GBL Algemene Vergadering van Value Square Fund Equity World Groupe Bruxelles Lambert Zaterdag 9 maart 2013 Mr Olivier Pirotte Executive Summary Executive Summary 3 Contents Current Portfolio 4 Market Capitalization of European Peers 5 Shareholders Structure 6 Strategy Overview Strategy’s guidelines and dynamics 8 Overview of future portfolio evolution 9 Financial Pillar 10 Investments Criteria 12 History of Portfolio Management 14 Portfolio Rotation 15 Bond Issuances 16 Portfolio Overview Sectorial Allocation 20 Geographical Presence 21 Influence in Governance 22 Dividend yield 23 Growth potential 24 Sound financial structure 25 Structure costs 26 Financials Overview Financial Messages 28 Key Figures 29 Cash Earnings 30 Dividend Policy 31 Consolidated Results 32 Net Treasury and Financial Liquidity 33 Actual Gross Debt 34 Stock price development 35 Adjusted net assets value 36 Discount 37 Abbreviations Stock price performance €M: million euro GBL’s investment case 39 €B: billion euro Appendix 41 Groupe Bruxelles Lambert / 9 March 2013 1 Ian Gallienne / Managing Director Profiles Born on 23 January 1971, in Boulogne-Billancourt, France, French nationality. Ian Gallienne has a degree in Management and Administration, with a specialisation in Finance, from the E.S.D.E. in Paris and an MBA from INSEAD in Fontainebleau. ExecutiveHe began his career in Spain, in 1992, as co-founder of a commercial company. From 1995 to 1997, he was a member of management of a consulting firm specialised in the reorganisation of ailing companies in France. From 1998 to 2005, he was Manager of the private equity funds Rhône Capital LLC in New York and London. Since 2005, he has been a co-founder and Managing Director of the private equity funds Ergon Capital Partners in Brussels. He has been a Director of Groupe Bruxelles Lambert since 2009 andSummary Managing Director since 1 January 2012. Executive Summary Current Portfolio Market Capitalization of European Peers Shareholders Structure Contacts Olivier Pirotte CFO Tel. : +32 289 17 50 [email protected] Axelle Henry Deputy CFO / Investor Relations Tel. : +32 2 289 17 62 [email protected] Groupe Bruxelles Lambert / Analysts’ Meeting / Brussels / 6 March 2013 2 • GBL is the second largest Holding in Europe with a net Executive assets value of € 13,6B and a market cap of € 9,8B (1) Summary • GBL is public since 1956 and is controlled by the Frère and Desmarais families since 1990 • GBL acts as a professional shareholder and plays an active role in the governance and in the strategic decision making of the companies it invests in • GBL is a friendly and long term patrimonial investor • GBL portfolio is diversified and consists of industry leaders with a worldwide footprint and an exposure to growth areas • GBL has a well-balanced portfolio of high dividend yield and / or high growth potential companies • GBL is not leveraged and has significant liquidity available • GBL is committed to keep low structure costs • GBL has delivered solid dividend growth over the past 10 years • GBL’s model proved resilient and delivered above market returns since the beginning of the 2008 crisis (1) As at 1/3/13 Groupe Bruxelles Lambert / 9 March 2013 3 Current Portfolio 1 3,4 1 1 1 1,2,5 4.0% 5.0% 21.0% 56.9% 7.5% 7.2% Financial Strategic quoted participations Pillar GBL’s portfolio is Market 92.0 36.7 13.9 3.6 23.0 4.6 n.a. diversified and consists value (€B) of industry leaders Ranking in Top 5 # 1 Top 2 #1 Top 2 Top 2 n.a. their sector Total is a global, GDF SUEZ is the Lafarge is a world Imerys is the Pernod Ricard is Suez Through the integrated oil and world’s leading leader in building world’s leader in the world’s co- Environnement is control of Ergon gas group, with a independent materials : Minerals leader in Wine & one of the leader Capital Partners presence in the electricity cement, processing Spirits in Water and and its investments Chemical industry producer and the aggregates and Waste in Sagard and PAI Description 5th electricity ready-mix management Europe producer in concrete Europe Sources Companies, FactSet (31/12/2012) Notes 1 Equity ownership as of 31/12/2012 2 Of which 0.2% in marketable securities 3 Of which 0.3% in marketable securities 4 Issuance of a Suez Environnement exchangeable bond on 7th December 2012 for c. €400M, representing 6.9% of the total shares 5 Issuance of a GDF SUEZ exchangeable bond on 24th January 2013 for €1B, representing 2.3% of the total shares Groupe Bruxelles Lambert / 9 March 2013 4 Market Capitalization 15.1 of European Peers 9.3 5.0 4.4 4.3 GBL is the second largest 3.8 holding in Europe 2.6 2.3 2.3 2.1 1.2 0.7 0.7 3i FFP Exor GBL Paris Sofina Wendel Orléans Pargesa Eurazeo Investor Brederode Ackermans Industrivärden Market capitalization in €B Source