DEA Capital — Interim / Quarterly Report 2017

Sep 11, 2017

HALF-YEAR REPORT TO 30 JUNE 2017 ______________________

First half of 2017

Board of Directors Milan, 8 September 2017

DeA Capital S.p.A.

Corporate information DeA Capital S.p.A. is subject to the management and coordination of De Agostini S.p.A. Registered office: Via Brera 21, Milan 20121, Italy Share capital: EUR 306,612,100 (fully paid up), comprising 306,612,100 shares with a nominal value of EUR 1 each (including 48,702,930 treasury shares at 30 June 2017) Tax code, VAT code and recorded in the Milan Register of Companies under no. 07918170015

Board of Directors (*)

Chief Executive Officer Paolo Ceretti

Chairman Lorenzo Pellicioli

Directors Lino Benassi Marco Boroli Donatella Busso (1/5) Marco Drago Carlo Enrico Ferrari Ardicini Francesca Golfetto (3/5) Severino Salvemini (2/3/5) Daniela Toscani (1/5) Elena Vasco (4/5)

Board of Statutory Auditors (*)

Chairman	Cesare Andrea Grifoni
Permanent Auditors	Annalisa Raffaella Donesana Fabio Facchini
Deputy Auditors	Andrea Augusto Bonafè Michele Maranò Marco Sguazzini Viscontini
Secretary to the Board of Directors	Diana Allegretti
Manager responsible for preparing the Company's accounts	Manolo Santilli
Independent Auditors	PricewaterhouseCoopers S.p.A.
	(*) In office until the approval of the Financial Statements for the Year Ending 31 December 2018

(1) Member of the Control and Risks Committee

(2) Member and Chairman of the Control and Risks Committee

(3) Member of the Remuneration and Appointments Committee

(4) Member and Chairman of the Remuneration and Appointments Committee

(5) Independent Director

Contents

Interim Report on Operations

• 1. Profile of DeA Capital S.p.A.
• 1. Information for shareholders
• 1. The DeA Capital Group's key Statement of Financial Position and Income Statement figures
• 1. Significant events in the first half of 2017
• 1. Results of the DeA Capital Group
• 1. Other information

Summary Consolidated Half-Year Report for the period 1 January to 30 June 2017

Statement of responsibilities for the Consolidated Financial Statements Half-Year Report to 30 June 2017

Interim Report on Operations

1. Profile of DeA Capital S.p.A.

With assets under management of more than EUR 11,500 million and an investment portfolio of approximately EUR 450 million, DeA Capital S.p.A. is one of Italy's largest alternative investment operators.

The Company, which operates in both the Private Equity Investment and Alternative Asset Management businesses, is listed on the FTSE Italia STAR section of the Milan stock exchange and heads the De Agostini Group in the area of financial investments.

In the Private Equity Investment business, DeA Capital S.p.A. has "permanent" capital, and therefore has the advantage – compared with traditional private equity funds, which are normally restricted to a pre-determined duration – of greater flexibility in optimising the timing of entry to and exit from investments. In terms of investment policy, this flexibility allows it to adopt an approach based on value creation, including over the medium to long term.

With regard to Alternative Asset Management activities, DeA Capital S.p.A. – through its subsidiaries IDeA FIMIT SGR and IDeA Capital Funds SGR – is Italy's leading operator in real estate fund management and private equity programmes, respectively. The two asset management companies are active in the promotion, management and value enhancement of investment funds, using approaches based on sector experience and the ability to identify opportunities for achieving the best returns.

The Company's ability to carry out investment initiatives (including those that are structurally very complex), on the one hand, and raise funds through its asset management subsidiary companies on the other, is proof of the effectiveness of its business model, which combines private investment and asset management activities to create value in a unique way in Italy's alternative asset management sector. It does this thanks to:

• the quality, built up over time, of the management team, which has over 200 professionals dedicated to managing funds in the most attractive alternative investment asset classes (real estate, private equity and NPL);
• its solid financial position, which enables it to support the launch of new initiatives with its own capital, and hence substantially align its interests with those of the investors in our managed funds;
• an extensive network of international relationships, which makes DeA Capital the preferred Gate-to-Italy for alternative investment decisions in our country;
• its membership of one of Italy's leading business Groups, whose structure is built on a long-term approach that best supports the Company's growth path.

At 30 June 2017, DeA Capital S.p.A. reported Group shareholders' equity of EUR 515.4 million, corresponding to a net asset value (NAV) of EUR 2.00 per share (compared with EUR 1.91 per share at 31 December 2016, adjusted for the extraordinary dividend of EUR 0.12 per share paid in May 2017), with an investment portfolio of EUR 453.4 million.

More specifically, the investment portfolio consists of Private Equity Investment shareholdings of EUR 87.2 million, Private Equity Investment funds of EUR 204.4 million and net assets relating to the Alternative Asset Management business of EUR 161.8 million.

At 30 June 2017, the corporate structure of the Group headed by DeA Capital S.p.A. (the DeA Capital Group, or the Group) was as summarised below:

PRIVATE EQUITY INVESTMENT

o Main shareholdings

• minority shareholding in Migros, the leading company in the food retail sector in Turkey, whose shares are listed on the Istanbul Stock Exchange; the investment is held through the Luxembourg-registered company Kenan Investments S.A. and recorded in the AFS portfolio of the DeA Capital Group (17.1% stake in Kenan Investments, with a fully diluted stake of approximately 5.2% in Migros)
• strategic shareholding in Sigla, which provides consumer credit for nonspecific purposes (salary-backed loans and personal loans) and services nonperforming loans in Italy. The investment is held through the Luxembourgregistered company Sigla Luxembourg S.A., an associate of the DeA Capital Group (with a stake of 41.4%).

o Funds

• units in seven funds managed by the subsidiary IDeA Capital Funds SGR, i.e. in the three funds of funds IDeA I Fund of Funds (IDeA I FoF), ICF II and ICF III, in the co-investment fund IDeA Opportunity Fund I (IDeA OF I), in the theme funds IDeA Efficienza Energetica e Sviluppo Sostenibile (Energy Efficiency and Sustainable Development - IDeA EESS) and IDeA Taste of Italy (IDeA ToI), and in the credit fund IDeA Corporate Credit Recovery I (IDeA CCR I);
• units in two funds managed by the subsidiary IDeA FIMIT SGR, i.e. in the real estate funds Venere and Santa Palomba;
• units in six venture capital funds.

ALTERNATIVE ASSET MANAGEMENT

• 100% control of IDeA Capital Funds SGR, which manages private equity funds (funds of funds, co-investment funds and theme funds) with about EUR 1.9 billion in assets under management (AUM) and nine managed funds;
• controlling interest in IDeA FIMIT SGR (64.3%), Italy's largest independent real estate asset management company, with about EUR 9.4 billion in assets under management and 41 managed funds (including five listed funds);
• controlling interest in SPC (85.0%), a company that specialises in secured and unsecured debt recovery, with a focus on the banking, leasing, consumer and commercial sectors in Italy, with assets under management of around EUR 0.3 billion;
• strategically important stake in IRE/IRE Advisory (45.0%), which operate in project, property and facility management, as well as in real estate brokerage.

Information for shareholders

Shareholder structure - DeA Capital S.p.A. (#)

(#) Figures at 30 June 2017, based on the latest communications available.

Note: At 8 September 2017, there were 49,630,561 treasury shares representing approximately 16.2% of share capital.

Share performance (°)

- From 11 January 2007, when DeA Capital S.p.A. began operating, to 30 June 2017

- From 1 January 2017 to 30 June 2017

(°) Source: Bloomberg

The performance of the DeA Capital share

The Company's share price fell by 39.3% between 11 January 2007, when DeA Capital S.p.A. began operating, and 30 June 2017. In the same period, the FTSE All-Share® and LPX50® fell by 46.2% and 2.1% respectively.

The DeA Capital share rose by 10.1% in the first half of 2017, while the FTSE All-Share® Italian market index rose by 8.6% and the LPX50® by 6.3%. The share's liquidity increased considerably compared with 2016, with average daily trading volumes of around 500,000 shares.

The share prices recorded in the first half of 2017 are shown below. The prices and performance have been adjusted by the extraordinary dividend amount (EUR 0.12 per share) paid in May 2017.

(in EUR)	1 Jan. / 30 Jun. 2017
Maximum price	1.47
Minimum price	1.07
Average price	1.25
Price at 30 June 2017 (EUR per share)	1.22
Market cap. at 30 June 2017 (EUR million)	373

NB: Capitalisation net of treasury shares: approximately EUR 315 million

3. The DeA Capital Group's key Statement of Financial Position and Income Statement figures

The DeA Capital Group's key Statement of Financial Position and Income Statement figures to 30 June 2017 are shown below, compared with the corresponding figures to 31 December 2016.

(EUR million)	30.6.2017	31.12.2016 "adjusted" (*)	31.12.2016 "as reported"
NAV/share (EUR)	2.00	1.91	2.03
Group NAV	515.4	498.0	529.2
Investment portfolio	453.4	448.8	448.8
Net financial position - Holding companies	60.4	48.5	79.7
Consolidated net financial position	81.8	71.9	103.1

(*) The "adjusted" results at 31.12.2016 take into account the extraordinary dividend distribution of 0,12 € / share, for a total 31,2 million Euro, which was completed in May 2017

(EUR million)	First half 2017	First half 2016
Group net profit/(loss)	6.2	1.9
Comprehensive income (Group share) (Statement of Performance – IAS 1)	21.9	6.7

The table below shows the change in the Group's NAV during the first half of 2017.

Change in Group NAV	Total value (EUR m)	No. shares (millions)	Value per share (EUR)
Group NAV "as reported" at 31.12.2016	529.2	261.2	2.03
Extraordinary dividend distributed	(31.2)		(0.12)
"Adjusted" Group NAV at 31.12.16	498.0		1.91
Purchase of own shares	(5.1)	(3.8)	(1.36) (* )
Treasury shares delivered to the incentive plans	0.3	0.5	1.53 (#)
Comprehensive income - Statement of Performance – IAS 1	21.9
Other changes in NAV	0.3
Group NAV at 30.6.2017	515.4	257.9	2.00

(*) Average price of purchases in 2017

(#) Market price at the date of delivery of shares

The table below provides details of the Group's Statement of Financial Position at 30 June 2017 (compared with the position at 31 December 2016).

	June, 30 2017			December 31, 2016 "adjusted" (*)
	M€	€/Sh.	M€	€/Sh.
Private Equity Investment
- Kenan Inv. / Migros	66.8	0.26	66.9	0.26
- Funds - Private Equity / Real Estate	204.4	0.79	202.9	0.78
- Other (Sigla, Crescita,)	20.4	0.08	11.7	0.04
Total PEI (A)	291.6	1.13	281.5	1.08
Alternative Asset Management
- IDeA FIMIT SGR	121.2	0.47	122.7	0.47
- IDeA Capital Funds SGR	37.4	0.15	37.7	0.14
- Other (IRE / SPC)	3.2	0.01	6.9	0.03
Total AAM (B)	161.8	0.63	167.3	0.64
Investment Portfolio (A+B)	453.4	1.76	448.8	1.72
Other net assets (liabilities)	1.6	0.01	0.7	0.00
Net Financial Position Holdings	60.4	0.23	48.5	0.19
NAV	515.4	2.00	498.0	1.91

(*) The "adjusted" results at 31.12.2016 take into account the extraordinary dividend distribution of

0,12 € / share, for a total 31,2 million Euro, which was completed in May 2017

4. Significant events in the first half of 2017

The significant events that occurred in the first half of 2017 are reported below.

AAM funds – paid calls/distributions

During the first half of 2017, the DeA Capital Group increased its investments in the IDeA I FoF, ICF II, ICF III, IDeA CCR I, IDeA EESS and IDeA ToI funds with payments totalling EUR 4.8 million.

At the same time, the DeA Capital Group received capital reimbursements totalling EUR 8.7 million from the IDeA I FoF, ICF II, IDeA EESS and Venere funds.

Thus, in the first half of 2017, the funds in which DeA Capital S.p.A. has invested produced a net positive cash balance totalling EUR 3.9 million for the portion relating to the Group.

Investment in the "Crescita" ("Growth") special purpose acquisition company (SPAC)

During the first half of 2017, the DeA Capital Group completed its investment in the "Crescita" ("Growth") special purpose acquisition company (SPAC), whose shares commenced trading on the Italian stock exchange on 15 March 2017, for a total outlay of EUR 7.8 million for DeA Capital. The portion acquired equates to 5.8% of the ordinary shares (totalling EUR 130 million) and 9.2% of the preference shares (totalling EUR 3 million); the latter can be converted into a maximum of six ordinary shares each, subject to the achievement of certain objectives.

The SPAC's objective is to complete a business combination with an Italian target company within 24 months of its listing date.

Liquidation of the Atlantic Value Added fund (involving the distribution in kind of the units in the Venere fund)

In March 2017, the Group completed the early liquidation of the Atlantic Value Added fund, managed by IDeA FIMIT SGR, which involved the distribution in kind of the units held in the Venere fund (as well as the distribution of the remaining liquidity).

