long-term engaged & responsible ownership BUSINESS UPDATE - PowerPoint PPT Presentation

March 2020 Building leading companies through long-term engaged & responsible ownership

BUSINESS UPDATE INVESTMENT APPENDIX OVERVIEW 2019 key figures CASE & OUTLOOK €20.3bn €15.2bn 0.95 Net asset value Market capitalization Raw beta + 25.7% vs. year-end 2018 + 23.5% vs. year-end 2018 Low volatility vs. reference index 3.4% 12.0% €4.0bn NTM dividend yield Annualized TSR Liquidity profile + 326 bps vs. reference index vs. 2.6% on a weighted average for In support to the strategy’s since the launch of the new the listed portfolio deployment strategy in 2012 14.1 3.7% < 20 bps Sustainalytics rating LTV Holding opex 1 Low Risk Conservative financial policy < 15 bps taking into account at holding level yield enhancement income Note: All information as of December 31, 2019 (1) Ratio of operating expenses vs. net asset value 2

BUSINESS UPDATE INVESTMENT APPENDIX OVERVIEW 2019/20 highlights CASE & OUTLOOK €3.9bn asset rotation Exit from the ✓ energy sector €771m disposal Acquisition Disposal Disposal finalized Asset rotation €499m Acquisition €499m €374m Capital gain €0.7bn Portfolio ✓ €867m €411m Capital gain Capital gain Stake increased rebalancing Net asset value €333m Majority €106m from 16.7% to Forward sales reaching €1.8bn Cross-asset ✓ ownership 18.9% maturing in 6.8% residual 7.6% residual (9% of GBL’s agility January 2020 February 2020 stake Private asset stake net asset value) Sound & resilient Good operational performance in FY19 across the portfolio, with the exception of Imerys • portfolio Resilient portfolio from a net leverage perspective • performance • Issuance of €750m of bonds exchangeable into LafargeHolcim shares at attractive terms Solid financial • Significant financial flexibility in support to the strategy’s deployment position • Execution of the share buyback authorizations Strengthened • Increased transparency with FY19 disclosures under the GRI framework and first UNPRI reporting ESG • Continued dialogue with the portfolio companies through our representatives at the Boards of Directors disclosures 3

BUSINESS UPDATE INVESTMENT APPENDIX OVERVIEW Total Shareholder Return outperforming our reference index CASE & OUTLOOK + 904bps 22.6% + 366bps 19.3% + 357bps + 487bps + 505bps + 466bps 16.1% 16.0% 15.6% + 260bps + 326bps 14.2% COVID-19 13.7% 13.6% + 367bps 12.5% impact 12.0% 11.1% 9.9% 9.6% 9.1% 9.0% 8.7% Europe 50 7.0% 6.2% Stoxx 2011-12 2011-13 2011-14 2011-15 2011-16 2011-17 2011-18 2011-19 2011-20ytd + 82% + 56% + 44% + 27% Dec-19 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Note: Annualized TSR calculated as from year-end 2011 / GBL stock price (in dark blue) vs. our reference index (in grey - rebased) / Source: Bloomberg (March 6, 2020) 4

BUSINESS UPDATE INVESTMENT APPENDIX OVERVIEW Active portfolio rotation and capital allocation in the context of the new strategy CASE & OUTLOOK Dynamic asset rotation carried out since 2012 in the context of the portfolio rebalancing strategy Disposals Investments Geographic and sector diversification • Strengthening of the portfolio’s growth and • €10.1bn €9.6bn resilience profile Including €6.3bn through the Including €5.9bn invested in Increased exposure to private and alternative • exit from the energy & utilities the consumer goods and assets sectors business services sectors Dividends Dividends & Successful redeployment of the disposal • received share buybacks proceeds from the high-yielding assets of the energy and utilities sectors €3.9bn €3.9bn Share buyback programs authorized in 2018 • From the portfolio companies Including €3.6bn distributed to and 2019 and Sienna Capital our shareholders Note: 2012-20ytd flows 5