FactSet (31/12/2012) Groupe Bruxelles Lambert / 9 March 2013 5 Shareholders Structure Frère Family Desmarais Family Belgium Canada Groupe Frère- Indirectly controlled Power Corporation Bourgeois / CNP of Canada at 50/50 by the Frère Family and the Desmarais Family 50% 50% Parjointco A shareholders’ agreement between the Desmarais / Frère families has been in place 56% since 1990 and routinely renewed (renewed up to Pargesa Holding 2029) S.A. 50% Groupe Bruxelles Lambert / 9 March 2013 6 Strategy Overview Strategy’s guidelines and dynamics Overview of future portfolio evolution Financial Pillar Investments Criteria History of Portfolio Management Portfolio Rotation Bond Issuance- GDF SUEZ Exchangeable bonds issuance Strategy’s • Objectives • Strategy Guidelines GBL aims for the long-term creation GBL strives to: and of shareholder value to: • Seek continuous portfolio rotation of Dynamics • Increase the intrinsic value of GBL’s mature and / or well-priced assets; diversified and resilient portfolio; • Increase sectorial and geographical • Increase cash earnings. diversification; • Invest in companies in which we can have increased stakes and influence (typically between 10% - 30% equity stakes); • Selectively pursue investments in 3 categories of holdings: • Strategic participations; • « Incubator » stakes; • « Financial Pillar ». • Maintain a robust financial structure with a net cash position and a strong liquidity while allowing temporary indebtedness; • Continue to deliver above market returns: dividend growth combined with sustained share price performance of GBL. Groupe Bruxelles Lambert / 9 March 2013 8 Groupe Bruxelles Lambert / 8 March 2013 The portfolio will evolve over the medium term to a group of holdings of Overview of which: Future Portfolio • Strategic participations: approximately 7-8 holdings in listed companies Evolution representing in the range of 75% - 80% of NAV; • « Incubator » stakes: a small selection of quoted and non-quoted participations of smaller size (between € 100M and € 500 M per investment); these investments would represent in total approximately 10% of NAV; • « Financial Pillar »: Controlling stakes in private equity and other funds where GBL acts as an anchor or “seed” investor (with preferential economics) and provides assistance with strategy, governance and development. These investments would represent in total approximately 10% of NAV in the medium-term. Strategic participations « Incubator » stakes « Financial Pillar » Targeted allocations in 75% - 80% 10% - 15% 10% terms of ≈ 10,000M€ ≈ 1,500M€ ≈ 1,000M€ adjusted net assets value Groupe Bruxelles Lambert / 9 March 2013 9 Financial Pillar: • GBL intends to develop its investments in private equity and other unlisted assets in a new segment called the Financial Pillar. Private equity + • The Financial Pillar will primarily emphasize seeding investment teams while also considering direct investments in external managers. Other funds • The objectives of the Financial Pillar - Accomplish an innovative evolution in GBL’s strategy and a useful diversification of its revenues - Earn attractive risk adjusted returns that exceed GBL’s cost of capital and contribute to increasing the NAV over time - Attract talent around the activities of GBL and serve as a “best ideas factory” for GBL’s core strategic investments The new Financial Pillar segment will be led by Colin Hall. Mr. Hall holds a Bachelor of Arts degree from Amherst College and an MBA from the Stanford University Graduate School of Business. He began his investing Evolution career in the merchant banking group of Morgan Stanley. Prior Financial Pillar Today Financial Pillar in 5 Years to assuming the leadership of Other GBL’s new Financial Pillar fund E activity, he was a partner in a hedge fund sponsored by Tiger Other fund D Management and worked for ten 40% 60% years at the private equity firm Other Rhône Group in London and fund C Other Other fund A New York. fund B Groupe Bruxelles Lambert / 9 March 2013 10 Financial Actual Portfolio Pillar: • A private equity investment company for the mid- • A private equity investment company sponsored market Private equity by the Desmarais family and GBL • Total committed capital of € 775M • Total committed capital of € 1,345M (GBL: € 563M) + (GBL: € 170M) • Invests in companies with dominant positions in • Invests in mid-sized businesses in Europe, with Other funds niche markets in Benelux, France, Germany, an emphasis on France Iberia, Italy and Switzerland • Funds: Sagard I, II • Funds: Ergon Capital Partners I, II & III Value as at 31/12/12: € 318M, - Manufacturer of in vitro diagnostic equipment and reagents for small and - Publisher of educational, university and Animal health laboratory Manufacturer of refrigerated