Thus, at the date of this document, the DeA Capital Group directly owns 9.1% of the Venere fund, managed by IDeA FIMIT SGR, and has no residual commitments.

Dividends from Alternative Asset Management

During the first half of 2017, the Alternative Asset Management business distributed a total of EUR 5.4 million to the DeA Capital Group's holding companies (EUR 9.7 million in 2016), broken down as follows: EUR 3.3 million to IDeA FIMIT (pro-rata share of EUR 5.1 million), EUR 1.5 million to IDeA Capital Funds (100% of the dividends paid) and EUR 0.6 million to IRE (pro-rata share of the total EUR 1.4 million).

Share buyback plan

On 20 April 2017, the Shareholders' Meeting of DeA Capital S.p.A. authorised the Board of Directors to buy and sell, on one or more occasions and on a revolving basis, a maximum number of treasury shares representing a stake of up to 20% of the share capital.

The new plan replaces the previous plan approved by the Shareholders' Meeting on 21 April 2016 (which was scheduled to expire with the approval of the 2016 Annual Financial Statements), and will pursue the same objectives, including purchasing treasury shares to be used for extraordinary transactions and share incentive schemes, offering shareholders a means of monetising their investment, stabilising the share price and regulating trading within the limits of current legislation.

The authorisation specifies that purchases may be made until the date of the Shareholders' Meeting to approve the Financial Statements for the Year Ending 31 December 2017, and in any case not beyond the maximum duration of 18 months allowed by law, and that DeA Capital S.p.A. may also sell the shares purchased for the purposes of trading, without time limits. The unit price for the purchase of the shares will be set on a case-by-case basis by the Board of Directors, but must not be more than 20% above or below the share's reference price on the trading day prior to each purchase.

The authorisation to sell treasury shares already held in the Company's portfolio and any shares bought in the future was granted for an unlimited period; sales may be carried out using the methods deemed most appropriate and at a price to be determined on a case-bycase basis by the Board of Directors, which must not, however, be more than 20% below the share's reference price on the trading day prior to the sale (apart from certain exceptions specified in the Plan), although this limit may not apply in certain cases.

On the same date, the Board of Directors voted to implement the plan to buy and sell treasury shares authorised by the Shareholders' Meeting, vesting the Chairman of the Board of Directors and the Chief Executive Officer with all the necessary powers, to be exercised severally and with full power of delegation, and set the maximum unit price above which purchases of treasury shares may not be made, at the NAV per share indicated in the most recent statement of financial position approved and disclosed to the market.

At the same meeting, the Company's Board of Directors also voted to adopt market practice regarding the acquisition of treasury shares by setting up a "securities warehouse", as permitted by Consob Resolution 16839 of 19 March 2009.

New performance share plan

On 20 April 2017, the DeA Capital S.p.A. Shareholders' Meeting approved the DeA Capital Performance Share Plan 2017-2019, under which a maximum of 1,200,000 units may be allocated. On the same date, in implementation of the shareholders' resolution, the Board of Directors of DeA Capital S.p.A. voted: (i) to launch the DeA Capital Performance Share Plan 2017-2019 approved by the Shareholders' Meeting, vesting the Chairman of the Board of Directors and the Chief Executive Officer with all the necessary powers, to be exercised severally and with full power of delegation; and (ii) to allocate 975,000 units (representing the right to receive ordinary shares in the Company free of charge, under the terms and conditions of the plan) to certain employees and/or directors performing particular roles at the Company, its subsidiaries and the Parent Company De Agostini S.p.A. The shares allocated due to the vesting of units will be drawn from the treasury shares already held by the Company; the allocation will therefore not have a dilutive effect.

Receipt of the penultimate tranche of the proceeds of the sale of the controlling stake in IRE

On 28 April 2017, the DeA Capital Group received, via its subsidiary DeA Capital Real Estate, EUR 0.6 million, being the penultimate tranche of the proceeds of the sale of the majority stake in IRE, which was completed in 2016. The last tranche of the price – a further EUR 0.6 million – is scheduled to be paid by 30 April 2018.

Vesting of the DeA Capital performance share plan and the stock option plan for 2014-2016

In May 2017, 480,571 treasury shares (approx. 0.2% of the share capital) were allocated as a result of the vesting of the 2014-2016 long-term incentive-based plans of DeA Capital S.p.A. (performance share and stock option).

Distribution of the share premium reserve

On 15 May 2017, in accordance with the vote of the Shareholders' Meeting on 20 April 2017, DeA Capital S.p.A. made a partial distribution of the share premium reserve in an amount of EUR 0.12 per share, i.e. based on the total number of shares net of treasury shares held, in an amount of around EUR 31.2 million.

Exercise of the put option on a stake in Migros

In May 2017, Kenan Investments, an investee company of which DeA Capital holds about 17% and which holds a 40.25% stake in Migros, completed the transactions relating to a put option on a stake of 9.75% in Migros.

The terms and conditions of the option were defined in agreements entered into in 2015 with Turkish group Anadolu when the latter acquired a 40.25% co-controlling stake in the supermarket chain from the total 80.5% stake held at the time by Kenan Investments.

The transaction, which was completed at a price of TRY 30.2 per Migros share, generated proceeds of around EUR 105 million for Kenan Investments, net of expenses, taxes and an amount held in escrow until 2020 to cover potential tax liabilities.

On 1 June 2017, the above transaction generated proceeds of around EUR 17.8 million for DeA Capital, with the group realising a capital gain of EUR 3.8 million. Following the transaction, Kenan Investments holds a 30.5% stake in Migros, via an indirect pro-rata stake held by DeA Capital of approximately 5.2%.

5. Results of the DeA Capital Group

The consolidated results for the period relate to the operations of the DeA Capital Group in the following businesses:

• Private Equity Investment, which includes the reporting units involved in private equity investment, broken down into shareholdings (direct investments) and investments in funds (indirect investments);
• Alternative Asset Management, which includes the reporting units dedicated to asset management activities and related services, with a focus on the management of private equity and real estate funds.

Private Equity Investment

At 30 June 2017, the DeA Capital Group was a shareholder of:

• Kenan Investments, the indirect parent company of Migros (valued at EUR 66.8 million);
• Sigla Luxembourg, the parent company of Sigla (valued at EUR 11.5 million);
• Crescita, a special purpose acquisition company (valued at EUR 8.7 million);
• Harvip, which manages funds and investment vehicles used to purchase distressed real estate and other investments (valued at EUR 0.2 million).

The DeA Capital Group is also a shareholder in other smaller companies which are not included in the investment portfolio as they are either dormant or in liquidation and have a zero carrying value.

At 30 June 2017, the DeA Capital Group held units in the following funds (net carrying value from the funds' consolidated financial statements shown in brackets):

• IDeA I FoF (valued at EUR 64.9 million);
• ICF II (valued at EUR 45.0 million);
• ICF III (valued at EUR 6.6 million);
• IDeA OF I (valued at EUR 45.5 million);
• IDeA EESS (valued at EUR 21.0 million);
• IDeA ToI (valued at EUR 7.1 million);
• IDeA CCR I (valued at EUR 1.7 million);
• Venere (valued at EUR 3.3 million);
• Santa Palomba (valued at EUR 0.4 million);
• six venture capital funds (with a total value of approximately EUR 8.9 million).

Valuations of shareholdings and funds in the portfolio reflect estimates made using the information available on the date this document was prepared.

Investments in associates

- Sigla Luxembourg (Parent Company of Sigla)

Registered office: Italy

Sector: Consumer credit

Website: www.siglacredit.it

Investment details:

On 5 October 2007, the DeA Capital Group finalised the acquisition of a stake (currently 41.4%) in Sigla Luxembourg, the holding company that fully controls Sigla, which operates in Italy and provides consumer credit for non-specific purposes.

Brief description:

Sigla specialises in salary-backed loans. It is a benchmark operator in the provision of financial services to households throughout Italy, chiefly through a network of agents.

Its activities also include servicing unsecured non-performing loans (personal loans and credit cards).

The investment in Sigla Luxembourg, amounting to EUR 11.5 million, which was unchanged compared with 31 December 2016, was classified under "Held-for-sale assets" in light of the process to sell the shareholding, which is under way. As explained more fully in "Significant events after the end of the period", in July 2017, Sigla Luxembourg received and accepted a binding offer to purchase 100% of the capital of its subsidiaries Sigla and SiCollection; DeA Capital's pro-rata share of the purchase price, totalling around EUR 11.8 million, is broadly in line with the carrying value of the subsidiary.

Sigla (mln €)	First Half 2017	First Half 2016	Change
Salary-backed loans granted	106.0	85.9	20.1
Revenues from Salary-backed loans	6.4	6.4	0.0
Group net profit	1.0	1.5	(0.5)

In the first half of 2017, Sigla continued to show sustained growth in salary-backed loans (+23%); the Company confirmed that fund-raising to support the recent pace of growth in CQS loans is very buoyant from the point of view of both quantity (around EUR 400 million raised in the first half of 2017) and quality (diversification of the financing institutions and the introduction of securitisations as a form of funding).

At the same time, Sigla's risk profile has continued to improve significantly, given the gradual recovery of the portfolio of outstanding personal loans (down to EUR 26.8 million at 30 June 2017) and the pronounced reduction in financial debt (EUR 2.6 million at 30 June 2017, an improvement of around EUR 30 million over the last two-and-a-half years, from EUR 32 million at 31 December 2014).

Investments in other companies

- Kenan Investments (holder of a shareholding in Migros)

Sector: Food retail

Website: www.migros.com.tr

Investment details:

In 2008, the DeA Capital Group acquired 17.1% of the capital of Kenan Investments, the company heading the structure to acquire Migros.

This holding is currently 30.50%, after the sale of a 40.25% interest in Anadolu Endüstri Holding, a leading Turkish conglomerate, which was finalised in 2015, and the exercise of a put option on a 9.75% stake in Migros in the first half of 2017.

Brief description:

Established in 1954, Migros is the leading company in the food retail sector in Turkey. The company has 1,844 sales outlets (at 30 June 2017), with a total net area of 1,429 thousand square metres.

Migros is present in all seven regions of Turkey, and has marginal presences in Kazakhstan and Macedonia.

The company operates under the following names: Migros and Macrocenter (supermarkets), 5M (hypermarkets), Ramstore (supermarkets abroad) and Kangurum (online store).

Growth in the retail sector in Turkey is a relatively recent phenomenon, brought about by the transition from traditional systems such as bakkals (small stores typically run by families) to an increasingly widespread organised distribution model.

On 1 March 2017, Migros completed the acquisition of 95.5% of Tesco-Kipa, a large supermarket chain with a turnover of over TRY 2 billion and 168 sales outlets. Subsequently, on 26 July 2017, the acquisition of a further stake was completed, bringing the total investment in Tesco-Kipa's capital to 96.25%.

The stake in Kenan Investments (indirectly corresponding to approximately 5.2% of Migros' capital, i.e. 30.50% of Migros' capital via the Group's investment in Kenan Investments) is recorded in the Consolidated Financial Statements to 30 June 2017 at EUR 66.8 million (compared with EUR 66.9 million at 31 December 2016).

The decrease (EUR 0.1 million) on the figure at 31 December 2016 is due to a combination of:

• - net proceeds (EUR 17.8 million) realised on 1 June 2017 following the exercise of the put option on the 9.75% stake in Migros;
• - an increase in fair value (EUR 17.7 million) due to the combined effect of the rise in the price per share (TRY 27.56 per share at 30 June 2017, versus TRY 17.58 per share at

31 December 2016), and the devaluation of the Turkish lira against the euro (4.02 TRY/EUR at 30 June 2017, versus 3.72 TRY/EUR at 31 December 2016).

Migros (mln YTL)	First Half 2017	First Half 2016	Change
Revenues	7,037	5,079	38.5%
EBITDA	349	296	17.7%
Net financial debt	(2,309)	(1,805)	-504 mln YTL

Funds

At 30 June 2017, the DeA Capital Group's Private Equity Investment business included investments in:

• - the IDeA OF I fund (fully consolidated in accordance with IFRS 10);
• - the IDeA EESS fund and the Venere real estate fund (classified under "Investments in associates", based on the units held);
• - in three funds of funds (IDeA I FoF, ICF II and ICF III), two theme funds (IDeA ToI and IDeA CCR I), six venture capital funds and the Santa Palomba real estate fund,

worth a net total of approximately EUR 204.4 million (corresponding to the estimated fair value calculated using the information available on the date this document was prepared) in the Consolidated Financial Statements at 30 June 2017.

Residual commitments for all the funds in the portfolio were approximately EUR 102.5 million.

- IDeA I FoF

IDeA I Fund of Funds

Registered office: Italy Sector: Private equity Website: www.ideasgr.com Investment details:

IDeA I FoF is a closed-end fund under Italian law, for qualified investors, which began operations on 30 January 2007 and is managed by IDeA Capital Funds SGR.

