Interim Financial Report

At 30 June 2018

Interim Financial Report At 30 June 2018

(TRANSLATION FROM ITALIAN ORIGINAL WHICH REMAINS THE DEFINITIVE VERSION)

Interim Management Report at 30 June 2018

1.Corporate Bodies	4
2. Summary income statement and statement of financial position	5
3. Group Structure and Shareholders	6
4. Business Model and operating segments	8
5. Key events involving the Group in the first half of 2018	10
6. Group economic performance	12
7. Breakdown of Group equity and financial positions	14
8. Related Party Transactions	16
9. Other disclosures	16
10. Events after 30 June 2018 and business outlook	17

Half-year Condensed Consolidated Financial Statements at 30 June 2018

A.Consolidated Statement of Financial Position	20
B. Consolidated Income Statement	21
C. Consolidated Statement of Comprehensive Income	22
D. Consolidated Statement of Cash Flows	23
E. Statement of Changes in Consolidated Shareholders' Equity	24
1. Corporate information	25
2. Measurement criteria and accounting standards	25
3. Breakdown of the main items of the Statement of Financial Position	35
4. Breakdown of the main items of the Income Statement	51
5. Other disclosures	56
6. Events after the reporting period at 30 June 2018	62
Report of the Independent Auditors

Interim Management Report At 30 June 2018

Interim Management Report at 30 June 2018

1. Corporate Bodies

Board of Directors

-	Carlo Achermann	Chairman
-	Stefano Achermann	Chief Executive Officer
-	Claudio Berretti	Director
-	Anna Lambiase	Director
-	Cristina Spagna	Independent Director
-	Paola Tagliavini	Independent Director
-	Davide Dattoli	Independent Director
-	Gianluca Antonio Ferrari	Independent Director
-	Claudio Roberto Calabi	Independent Director

The Board of Directors was appointed by the Shareholders' Meeting of 27 April 2017 for 3 years, with term of office expiring on approval of the financial statements at 31 December 2019. Board Director Claudio Roberto Calabi was appointed by the Shareholders' Meeting of 26 April 2018 to replace Board Director Alberto Mocchi, previously co-opted pursuant to art. 2386 of the Italian Civil Code on 19 July 2017, following the resignation of Board Director Umberto Quilici.

Board of Statutory Auditors

-	Giuseppe Leoni	Chairman
-	Rosita Natta	Standing Auditor
-	Stefano De Angelis	Standing Auditor
-	Roberta Pirola	Alternate Auditor
-	Biones Ferrari	Alternate Auditor

The Board of Statutory Auditors was appointed by the Shareholders' Meeting of 23 April 2015 for 3 years, with term of office expiring on approval of the financial statements at 31 December 2017. Upon natural expiry, the Board of Statutory Auditors was renewed by the Shareholders' Meeting of 26 April 2018 for 3 years, with term of office expiring on approval of the financial statements at 31 December 2020. In this regard, please refer to the paragraph "Events after 30 June 2018 and business outlook".

Control and Risk Committee

-	Paola Tagliavini	Independent Chairperson
-	Claudio Roberto Calabi	Independent Member
-	Gianluca Antonio Ferrari	Independent Member

The Control and Risk Committee was appointed by Board of Directors' resolution on 27 April 2017 for 3 years, expiring on approval of the financial statements at 31 December 2019. Director Claudio Roberto Calabi was appointed by the Board of Directors' Meeting of 3 May 2018 as member of the Control and Risk Committee to replace Director Alberto Mocchi.

Remuneration and Appointments Committee

-	Cristina Spagna	Independent Chairperson
-	Claudio Berretti	Member
-	Davide Dattoli	Independent Member

The appointment of the Remuneration and Appointments Committee was renewed by Board of Directors' resolution on 27 April 2017 for 3 years, expiring on approval of the financial statements at 31 December 2019.

Independent Auditors

Deloitte & Touche S.p.A. The independent auditors received their assignment at the Shareholders' Meeting of 10 May 2012.

2. Summary income statement and statement of financial position

(amounts in EUR millions)

Key profitability indicators

	1H 2018	1H 2017
Value of production	69.1	63.0
EBITDA	9.3	8.3
EBIT	6.7	5.2
Profit (loss) before tax	6.2	4.6
Net profit (loss)	3.6	2.5

Key equity and financial indicators

	30.06.2018	31.12.2017
Group Shareholders' equity	52.3	52.8
Net Invested Capital	75.6	59.1
Net Operating Working Capital (NOWC)	28.4	13.6
Net Financial Position	(22.0)	(5.5)

Value of production by operating segment

	1H 2018	1H 2017
Business Consulting	48.0	47.7
ICT Solutions	21.1	15.2
Other	0.0	0.1
TOTAL	69.1	63.0

Value of production by customer type

	1H 2018	1H 2017
Banks	48.8	50.6
Insurance	12.9	6.6
Industry	4.4	4.6
Public Administration	1.5	1.1
Other	1.5	0.1
TOTAL	69.1	63.0

Value of production by geographic area

	1H 2018	1H 2017
Italy	41.9	37.6
DACH Region (Germany, Austria, Switzerland)	19.5	16.1
UK and Spain	6.1	7.5
Cee Region (Poland, Ukraine, Romania)	1.6	1.8
TOTAL	69.1	63.0

Group Headcount

	30.06.2018	31.12.2017
Executives	133	106
Middle managers	128	117
White-collar staff	909	875
Blue collar	2	2
Apprentices	22	14
TOTAL	1,194	1,114

3. Group Structure and Shareholders

The Be Group (Be for short) is one of the leading Italian players in the IT Consulting sector. The Group provides Business Consulting, Information Technology and Professional services. A combination of specialist skills, advanced proprietary technologies and a wealth of experience enable the Group to work with leading financial and insurance institutions and Italian industry to improve their competitive capacity and their potential to create value. With around 1,200 employees and branches in Italy, Germany, the United Kingdom, Switzerland, Austria, Poland, the Ukraine, Spain and Romania, the Group recorded a total value of production of Euro 69.1 million in the first half of 2018.

Be Think, Solve, Execute S.p.A. (Be S.p.A. for short), listed in the Segment for High Requirement Shares (STAR) of the Electronic Share Market (MTA), performs management and coordination activities for the Group companies pursuant to art. 2497 et seq. of the Italian Civil Code, through control and coordination of operating, strategic and financial decisions of the subsidiaries and through management and control of reporting flows for the preparation of both annual and interim accounting documents.