BUSINESS UPDATE INVESTMENT APPENDIX OVERVIEW A diversified portfolio of solid and resilient companies, leaders in their sector CASE & OUTLOOK Portfolio breakdown Resilient profile Solid and resilient base of high-quality listed companies, leaders in their • of our listed investments sector and operating across all continents Investment Conservative net leverage of 1.4x 1 on a weighted average across the listed Unrated • grade ("IG") 35% portfolio 63% Cross-asset agility with private & alternative assets representing 15% of • S&P & GBL’s portfolio Moody’s ratings Sub-IG 2% 9.0% 19.9% European mandate with a global footprint (2) 4.4% 8.2% €20bn (1) Asia 16.0% EMEA 37% 34% 9.7% 11.6% 15.6% Americas 29% (1) Information as of December 31, 2019, excluding treasury shares, net debt position and the participation into Total which was fully exited in March and April 2019 (2) Combined sales’ geographic split calculated on a weighted average basis, on the information disclosed by the listed portfolio companies as of March 6, 2020 6

BUSINESS UPDATE INVESTMENT APPENDIX OVERVIEW Engaged investor acting in support of its portfolio companies’ strategy (1/2) CASE & OUTLOOK Path towards value creation Engaged presence in the Board of Directors of all our portfolio companies with a focus on: • Strategic roadmap • Selection, nomination and remuneration of the key executive management • Capital allocation adequacy and notably shareholder remuneration Seeking double-digit TSRs through the cycle • Support to the active 2015 2006 Continuous support to • portfolio management the strategic roadmap 19.4% 15.6% • Governance changes of NAV of NAV Governance changes • • New cost savings plan Increased return to • 38% 13% • Enhanced shareholders’ shareholders TSR 1 TSR 1 remuneration Strengthening of • • Accelerating M&A 2013 2005 sustainability • Improved profitability 15.2% 11.3% Active portfolio • objective of NAV of NAV management • Changes to the Executive Support to the financial • 9% 6% Management and the discipline and further TSR 1 TSR 1 Board of Directors deleveraging Note: Annualized TSRs calculated with reinvested dividends and on the period running from year-end 2011 or first investment (if more recent) and until Dec. 31, 2019 7

BUSINESS UPDATE INVESTMENT APPENDIX OVERVIEW Engaged investor acting in support of its portfolio companies’ strategy (2/2) CASE & OUTLOOK Long-term growth • 2013 1987 Governance changes strategy • Short-term capital • 9.4% of 7.9% ‘Connect & Shape’ • spending adjustment NAV of NAV transformation program Mid- to long-term • Talc litigation • fundamentals on the 20% 4% RBM activity remaining M&A • TSR 1 TSR 1 intact Acquisition closed in Support to the changes • • 2019 2017 November 2019 to the Executive Management team 4.3% 2.2% €0.9bn investment • of NAV of NAV New organizational • 64.7% ownership • structure alongside the (6)% co-founders and 400+ Strategic measures in • TSR 1 managers terms of IT and ERP Delisting of the company 2015 2017 • Governance changes • effective in December 1.5% 1.2% Increased involvement • 2019 of NAV of NAV within Ontex’s Board 23% ownership alongside • ‘Transform2Grow’ • EQT and Corporación (8)% strategic plan Financiera Alba TSR 1 Note: Annualized TSRs calculated with reinvested dividends and on the period running from year-end 2011 or first investment (if more recent) and until Dec. 31, 2019 8

BUSINESS UPDATE INVESTMENT APPENDIX OVERVIEW Focus on GBL’s investment thesis into Webhelp CASE & OUTLOOK Transition to Global Leader National player European champion • Offshore Expansion of French • 20+ acquisitions since • ✓ Strong management team led by co-founders first onshore operations 2013 displaying a solid track record mover • Organisation by • Worldwide coverage with ✓ Large players to increase market share by sectoral business unit a presence in leveraging scale and access to differentiating 35+ countries technology • First M&A deal • 50.000+ employees with ✓ Growth potential organically and through M&A in an expertise in 40+ a fragmented market languages €1.5bn Shared strategic vision with the co-founders and • the top management Long term perspective • Engaged and supportive owner • Far reaching global network • Financial ressources to fuel M&A • 2001 2006 2012 2019 9

BUSINESS UPDATE INVESTMENT APPENDIX OVERVIEW Dynamic development of Sienna Capital, GBL’s alternative investments platform CASE & OUTLOOK €2.5bn of capital committed since inception Active asset rotation in 2019 €403m new commitments 4 Direct investment/ 9 external managers Co-investment €459m capital invested €247m realized proceeds At year-end 2019 €2.1bn Cumulative capital invested €0.5bn Undrawn capital committed €1.8bn Stake value (8.8% of GBL’s NAV) 18 funds €5.7bn of capital €1.2bn Realized proceeds since inception committed by other €3.0bn Total value since inception +150 LPs 1.4x Underlying operating Implied multiple of invested capital companies 10