The DeA Capital Group has a total commitment of up to EUR 173.5 million in the fund.

Brief description:

IDeA I FoF, which has total assets of approximately EUR 681 million, invests its assets in units of unlisted closed-end funds that are mainly active in the private equity sector in various countries. It optimises the risk-return profile through careful diversification of assets among managers with a proven track record of returns and solidity, different investment approaches, geographical areas and maturities.

According to the latest report available, the IDeA I FoF portfolio was invested in 41 funds with different investment strategies; these funds in turn hold positions, with varying maturities, in 330 companies active in geographical regions with different growth rates.

The funds are diversified in the buy-out (control) and expansion (minorities) categories, with overweighting towards medium- and small-scale transactions and special situations (distressed debt/equity and turnaround).

At 30 June 2017, IDeA I FoF had called up 85.6% of its total commitment and had made distributions totalling 77.7% of that commitment.

Other important information:

Below is an analysis of the portfolio, at the date of the latest report available, broken down by year of investment, geographical area, sector and type of underlying fund.

The units in IDeA I FoF were valued at approximately EUR 64.9 million in the Consolidated Financial Statements to 30 June 2017 (EUR 69.0 million at 31 December 2016). The change was due to capital calls of EUR +0.4 million, capital reimbursements of EUR -5.4 million and an increase in fair value of EUR 0.9 million.

The table below shows the key figures for IDeA I FoF at 30 June 2017.

IDeA I FoF	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Eur (€)
IDeA I Fund of Funds	Italy	2007	681,050,000	173,500,000	25.48
Residual Commitments
Total residual commitment in:		Eur		24,916,256

- ICF II

ICF II

Registered office: Italy
Sector: Private equity
Website: www.ideasgr.com
Investment details:

ICF II is a closed-end fund under Italian law, for qualified investors, which began operating on 24 February 2009 and is managed by IDeA Capital Funds SGR.

The DeA Capital Group has a total commitment of up to EUR 51 million in the fund.

Brief description:

ICF II, with total assets of EUR 281 million, invests in units of unlisted closed-end funds that are mainly active in the private equity sector of various countries. It optimises the risk-return profile through careful diversification of assets among managers with a proven track record of returns and solidity, different investment approaches, geographical areas and maturities.

The fund started building its portfolio by focusing on funds in the area of mid-market buy-outs, distressed and special situations, loans, turnarounds and funds with a specific sector slant, targeting, in particular, opportunities offered in the secondary market.

Based on the latest report available, the ICF II portfolio was invested in 27 funds with different investment strategies; these funds in turn hold positions, with varying maturities, in around 382 companies active in various geographical areas.

At 30 June 2017, ICF II had called up around 72.1% of its total commitment and had made distributions totalling 32.0% of that commitment.

Other important information:

Below is an analysis of the portfolio, at the date of the latest report available, broken down by year of investment, geographical area, sector and type of underlying fund.

The units in ICF II were valued at approximately EUR 45.0 million in the Consolidated Financial Statements to 30 June 2017 (EUR 47.0 million at 31 December 2016). The decrease was due to capital calls of EUR +0.2, capital reimbursements of EUR -1.8 million and a decrease in fair value of EUR 0.4 million.

The table below shows the key figures for ICF II at 30 June 2017.

ICF II	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Eur (€)
ICF II	Italy	2009	281,000,000	51,000,000	18.15
Residual Commitments
Total residual commitment in:		Eur		14,275,973

- ICF III

ICF III Registered office: Italy Sector: Private equity Website: www.ideasgr.com Investment details:

ICF III is a closed-end fund under Italian law, for qualified investors, which began operating on 10 April 2014 and is managed by IDeA Capital Funds SGR.

The DeA Capital Group has a total commitment of up to EUR 12.5 million in the fund.

Brief description:

ICF III, with total assets of approximately EUR 67 million, intends to invest its assets in units of closed-end private equity funds or in schemes that replicate that financial model, either as the lead investor or with other co-investors.

The fund is divided into three sub-funds:

• Core, with a focus on buy-outs, expansion capital and special situations;
• Credit & Distressed, which invests in special credit operations (preferred equity, mezzanine, senior loans), turnarounds and other credit strategies;
• Emerging Markets, which focuses on expansion capital, buy-outs, distressed assets and venture capital operations in emerging markets.

At 30 June 2017, ICF III had called up 48.1%, 59.0% and 42.5% in the Core, Credit & Distressed and Emerging Markets segments respectively.

The units in ICF III were valued at a total of EUR 6.6 million in the Consolidated Financial Statements to 30 June 2017 (EUR 6.9 million at 31 December 2016). The decrease was due to capital calls of EUR +0.1 million and a decrease in fair value of EUR 0.4 million.

The table below shows the key figures for ICF III at 30 June 2017.

ICF III	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Eur (€)
ICF III	Italy	2014	66,950,000	12,500,000	18.67
of which:
Segment Core			34,600,000	1,000,000	2.89
Segment C redit & Distressed			17,300,000	4,000,000	23.12
Segment Emerging Markets			15,050,000	7,500,000	49.83
Residual Commitments
Total residual commitment in:		Eur		6,472,998

- IDeA OF I

IDeA Opportunity Fund I

Registered office: Italy Sector: Private equity Website: www.ideasgr.com Investment details:

IDeA OF I is a closed-end fund under Italian law, for qualified investors, which began operating on 9 May 2008 and is managed by IDeA Capital Funds SGR.

The DeA Capital Group has a total commitment of up to EUR 101.8 million in the fund.

Brief description:

IDeA OF I has total assets of approximately EUR 217 million. Its objective is to invest, independently or via syndicates with a lead investor, by purchasing qualified minority interests.

At 30 June 2017, IDeA OF I had called up 84.8% of the total commitment and distributed 31.5% of that commitment, after making nine investments (of which seven were still in the portfolio at that date).

Significant events during the year

In June 2017, the Carlyle and GTCR funds launched a public takeover bid for the shares of AMRI, at a value of USD 21.75 per share (compared with a carrying value of USD 15.5 per share for the OF I fund), with completion expected by the end of 2017. As a reminder, the AMRI shares in the OF I portfolio came from the sale to AMRI of the entire stake held in Euticals in 2016; the purchase price for this transaction was settled partly in cash, with the rest paid for by a vendor note and AMRI shares.

The units held in IDeA OF I were reported in the Consolidated Financial Statements to 30 June 2017 at EUR 45.5 million, an increase on the figure at 31 December 2016 (EUR 44.2 million). This was due to the combination of pro-rata net profit of EUR +1.1 million for the period and an increase in fair value of EUR +0.2 million.

The table below shows a breakdown of the fund's NAV at 30 June 2017. These figures were fully consolidated in the financial statements of DeA Capital S.p.A..

(EUR million)	Industry % share		Investment date	100%	DeA Capital
Portfolio investments
Giochi Preziosi	Games	4.3%	October 8, 2008	5.2	2.4
Manutencoop Facility Management	Integrated facility Management	4.7%	December 22, 2008	18.9	8.9
Lauro Cinquantasette (Euticals)	Active Pharmaceutical Ingredients	8.0%	February 10, 2011	15.9	7.5
Iacobucci HF Electronics	Aircraft furnishing and coffee machines	34.9%	September 11, 2012	6.0	2.8
Pegaso Transportation Investments (Talgo)	Rail market	2.5%	October 8, 2012	17.3	8.1
2IL Orthopaedics LTD (Corin)	Orthopedic implants	29.3%	October 31, 2012	15.0	7.0
Elemaster	Electronic boards with high technological content	10.0%	February 27, 2013	8.5	4.0
Total portfolio investments				86.8	40.7
Other long term receivables				8.8	4.2
Other assets (liabilities)					(0.5)
Cash and cash equivalents				2.3	1.1
Total Net equity				96.9	45.5

The table below shows the key figures for IDeA OF I at 30 June 2017.

IDeA OF I	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Eur (€)
IDeA Opportunity Fund I	Italy	2008	216,550,000	101,750,000	46.99
Residual Commitments
Total residual commitment in:		Eur		15,415,125

- IDeA EESS

IDeA Efficienza Energetica e Sviluppo Sostenibile (IDeA Energy Efficiency and Sustainable Development)

Registered office: Italy

Sector: Private equity

Website: www.ideasgr.com Investment details:

IDeA EESS is a closed-end fund under Italian law, for qualified investors, which began operating on 1 August 2011and is managed by IDeA Capital Funds SGR.

The DeA Capital Group has a total commitment of up to EUR 30.4 million in the fund.

Brief description:

IDeA EESS, which has total assets of EUR 100 million, is a closed-end mutual fund under Italian law, for qualified investors, which seeks to acquire minority and controlling shareholdings in unlisted companies in Italy and abroad, by investing jointly with local partners.

The fund is dedicated to investing in small and medium-sized manufacturing and service companies operating in the field of energy saving and the efficient use of natural resources. It focuses on the development of solutions that make faster and cheaper use of renewable energy sources without compromising effectiveness in reducing CO² emissions.

At 30 June 2017, IDeA EESS had called up 77.4% of the total commitment and distributed 37.3% of that commitment, after making nine investments (of which eight were still in the portfolio at that date).

Significant events during the year

In the first half of 2017, the fund completed the sale of 893,000 SMRE shares, generating proceeds, net of the transaction costs, of EUR 4.35 million. Following this transaction, IDeA EESS holds a residual stake of 20.45% in SMRE.

The units held in IDeA EESS were reported in the Consolidated Financial Statements to 30 June 2017 at approximately EUR 21.0 million, an increase on the figure at 31 December 2016 (EUR 16.9 million). This was due to the pro-rata net profit of EUR +5.0 million for the period (mainly associated with the marking to market of the SMRE stock in the portfolio), capital calls of EUR +0.3 million and distributions of EUR -1.1 million.

The table below shows a breakdown of the fund's NAV at 30 June 2017.

(EUR million)	Industry	% share	Investment date	100%	DeA Capital
Portfolio investments
Domotecnica	Heat engineering products	48.0%	May 8, 2012	0	0
Elemaster	Electronic boards	10.0%	February 27, 2013	8.5	2.6
SMRE	Industrial machinery textile sector	20.5%	April 23, 2013	25.8	7.8
Zephyro	Energy services for complex structures	8.1%	December 11, 2013	6.0	1.8
Meta Fin	Electronics components for safety systems	21.5%	February 13, 2014	6.2	1.9
Baglioni	Design / production of compressed air tanks	41.2%	February 5, 2015	10.0	3.0
Tecnomeccanica	Production for lights industry Production of radiofrequency machinery for	96.8%	October 27, 2016	4.6	1.4
Stalam	textile sector	90.0%	November 30, 2016	4.1	1.3
Total portfolio investments				65.2	19.8
Other assets (liabilities)				(0.2)	(0.1)
Cash and cash equivalents				4.2	1.3
Total Net equity				69.2	21.0

The table below shows the key figures for IDeA EESS at 30 June 2017.

Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Italy	2011	100,000,000	30,400,000	30.40
			Eur	6,874,336

- IDeA ToI

IDeA Taste of Italy (ToI)

Registered office: Italy Sector: Private equity

Website: www.ideasgr.com Investment details:

IDeA ToI is a closed-end fund under Italian law for qualified investors, which began operating on 30 December 2014, and is managed by IDeA Capital Funds SGR.

The DeA Capital Group has a total commitment of EUR 25.2 million in the fund.

Brief description:

IDeA ToI, which has total assets of EUR 218.1 million, is a closed-end mutual fund under Italian law, for qualified investors, which seeks to acquire minority and controlling interests in mainly small and medium-sized enterprises in Italy, either independently or with other coinvestors. The fund invests in companies operating in the agricultural foods sector, especially in areas involved in the production and distribution of foodstuffs and in secondary (processed) products or related services.

At 30 June 2017, IDeA ToI had called up 34.4% of its total commitment from subscribers, after making four investments.

Significant events during the year

On 9 January 2017, the fund invested EUR 19.8 million in a 33% stake in Acque Minerali, a manufacturer of Lurisia-branded mineral water and drinks.

On 30 March 2017, the fund invested EUR 17 million in a 35% stake in CDS Lavorazione Materie Plastiche, Italy's leading independent manufacturer of plastic bottle caps.

The units in IDeA ToI were valued at approximately EUR 7.1 million in the Consolidated Financial Statements to 30 June 2017 (EUR 5.2 million at 31 December 2016). The changes during the period were mainly due to capital calls of EUR +2.2 million and a EUR 0.3 million decrease in fair value.

The table below shows the key figures for IDeA ToI at 30 June 2017.

IDeA ToI	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Eur (€)
IDeA Taste of Italy	Italy	2014	218,100,000	25,200,000	7.56
Residual Commitments
Total residual commitment in:		Eur		16,522,696

- IDeA CCR I

IDeA Corporate Credit Recovery I (IDEA CCR I)

Registered office: Italy

Sector: Private equity

Website: www.ideasgr.com

Investment details:

IDeA CCR I is a closed-end fund under Italian law, for qualified investors, which began operating on 23 June 2016, and is managed by IDeA Capital Funds SGR.

