Current markets Wide range of integrat. vices Specialized servic (e.g
Slide 29: Pan-European value creation strategy with accelerating organic growth
GBL playbook: Direct private investments GBL investment portfolio: focus on value creation io . —— Pan-European value creation strategy, with accelerating organic growth alongside margin accretion @cffidea Strong organic growth, complemented by disciplined investments Revenue (€m) EBITDA (€m) © YTD
Slide 30: EBITDA has doubled since GBL's entry in July 2022
GBL playbook: Direct private investments @ sffidea GBL investment portfolio: focus on value creation EBITDA has doubled since GBL’s entry in July 2022 © Indrec)\ gy Asset ace Inv esRe Multiple levers have driven Affidea’s accelerated growth e.g., strategy pivot to outpatient, new investment approach
Slide 31: Strategic roadmap - Exemplary delivery models
\ \\_ GBL playbook: Direct private investments \ = Te IV ign @ sffidea GBL investment portfolio: focus on value creation @ Strategic roadmap - Exemplary delivery models
Slide 32: Strategic roadmap — Revamped strategy to align to market needs
. . GBL playbook: Direct private investments GBL investment portfolio: focus on value creation favestm. @ Strategic roadmap —- Revamped strategy to align to market needs ee @ sffidea Integrated Out-of-Hospital® models are essential for improved access, quality and cost effectiveness Challenge Soluti
Slide 33: Investments - Deploying growth capital across complementary categories
GBL playbook: Direct private investments GBL investment portfolio: focus on value creation io ‘wa @ Investments - Deploying growth capital across a broad set of complimentary categories, with disciplined valuation & target returns @Aoffidea IV ign Much broader scope than just ‘buy-and-build’? M&A Un
Slide 34: Digital & AI acceleration
GBL playbook: Direct private investments GBL investment portfolio: focus on value creation [A Ws va @ Digital & Al acceleration @ sffidea Technology is essential to Affidea’sintegrated service model, optimizing the full patient pathway referral =a 8 Affidea Outpatient E.g. diagnostic Day surge Centr
Slide 35: Governance - Board & management team were strengthened
GBL investment portfolio: focus on value creation @® Governance - Board & management team were strengthened and local teams empowered, resulting in a well-governed agile set-up GBL stays close to the business and supports all key strategic, investment and financing decisions + Heavily involved in th
Slide 36: Outlook - Continuing on the positive trajectory
GBL playbook: Direct private investments GBL investment portfolio: focus on value creation io = a Outlook - Continuing on the positive trajectory @ sffidea favestm, KEY TARGETS Sustained revenue growth (e.g., in line with previous years) Further margin accretion (e.g., via enhanced operating leverag
Slide 37: Sanoptis and Canyon — Significant upside
GBL investment portfolio: focus on value creation Direct private investments — Significant upside Sancptis €883m_—=1.3x 5% Jul-22 NAV MolC of portfolio Entry NAV date European leader in ophthalmology services Benefitting from structural sector tailwinds, resilience through economic cycles and increa
Slide 38: Canyon video
GBL investment portfolio: focus on value creation Direct private investments — Significant up Canyon video
Slide 39: Joe Topley, CEO
Joe Topley, CEO
Slide 40: Indirect private investments - GBL Capital
GBL investment portfolio: focus on value creation Indirect private investments - GBL Capital GBL playbook: Indirect private Formerly 4, Sienna Capital GBL CAPITAL 17% of GBL portfolio™ ~€2.8bn Provides additional diversification to GBL’s cash flows NAV and enhanced shareholder distribution capacity
Slide 41: Indirect private investments - GBL Capital
GBL playbook: Indirect private GBL investment Portfolio: focus on value creation es.\u = Indirect private investments - GBL Capital GBL|ICAPITAL Fund investments Direct co-investments (selected examples) (selected examples) HE Investment Partner ! Qe | Bregal Vv a — = a > | Unternehmerkapital HARBOU
Slide 42: Asset management - Sienna Investment Managers
GBL investment portfolio: focus on value creation Asset management - Sienna Investment Managers <1% of GBL portfolio ~€125m NAV ~€37bn @) Assets under management ~€5.5bn Third party funds raised in 2024 ~€116m Revenues 2024F il Sienna” INVESTMENT MANAGERS GBL playbook: Asset management re Stable str
Slide 43: Asset management - Sienna Investment Managers
GBL investment portfolio: focus on value creation Asset management - Sienna Investment Managers il Sienna” INVESTMENT MANAGERS GBL playbook: Asset management Evolution towards a positive EBITDA contribution, expected to be self-sustaining Acquire Transform 2021-2022 2023-2025 » Secure exclusive part