At 30 June 2018, the number of shares outstanding totalled 134,897,272, and the shareholding structure as indicated in disclosures pursuant to art. 120 of the "Consolidated Law on Finance" (TUF) and in relation to notices received in accordance with internal dealing regulations - was as follows:

	Nationality	No. of Shares	% Ordinary capital
Tamburi Investment Partners S.p.A.	Italian	31,582,225	23.41
iFuture Power in Action S.r.l.	Italian	13,519,265	10.02
Axxion S.A.	Luxembourg	13,476,237	9.99
Stefano Achermann	Italian	7,771,132	5.76
LOYS Investment S.A.	Luxembourg	6,893,251	5.11
Be Think Solve Execute S.p.A	Italian	1,516,690	1.12
Float		60,138,472	44.59
Total		134,897,272	100.00

Shareholders

The following chart shows the Be Group structure at 30 June 20181.

¹ The table above does not include Paystrat Solutions SL (Pyngo), 65.26% of which is held by Payments and Business Advisors S.L (Paystrat), Confinity GmbH, 50% of which is held by Fimas Gmbh and the remaining 50% by Q-Fin GmbH, as well as the companies LOC Consulting Ltd and Be Sport, Media & Entertainment Ltd, owned by the company iBe TSE Limited, currently in liquidation.

4. Business Model and operating segments

"Be" is a group specialising in the IT Consulting segment of the Financial Services sector. The organisation is divided by design into the different specialisations of business consulting, the provisions of solutions and platforms and the professional services of the ICT Solutions segment.

I. BUSINESS CONSULTING

The business consulting segment focuses on the capacity to support the financial services industry in implementing business strategies and/or creating important plans for change. Its specialist skills are in constant development in the areas of payment systems, planning & control methods, regulatory compliance, information gathering and corporate governance systems for financial processes and asset management;

No. of employees	663 employees at 30 June 2018.
Core business	Banking, Insurance.
Segment revenue at 30 June 2018	Euro 48.0 million.
Operating units	Rome, Milan, London, Kiev, Warsaw, Munich, Vienna, Zurich, Frankfurt, Magdeburg, Madrid.

The Group's Business Consulting segment operates through the following subsidiaries:

Be Consulting S.p.A. Established in 2008, the company operates in the sector of management consulting for financial institutions. Its aim is to provide support to the Systemically Important Financial Institutions (SIFIs) in creating value, with a particular focus on changes that affect business, the IT platforms and corporate processes. Be Think, Solve, Execute holds 100% of Be Consulting S.p.A.'s share capital.
iBe TSE Limited. Based in London, this company operates on the UK and European market, focusing on financial services consulting, with a customer base with high profiles on the UK and international markets. It specialises in the banking and financial sectors, particularly providing support in the field of innovation and payment services. Since 2012, Be Consulting S.p.A. has held 100% of the company's share capital. In 2014, the company changed its name from the previous Bluerock Consulting Ltd.
Be Sport, Media & Entertainment Ltd. Established in August 2014 and based in London, this company is 75% owned by iBe TSE Limited and provides data analysis and enhancement services, loyalty programmes, digital distribution of proprietary content and the transformation of sports venues and large museums into cashless operations. The company has been placed into liquidation.
LOC Consulting Ltd. A company whose registered office is in London, specialised in consulting services for the management of complex transformation programmes in the financial and public sectors in the UK. The company iBe TSE Limited holds 100% of this company's share capital. The company's operations have been transferred to the Parent Company and the company has been placed into liquidation.
Be Ukraine LLC. Established in Kiev in December 2012, it performs consulting and development activities for core banking systems and in the areas of accounting and bank reporting. Since the second quarter of 2017, Be Consulting S.p.A. has held 100% of the company's share capital.
Be Poland Think, Solve and Execute, sp zo.o. Established in Warsaw in January 2013, since the second quarter of 2017, Be Consulting S.p.A. has held 100% of the company's share capital.
Be Think, Solve Execute GmbH (formerly Targit GmbH). Company based in Munich, it specialises in ICT consulting services, primarily on the German, Austrian and Swiss markets, operating through its two wholly owned subsidiaries, Targit GmbH Wien based in Vienna and Be TSE Switzerland AG based in Zurich. From the second half of 2017, Be Consulting S.p.A. controls the Group with a 90.00% interest.
R&L AG. A company whose registered office is close to Munich, 58.84% of which is owned by Be Think, Solve Execute GmbH, specialised in consulting and IT solutions in the Payments sector and specifically as regards SWIFT.
FIMAS GmbH. A company based in Frankfurt, 60% of which is held by Be Think, Solve Execute GmbH, specialised in consulting services and IT for asset managers, Stock Markets, CSD, clearing houses and custodian banks. The company has a 100% stake in Q-Fin Gmbh and a 50% interest in Confinity GmbH.
Q-FIN GmbH. Company based in Magdeburg and operating in the area of Frankfurt, 100% held by Fimas GmbH. It offers specialised services to banks for the personalisation, parameterisation and integration of "Front-Arena", a front-office trading and risk management solution. The company has a 50% interest in Confinity GmbH.
Confinity GmbH. Joint venture consisting of FIMAS and Q-FIN, operating in the specific sector of the supply - to the customers of FIMAS and Q-FIN - of temporary personnel (ANÜ – Arbeitnehmerüberlassung) for which it possesses the appropriate licence.
Payments and Business Advisors S.L. (Paystrat for short). A company based in Madrid, 60% of which is held by Be Consulting S.p.A., specialised in advisory services for operators in the payments industry, in areas such as digital wallets, loyalty and market intelligence. The company has a 65.26% interest in Paystrat Solutions S.L.

II. ICT SOLUTIONS

The ICT Solutions segment is able to bring together business skills and technology solutions, products and platforms, creating theme-based business lines also as part of highly specialised segment-leading applications;

No. of employees	483 employees at 30 June 2018.
Core Businesses	Banking, Insurance, Energy and Public Administration.
Segment revenue at 30 June 2018	Euro 21.1 million.
Operating units	Rome, Milan, Turin, Spoleto, Pontinia, Pomezia, Trento, Bucharest.

The Be Group operates in the ICT Solutions segment through the following subsidiaries:

• Be Solutions S.p.A. aims to offer specialised system integration solutions and services for proprietary products/platforms or those of third-party market leaders. In recent years, special skills have been developed in corporate control and governance systems, in the insurance sector, in the management of multi-channel systems and in billing systems for the utilities segment. Cooperation agreements and partnerships are currently in place with a number of the major players in the ICT industry (Oracle, Microsoft, IBM). The partnerships regard: retailing of catalogue software products, access to training courses and HR certification, as well as professional training on the main product developments in the sector of the two providers. Moreover, the 2017 merger by incorporation of Be Professional Services S.p.A. and Be Enterprise Process Solutions S.p.A., companies operating in the segment of ICT services and the development of services, solutions and platforms in BPO/DMO, into Be Solutions Solve, Realize & Control S.p.A. was aimed at implementing/managing "Business Process Outsourcing", namely the outsourcing of entire business processes through the use of technological solutions and the contribution of specialised resources.