The DeA Capital Group has a total commitment of EUR 15.2 million in the fund.

Brief description:

IDeA CCR I, which had total assets of EUR 264.3 million at 30 June 2017, is a closed-end mutual fund under Italian law, for qualified investors, which aims to help relaunch mediumsized Italian companies that are facing financial difficulties but have solid business fundamentals (Target Companies), sharing the profits between creditors and new investors, by the:

• - proactive management of loans to the Target Companies;
• - potential investments to be carried out via debtor-in-possession financing transactions, which means that the new investments have greater seniority than existing financial debt;
• - "equity-style" involvement in the management of debtor companies.

The fund is divided into two sub-funds:

• Loans sub-fund, which has acquired loans and financial equity instruments relating to the Target Companies from eight banks for a consideration of approximately EUR 179 million, in exchange for the allocation of units of the Loans sub-fund itself;
• New Finance sub-fund, which has obtained commitments for new financial resources of up to around EUR 85 million, which could be used for the Target Companies or companies with similar characteristics.

By its very nature, as it was created by means of contributions, the loans segment is fully invested; as at 30 June 2017, the new finance segment had called up 12.0% of the total commitment.

The units in IDeA CCR I were valued at approximately EUR 1.7 million in the Consolidated Financial Statements to 30 June 2017 (EUR 0.1 million at 31 December 2016). The changes during the period were mainly due to capital calls of EUR +1.6 million.

The table below shows the key figures for the IDeA CCR I fund at 30 June 2017.

IDeA CCR I	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Euro (€)
IDeA CCR I	Italy	2016	264,321,595	15,150,000	5.73
of which:
Segment New Financing			85,250,000	15,075,000	17.68
Segment C redit			179,071,595	75,000	0.04
Residual Commitments
Total residual commitment in:		Eur		13,229,906

- Venere

The units in Venere were valued at approximately EUR 3.3 million in the Consolidated Financial Statements to 30 June 2017 (EUR 3.7 million at 31 December 2016). The changes during the period were mainly due to distributions of EUR -0.4 million in the period.

The table below shows the key figures for the Venere fund at 30 June 2017.

Venere	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Eur (€)
Venere	Italy	2011	77,000,000	7,000,000	9.09
Residual Commitments
Total residual commitment in:		Eur		0

- Santa Palomba

DeA Capital S.p.A. has subscribed to a total commitment of EUR 1.0 million. The fund, which is managed by the subsidiary IDeA FIMIT SGR, builds social housing in the metropolitan area of Rome.

The units in Santa Palomba are valued at approximately EUR 0.4 million in the Consolidated Financial Statements to 30 June 2017 (unchanged on the figure at 31 December 2016).

The table below shows the key figures for the Santa Palomba fund at 30 June 2017.

Santa Palomba	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Eur (€)
Santa Palomba	Italy	2016	82,500,000	1,000,000	1.21
Residual Commitments
Total residual commitment in:		Eur		600,000

- Venture capital funds

The units in venture capital funds had a total value of approximately EUR 8.9 million in the Financial Statements to 30 June 2017 (EUR 9.5 million at 31 December 2016). The decrease was due to capital distributions of EUR -0.2 million and the decrease in fair value of EUR 0.4 million.

The table below shows the key figures for venture capital funds in the portfolio at 30 June 2017.

Venture Capital Funds	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Dollars (USD)
Doughty Hanson & Co Technology	UK EU	2004	271,534,000	1,925,000	0.71
GIZA GE Venture Fund III	Delaware U.S.A.	2003	211,680,000	10,000,000	4.72
Israel Seed IV	Cayman Islands	2003	200,000,000	5,000,000	2.50
Pitango Venture Capital III	Delaware U.S.A.	2003	417,172,000	5,000,000	1.20
Totale Dollars				21,925,000
Eur (€)
Nexit Infocom 2000	Guernsey	2000	66,325,790	3,819,167	5.76
Sterlings (GBP)
Amadeus Capital II	UK EU	2000	235,000,000	13,500,000	5.74
Residual Commitments
Total residual commitment in:		Eur		4,237,378

Alternative Asset Management

At 30 June 2017, DeA Capital S.p.A. was the owner of:

• 100% of IDeA Capital Funds SGR;
• 64.3% of IDeA FIMIT SGR;
• 85.0% of SPC (which operates in debt recovery);
• 45.0% of IRE/IRE Advisory (which operates in project, property and facility management, and real estate brokerage).

- IDeA Capital Funds SGR

Registered office: Italy

Sector: Alternative Asset Management - Private Equity

Website: www.ideasgr.com

Investment details:

IDeA Capital Funds SGR operates in the management of private equity funds (funds of funds, coinvestment funds and theme funds). At 30 June 2017, the asset management company managed nine closed-end private equity funds, including four funds of funds (IDeA I FoF, ICF II, ICF III and IDeA Crescita Globale, which serves the retail segment), a "direct" co-investment fund (IDeA OF I), three theme funds (IDeA EESS, which operates in energy efficiency, IDeA ToI, in the agricultural foods sector, and IDeA CCR I, Italy's leading debtor-in-possession financing fund) and, since April 2015, Investitori Associati IV (in liquidation).

The investment programmes of IDeA Capital Funds SGR, which are regulated by the Bank of Italy and Consob, capitalise on the management teams' wealth of experience.

The investment strategies of the funds of funds focus on building diversified portfolios in private equity funds that are in the top quartile or that are next-generation leaders with balanced asset allocation through diversification by:

• industrial sector;
• investment strategy and stage (buy-outs, venture capital, special situations, etc.);
• geographical area (Europe, US and the Rest of the World);
• maturity (commitments with investment periods diluted over time).

The investment strategies of the "direct" co-investment fund focus on minority interests in businesses that primarily concentrate on Europe, and on diversification based on the appeal of individual sectors.

The investment philosophy of the IDeA EESS sector fund focuses on growth capital and buy-out private equity to support the growth of small and medium-sized enterprises with products/services of excellence in energy efficiency and sustainable development.

The investment target of the IDeA ToI fund is small and medium-sized enterprises operating in the agricultural foods industry, through operations in development capital and early-stage buyouts.

The IDeA CCR I fund's objective is to relaunch medium-sized Italian companies that are in financial difficulties but have solid business fundamentals.

The table below summarises the value of assets under management and management fees for IDeA Capital Funds SGR at 30 June 2017.

(EUR million)	Asset Under Management at 30 June 2017	Management fees at 30 June 2017
IDeA Capital Funds SGR
IDeA I FoF	681	1.6
IDeA OF I	217	0.9
ICF II	281	0.8
IDeA EESS	100	0.5
Idea Crescita Globale	55	0.7
ICF III	67	0.3
Taste of Italy	218	2.2
Investitori Associati IV	55	0.3
IDeA CCR I	264	1.2
Total IDeA Capital Funds SGR	1,938	8.5

With regard to operating performance, the company posted a year-on-year increase of around EUR 48 million in assets under management at the end of the first half of 2017; this is mainly due to the third and fourth closings of the IDeA ToI fund, but this was partially offset by the reduction in assets under management of the Investitori Associati IV fund. In terms of margins, the decrease between the result for the first half of 2017 compared with the corresponding figure for 2016 is linked to non-recurring items recorded during the current year.

IDeA Capital Funds SGR (EUR million)	First Half 2017	First Half 2016
AUM	1,938	1,890
Management fees	8.5	9.0
EBITDA	1.8	2.3
Net profit	1.2	1.4

- IDeA FIMIT SGR

Registered office: Italy

Sector: Alternative Asset Management – Real Estate

Website: www.ideafimit.it Investment details:

IDeA FIMIT SGR is the largest independent real estate asset management company in Italy, with around EUR 9.4 billion in assets under management and 41 managed funds (including five listed funds). This makes it a benchmark operator for Italian and international institutional investors in the promotion, creation and management of mutual real estate investment funds.

IDeA FIMIT SGR is engaged in three main lines of business:

• the development of mutual real estate investment funds designed for institutional clients and private investors;
• the promotion of innovative real estate financial instruments to satisfy investors' increasing demands;
• the professional management (technical, administrative and financial) of real estate funds with the assistance of in-house experts and independent technical, legal and tax advisors.

The company has concentrated investments in transactions with low risk, stable returns, low volatility, simple financial structures and, most importantly, an emphasis on property value. In particular, the asset management company specialises in "core" and "core plus" properties, although its major investments also include "value added" transactions.

Due in part to successful transactions concluded in recent years, the asset management company is able to rely on a panel of prominent unit-holders consisting of Italian and international investors of high standing, such as pension funds, banking and insurance groups, companies and sovereign funds.

(EUR million)	Asset Under Management at 30 June 2017	Management fees at 30 June 2017
Breakdown of funds
Atlantic 1	533	0.9
Atlantic 2 Berenice	151	0.3
Alpha	336	2.0
Beta	50	0.1
Delta	186	1.2
Listed funds	1,256	4.5
Reserved funds	8,097	15.5
Total IDeA FIMIT SGR	9,353	20.0

The table below summarises the value of assets under management and management fees for IDeA FIMIT SGR at 30 June 2017.

Some of the key financials of the listed funds in the asset management portfolio are provided below, with an analysis of the real estate portfolio at the date of the latest report available, broken down by geographical area and by intended use, i.e. Atlantic 1, Atlantic 2, Alpha, Beta and Delta (in EUR).

Atlantic 1	30.6.2017
Market value of properties	509,470,000
Historical cost and capitalised charges	536,371,932
Financing	253,802,235
Net Asset Value (NAV)	268,145,747
NAV/unit (EUR)	514.2
Market price/unit (EUR)	218.4
Dividend yield from investment*	4.99%

* Ratio of income per unit to annual average nominal value per unit

Atlantic 2 – Berenice	30.6.2017
Market value of properties	140,520,000
Historical cost and capitalised charges	192,626,036
Financing	60,000,000
Net Asset Value (NAV)	72,372,613
NAV/unit (EUR)	120.6
Market price/unit (EUR)	68
Dividend yield from investment*	8.43%

* Ratio of income per unit to annual average nominal value per unit

Alpha	30.6.2017
Market value of properties	295,950,000
Historical cost and capitalised charges	307,631,385
Financing	2,122,527
Net Asset Value (NAV)	320,059,989
NAV/unit (EUR)	3,081.2
Market price/unit (EUR)	1,315
Dividend yield from investment*	4.65%

* Ratio of income per unit to annual average nominal value per unit

Alpha: Diversification by geographical area Alpha: Diversification by intended use

Beta	30.6.2017
Market value of properties	33,163,000
Historical cost and capitalised charges	71,618,116
Net Asset Value (NAV)	27,419,604
NAV/unit (EUR)	102.1
Market price/unit (EUR)	95.5
Dividend yield from investment*	7.79%

* Ratio of income per unit to annual average nominal value per unit

Delta	30.6.2017
Market value of properties	173,515,000
Historical cost and capitalised charges	256,594,628
Net Asset Value (NAV)	180,896,179
NAV/unit (EUR)	85.9
Market price/unit (EUR)	70.0
Dividend yield from investment*	n.a.

* No distribution from investment

Delta: Diversification by geographical area Delta: Diversification by intended use

* * *

With regard to operating performance, in the first half of 2017, the Company continued along the path of asset growth, started in the previous year, with the launch of both the "Broggi" fund and the second phase of the "Trophy Value Added" fund (with AUM totalling over EUR 800 million). This growth enabled the Company to offset the concomitant squeeze in percentage fees and to keep the level of revenues achieved in the year-earlier period broadly unchanged (the decrease of EUR 0.4 million is due to one-off fees obtained in 2016).

Net profit attributable to shareholders (EUR 3.5 million, of which EUR 2.3 million is the DeA Capital Group's portion) improved on the same period in 2016; this was due to the higher oneoff costs (in particular, write-downs of units in some portfolio funds) that affected the figure for the previous year.

Note also that the total net result was affected by write-downs of financial equity instruments (strumenti finanziari partecipativi, or SFP), which had a net effect of EUR -4.5 million (DeA Capital portion equal to EUR -1.6 million).

IDeA FIMIT SGR (EUR million)	First Half 2017	First Half 2016
AUM	9,353	7,826
Management fees	20.0	20.4
EBITDA	6.9	7.6
Net profit	(1.0)	2.4
-of which:
- Shareholders	3.5	2.7
- Owner of financial equity instruments	(4.5)	(0.3)

- SPC

Registered office: Italy Sector: Debt recovery Website: www.spc-spa.com

Investment details:

SPC Credit Management has been operating for over 15 years in restructuring, outsourced management and the enhancement of non-performing loans.

Over the years, the company has developed specific expertise, namely:

• debt recovery actions in and out of court (with a strong performance in out-of-court resolutions of non-performing loans);
• advisory services via the valuation and clustering of credit portfolios and the identification of strategic solutions to enhance the value of these;
• due diligence and asset quality reviews of NPL portfolio acquisitions.

