Our strategic objective

Creating value over the long term through continuous and sustainable growth of our intrinsic value and dividend distribution

Our objective is to continue to deliver a Total Shareholder Return outperforming our reference index, the Stoxx Europe 50, over the long term through the increase in the net asset value and an attractive dividend yield.

Over the 2012-2019 period following the initiation of the portfolio rebalancing strategy, GBL has outperformed its reference index by 326 basis points in terms of annualized Total Shareholder Return (“TSR”).

The 12.0% TSR has to be analyzed on a risk-adjusted basis, taking into account the high quality and the strong creditworthiness of GBL’s portfolio assets.

Annualized Total Shareholder Return as of December 31, 2019

(with reinvested dividends)

Annualized Total Shareholder Return as of December 31, 2019

Delivering continuous and sustainable growth of our intrinsic value over the long term

Growth of intrinsic value is pursued by GBL through an efficient portfolio management leading to value creation over the long term.

Since the initiation of the rebalancing strategy in 2012, GBL’s net asset value has increased by 7.3% per year which supported the 12.0% Total Shareholder Return over the same period.

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Net asset value

(in € billion)

Net asset value

Maintaining continued dividend growth and an attractive dividend yield over the long term

GBL’s dividend policy is to deliver stable or gradually increasing dividends over time.

Over the last 15 years, GBL has:

  • nearly doubled its gross dividend per share, which corresponds to a 4.6% CAGR over this period; and
  • returned EUR 5.9 billion to its shareholders.

Distributable reserves amounted to EUR 10.9 billion(1) at year-end 2019.

(1) Before FY19 dividend distribution remaining subject to the approval of the General Shareholders’ Meeting to be held on April 28, 2020

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Dividend per share

Dividend per share

Over the last 15 years
graph 1
/ year
Gross dividend per share
€ 5.9 bn
Returned to shareholders
/ year
Net asset value
Total shareholder return

Portfolio management strategy

GBL’s asset rotation is based on a continuous assessment of the long-term return potential of the existing investments in portfolio, in comparison with new investment alternatives.

Balanced business model

GBL’s dividend distribution is primarily derived from the net dividend contribution of its portfolio companies and Sienna Capital, after deduction of its cost structure.

GBL’s payout ratio is computed based on the cash earnings. The payout computation consequently does not take into account the cash inflows from asset disposals (including the capital gains).

As a result of (i) the redeployment of the proceeds from the disposal of the high-yielding assets of the energy and utilities sectors and (ii) an exceptional inflow for an amount of EUR 127 million (see more details in pages 95 and 96 of the 2019 Annual Report), GBL’s dividend distribution in relation to FY19 is lower than its cash earnings, resulting in a positive dividend gap.

GBL has a solid liquidity profile ensuring the availability of resources to implement its investment strategy throughout the economic cycle.