Be Think Solve Execute RO S.r.l. Company established in July 2014 and based in Bucharest, it develops the Group's "near shoring" operations involving high complexity projects in the System Integration segment.
Iquii S.r.l. Established in 2011, it specialises in the development of web and mobile applications, in the design of wearables and in the management of the Internet of Things; in addition, it has significant expertise in managing social media, integrated marketing and digital PR.
Juniper Extensible Solutions S.r.l. Italian digital company established in May 2000 and based in the province of Trento, 51%-owned by Be Solutions S.p.A. and active in the development of web-based and multimedia software solutions in the Sports, Music and Events sectors.

5. Key events involving the Group in the first half of 2018

Important resolutions of the Shareholders' Meeting

On 26 April 2018, the Shareholders' Meeting of Be met in an ordinary session, on second call, and resolved on the following: the consolidated income statement and statement of financial position results at 31 December 2017, the income statement and statement of financial position results of the Parent Company Be S.p.A. at 31 December 2017, allocation of the profit for 2017, report on remuneration pursuant to article 123-ter of Italian Legislative Decree no. 58 of 24 February 1998, appointment of the Board of Statutory Auditors and determination of the remuneration for the relative members, appointment of a new Director and purchase and allocation of own shares.

With regard to the purchase of own shares on 2 July 2018, the first phase of the purchase plan whose launch was disclosed to the market on 24 May 2018 has been completed; overall, during the period between 25 May 2018 and 2 July 2018, the Company purchased 1,549,048 of its ordinary shares (1,516,690 at 30 June 2018) for a total of Euro 1,382,378.38.

Events important to business development

Be signed a strategic collaboration agreement for the period 2018-2024 with a leading European group in the Bancassurance sector.

The agreement provides for the sale of the perpetual user licence of the "Life" platform already in use by the company and owned by Be. It also includes any technological developments and support and assistance services for the next seven years. The contract has a total value of Euro 11.9 million for the entire period, of which Euro 5.8 million relative to 2018 for granting of the user licence and evolutionary maintenance and the provision of professionals for its technological evolution and the relative support and assistance services.

The parties have also formalised the conditions for further adoption of the solution in other Group companies, wherever they are located. Be retains ownership rights on the platform.

In April, the Be group was selected as key partner to support one of the leading banking groups in Europe in management of the SWIFT architecture transformation programme. For two years, the activity will be assigned in successive lots which - if activated until completion of the entire programme - will have a total value of Euro 7.7 million.

This will enable Be to strengthen its strategic presence in the financial sector. The complexity of the current architecture, the high level of technical specialisation required for execution, the international presence of the institute and the capacity to transfer skills are distinctive factors of the programme.

In May, the Be Group acquired the entire capital of Q-fin GmbH through subsidiary Fimas GmbH, strengthening its presence in Germany in the Capital Market area. Q-fin, established in 2003 in Magdeburg, offers specialised services to banks for the personalisation, parameterisation and integration of "Front-Arena", a front-office trading and risk management solution. In this area, Q-fin provides support to implementation and migration projects, interfacing with other platforms (e.g., SAP), as well as operations management services. The company owns a suite of Fund Administration, Portfolio Management and Risk Management products aimed predominantly at German government funds. The main clients are major federal and investment banks in Germany. During 2017, Q-fin recorded revenues of Euro 1,700,000 and a gross operating margin (EBITDA) of Euro 350,000.

During the month of June, Be Group signed a three-year partnership agreement with Finastra, aimed at developing professional services and solutions for investment banking at the international level, with a focus on the markets of Italy, Germany, Austria, Switzerland, Great Britain and Poland. The agreement focuses on strategic projects in the Capital Markets, Treasury and Corporate Banking areas, combining Be's skills in business transformation consulting with the supply of Finastra products and solutions. With over 9,000 customers around the world, Finastra is market leader in finance software, providing financial institutions with mission critical solutions of every size, at the customer premises, housed in their own infrastructure or in the cloud.

Moreover, Be was also selected to lead implementation of the programme for adaptation to the PSD2 - Payments Service Directive 2 - regulations for all of the retail banks of a major European banking group. The Be Team will support the institute's work groups in setting up and coordinating the adaptation programme over a period of 24 months and for a total value of Euro 2 million.

Also in June, Be purchased 51% of Juniper Extensible Solutions S.r.l., Italian digital company active in the development of web-based and multimedia software solutions in the Sports, Music and Events sectors. The deal will allow the Be Group to achieve synergies in the Sport&Entertainment segment - in which the group is already present with its company IQUII - and to integrate into Juniper's customer base the entire value proposition of professional services in the Digital Strategy, Mobile & Web Development and Customer Experience & Design areas. The purchase price for the majority stake was set as Euro 457,693. The parties agreed on a "Put & Call" structure to purchase the residual capital in successive tranches within the next 7 years.

6. Group economic performance

The following table illustrates the Be Group income statement for the first half of 2018 compared with the same period of the previous year, both originating from half-year condensed consolidated financial statements prepared according to IAS/IFRS.

One of the main indicators adopted to assess the economic and financial performance of the Group is the Gross Operating Margin, or Earnings before Interest, Taxes, Depreciation & Amortisation (EBITDA) an indicator not envisaged by the IFRS (Communication CERS/05-178b).

Also note that the operating term "Value of production" used in this report is intended to be synonymous with the item "Total Revenue" used in the "Restated Consolidated Income Statement" of the Half-year Condensed Consolidated Financial Statements at 30 June 2018.

Restated Consolidated Income Statement

Amounts in EUR thousands	1H 2018	1H 2017	D	D (%)
Operating revenue	68,416	61,608	6,808	11.1%
Other revenue and income	733	1,357	(624)	(46.0%)
Value of production	69,149	62,965	6,184	9.8%
Cost of raw materials and consumables	(106)	(127)	21	(16.5%)
Cost of services and use of third-party assets	(26,183)	(23,462)	(2,721)	11.6%
Personnel costs	(34,960)	(32,261)	(2,699)	8.4%
Other costs	(363)	(738)	375	(50.8%)
Internal capitalisations	1,801	1,948	(147)	(7.5%)
Gross Operating Margin (EBITDA)	9,338	8,325	1,013	12.2%
Amortisation and depreciation	(2,637)	(2,992)	355	(11.9%)
Write-downs and provisions	(16)	(101)	85	(84.2%)
Operating Profit (Loss) (EBIT)	6,685	5,232	1,453	27.8%
Net financial income and expense	(534)	(659)	125	(19.0%)
Profit (loss) before tax from continuing operations	6,151	4,573	1,578	34.5%
Taxes	(2,180)	(1,713)	(467)	27.3%
Net profit (loss) from continuing operations	3,971	2,860	1,111	38.8%
Net profit (loss) from discontinued operations	0	0	0	n.a.
Consolidated net profit (loss) including minority interests	3,971	2,860	1,111	38.8%
Net profit (loss) attributable to minority interests	385	393	(8)	(2.0%)
Group net profit (loss)	3,586	2,467	1,119	45.4%

The Value of production amounted to Euro 69.1 million, compared to Euro 63.0 million in the first half of 2017, for an increase of Euro 6.2 million (+9.8%).