With specific regard to debt recovery, the company has acquired the expertise to monitor the entire range of non-performing loans, namely:

• banking (current accounts; mortgages, personal loans); leasing (terminated or active agreements; remaining leased properties post-sale of nonperforming portfolio);
• consumer (consumer credit, salary-backed loans, credit cards);
• commercial (outstanding invoices);

with a focus on secured loans.

During the first half of 2017, SPC launched a reorganisation of operating procedures under the leadership of a new management team, which led, inter alia, to a more prudent valuation of prospective income flows. This had a one-off effect of EUR -2.9 million (of which EUR -2.4 million related to goodwill impairment, with the remainder relating to extraordinary expenses) on the Group's Income Statement, which should be added to the pro-rata portion of the net result for the period (Group portion: EUR -0.3 million).

SPC (EUR million)	First Half 2017
Revenues	343
EBITDA	0.4
Net profit	(0.4)

- Innovation Real Estate

Registered office: Italy
Sector: Property Services
Website: www.innovationre.it
Investment details:
Innovation Real Estate (IRE) operates in property valuation and is structured along the following strategic lines:
 project & construction management (property planning, development and refurbishment);
 property management (administrative and legal management of properties);  facility & building management (services connected with buildings and related

• maintenance); due diligence (technical and environmental due diligence, town-planning regularisation procedures);
• asset management (strategic support for improving the rental condition of buildings and optimising associated management costs, in order to maximise the return on property investment).

IRE currently manages a property portfolio comprising 50% offices, with the remainder split between commercial, tourist, logistics & industrial, and residential property.

The investment in IRE (45%), which is classified under "Investments in associates", was recorded at EUR 4.9 million in the Consolidated Financial Statements to 30 June 2017.

Turning to management performance, the company was affected in the first half of 2017 by the completion of some project management tasks during 2016 (revenue was EUR 1.5 million lower, EUR 0.9 million of which was due to one-off income reflected in the 2016 figure).

Innovation Real Estate (EUR million)	First Half 2017	First Half 2016
Revenues	6.0	7.8
EBITDA	0.7	2.4
Net profit	1.2	2.1

Consolidated Income Statement

The Group reported net profit of EUR 6.2 million for the first half of 2017, compared with net profit of EUR 1.9 million in the same period of 2016.

Revenues and other income break down as follows:

• - fees of EUR 27.7 million for the Alternative Asset Management business (EUR 28.5 million in the same period of 2016);
• - income from investments valued at equity of EUR +5.3 million, linked to the performance of the EESS fund;
• - other investment income, net of expenses, totalling EUR 7.2 million (EUR -1.9 million in the same period of 2016); this was mainly due to the effects of exercising the put option on a 9.75% stake in Migros (EUR 3.8 million) and the performance of the investments held by IDeA OF I;
• - service revenues of EUR 0.3 million (EUR 7.6 million recorded in 2016), which were lower due to the deconsolidation of IRE from June 2016.

In the first half of 2017, costs totalled EUR 35.3 million, compared with EUR 32.3 million in the same period of 2016.

Costs in the first half of 2017 break down into EUR 31.3 million relating to Alternative Asset Management, EUR 1.2 million to Private Equity Investment and EUR 2.9 million to holding company activities. Alternative Asset Management costs include the effects of amortisation and write-downs of intangible assets, totalling EUR 6.8 million, recorded when a portion of the purchase price of the investment in IDeA FIMIT SGR was allocated.

Net financial expenses totalled EUR 0.1 million at 30 June 2017 (compared with expenses of EUR 1.3 million in the same period of 2016).

The total tax impact for the first half of 2017, totalling EUR +0.4 million (EUR -0.9 million in the first half of 2016), is the result of taxes of EUR 0.4 million due in respect of Alternative Asset Management activities (EUR 2.8 million due in the same period of 2016) and tax credits of EUR +0.8 million relating to holding company activities (EUR +1.9 million in the first half of 2016). Alternative Asset Management taxes include the positive tax effect of amortisation and write-downs of intangible assets, totalling EUR 1.8 million, recorded when a portion of the purchase price of the investment in IDeA FIMIT SGR was allocated.

Consolidated net profit of EUR 5.6 million breaks down as follows: EUR +11.3 million attributable to Private Equity Investment, EUR -3.0 million to Alternative Asset Management and EUR -2.6 million to holding company operations/eliminations.

The Group's net profit of EUR 6.2 million comprises: EUR +10.1 million attributable to Private Equity Investment, EUR -1.2 million to Alternative Asset Management and EUR -2.6 million to holding company operations/eliminations.

Summary Consolidated Income Statement

	First Half	First Half
(EUR thousand)	2017	2016
Alternative Asset Management fees	27,674	28,461
Income (loss) from equity investments	5,324	(103)
Other investment income/expense	7,214	(1,929)
Income from services	213	7,492
Other income	136	67
Other expenses (* )	(35,296)	(32,308)
Financial income and expenses	(126)	(1,263)
PROFIT/(LOSS) BEFORE TAX	5,139	417
Income tax	440	(889)
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	5,579	(472)
Profit (Loss) from discontinued operations/held-for-sale assets	0	0
PROFIT/(LOSS) FOR THE PERIOD	5,579	(472)
- Group share	6,235	1,904
- Non controlling interests	(656)	(2,376)
Earnings per share, basic (€)	0.024	0.007
Earnings per share, diluted (€)	0.024	0.007

(*) Includes items "personnel costs", "service costs", "depreciation, amortization and impairment" and "other expenses"

Performance by business in the first half of 2017

(EUR thousand)	Private Equity Investment	Alternative Asset Management	Holdings/ Eliminations	Consolidated
Alternative Asset Management fees	0	28,585	(911)	27,674
Income (loss) from equity investments	4,995	329	0	5,324
Other investment income/expense	7,590	(376)	0	7,214
Income from services	0	108	241	349
Other expenses	(1,154)	(31,252)	(2,890)	(35,296)
Financial income and expenses	(179)	(2)	55	(126)
PROFIT/(LOSS) BEFORE TAXES	11,252	(2,608)	(3,505)	5,139
Income tax	0	(419)	859	440
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	11,252	(3,027)	(2,646)	5,579
Profit (Loss) from discontinued operations/held-for-sale assets	0	0	0	0
PROFIT/(LOSS) FOR THE PERIOD	11,252	(3,027)	(2,646)	5,579
- Group share	10,060	(1,179)	(2,646)	6,235
- Non controlling interests	1,192	(1,848)	0	(656)

Performance by business in the first half of 2016

		Alternative
	Private Equity	Asset	Holdings/
(EUR thousand)	Investment	Management	Eliminations	Consolidated
Alternative Asset Management fees	0	29,421	(960)	28,461
Income (loss) from equity investments	(56)	(47)	0	(103)
Other investment income/expense	(3,196)	1,267	0	(1,929)
Income from services	0	7,363	196	7,559
Other expenses	(1,044)	(28,547)	(2,717)	(32,308)
Financial income and expenses	(1,302)	64	(25)	(1,263)
PROFIT/(LOSS) BEFORE TAXES	(5,598)	9,521	(3,506)	417
Income tax	0	(2,767)	1,878	(889)
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	(5,598)	6,754	(1,628)	(472)
Profit (Loss) from discontinued operations/held-for-sale assets	0	0	0	0
PROFIT/(LOSS) FOR THE PERIOD	(5,598)	6,754	(1,628)	(472)
- Group share	(2,719)	6,251	(1,628)	1,904
- Non controlling interests	(2,879)	503	0	(2,376)

Consolidated Statement of Performance (IAS 1)

Comprehensive Income or the Statement of Performance (IAS 1), in which performance for the period attributable to the group is reported including results posted directly to shareholders' equity, shows a net positive balance of approximately EUR 21.9 million compared with a positive balance of approximately EUR 6.7 million in the same period of 2016. This comprised:

• net profit of EUR 6.2 million recorded on the income statement
• profits posted directly to shareholders' equity totalling EUR +15.7 million (due mainly to the increase in the fair value of Migros).

	First Half 2017	First Half 2016
(EUR thousand)
Profit/(loss) for the period (A)	5,579	(472)
Comprehensive income/expense which might be subsequently reclassified within the profit (loss) for the period Comprehensive income/expense which will not be subsequently reclassified within the profit (loss) for the period	16,756 114	8,029 (142)
Other comprehensive income, net of tax (B)	16,870	7,887
Total comprehensive income for the period (A)+(B)	22,449	7,415
Total comprehensive income attributable to: - Group Share - Non Controlling Interests	21,929 520	6,744 671

Consolidated statement of financial position

Below is the Group's Statement of Financial Position at 30 June 2017, compared with 31 December 2016.

ASSETS Non-current assets Intangible and tangible assets Goodwill 127,923 129,399 Intangible assets 24,168 27,184 Property, plant and equipment 1,804 2,145 Total intangible and tangible assets 153,895 158,728 Investments Investments valued at equity 36,023 33,449 Investments held by Funds 86,764 84,084 - available for sale investments 48,531 47,845 - invest. in associates and JV valued at FV through P&L 38,233 36,239 Other available-for-sale companies 75,681 67,166 Available-for-sale funds 181,528 182,787 Other avalaible-for-sale financial assets 22 22 Total Investments 380,018 367,508 Other non-current assets Deferred tax assets 1,805 1,992 Loans and receivables 506 960 Tax receivables from Parent companies 755 0 Other non-current assets 25,375 30,147 Total other non-current assets 28,441 33,099 Total non-current assets 562,354 559,335 Current assets Trade receivables 17,089 11,191 Available-for-sale financial assets 4,216 4,242 Financial receivables 578 2,715 Tax receivables from Parent companies 2,282 2,282 Other tax receivables 3,290 9,190 Other receivables 5,401 3,976 Cash and cash equivalents 77,206 96,438 Total current assets 110,062 130,034 Total current assets 110,062 130,034 Held-for-sale assets 11,487 11,487 TOTAL ASSETS 683,903 700,856 SHAREHOLDERS' EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY Net equity Group 515,440 529,203 Minority interests 130,627 131,844 Shareholders' equity 646,067 661,047 LIABILITIES Non-current liabilities Deferred tax liabilities 8,569 8,588 Provisions for employee termination benefits 3,874 4,016 Long term financial loans 19 19 Payables to staff 206 207 Total non-current liabilities 12,668 12,830 Current liabilities Trade payables 5,824 6,019 Payables to staff and social security organisations 5,413 7,033 2,789 Current tax 2,941 Other tax payables 1,190 1,429 Other payables 9,255 8,335 Short term financial loans 697 1,222 Total current liabilities 25,168 26,979 Held-for-sale liabilities - - TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 683,903 700,856	(EUR thousand)	June 30, 2017	December 31, 2016

At 30 June 2017, Consolidated Shareholders' Equity relating to the Group totalled EUR 515.4 million, compared with EUR 529.2 million at 31 December 2016.

The decrease of about EUR 13.8 million in Group Shareholders' Equity in the first half of 2017 was mainly due to the extraordinary dividend paid (EUR 31.2 million), as well as the effects of changes in treasury shares (totalling EUR -4.9 million), and the reasons set out in the Statement of Performance (IAS 1) (EUR +21.9 million).

Consolidated net financial position

At 30 June 2017, the consolidated net financial position was positive at EUR 81.8 million, as shown in the table below, which provides a comparison with 31 December 2016:

Net financial position (EUR million)	30.6.2017	31.12.2016	Change
Cash and cash equivalents	77.2	96.4	(19.2)
Available-for-sale financial assets	4.2	4.2	0.0
Financial receivables	1.1	3.7	(2.6)
Non-current financial liabilities	0.0	0.0	0.0
Current financial liabilities	(0.7)	(1.2)	0.5
TOTAL	81.8	103.1	(21.3)
of which:
- Alternative Asset Management	19.1	23.3	(4.2)
- Private Equity Investment	2.3	0.1	2.2
- Holdings	60.4	79.7	(19.3)

The decrease of EUR 21.3 million in the consolidated net financial position in the first half of 2017 was mainly due to the distribution of the extraordinary dividend by DeA Capital S.p.A. (EUR -31.2 million), changes in own shares (EUR -4.9 million) and the net cash generated by private equity investments (EUR +14.4 million).

The Company believes that the cash and cash equivalents and the other financial resources available are sufficient to meet the requirement relating to payment commitments already subscribed to in funds, also taking into account the amounts expected to be called up/distributed by these funds. With regard to these residual commitments, the Company believes that the resources currently available, as well as those that will be generated by its operating and financing activities, will enable the DeA Capital Group to meet the financing required for its investment activity and to manage working capital.

6. Other information

Main risks and uncertainties to which the Parent Company and consolidated Group companies are exposed

As described in the Report on Operations, the DeA Capital Group operates through, and is structured as, two business areas, Private Equity Investment and Alternative Asset Management.

