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Adjusted net assets

The change in GBL’s adjusted net assets, along with the change in its share price and results, is an important criterion for assessing the group’s performance.
The adjusted net assets are a conventional reference obtained by adding gross cash, treasury shares and deducting gross debt to the fair value of the investment portfolio.
The following valuation principles are applied:

  • Investments in listed companies and GBL treasury shares are valued at the closing price. However, the value of shares underlying any commitments made by the group is capped at the conversion/exercise price.
  • Investments in unlisted companies are valued at their book value, less any impairment, or at their share in shareholders’ equity, with the exception of the companies of Sienna Capital, not consolidated or accounted for using the equity method, which are marked to market as provided by the fund managers.


The portfolio includes:

  • The available-for-sale investments and investments in associates in the Holding segment;
  • Imerys; and
  • Sienna Capital and the companies active in private equity, debt and specific thematic funds.

Cash and debt

Net cash or, where applicable, net debt (excluding treasury shares), consists of gross cash (including quasi-liquidities) and gross debt.
Gross debt includes all the financial liabilities of the Holding segment (convertible and exchangeable bonds, retail bond and bank debt), valued at their nominal value.
Gross cash includes the cash and cash equivalents as well as the quasi-liquidities (trading assets, etc.) of the Holding segment. This is valued at the book or market value.
The cash and debt indicators are presented for the Holding segment to reflect GBL’s own financial structure and the financial resources available to implement its strategy.

Economic presentation of the consolidated result
Cash earnings

  • Cash earnings primarily include dividends from investments of the portfolio, income coming mainly from treasury management, net earnings from the trading   activity and tax refunds, less overheads, gross debt-related charges and taxes.

Cash earnings also constitute a factor for determining the company’s dividend payout level. All these elements are related to the Holding segment.

Mark to market and other non-cash

  • The concept of mark to market is one of the foundations of the fair value method of valuation as defined in IFRS international accounting standards, the principle of which is to value assets at their market value on the last day of the financial year.
  • Mark to market and other non-cash items in GBL’s accounts reflect the changes in fair value of the financial instruments bought or issued (exchangeable or convertible bonds, trading assets, options), the actuarial costs of financial liabilities valued at their amortised cost, as well as the ajustment of certain elements of cash earnings in accordance with IFRS rules (dividends decided but not paid out during the financial year but after the date of approval of the financial statements, dividends on treasury shares, etc.). These changes do not influence the group’s cash position. All these elements are related to the Holding segment.

Operating companies (associated or consolidated) and Sienna Capital

  • This column shows earnings from associated operating companies, namely operating companies in which the group has significant influence. Significant influence is presumed to exist if the group has more than 20% voting rights, directly or indirectly through its subsidiaries. Associated operating companies are recorded in the consolidated financial statements using the equity method.
  • Also included is income, group’s share, from consolidated operating companies, i.e. controlled by the group. Control
    is presumed to exist when GBL has more than 50% voting rights in an entity, either directly or indirectly.
  • This column also includes the contribution of result from Sienna Capital.

Eliminations, capital gains, impairments and reversals

The eliminations, capital gains, impairments and reversals include the elimination of dividends received from associated or consolidated operating companies as well as results from disposals, impairments and reversals of non-current assets and on discontinued activities. All these elements are related to the Holding segment.

Group’s shareholding

  • In capital: the percentage interest held directly and indirectly through consolidated intermediate companies, calculated on the basis of the number of shares in issue on 31 December.
  • In voting rights: the percentage held directly or indirectly through consolidated intermediate companies, calculated on the basis of the number of voting rights existing on 31 December, including suspended voting rights.

Loan to Value

The Loan to Value ratio is calculated on the basis of (i) GBL’s net indebted ness relative to (ii) the portfolio’s value of GBL increased by the value of the treasury shares underlying the bonds convertible into GBL shares. The methods for valuing the portfolio and treasury shares are identical to those used for the adjusted net assets.


The discount is defined as the percentage difference between the market capitalisation and the value of the adjusted net assets.