Operating revenue was Euro 68.4 million, up 11.1% compared to 30 June 2017 (Euro 61.6 million).

The improvement in operating revenue was more significant for ICT activities overall (+40.0%), while the Business Consulting area recorded a 1.7% increase in operating revenue.

The operating revenue recorded by foreign subsidiaries (which represents 39.7% of the Group's operating revenue) amounted to Euro 27.2 million, up compared to 30 June 2017 (Euro 25.1 million, 40.8% of the Group's operating revenue).

Operating costs increased by around Euro 5.2 million compared to the first half of the previous year (+9.5%). In particular:

service costs were around Euro 26.2 million (+11.6%);
personnel costs totalled Euro 35.0 million (+8.4%);
the capitalisation of costs, mainly related to personnel working on projects to develop in-house software platforms, amounted to Euro 1.8 million (-7.5%).

The Gross Operating Margin (EBITDA) was Euro 9.3 million, up 12.2% compared to 2017 (Euro 8.3 million). The EBITDA margin was 13.5% against 13.2% in the first half of 2017.

Amortisation and depreciation totalled Euro 2.6 million, down Euro 0.4 million compared to the first half of 2017 (Euro 3.0 million). The write-downs and provisions made during the period were down compared to Euro 0.1 million in the first half of 2017.

Operating profit (loss) (EBIT) was Euro 6.7 million, showing significant growth (+27.8%) compared to 30 June 2017 (Euro 5.2 million). The EBIT Margin stood at 9.7%, against 8.3% in the first half of 2017.

Profit before tax from continuing operations was Euro 6.2 million, up 34.5% compared to 30 June 2017 (Euro 4.6 million); tax for the first half of 2018 totalled Euro 2.2 million, compared to Euro 1.7 million for the first half of 2017.

Net profit was Euro 3.6 million, up sharply by 45.4% compared to Euro 2.5 million at 30 June 2017.

At 30 June 2018, discontinued operations had no impact on the income statement; therefore, the costs and revenue recognised in the restated consolidated income statement refer solely to "continuing operations".

The breakdown of the Value of production by operating segment is provided below:

Amounts in EUR millions	1H 2018	%	1H 2017	%	D (%)
Business Consulting	48.0	69.5%	47.7	75.7%	0.6%
ICT Solutions	21.1	30.5%	15.2	24.1%	38.8%
Other	0.0	0%	0.1	0.2%	n.a.
TOTAL	69.1	100.0%	63.0	100.0%	9.7%

Value of production by operating segment

An analysis of the breakdown of the Value of production by operating segment shows the following:

in the Consulting segment, the value of production recorded in the first half of 2018 increased slightly against the first half of 2017;
ICT activities overall recorded a value of production up by 38.8% compared to the first half of 2017, generated on the insurance market.

The breakdown of the Value of production by customer type is also provided below:

Value of production by customer type

Amounts in EUR millions	1H 2018	%	1H 2017	%	D (%)
Banks	48.8	70.6%	50.6	80.3%	(3.6%)
Insurance	12.9	18.7%	6.6	10.5%	95.5%
Industry	4.4	6.3%	4.6	7.3%	(4.3%)
Public Administration	1.5	2.2%	1.1	1.7%	36.4%
Other	1.5	2.2%	0.1	0.2%	n.a.
TOTAL	69.1	100.0%	63.0	100.0%	9.7%

The breakdown of the Value of production by geographic area is also provided below:

Amounts in EUR millions	1H 2018	%	1H 2017	%	D (%)
Italy	41.9	60.6%	37.6	59.7%	11.4%
DACH Region (Germany, Austria, Switzerland)	19.5	28.2%	16.1	25.6%	21.1%
UK and Spain	6.1	8.9%	7.5	11.9%	(18.7%)
Cee Region (Poland, Ukraine, Romania)	1.6	2.3%	1.8	2.8%	(11.1%)
TOTAL	69.1	100.0%	63.0	100.0%	9.7%

Value of production by geographic area

Note that during the first half of 2018, 60.6% of production was generated by the domestic market and the remaining 39.4% by the foreign market.

The significant weight of the DACH (DE, AUT and SUI) Region on the value of production is confirmed, contributing Euro 19.5 million to revenues, up 21.1% compared to the first half of 2017.

The Cee Region (Poland, Ukraine, Romania) is down compared to the corresponding period of the prior year (Euro 1.6 million, compared to Euro 1.8 million at 30 June 2017), as are the UK and Spanish markets, which generated Euro 6.1 million in the first half of 2018, compared to Euro 7.5 million in the first half of 2017.

7. Breakdown of Group equity and financial positions

A summary of the consolidated statement of financial position at 30 June 2018 is shown below, compared to the same statement at 31 December 2017.

Amounts in EUR thousands	30.06.2018	31.12.2017	D	D (%)
Non-current assets	86,688	85,995	693	0.8%
Current assets	42,177	28,600	13,577	47.5%
Non-current liabilities	(22,884)	(22,097)	(787)	3.6%
Current liabilities	(30,420)	(33,418)	2,998	(9.0%)
Net Invested Capital	75,561	59,080	16,481	27.9%
Shareholders' Equity	53,534	53,563	(29)	(0.1%)
Net Financial Indebtedness	22,027	5,517	16,510	n.a.

Restated Statement of Financial Position

Non-current assets are mostly represented by goodwill (Euro 61.9 million), recognised at the time of business combinations, intangible assets (Euro 16.9 million) mostly relating to software, technical fixed assets (Euro 1.8 million), deferred tax assets (Euro 3.7 million) and receivables and other non-current assets (Euro 2.1 million).

Current assets recorded a rise of Euro 13.6 million compared to 31 December 2017, due mainly to the increase in trade receivables for Euro 12.9 million and the increase in receivables and other current assets and tax receivables totalling Euro 0.7 million.

Non-current liabilities mostly refer to payables for post-employment benefits (TFR) of Euro 7.2 million, deferred tax liabilities of Euro 6.5 million and provisions for risks and charges of Euro 2.1 million, plus other liabilities of Euro 7.1 million, predominantly referring to the remaining share of the discounted price for the future acquisition of minority interests though put&call agreements.

Current liabilities - mostly comprised of trade payables of Euro 9.7 million and other liabilities and payables and payables for indirect taxes totalling Euro 20.7 million - recorded an overall decrease of Euro 3.0 million.