The risks set out below reflect: the characteristics of the market; the operations of Parent Company DeA Capital S.p.A. and the companies included in the Group's Half-Year Report; the main findings of a risk assessment in 2017; and periodic monitoring conducted partly through the regulatory policies adopted by the Group.

The Group has adopted a modern corporate governance system that provides effective management of the complexities of its operations, and enables both individual companies and the Group to achieve their strategic objectives. Furthermore, the assessments carried out by the organisational units and the directors confirm the non-critical nature of these risks and uncertainties, as well as the DeA Capital Group's financial solidity.

With reference to the specific risks relating to Migros, the main private equity investment, please see the Migros Annual Report (available on the Migros website).

A. Contextual risks

A.1. Risks relating to general economic conditions

The operating performance and financial position of the DeA Capital Group are affected by the various factors that make up the macro-economic environment in the countries in which the Group has invested, including GDP performance, investor and consumer confidence, interest rates, inflation, the costs of raw materials and unemployment. The ability to meet medium- to long-term objectives could be affected by general economic trends, which could slow the development of sectors the Group has invested in and/or the business of the investee companies.

A.2. Socio-political events

In line with its own strategic growth guidelines, one of the DeA Capital Group's activities is private equity investment in companies and funds in different jurisdictions and countries around the world which, in turn, invest in a number of countries and geographical areas. The DeA Capital Group may have invested in foreign countries whose social, political and economic conditions put the achievement of its investment objectives at risk.

A.3. Regulatory changes

Group companies conduct their operations in regulated sectors and markets. Any changes to or developments in the legislative or regulatory framework that affect the costs and revenues structure of investee companies or the tax regime applied could have negative effects on the Group's financial results and necessitate changes to the Group's strategy. To combat this risk, the Group has established procedures to constantly monitor sector regulation and any changes thereto, in order to take advantage of business opportunities and respond promptly to any changes to the prevailing legislation and regulations.

A.4. Performance of the financial markets

The Company's ability to meet its strategic and management objectives could depend on the performance of financial markets. A negative trend in financial markets could have an effect on Private Equity Investment in general, making investment and divestment transactions more complex, and, in particular, on the Group's capacity to increase the value of its investments. The value of shareholdings held directly or indirectly through funds in which the Company has invested could be affected by factors such as comparable transactions concluded on the market, sector multiples and market volatility. These factors that cannot be directly controlled by the Group are constantly monitored in order to identify appropriate response strategies that involve both the provision of guidance for the management of Group companies, and the investment and value enhancement strategy for the assets held.

A.5. Exchange rates

Holding investments in currencies other than the euro exposes the Group to changes in exchange rates between currencies. The investment in Kenan Investments is managed as a special case, since although it was made in euros, the underlying asset is expressed in Turkish lira. Taking into account the time horizon of the investment, it is believed that the expected return on the investment could absorb any devaluation of the underlying currency, if this is in line with the outlook.

A.6. Interest rates

Financing operations that are subject to variable interest rates could expose the Group to a decrease in the value of direct and indirect investments if base interest rates rise significantly. Here too, the Group has adopted procedures to constantly monitor the risk concerned.

B. Strategic risks

B.1. Concentration of the Private Equity investment portfolio

The Private Equity Investment strategy adopted by the Group includes:

• Direct investments;
• Indirect investments (via funds).

Within this strategy, the Group's overall profitability could be adversely affected by an unfavourable trend in one or a few investments, if there were insufficient risk diversification, resulting from the excessive concentration of investment in a small number of assets, sectors, countries, currencies, or of indirect investments in funds with limited investment targets/types of investment.

To address these risk scenarios, the Group pursues an asset allocation strategy aimed at defining a balanced portfolio with a moderate risk profile. Furthermore, the combination of direct and indirect investments, which, by their nature, provide a high level of diversification, helps reduce the level of asset concentration.

B.2. Concentration of Alternative Asset Management assets

In the Alternative Asset Management business, events could lead to excessive concentration of assets and therefore hinder achievement of the level of expected returns. These events could be due to:

• Private equity funds
• o concentration of the assets managed by asset management companies across a limited number of funds, if it were decided to terminate the asset management mandate for one or more funds;
• o concentration of the financial resources of the funds managed across a limited number of sectors and/or geographical areas, in the event of a currency, systemic or sector crisis;
• o for closed-end funds, the concentration of the commitment across just a few subscribers.

Real estate funds

• o concentration of real estate present in the portfolio of managed funds in a few cities and/or in limited types of property (management/commercial), in the event of a slump in the property market concerned;
• o concentration in respect of certain major tenants, if they were to withdraw from the rental contracts, which could lead to a vacancy rate that would have a negative impact on the funds' financial results and the valuation of the properties managed;
• o concentration of the maturities of numerous real estate funds within a narrow timeframe, with related high availability of property on the market, leading to a decrease in property values and an increase in selling times.

For each of the risk scenarios outlined above, the Group has defined and implemented appropriate strategies that include strategic, operational and management aspects, as well as a system monitoring the level of asset diversification in the Alternative Asset Management business.

B.3. Key resources (governance/organisation)

The success of the DeA Capital Group depends to a large extent on its executive directors and certain key management figures, their ability to efficiently manage the business and the ordinary operations of the Group, as well as their knowledge of the market and the professional relationships established. The departure of one or more of these key resources, without a suitable replacement being found, as well as an inability to attract and retain new and qualified resources, could impact growth targets and have a negative effect on the Group's operating performance and financial results. To mitigate this risk, the Group has put in place HR management policies that correspond closely to the needs of the business, and incentive policies that are periodically reviewed, in light of, among other things, the general macroeconomic climate and the results achieved by the Group.

C. Operating risks

C.1. Investment operations

Investment operations conducted by the Group are subject to the risks typical of private equity activities, such as the accurate valuation of the target company and the nature of the transactions carried out. The Group has implemented a structured process of due diligence on the target companies and a careful definition of shareholders' agreements in order to conclude agreements in line with the investment strategy and the risk profile defined by the Group.

C.2. Compliance with covenants

Some investment operations were concluded using financial leverage to invest in the target companies. For financing contracts signed by investee companies, specific covenants generally backed by collateral are in place; failure to comply with these could necessitate recapitalisation operations for investee companies and/or lead to an increase in financial expenses relating to debt refinancing. Failure to comply with covenants attached to loans could have negative effects on both the financial position and operations of investee companies, and the value of the investment.

C.3. Divestment operations

In its Private Equity Investment business, the Group generally invests over a medium-/longterm time horizon. Over the investment management period, external situations could arise that might have a significant impact on the operating results of the investee companies and, consequently, on the value of the investment itself. Furthermore, in the case of co-investment, guiding the management of an investee company could prove problematic or unfeasible, and it may ultimately prove impossible to dispose of the stakes held, for example due to the

presence of lock-up clauses. The divestment strategy could therefore be negatively affected by various factors, some of which cannot be foreseen at the time the investments are made.

To combat these risk situations, the Group has defined a process to monitor the performance of its investee companies, facilitated by its representation on the management bodies of significant investee companies, with a view to identifying any critical situations in good time.

C.4. Fund-raising Risk

The income flows expected from the Alternative Asset Management business depend on the capacity of the Group's asset management companies to stabilise/grow their assets under management. In this environment, fundraising activities could be harmed both by external and internal factors, such as bad timing in respect of fundraising activities by the asset management companies, or the departure of key managers from the companies. The Group has established appropriate risk management strategies in relation to fundraising, with a view to both involving new investors and retaining current investors.

Transactions with parent companies, subsidiaries and related parties

Transactions with related parties, including intercompany transactions, are typical, usual transactions that are part of the normal business activities of Group companies. Such transactions are concluded under standard market terms for the types of goods and/or services offered.

Other information

At 30 June 2017, the Group had 197 employees (186 at the end of 2016), including 36 senior managers, 59 middle managers and 102 clerical staff. Of these, 180 worked in Alternative Asset Management and 17 in Private Equity Investment/the Holding Company. These staff levels do not include personnel on secondment from the Parent Company De Agostini S.p.A.

With regard to the regulatory requirements set out in art. 36 of the Market Regulation on conditions for the listing of parent companies of companies formed or regulated by laws of non-EU countries and of material importance in the consolidated financial statements, it should be noted that no Group company falls within the scope of the above-mentioned provision.

Furthermore, conditions prohibiting listing pursuant to art. 37 of the Market Regulation relating to companies subject to the management and coordination of other parties do not apply.

Summary Consolidated Half-Year Report for the period 1 January to 30 June 2017

Consolidated Statement of Financial Position

		June 30,	December 31,
(EUR thousand) ASSETS	Note	2017	2016
Non-current assets
Intangible and tangible assets
Goodwill	1a	127,923	129,399
Intangible assets	1b	24,168	27,184
Property, plant and equipment	1c	1,804	2,145
Total intangible and tangible assets		153,895	158,728
Investments
Investments valued at equity	2a	36,023	33,449
Investments held by Funds	2b	86,764	84,084
- available for sale investments		48,531	47,845
- invest. in associates and JV valued at FV through P&L		38,233	36,239
Other available-for-sale companies	2c	75,681	67,166
Available-for-sale funds	2d	181,528	182,787
Other avalaible-for-sale financial assets		22	22
Total Investments		380,018	367,508
Other non-current assets
Deferred tax assets	3a	1,805	1,992
Loans and receivables		506	960
Tax receivables from Parent companies		755	0
Other non-current assets	3b	25,375	30,147
Total other non-current assets		28,441	33,099
Total non-current assets		562,354	559,335
Current assets
Trade receivables	4a	17,089	11,191
Available-for-sale financial assets	4b	4,216	4,242
Financial receivables	4c	578	2,715
Tax receivables from Parent companies	4d	2,282	2,282
Other tax receivables	4e	3,290	9,190
Other receivables	4f	5,401	3,976
Cash and cash equivalents	4g	77,206	96,438
Total current assets Total current assets		110,062	130,034
Held-for-sale assets	4h	110,062 11,487	130,034 11,487
TOTAL ASSETS		683,903	700,856
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Net equity Group		515,440	529,203
Minority interests		130,627	131,844
Shareholders' equity	5	646,067	661,047
LIABILITIES
Non-current liabilities
Deferred tax liabilities	6a	8,569	8,588
Provisions for employee termination benefits	6b	3,874	4,016
Long term financial loans		19	19
Payables to staff		206	207
Total non-current liabilities		12,668	12,830
Current liabilities
Trade payables	7a	5,824	6,019
Payables to staff and social security organisations	7b	5,413	7,033
Current tax	7c	2,789	2,941
Other tax payables	7d	1,190	1,429
Other payables	7e	9,255	8,335
Short term financial loans		697	1,222
Total current liabilities		25,168	26,979
Held-for-sale liabilities		-	-
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES		683,903	700,856

Pursuant to Consob Resolution 15519 of 27 July 2006, the impact of dealings with related parties on the Statement of Financial Position, Income Statement and Cash Flow Statement is explained in the notes to the Financial Statements.

Consolidated Income Statement

		First Half 2017	First Half 2016
(EUR thousand)	Note
Alternative Asset Management fees	8	27,674	28,461
Income from equity investments	9	5,324	(103)
Other investment income/expense	10	7,214	(1,929)
Income from services	11	213	7,492
Other income		136	67
Personnel costs	12a	(14,752)	(16,284)
Service costs	12b	(9,007)	(11,297)
Depreciation, amortization and impairment	12c	(6,027)	(3,093)
Other expenses	12d	(5,510)	(1,634)
Financial income	13	324	522
Financial expenses	13	(450)	(1,785)
PROFIT/(LOSS) BEFORE TAX		5,139	417
Income tax	14	440	(889)
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS		5,579	(472)
Profit (Loss) from discontinued operations/held-for-sale assets		0	0
PROFIT/(LOSS) FOR THE PERIOD		5,579	(472)
- Group share		6,235	1,904
- Non controlling interests		(656)	(2,376)
Earnings per share, basic (€)	15	0.024	0.007
Earnings per share, diluted (€)	15	0.024	0.007

Pursuant to Consob Resolution 15519 of 27 July 2006, the impact of dealings with related parties on the Statement of Financial Position, Income Statement and Cash Flow Statement is explained in the notes to the Financial Statements.