Slide 44: 3. Capital allocation & financial policy
3. Capital allocation & financial policy Senior Executive Advisor me . !
Slide 45: Financial profile — Disciplined management and strong liquidity
Capital allocation & financial policy Financial profile — Disciplined management, underpinned by a strong liquidity profile and conservative leverage Strong liquidity profile Conservative Loan To Value ~€4.3bn ~7.3% Ready to seize Target to remain below 10% through the cycle, new investment opportun
Slide 46: Outlook - Generating ~€7bn of cash, redeployed into new investments and returns
Capital allocation & financial policy Outlook - Generating ~€7bn of cash, redeployed into new investments and shareholder returns ® Generating cash... ~€7bn @ ... for new investments... ~€(3)bn SOURCES ~€7bn USES -€7bn (® -€3)bn ~€6b1 bd " @ Bn @ ibn = =-®@ cn ...and shareholder returns... ~€(3)bn L
Slide 47: Case study - Crystallizing ~€1.1bn of capital gains at adidas
Capital allocation & financial policy Case study - Crystallizing ~€1.1bn of capital gains at adidas €250 €200 €150 adidas share price performance (in € p.s.) Industry & adidas challenges (China, supply chain, brand heat, Yeezy) Performance acceleration Crystallizing returns €222 2024 disposal: €1.7b
Slide 48: Shareholder returns - Enhanced and growing dividend policy
Capital allocation & financial policy Shareholder returns - Enhanced and growing dividend policy, with opportunistic buybacks Enhanced and growing dividends : Steady growth | cee el eee—“‘al™OOOO... OPS ER --- ee ee beyond 2025 | Dividend ae age er share €5.00 P €2.50 DPS in 2025 DPS in 2021 CS 2021
Slide 49: Summary - Growth in NAV/share and DPS, leading to double digit TSR
Capital allocation & financial policy Summary - Growth in NAV / share and DPS, leading to double digit TSR p.a., with deployment into new investments & attractive shareholder returns @) _| Growing NAV / share NAV / share rowing DPS DPS a Funding new investments & return to shareholders Indirect priv
Slide 50: 4. ESG update
4.ESG update Senior Executive Advisor
Slide 51: Two-fold approach to responsible management
ESG update Two-fold approach to responsible management Family-owned: patrimonial values underpin our long-term commitment and corporate culture Governance: agile Board of Directors, supported on ESG by the Audit Committee and the Governance and Sustainable Development Committee Philanthropy: GBL ACT
Slide 52: 5. Conclusion
5. Conclusion Ian Gallienne | mm (o=16) Je — ea = he —@ep « =, a B all
Slide 53: Permanent capital and unique family DNA
Permanent capital and unique family DNA Differentiated sourcing capabilities Proven playbook for value creation
Slide 54: Conclusion: Multiple levers for value creation
Conclusion Multiple levers for value creation High-quality, diversified and growing portfolio with strong balance sheet » Listed: further upside potential across the portfolio » Direct private: emerging winners, with a clear strategy going forward * Indirect private: attractive diversification Reinv
Slide 55: Appendix
Append
Slide 56: Other listed investments
Appendix Other listed investments Pernod Ricard Créateurs de comivialité €2.3bn 14% 7% NAV Of portfolio GBL’sstake NAV () Key developments Post-Covid spirit boost across the industry in 2021-2022, triggering a share price rally GBL subsequently (2023-2024) crystallized a ~€500m stake for ~€331m of c
Slide 57: Other listed investments
Appendix Other listed investments : umicore €0.5bn 3% NAV Of portfolio NAWAO) 16% GBL’s stake Key developments + Normalization of precious metal prices post the 2021-2022 peaks * Industry-wide slowdown in electric vehicles combined with uncertainty around prevailing technology (NMC vs. LFP) (2) affe
Slide 58: Other listed investments
Appendix Other listed investments €0.1bn 1% NAV Of portfolio NAWAO) Key developments * Continued positive progress on the turnaround journey, with a rebound in commercial momentum & solid margin improvement * Successful portfolio rationalization, including through the sale of non-core geographies (e
Slide 59: Disclaimer
Disclaimer This presentation (the “Presentation") has been prepared by Groupe Bruxelles Lambert. (“GBL”). This presentation may not be distributed, published or reproduced, in full or in part, and the information contained herein must not be released by its recipients to third parties. The recipient
Slide 60: For more information
For more information: Xavier Likin Alison Donohoe Chief Financial Head of Investor Officer Relations Tel: +32 2 289 1772 Tel: +32 2 289 17 64 xlikin@gbl.com adonohoe@gpbl.com Groupe Bruxelles Lambert ("GBL") is an established investment holding company, with seventy years of stock exchange listing a
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