Consolidated shareholders' equity was Euro 53.5 million, compared to Euro 53.6 million at 31 December 2017. The breakdown of Net working capital at 30 June 2018 is shown below:

Amounts in EUR thousands	30.06.2018	31.12.2017	D	D (%)
Inventories	14	15	1	(6.7%)
Trade receivables	38,122	25,240	7,754	30.7%
Trade payables	(9,737)	(11,667)	2,333	(20.0%)
Net Operating Working Capital (NOWC)	28,399	13,588	10,087	74.2%
Other short-term receivables	4,041	3,345	806	24.1%
Other short-term liabilities	(20,683)	(21,751)	3,022	(13.9%)
Net Working Capital (NWC)	11,757	(4,818)	13,915	n.a.

Net financial indebtedness at 30 June 2018 was Euro 22.0 million, compared to Euro 5.5 million at 31 December 2017 and Euro 18.0 million at 30 June 2017.

Note that the cash flow generation is affected by a certain degree of seasonality as regards the outlay necessary to advance activities in progress, the billing cycle and related collections, which traditionally lead to arranging cash outflows in advance in the first half of the year whereas collections are focused in the final quarter of the year.

	Amounts in EUR thousands	30.06.2018	31.12.2017	D	D (%)
	Cash and cash equivalents at bank	16,948	22,767	(5,819)	(25.6%)
A	Cash and cash equivalents	16,948	22,767	(5,819)	(25.6%)
B	Current financial receivables	339	591	(252)	(42.6%)
	Current bank payables	(9,681)	(3,789)	(5,892)	n.a.
	Current share of medium/long-term indebtedness	(12,960)	(12,968)	8	(0.1%)
	Other current financial payables	(170)	(43)	(127)	n.a.
C	Current financial indebtedness	(22,811)	(16,800)	(6,011)	35.8%
D	Current Net Financial Position (A+B+C)	(5,524)	6,558	(12,082)	n.a.
	Non-current bank payables	(16,459)	(12,021)	(4,438)	36.9%
	Other non-current financial payables	(44)	(54)	10	(18.5%)
E	Non-current Net Financial Position	(16,503)	(12,075)	(4,428)	36.7%
F	Net financial position (D+E)	(22,027)	(5,517)	(16,510)	n.a.

With regard to items in the table on the consolidated net financial position, in addition to cash and cash equivalents of Euro 16.9 million (Euro 22.8 million at 31 December 2017), we also draw attention to:

current payables to banks at 30 June 2018 amounting to around Euro 22.8 million (Euro 16.8 million at 31 December 2017), relating to:
current bank payables of Euro 9.7 million (Euro 3.8 million at 31 December 2017), mainly represented by:

a) Euro 6.1 million in short-term credit facilities classed as "advances on invoices" for Euro 1.3 million, "accounts payable to suppliers" for Euro 3.2 million and "account overdrafts" for Euro 1.6 million;

b) Euro 3.5 million in use of the short-term loan with last instalment in April 2019;
the short-term portion of loans obtained for around Euro 13.0 million (Euro 13.0 million at 31 December 2017);
other non-current financial payables refer mainly to interest accrued and not settled and to the payable to purchase own shares relating to June, with payment to the bank in July.
non-current financial payables of Euro 16.5 million (Euro 12.0 million at 31 December 2017), referred mainly to payables to banks for unsecured medium/long-term loans due beyond 12 months;
other non-current financial payables refer mainly to finance lease contracts.

8. Related Party Transactions

With regard to Related party transactions, including therein intercompany transactions, note that the same cannot be quantified as atypical or unusual, as part of the normal course of operations of Group companies. Said transactions are settled at arm's length, on the basis of the goods and services provided.

In the Notes to the Half-year Condensed Consolidated Financial Statements, the company provides the information requested by art. 154-ter of the Consolidated Law on Finance, as indicated by Consob regulation no. 17221 of 12 March 2010.

9. Other disclosures

9.1. Main risks and uncertainties to which the Be Group is exposed

Detailed below are the main risks and uncertainties that could affect the business activities, financial conditions and prospects of the Company and the Group.

• Risks associated with "Operating Performance"

In order to further improve operating performance, the Company believes it is important to achieve the strategic objectives of the 2017-2019 Business Plan. This Plan, updated for the three-year period 2018-2020 for the purpose of Impairment Testing (hereinafter 2018-2020 Plan), was prepared by the Directors on the basis of forecasts and assumptions inherent to future trends in operations and the reference market. The forecasts represent the best estimate of future events expected to arise and of action that management intends to take. These were estimated on the basis of final figures, orders already received or sales to be made to established customers, as such presenting a lower degree of uncertainty and therefore a higher probability of actually occurring. Vice versa, the assumptions relate to future events and action, fully or partly independent from management action. Consequently, the Directors acknowledge that the strategic objectives identified in the 2018-2020 Plan, though reasonable, present profiles of uncertainty due to the chance nature of future events occurring and the characteristics of the reference market, and also as regards the occurrence of events represented in the plan, their extent and timing.

• Risks associated with the "Financial Position"

The Be Group is exposed to financial risks associated with its operations, particularly interest rate risk, liquidity risk, credit risk and the risk of cash flow fluctuations. In addition, essential upkeep of the bank credit facilities held is important to the Group in order to meet its overall current funding needs and to achieve the objectives of the 2018-2020 Plan.

• Risks associated with "Goodwill Impairment"

The Be Group could have a negative impact on the value of its shareholders' equity if there should be any impairment to goodwill recognised in the financial statements at 30 June 2018 because of the incapacity to generate sufficient cash flows to satisfy those forecast and envisaged in the 2018- 2020 Plan.

• Risks associated with "Litigation Liabilities"

The Be Group is involved in proceedings before various judicial authorities, divided into litigation cases as defendant - i.e. where the Company has been summoned by third parties - and cases as plaintiff where the Company has summoned third parties.

• Risks associated with "Restructuring" activities

In recent years, the Be Group began a restructuring of its area of business with necessary actions to reduce personnel, also through transfers. There is a risk of appeals against such actions and the proceedings have given rise to prudential allocation of provisions in the company financial statements. Uncertainty remains in any event regarding the decisions of the authorities involved.

• Risks associated with "Competition"

The ICT consulting market is highly competitive. A number of competitors could be able to expand their product mix to our detriment. In addition, an intensification of the level of competition could affect Group business and the option of consolidating or widening its competitive position in the reference sectors, with subsequent repercussions on business and on the income, equity and financial positions.

• Risks associated with "Technological Change"

The Group operates in a market characterised by profound and continuous technological changes that call for a Group capacity to adapt quickly and successfully to such developments and to the changing technology needs of its customers. Any inability of the Group in adapting to new technologies and therefore to changes in the needs of its customers could have a negative impact on operating performance.

• Risks related to dependence on key personnel

The Group's success depends largely on certain key personnel that have been a determining factor in its development, in particular the executive directors of the Parent Company. The Group companies also have an executive team with many years of experience in the field, playing a crucial role in managing the Group's activities. The loss of any of these key figures without a suitable replacement, and the inability to attract and retain new, qualified resources, could have a negative impact on the Group's prospects, business activities, operating performance and financial position. Management considers in any event that the Company has an operational and executive structure capable of ensuring management of corporate affairs as a going concern.