Performance by business in the first half of 2017

(EUR thousand)	Private Equity Investment	Alternative Asset Management	Holdings/ Eliminations	Consolidated
Alternative Asset Management fees	0	28,585	(911)	27,674
Income (loss) from equity investments	4,995	329	0	5,324
Other investment income/expense	7,590	(376)	0	7,214
Income from services	0	108	241	349
Other expenses	(1,154)	(31,252)	(2,890)	(35,296)
Financial income and expenses	(179)	(2)	55	(126)
PROFIT/(LOSS) BEFORE TAXES	11,252	(2,608)	(3,505)	5,139
Income tax	0	(419)	859	440
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	11,252	(3,027)	(2,646)	5,579
Profit (Loss) from discontinued operations/held-for-sale assets	0	0	0	0
PROFIT/(LOSS) FOR THE PERIOD	11,252	(3,027)	(2,646)	5,579
- Group share	10,060	(1,179)	(2,646)	6,235
- Non controlling interests	1,192	(1,848)	0	(656)

Performance by business in the first half of 2016

		Alternative
	Private Equity	Asset	Holdings/
(EUR thousand)	Investment	Management	Eliminations	Consolidated
Alternative Asset Management fees	0	29,421	(960)	28,461
Income (loss) from equity investments	(56)	(47)	0	(103)
Other investment income/expense	(3,196)	1,267	0	(1,929)
Income from services	0	7,363	196	7,559
Other expenses	(1,044)	(28,547)	(2,717)	(32,308)
Financial income and expenses	(1,302)	64	(25)	(1,263)
PROFIT/(LOSS) BEFORE TAXES	(5,598)	9,521	(3,506)	417
Income tax	0	(2,767)	1,878	(889)
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	(5,598)	6,754	(1,628)	(472)
Profit (Loss) from discontinued operations/held-for-sale assets	0	0	0	0
PROFIT/(LOSS) FOR THE PERIOD	(5,598)	6,754	(1,628)	(472)
- Group share	(2,719)	6,251	(1,628)	1,904
- Non controlling interests	(2,879)	503	0	(2,376)

Consolidated Statement of Comprehensive Income (Statement of Performance – IAS 1)

(Euro thousands)	First Half 2017	First Half 2016
Profit/(loss) for the period (A)	5,579	(472)
Comprehensive income/expense which might be subsequently reclassified within the profit (loss) for the period Gains/(Losses) on fair value of available-for-sale financial	16,756	8,029
assets	16,756	8,029
Share of other comprehensive income of associates	0	0
Comprehensive income/expense which will not be subsequently reclassified within the profit (loss) for the period	114	(142)
Gains/(losses) on remeasurement of defined benefit plans	114	(142)
Other comprehensive income, net of tax (B)	16,870	7,887
Total comprehensive income for the period (A)+(B)	22,449	7,415
Total comprehensive income attributable to:
- Group Share	21,929	6,744
- Non Controlling Interests	520	671

Consolidated Cash Flow Statement – Direct Method

(EUR thousand)	First Half 2017	First Half 2016
CASH FLOW from operating activities
Investments in funds and shareholdings	(12,617)	(14,882)
Capital reimbursements from funds Proceeds from the sale of investments	10,056 18,479	4,128 8,694
Interest received	83	187
Interest paid	(13)	(4)
Cash distribution from investments	1,328	234
Realized gains (losses) on exchange rate derivatives	(2)	(1)
Taxes paid	(416)	(815)
Dividends received	607	0
Management and performance fees received	22,818	26,515
Revenues for services	671	10,798
Operating expenses	(24,635)	(33,208)
Net cash flow from operating activities	16,359	1,646
CASH FLOW from investment activities
Acquisition of property, plant and equipment	(15)	(36)
Sale of property, plant and equipment	1	3
Purchase of licenses	(338)	(234)
Net cash flow from investing activities	(352)	(267)
CASH FLOW from investing activities
Acquisition of financial assets	0	(1,939)
Sale of financial assets	0	3,506
Share capital issued	276	2,154
Own shares acquired	(5,142)	(2,804)
Dividends paid	(32,962)	(33,492)
Loan	582	(128)
Quasi-equity loan	0	0
Bank loan paid back	2,007	0
Net cash flow from financing activities	(35,239)	(32,703)
CHANGE IN CASH AND CASH EQUIVALENTS	(19,232)	(31,324)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	96,438	123,468
Cash and cash equivalents relating to held-for-sale assets	0	0
Cash and cash equivalents at beginning of period	96,438	123,468
Effect of change in basis of consolidation: cash and cash equivalents	0	(8,035)
CASH AND CASH EQUIVALENTS AT END OF PERIOD	77,206	84,109
Held-for-sale assets and minority interests	0	0
CASH AND CASH EQUIVALENTS AT END OF PERIOD	77,206	84,109

Pursuant to Consob Resolution 15519 of 27 July 2006, the impact of dealings with related parties on the Statement of Financial Position, Income Statement and Cash Flow Statement is explained in the notes to the Financial Statements.

Consolidated Statement of Changes in Shareholders' Equity

(EUR thousand)	Share Capital	Treasury share reserve, capital reserve, retained earnings	Fair value Reserve	Profit (loss) for the Group	Total Group	Non controlling interests	Consolidated net equity
Total at 31 December 2015	263,923	179,815	62,178	41,072	546,988	138,172	685,160
Allocation of previous year's net result	0	41,072	0	(41,072)	0	0	0
Cost of stock options	0	296	0	0	296	0	296
Purchase of own shares	(2,273)	(531)	0	0	(2,804)	0	(2,804)
Treasury shares delivered to the incentive plans	463	(111)	0	0	352	0	352
Dividends distributed	0	(31,557)	0	0	(31,557)	(1,937)	(33,494)
Other changes	0	(65)	0	0	(65)	(3,141)	(3,206)
Total comprehensive income	0	0	4,840	1,904	6,744	671	7,415
Total at 30 June 2016	262,113	188,919	67,018	1,904	519,954	133,765	653,719
(EUR thousand)	Share Capital	Treasury share reserve, capital reserve, retained earnings	Fair value Reserve	Profit (loss) for the Group	Total Group	Non controlling interests	Consolidated net equity
Total at 31 December 2016	261,207	187,727	67,842	12,427	529,203	131,844	661,047
Allocation of previous year's net result	0	12,427	0	(12,427)	0	0	0
Cost of stock options	0	635	0	0	635	0	635
Purchase of own shares	(3,779)	(1,363)	0	0	(5,142)	0	(5,142)
Treasury shares delivered to the incentive plans	481	(205)	0	0	276	0	276
Dividends distributed	0	(31,157)	0	0	(31,157)	(1,808)	(32,965)
Other changes	0	(304)	0	0	(304)	71	(233)
Total comprehensive income Total at 30 June 2017	0 257,909	0 167,760	15,694 83,536	6,235 6,235	21,929 515,440	520 130,627	22,449 646,067

Notes to the Financial Statements

Structure and content of the Summary Consolidated Half-Year Report to 30 June 2017

The Summary Consolidated Half-Year Report to 30 June 2017 comprises the Consolidated Statement of Financial Position, Consolidated Income Statement, Consolidated Statement of Comprehensive Income (Statement of Performance), Consolidated Cash Flow Statement, Statement of Changes in Consolidated Shareholders' Equity and these notes to the Financial Statements. They are also accompanied by the Interim Report on Operations and the Statement of Responsibilities for the Summary Consolidated Half-Year Financial Statements pursuant to art. 154-bis of Legislative Decree 58/98.

Information regarding the Company's operating performance and cash flow relates to the first half of 2017 and the first half of 2016; information on the assets and liabilities relates to 30 June 2017 and 31 December 2016.

The Consolidated Financial Statements are provided in the same format as those for 31 December 2016. The Consolidated Statement of Financial Position provides a breakdown of current and non-current assets and liabilities with separate reporting for those resulting from discontinued or held-for-sale operations. The Consolidated Income Statement breaks down costs and revenues based on their nature. The Consolidated Cash Flow Statement is prepared using the "direct method".

Unless otherwise indicated, all tables and figures included in these notes to the Financial Statements are reported in EUR thousand.

Statement of compliance with accounting standards

The Summary Consolidated Half-Year Report to 30 June 2017 was prepared in accordance with the going concern principle and with the International Accounting Standards adopted by the European Union and approved by the date this document was prepared (the International Accounting Standards, or individually, IAS/IFRS, or collectively IFRS - International Financial Reporting Standards), and in accordance with art. 154-ter of Legislative Decree 58/1998 that implements the "Transparency Directive". IFRS also includes all interpretations of the International Financial Reporting Interpretations Committee (IFRIC), including those previously issued by the Standing Interpretations Committee (SIC), and approved by the European Union.

The Summary Consolidated Half-Year Report to 30 June 2017 is prepared in summary format in accordance with IAS 34 (Interim financial reporting). It does not, therefore, contain all of the information required for the year-end Consolidated Financial Statements, and must be read in conjunction with the Consolidated Financial Statements prepared for the year ending 31 December 2016.

In accordance with the provisions of IAS/IFRS and current laws, the Company authorised the publication of the Half-Year Report to 30 June 2017 by the legal deadline.

The valuation criteria adopted on the basis of the International Accounting Standards are consistent with going concern principle and were the same as those used to prepare the Consolidated Financial Statements for the Year Ending 31 December 2016, to which reference should be made for additional details.

No new international accounting standards and interpretations were applied for the first time from 1 January 2017. The Group did not apply any IFRS in advance.

The Group will adopt these new standards, amendments and interpretations based on the stipulated effective date, and will assess their potential impact when they have been approved by the European Union.

Note that IFRS 9 (Financial instruments) will become effective on 1 January 2018. This standard, which introduces changes to both the recognition and measurement of financial assets and liabilities, and hedge accounting, will fully replace IAS 39 (Financial Instruments: Recognition and Measurement). More specifically, the standard introduces changes relating to:

• the classification and measurement of financial instruments, for which an assessment model is proposed based on three categories (amortised cost, fair value, and fair value with changes recognised in the Statement of Comprehensive Income);
• impairment, which differs from that currently set out in IAS 39, and is mainly based on the concept of expected losses;
• hedge accounting.

The DeA Capital Group has started work to assess the potential impact on its financial statements of applying this standard, with a main emphasis on the classification and measurement of financial instruments. It aims to complete this work in the second half of this year.

* * *

The accounting standards and criteria used in the Summary Consolidated Half-Year Report to 30 June 2017 may not coincide with IFRS provisions that will come into effect on 31 December 2017 as a result of the future position of the European Commission regarding the approval of International Accounting Standards or the issue of new standards, interpretations or implementation guides by the International Accounting Standards Board (IASB) or the International Financial Reporting Interpretation Committee (IFRIC).

* * *

Use of estimates and assumptions in the preparation of the Summary Consolidated Half-Year Report to 30 June 2017

The Company must make assessments, estimates and assumptions that affect the application of accounting principles and the amounts of assets, liabilities, costs and revenues recorded in the financial statements. Estimates and related assumptions are based on past experience and other factors deemed reasonable in the case concerned; these are used to estimate the carrying value of assets and liabilities that cannot be easily obtained from other sources. Since these are estimates, the results obtained should not necessarily be considered definitive.

These estimates and assumptions are reviewed regularly. Any changes resulting from revisions to accounting estimates are recorded in the period when the revision is made if such revision only affects that period; if the revision affects current and future periods, the change is recorded in the period in which the revision is made and in related future periods.

The use of reasonable estimates is an essential part of preparing the Summary Consolidated Half-Year Financial Statements to 30 June 2017, and this use of estimates is particularly significant for valuing the assets and shareholdings that make up the investment portfolio. An estimate may be adjusted as a result of changes in the circumstances on which it was based, or as a result of new information. Any change in the estimate is applied prospectively and has an impact on the Income Statement in the period in which the change occurred and potentially on Income Statements in future periods.

As permitted by IAS/IFRS, the preparation of the Summary Consolidated Half-Year Report to 30 June 2017 required the use of significant estimates by the Company's management, especially with regard to fair value assessments of the investment portfolio (shareholdings and funds).

These fair value measurements were determined by the directors based on their best estimates and judgement, using their knowledge and the evidence available at the time the Summary Consolidated Half-Year Report to 30 June 2017 was prepared. However, due to objective difficulties in making assessments and the absence of a liquid market, the values assigned to such assets could differ, in some cases significantly, from those that could be obtained when the assets are sold.

For a more complete description of the most significant assessment processes for the Group, see the Consolidated Financial Statements for the Year Ending 31 December 2016.

Scope of consolidation

There was no change to the basis of consolidation at 30 June 2017 compared with the position at 31 December 2016. Therefore, at 30 June 2017, the following companies formed part of the DeA Capital Group's scope of consolidation:

Company	Registered office	Currency	Share capital		% holding Consolidation method
DeA Capital S.p.A.	Milan, Italy	Euro	306,612,100	Holding
IDeA Capital Funds SGR S.p.A.	Milan, Italy	Euro	1,200,000	100.00%	Full consolidation
IDeA OF I	Milan, Italy	Euro	-	46.99%	Full consolidation
DeA Capital Real Estate S.p.A.	Milan, Italy	Euro	600,000	100.00%	Full consolidation
IDeA FIMIT SGR S.p.A.	Rome, Italy	Euro	16,757,557	64.30%	Full consolidation
SPC S.p.A.	Milan, Italy	Euro	104,147	85.05%	Full consolidation
Innovation Real Estate S.p.A.	Milan, Italy	Euro	597,725	45.00%	Equity accounted
Innovation Real Estate Advisory S.r.l.	Milan, Italy	Euro	105,000	45.00%	(Associate) Equity accounted
IDeA Efficienza Energetica e Sviluppo	Milan, Italy	Euro	-	30.40%	(Associate) Equity accounted
Sostenibile Venere	Rome, Italy	Euro	-	27.27%	(Associate) Equity accounted

Information on the fair value hierarchy

IFRS 13 stipulates that financial instruments reported at fair value should be classified based on a hierarchy that reflects the importance and quality of the inputs used in calculating the fair value. Three levels have been determined:

• Level 1: includes prices quoted on active markets for assets or liabilities identical to those being valued;
• Level 2: includes observable inputs other than those included in level 1, for example:
• o prices quoted on active markets for similar assets and liabilities;
• o prices quoted on inactive markets for identical assets and liabilities;
• o interest rate curves, implicit volatility, credit spreads;
• Level 3: unobservable data. These input data may be used if no observable input data are available. IFRS 13 specifies that unobservable input data used to measure fair value must reflect the assumptions used by market participants when fixing the price for the assets or liabilities being valued.