• Risks associated with internationalisation

As part of its internationalisation strategy, the Group could be exposed to risks typical of international operations, including those relating to changes in the political, macroeconomic, tax and/or regulatory frameworks and to fluctuating exchange rates.

9.2 Investment in research and development

The Group's research and development activities have always aimed to consolidate customer relations, develop new forms of business for them and acquire new customers. The main research and development activities conducted entail developing the Group-owned technological platforms; in particular, during the first half of 2018, investments mostly regarded the development and upgrade of the technological platforms "Universo Sirius" - relating to the management of Life and Non-life insurance portfolios, "Archivia" - relating to the management of document processes and the development of the company's internal ICT system - by Be Solutions, as well as development of the digital applications by Iquii and of the IT platforms of Paystrat, Q-Fin GmbH and Be Think, Solve Execute GmbH, specialised in various areas of the banking industry. The Be Group will continue to invest in research and development, and also plan other project opportunities. These new initiatives will aim to expand the product mix, creating technology platforms for the provision of services to its customers.

10. Events after 30 June 2018 and business outlook

In view of the results recorded by the Group in the first half of the year, it is reasonable to confirm the 2018 growth forecast for production volumes and profit and, in more general terms, the targets for internal growth and new acquisitions in 2017-2019 already announced to the market on 15 September 2016. Italy, Germany, the United Kingdom and Spain are the markets that the Group intends to pursue through external growth strategies.

No significant events occurred after the end of the half-year.

Mention only goes to completion on 2 July 2018 of the first phase of the own shares purchase plan whose launch was disclosed to the market on 24 May 2018. More specifically, the Company acquired 32,358 ordinary shares on 2 July 2018, for a total value of Euro 29,122.

Milan, 2 August 2018.

/signed/ Stefano Achermann For the Board of Directors Chief Executive Officer

Half-year Condensed Consolidated Financial Statements At 30 June 2018

A. Consolidated Statement of Financial Position

Amounts in EUR thousands	Notes	30.06.2018	31.12.2017
NON-CURRENT ASSETS
Property, plant and equipment	1	1,839	1,918
Goodwill	2	61,893	59,722
Intangible assets	3	16,861	17,082
Equity investments in associates measured at net equity	4	0	32
Equity investments in other companies	5	329	300
Loans and other non-current assets	6	2,112	2,217
Deferred tax assets	7	3,654	4,724
Total non-current assets		86,688	85,995
CURRENT ASSETS
Inventories	8	14	15
Trade receivables	9	38,122	25,240
Other assets and receivables	10	3,438	2,778
Direct tax receivables	11	603	567
Financial receivables and other current financial assets	12	339	591
Cash and cash equivalents	13	16,948	22,767
Total current assets		59,464	51,958
Total discontinued operations
TOTAL ASSETS		146,152	137,953
SHAREHOLDERS' EQUITY
Share capital		27,109	27,109
Reserves		21,654	21,177
Net profit (loss) attributable to owners of the Parent Company		3,586	4,478
Group Shareholders' equity		52,349	52,764
Minority interests:
Capital and reserves		800	102
Net profit (loss) attributable to minority interests		385	697
Minority interests		1,185	799
TOTAL SHAREHOLDERS' EQUITY	14	53,534	53,563
NON-CURRENT LIABILITIES
Financial payables and other non-current financial liabilities	15	16,503	12,075
Provision for non-current risks	20	2,074	2,244
Post-employment benefits (TFR)	17	7,207	6,858
Deferred tax liabilities	18	6,509	6,223
Other non-current liabilities	19	7,094	6,772
Total Non-current liabilities		39,387	34,172
CURRENT LIABILITIES
Financial payables and other current financial liabilities	16	22,811	16,800
Trade payables	21	9,737	11,667
Provision for current risks	20	31	31
Tax payables	22	1,021	618
Other liabilities and payables	23	19,631	21,102
Total Current liabilities		53,231	50,218
Total discontinued operations		0	0
TOTAL LIABILITIES		92,618	84,390
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		146,152	137,953

The effects of related party transactions and non-recurring transactions on the consolidated income statement in accordance with Consob Resolution no. 15519 of 27 July 2006 are illustrated in a specific statement of financial position in paragraph 5.3.

B. Consolidated Income Statement

Amounts in EUR thousands	Notes	1H 2018	1H 2017
Operating revenue	24	68,416	61,608
Other revenue and income	25	733	1,357
Total Revenue		69,149	62,965

Raw materials and consumables	26	(106)	(127)
Service costs	27	(26,183)	(23,462)
Personnel costs	28	(34,960)	(32,261)
Other operating costs	29	(363)	(738)
Cost of internal work capitalised	30	1,801	1,948
Amortisation, depreciation and write-downs:
Depreciation of property, plant and equipment	31	(321)	(305)
Amortisation of intangible assets	31	(2,316)	(2,687)
Allocations to provisions	32	(16)	(101)
Total Operating Costs		(62,464)	(57,733)

Operating Profit (Loss) (EBIT)		6,685	5,232

Financial income		26	25
Financial expense		(560)	(684)
Effect of measurement at equity		0	0
Total Financial Income/Expense	33	(534)	(659)

Profit (loss) before tax		6,151	4,573

Current income taxes	34	(1,019)	(795)
Deferred tax assets and liabilities	34	(1,161)	(918)
Total Income taxes		(2,180)	(1,713)

Net profit (loss) from continuing operations		3,971	2,860

Net profit (loss) from discontinued operations		0	0

Net profit (loss)		3,971	2,860

Net profit (loss) attributable to minority interests	13	385	393

Net profit (loss) attributable to owners of the Parent Company		3,586	2,467

Earnings (loss) per share:
Basic earnings per share (Euro)	35	0.03	0.02
Diluted earnings per share (Euro)	35	0.03	0.02

C. Consolidated Statement of Comprehensive Income

Amounts in EUR thousands	1H 2018	1H 2017
Net profit (loss)	3,971	2,860
Items not subject to reclassification in the income statement:
Actuarial gains (losses) on employee benefits	11	239
Tax effect on actuarial gains (losses)	(3)	(66)
Items subject to reclassification in the income statement
when certain conditions are met:
Gains (losses) on cash flow hedges	10	20
Translation gains (losses)	40	(210)
Other items of comprehensive income	57	(17)
Net comprehensive profit (loss)	4,028	2,843
Attributable to:
Owners of the Parent Company	3,643	2,444
Minority interests	385	399

D. Consolidated Statement of Cash Flows

Amounts in EUR thousands	Notes	1H 2018	1H 2017
Net profit (loss)		3,971	2,860
Amortisation, depreciation and write-downs	31	2,637	2,992
Non-monetary changes in post-employment benefits (TFR)		680	558
Net financial expense in the income statement	33	556	718
Taxes for the period	34	1,019	795
Deferred tax assets and liabilities	34	1,161	918
Losses on current assets and provisions	32	16	101
Increase in internal work capitalised	30	(1,801)	(1,948)
Other non-monetary changes		10	26
Exchange rate conversion differences		11	(20)
Cash flow from operating activities		8,260	6,999
Change in inventories	8	1	23
Change in trade receivables	9	(12,578)	(8,534)
Change in trade payables	21	(2,057)	(2,572)
Use of bad debt provisions	20	(186)	(232)
Other changes in current assets and liabilities		(3,617)	(5,496)
Taxes paid		0	(98)
Post-employment benefits paid	17	(68)	(346)
Other changes in non-current assets and liabilities		(320)	(121)
Change in net working capital		(19,001)	(17,375)
Cash flow from (used in) operating activities		(10,740)	(10,376)
(Purchase) of property, plant and equipment net of disposals	1	(161)	(300)
(Purchase) of intangible assets net of disposals	3	(107)	(1,439)
Cash flow from business combinations net of cash acquired		(886)	(427)
(Purchase)/sale of equity investments and securities		(67)	0
Cash flow from (used in) investing activities		(1,086)	(2,166)
Change in current financial assets	12	388	(622)
Change in current financial liabilities	16	5,770	2,666
Financial expense paid		(516)	(655)
Change in non-current financial liabilities	15	4,417	747
Cash paid to purchase own shares	14	(1,353)	0
Cash paid for purchase of share pertaining to third parties		0	(852)
Distribution of dividends paid to Group shareholders	14	(2,698)	(1,996)
Distribution of dividends paid to minority interests	14	0	(350)
Change in share of minority interests	14	0	0
Cash flow from (used in) financing activities		6,008	(1,062)
Cash flow from (used in) discontinued operations			0
Cash and cash equivalents		(5,819)	(13,603)
Net cash and cash equivalents - opening balance	13	22,767	33,109
Net cash and cash equivalents - closing balance	13	16,948	19,506
Net increase (decrease) in cash and cash equivalents		(5,819)	(13,603)

E. Statement of Changes in Consolidated Shareholders' Equity

Amounts in EUR thousands	Share capital	Reserves and retained earnings	Profit (loss) for the period	Group Shareholder s' equity	Minority interests	Total
SHAREHOLDERS' EQUITY AT 31.12.2016	27,109	19,219	4,246	50,574	486	51,060
Net profit (loss)			2,467	2,467	393	2,860
Other items of comprehensive income		(24)		(24)	6	(18)
Net comprehensive profit (loss)		(24)	2,467	2,444	399	2,843
Allocation of prior year profit (loss)		4,246	(4,246)	0		0
Dividend distribution		(1,996)		(1,996)	(350)	(2,346)
(Purchases)/Disposals of Minority Interests		46		46	(46)	0
SHAREHOLDERS' EQUITY AT 30.06.2017	27,109	21,491	2,467	51,067	489	51,556

Amounts in EUR thousands	Share capital	Reserves and retained earnings	Profit (loss) for the period	Group Shareholder s' equity	Minority interests	Total
SHAREHOLDERS' EQUITY AT 31.12.2017	27,109	21,177	4,478	52,764	799	53,563
Net profit (loss)			3,586	3,586	385	3,971
Other items of comprehensive income		56		56	1	57
Net comprehensive profit (loss)		56	3,586	3,642	386	4,028
Allocation of prior year profit (loss)		4,478	(4,478)			0
Purchase of own shares		(1,353)		(1,353)		(1,353)
Dividend distribution		(2,698)		(2,698)		(2,698)
Other changes		(6)		(6)		(6)
SHAREHOLDERS' EQUITY AT 30.06.2018	27,109	21,654	3,586	52,349	1,185	53,534

Notes to the consolidated financial statements

1. Corporate information

The Be Group is one of the leading Italian players in the IT Consulting sector. The Group provides Business Consulting, Information Technology and Professional services. A combination of specialist skills, advanced proprietary technologies and a wealth of experience enable the Group to work with leading financial and insurance institutions and Italian industry to improve their competitive capacity and their potential to create value. With around 1,200 employees and branches in Italy, Germany, the United Kingdom, Switzerland, Austria, Poland, Ukraine, Spain and Romania, in the first half of 2018 the Group recorded total revenues of Euro 69.1 million.

Be Think, Solve, Execute S.p.A. (Be S.p.A. for short), listed in the Segment for High Requirement Shares (STAR) of the Electronic Share Market (MTA), performs management and coordination activities for the Group companies pursuant to art. 2497 et seq. of the Italian Civil Code, through control and coordination of operating, strategic and financial decisions of the subsidiaries and through management and control of reporting flows in readiness for preparation of both annual and interim accounting documents.

The Half-Year Condensed Consolidated Financial Statements at 30 June 2018 were approved for publication by the Parent Company Board of Directors on 2 August 2018.

2. Measurement criteria and accounting standards

2.1. Presentation criteria

The Half-Year Condensed Consolidated Financial Statements of the Be Group at 30 June 2018 (also referred to as the "Half-year Consolidated Financial Statements") were prepared in application of art. 154-ter of the Consolidated Law on Finance and in accordance with IAS 34 - Interim Financial Reporting. Therefore, they do not include all information required for annual financial statements and must be read together with the financial statements prepared at 31 December 2017.

The Be Group consolidated income statement is presented by using a classification of individual components based on their nature. This format complies with the management reporting method adopted by the Group and is therefore considered more representative than a presentation by item allocation, providing more reliable and more significant indications for the business sector concerned. With reference to the statement of financial position, a presentation format has been adopted that divides assets and liabilities into current and non-current, as permitted by IAS 1.

The consolidated statement of cash flows indicates cash flows during the period and classified among operating, investing and financing activities.

Cash flows from operating activities are recognised using the indirect method. The statement of changes in consolidated shareholders' equity was prepared in compliance with IAS 1. With regard to segment reporting in accordance with IFRS 8, note that in view of the Group's business operations the reference format is that for operating segments, a better description of which can be found in paragraph 2.9 "Segment reporting".

The Financial Statements and the notes to the financial statements are presented in thousands of Euro unless otherwise indicated. There could be differences in the unit amounts shown in the tables below due to rounding.

In preparing these financial statements, the Directors used going concern assumptions and therefore prepared the statements on the basis of standards and criteria applying to fully operative companies. For further information, please refer to paragraph 2.3 "Disclosure on going concern assumptions".

The accounting principles adopted are the same as for the previous year, except for those entering into force from 1 January 2018 and adopted by the Group for the first time, i.e.:

IFRS 15 Revenue from Contracts with Customers (published on 28 May 2014 and integrated with further clarifications published on 12 April 2016) which will replace standards IAS 18 - Revenue and IAS 11 - Construction Contracts, as well as interpretations IFRIC 13 - Customer Loyalty Programmes, IFRIC 15 - Agreements for the Construction of Real Estate, IFRIC 18 - Transfers of Assets from Customers and SIC 31 - Revenues-Barter Transactions Involving Advertising Services. The standard establishes a new revenue recognition model, which will be applied to all contracts stipulated with customers, with the exception of those that fall within the scope of application of other IAS/IFRS standards such as leases, insurance contracts and financial instruments. The fundamental steps for the recognition of revenue according to the new model are:
identifying the contract with the customer;
identifying the performance obligations of the contract;
establishing the price;
allocating the price to the performance obligations of the contract;
the recognition criteria for revenue when the entity fulfils each performance obligation.

The standard was applied from 1 January 2018; adoption of this standard did not have any impact on the Group's Half-Year Condensed Consolidated Financial Statements.

Final version of IFRS 9 Financial Instruments (published on 24 July 2014). This document encompasses the results of the IASB project to replace IAS 39:
it introduces the new criteria for the classification and measurement of financial assets and liabilities (together with measurement of the unsubstantial changes in financial liabilities);
with regard to the impairment model, the new standard requires that the estimate of losses on loans be made on the basis of the expected losses model (and not on the incurred losses model used by IAS 39) using supportable information that is available without undue cost or effort, and that includes historical, current and forecast information;
it introduces a new hedge accounting model (increase in the types of transactions eligible for hedge accounting, change in the way that forward contracts and options are recognised when included in a hedge accounting relationship, changes to the effectiveness test).

The standard was applied from 1 January 2018; adoption of this standard did not have any significant impact on the amounts and disclosures in the Group's Half-Year Condensed Consolidated Financial Statements.

• Amendment to IFRS 2 "Classification and measurement of share-based payment transactions" (published on 20 June 2016), which contains certain clarifications regarding the recognition of the effects of vesting conditions in the presence of cash-settled sharebased payments, the classification of share-based payments with the characteristics of net settlement and the recognition of changes to the terms and conditions of a share-based payment which changes the classification from cash-settled to equity-settled. The amendments were applied from 1 January 2018.

The adoption of this amendment had no effect on the Group's Half-year Condensed Consolidated Financial Statements.

• Document entitled "Annual Improvements to IFRSs: 2014-2016 Cycle", published on 8 December 2016 (including IFRS 1 First-Time Adoption of International Financial Reporting Standards - Deletion of short-term exemptions for first-time adopters, IAS 28 Investments in Associates and Joint Ventures – Measuring investees at fair value through profit or loss: an investment-by-investment choice or a consistent policy choice, IFRS 12 Disclosure of Interests in Other Entities – Clarification of the scope of the Standard) which partly integrate the pre-existing standards. The majority of the amendments were applied from 1 January 2018.

The adoption of these amendments has had no effect on the Group's Half-year Condensed Consolidated Financial Statements.

• Amendment to IAS 40 "Transfers of Investment Property" (published on 8 December 2016). These amendments clarify the transfers of a property from, or to, investment property. More specifically, an entity must reclassify a property under, or from, investment property only when there is evidence of a change in use of the property. Said change must relate to a specific event that took place, and must not therefore be limited to a change in the intentions of the entity's Management. These amendments were applied from 1 January 2018.

The adoption of these amendments has had no effect on the Group's Half-year Condensed Consolidated Financial Statements.

• IFRIC interpretation 22 "Foreign Currency Transactions and Advance Consideration" (published on 8 December 2016). The objective of the interpretation is to provide guidelines for foreign currency transactions where non-monetary payments or receipts made in advance are recognised in the financial statements before the recognition of the relative asset, cost or income. The document provides indications of how an entity should establish the date of a transaction, and consequently, the exchange rate to use in the case of foreign currency transactions in which the payment is made or received in advance. IFRIC 22 has been applied since 1 January 2018.

The adoption of these amendments has had no effect on the Group's Half-year Condensed Consolidated Financial Statements.

The following are Accounting Standards, IFRS and IFRIC amendments and interpretations endorsed by the European Union, whose application is not yet compulsory and for which the Group did not opt for early adoption at 30 June 2018.

• IFRS 16 - Leases (published on 13 January 2016), which will replace IAS 17 - Leases, as well as interpretations IFRIC 4 Determining whether an Arrangement contains a Lease, SIC-15 Operating Leases—Incentives and SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The new standard provides a new definition of lease and introduces a criterion based on the control (right of use) of an asset to distinguish lease contracts from service contracts, identifying the following as discriminants: the identification of the asset, the right to replace the same, the right to substantially obtain all of the economic benefits resulting from the use of the asset and the right to direct the use of the asset underlying the contract. The standard establishes a single model for the recognition and measurement of lease contracts for the lessee, which entails recognising the leased asset, including operating assets, under assets in the statement of financial position, with a balancing entry of a financial payable, also giving the option of not recognising contracts that regard "low value assets" (namely lease contracts involving assets with a value of less than Euro 5,000) and those with a term of under 12 months as leases. On the contrary, the Standard does not involve any changes for lessors. The standard is applicable from 1 January 2019, although early adoption is permitted.

The directors have launched a project for implementation of the new standard, which envisages an initial phase of detailed analysis of the contracts and of the accounting effects, and a second phase of implementation and/or adaptation of the administrative processes and accounting system. The directors have not yet defined the approach they intend to adopt from among those permitted by IFRS 16. An initial analysis conducted on active contracts relating to rent, leased vehicles and other operating assets, showed that the potential impact for the Group, considering the individual due date that cover the period between 1 July 2018 and 28 February 2030, amounts to higher financial payables of Euro 14.4 million.

• Amendment to IFRS 9 "Prepayment Features with Negative Compensation" (published on 12 October 2017). This document specifies that instruments which envisage an early repayment could respect the "SPPI" test also in the event in which the reasonable additional compensation payable in the case of early repayment is a negative compensation for the lender. The amendment is applicable from 1 January 2019, although early adoption is permitted.

The standard was applied from 1 January 2018; adoption of this standard did not have any significant impact on the amounts and disclosures in the Group's Half-Year Condensed Consolidated Financial Statements.

At the reference date of these Half-year Condensed Consolidated Financial Statements, the competent bodies of the European Union have not yet completed the endorsement process required for adoption of the amendments and standards illustrated below.

• On 18 May 2017, the IASB published IFRS 17 - Insurance Contracts, which will replace IFRS 4 - Insurance Contracts. The objective of the new standard is to ensure that an entity provides pertinent information that truthfully represents the rights and obligations under the insurance contracts issued. The IASB developed the standard to eliminate inconsistencies and weaknesses in the existing accounting standards, providing a single principle-based framework to take into account all types of insurance contracts, including the reinsurance contracts that an insurer holds. The standard is applicable from 1 January 2021, although early adoption is permitted only for entities that apply IFRS 9 - Financial Instruments and IFRS 15 - Revenue from Contracts with Customers.