The table below shows assets valued at fair value by hierarchical level at 30 June 2017:

(EUR million)	Note	Level 1	Level 2	Level 3	Total
Available-for-sale equity investments held by funds	2b	0.0	0.0	48.5	48.5
Investments in associates and JVs held by Funds (recognised on income statement)	2b	0.0	17.3	21.0	38.3
Available-for-sale investments in other companies	2c	8.7	66.8	0.2	75.7
Available-for-sale funds	2d	7.6	173.9	0.0	181.5
Available-for-sale financial assets – current portion	4b	4.1	0.0	0.1	4.2
Total assets		20.4	258.0	69.8	348.2

The table below shows changes in level 3 assets between the opening and closing balances of the first half of 2017.

(EUR thousand)	Balance at	1.1.2017 Increases Decreases		Impairment and related exchange effect	Fair value adjustment	Fair value on income statement	Translation effect	Balance at 30.6.2017
Available-for-sale equity investments held by funds	47.8	0.0	0.0	0.0	0.7	0.0	0.0	48.5
Investments in associates and JVs held by Funds (recognised on income statement)	21.3	0.0	0.0	0.0	(0.3)	0.0	0.0	21.0
Other entities	0.2	0.0	0.0	0.0	0.0	0.0	0.0	0.2
Current available-for-sale	0	0.1	0.0	0.0	0.0	0.0	0.0	0.1
Available-for-sale	69.3	0.1	0.0	0.0	0.4	0.0	0.0	69.8

Valuation techniques and main unobservable input data

Available-for-sale equity investments held by funds

At 30 June 2017, the DeA Capital Group was a minority shareholder, through the IDeA OF I fund, in Giochi Preziosi, Manutencoop, Lauro Cinquantasette (Euticals/AMRI) and Elemaster.

Measurement of the other investments at fair value is based on valuation techniques that do not use observable market parameters (mainly transaction multiples of comparable companies, market multiples of comparable companies and discounted cash flow). The exact value of the investment is determined within the valuation intervals identified by the various methodologies, also taking account of the values stated in the fund management report, which represent the basis of calculation for the funds' NAVs, i.e. the baseline for valuing units of funds held by the DeA Capital Group.

Investments in associates and joint ventures held by funds

At 30 June 2017, the DeA Capital Group was a minority shareholder, through the IDeA OF I fund, in Talgo, Corin and Iacobucci. The companies were measured at fair value with changes recognised in the Income Statement pursuant to IAS 28.18.

With regard to the investment in Talgo, the fair value of the vehicle through which the investment is held is determined based on the valuation of the Talgo share, as recorded on the Madrid Stock Exchange at 30 June 2017.

Measurement of the other investments at fair value is based on valuation techniques that do not use observable market parameters (mainly transaction multiples of comparable companies, market multiples of comparable companies and discounted cash flow). The exact value of the investment is determined within the valuation intervals identified by the various methodologies, also taking account of the values stated in the fund management report, which represent the basis of calculation for the funds' NAVs, i.e. the baseline for valuing units of funds held by the DeA Capital Group.

Available-for-sale investments in other companies

This item consists almost entirely of the shareholding in Kenan Investments (the indirect Parent Company of Migros), which is recorded in the Consolidated Financial Statements to 30 June 2017 at EUR 66.8 million.

The valuation of the shareholding in Kenan Investments at 30 June 2017 is largely based on the equity value of Migros and on the TRY/EUR exchange rate (4.02 at 30 June 2017).

Available-for-sale funds (venture capital funds, funds of funds, co-investment funds, theme funds and real estate funds)

Valuations of shareholdings and funds in the portfolio reflect estimates made using the information available on the date this document was prepared.

At 30 June 2017, the DeA Capital Group held units in the following funds:

• IDeA I FoF (valued at EUR 64.9 million);
• ICF II (valued at EUR 45.0 million);
• ICF III (valued at EUR 6.6 million);
• IDeA ToI (valued at EUR 7.1 million);
• IDeA CCR I (valued at EUR 1.7 million);
• Santa Palomba (valued at EUR 0.4 million);
• six venture capital funds (with a total value of approximately EUR 8.9 million);
• thirteen unlisted property funds (with a total value of approximately EUR 46.9 million).

For venture capital funds, the fair value of each fund is based on the fund's stated NAV, calculated according to international valuation standards.

For the other funds, the fair value of each fund is represented by the NAV advised by the management company in the fund management report for the half-year to 30 June 2017, drafted in accordance with the Bank of Italy's regulation of 19 January 2015 on collective asset management.

Notes to the Consolidated Statement of Financial Position

NON-CURRENT ASSETS

Non-current assets totalled approximately EUR 562.4 million at 30 June 2017, compared with EUR 559.3 million at 31 December 2016.

1a – Goodwill

This item, which was EUR 127.9 million at 30 June 2017 (compared with EUR 129.4 million at 31 December 2016), relates to the goodwill accounted for in relation to IDeA Capital Funds SGR (EUR 31.3 million) and IDeA FIMIT SGR (EUR 96.6 million).

IAS 36 requires that goodwill, and hence the cash-generating unit (CGU), or groups of CGUs to which it has been allocated, is subject to impairment tests at least annually and that certain qualitative and quantitative indicators of impairment are monitored continuously to check for the existence of conditions that would require impairment testing to be carried out more frequently.

With regard to the position at 30 June 2017, the qualitative and quantitative analysis conducted did not reveal any issues that would require impairment tests to be instigated for the two amounts of goodwill. Consequently, impairment testing will be applied annually for the preparation of the Financial Statements for the Year Ending 31 December 2016.

However, the existing goodwill on the shareholding in SPC as at 31 December 2016 (EUR 1.5 million) was reviewed after completion of the purchase price allocation (PPA) process and subsequently written down. On completion of the PPA process, goodwill totalling EUR 2.4 million was fully written down during the current year, in light of the restructuring process undertaken by the company under the leadership of the new management.

1b – Intangible assets

Intangible assets, and changes in their balances, are indicated in the table below.

(EUR thousand)	Historical cost at 1.1.2017	Cum. amort. & write downs at 1.1.2017	Net carrying value at 1.1.2017	Historical cost at 30.6.2017	Cum. amort. & write downs at 30.6.2017	Net carrying value at 30.6.2017
Concessions, licences and trademarks	6,559	(5,406)	1,153	6,771	(5,671)	1,100
Software expenses	154	(142)	12	154	(148)	6
Development expenses	229	(226)	3	229	(227)	2
Other intangible assets	123,076	(97,060)	26,016	108,923	(85,863)	23,060
Total	130,018	(102,834)	27,184	116,077	(91,909)	24,168

(EUR thousand)	Balance at 1.1.2017	Acquisitions	Amort.	Write-downs	Decreases	Changes in consolidation area	Balance at 30.6.2017
Concessions, licences and trademarks	1,153	212	(265)	0	0	0	1,100
Software expenses	12	0	(6)	0	0	0	6
Development expenses	3	0	(1)	0	0	0	2
Other intangible assets	26,016	0	(656)	(2,300)	0	0	23,060
Total	27,184	212	(928)	(2,300)	0	0	24,168

Other intangible assets mainly relate to customer contracts, which arise from the allocation of the cost of the business combination for the acquisition of FIMIT SGR, and are recorded separately from goodwill in accordance with IFRS 3, after verification that:

• they are separately identifiable from goodwill;
• their fair value can be reliably and realistically quantified;
• they arise from transferable contractual or legal rights.

As regards the position at 30 June 2017, after carrying out qualitative/quantitative analysis, it was deemed necessary to make an impairment charge to a portion of IDeA FIMIT SGR's intangible assets relating to variable fees.

1c – Property, plant and equipment

Property, plant and equipment, and changes in their balances, are indicated in the table below.

(EUR thousand)	Historical cost at 1.1.2017	Cum. amort. & write-downs at 1.1.2017	Net carrying value at 1.1.2017	Historical cost at 30.6.2017	Cum. amort. & write-downs at 30.6.2017	Net carrying value at 30.6.2017
Leasehold improvements	3,557	(2,051)	1,506	3,557	(2,319)	1,238
Furniture and fixtures	1,729	(1,248)	481	1,736	(1,340)	396
Computer and office equipment	1,198	(1,051)	147	1,077	(915)	162
Company vehicles	240	(234)	6	200	(197)	3
Plant	17	(12)	5	17	(12)	5
Other assets	377	(377)	0	304	(304)	0
Total	7,118	(4,973)	2,145	6,891	(5,087)	1,804

(EUR thousand)	Balance at 1.1.2017	Acquisitions		Depreciation Reclassificatio ns	Decreases	Change in consolidation area	Balance at 30.6.2017
Leasehold improvements	1,506	0	(268)	0	0	0	1,238
Furniture and fixtures	481	7	(92)	0	0	0	396
Computer and office equipment	147	50	(34)	0	(1)	0	162
Company vehicles	6	0	(3)	0	0	0	3
Plant	5	0	0	0	0	0	5
Other assets	0	0	0	0	0	0	0
Total	2,145	57	(397)	0	(1)	0	1,804

Ordinary depreciation rates, which are based on the use of assets by category, are 20% for specific plant assets, 12% for furniture and furnishings, 20% for equipment and electronic office machinery and 15% for improvements made to leased assets.

2 – Financial investments and other non-current assets

Financial investments in shareholdings and funds constitute the Group's ordinary operations.

2a – Investments in associates

This item, which totalled EUR 36.0 million at 30 June 2017 (EUR 33.4 million at 31 December 2016), relates to the following assets:

• the investment in IRE is valued at EUR 4.9 million;
• the units held in the Venere fund are valued at approximately EUR 10.1 million;
• the units held in the IDeA EESS fund are valued at approximately EUR 21.0 million.

The table below provides details of investments in associates at 30 June 2017 by business segment.

(EUR million)	Private Equity Investment	Alternative Asset Management	Total
IDeA EESS fund	21.0	0.0	21.0
Venere fund	3.3	6.8	10.1
IRE group	0.0	4.9	4.9
Total	24.3	11.7	36.0

The table below summarises the financial information relating to Innovation Real Estate and IDeA EESS, based on the reporting package prepared in accordance with the accounting principles used by the DeA Capital Group at 30 June 2017:

	Innovation Real Estate	IDeA EESS
(EUR thousand)	First Half 2017	First Half 2017
Revenues	6,582	0
Net profit/(loss) for the year	525	16,325
Other profit/(loss), net of tax effect	8	(130)
Total comprehensive profit/(loss) for the year	533	16,195
Total comprehensive profit/(loss) for the year attributable to minorities	293	11,272
Total comprehensive profit/(loss) for the year attributable to Group	240	4,923
(EUR thousand)	30.6.2017	30.6.2017
Current assets	18,309	4,216
Non-current assets	1,990	68,773
Current liabilities	(10,919)	(3,772)
Non-current liabilities	(1,467)	0
Net assets	7,913	69,217
Net assets attributable to minorities	4,352	48,175
Goodwill	1,384
Net assets attributable to the Group	4,944	21,042
(EUR thousand)	30.6.2017	30.6.2017
Net initial assets attributable to the Group	5,312	16,898
Total comprehensive profit/(loss) for the year attributable to Group	240	4,923
Dividends received in the period	(608)	(779)
Net final assets attributable to minorities	4,944	21,042
Book value of associate company	4,944	21,042
Dividends paid to minorities during the year	(743)	0

2b – Investments held by funds

At 30 June 2017, the DeA Capital Group was a minority shareholder, through the IDeA OF I fund, in Giochi Preziosi, Manutencoop, Elemaster, Lauro Cinquantasette (Euticals/AMRI), Talgo, Corin and Iacobucci. This item, which totalled EUR 86.8 million at 30 June 2017 (EUR 84.1 million at 31 December 2016), relates to the assets set out below:

(EUR million)	30.6.2017
Investments in Portfolio
Giochi Preziosi	5.2
Manutencoop Facility Management	18.9
Lauro Cinquantasette (Euticals)	15.9
Elemaster	8.5
Investments available for sale	48.5
Iacobucci HF Electronics	6.0
Pegaso Transportation Investments (Talgo)	17.3
2IL Orthopaedics LTD (Corin)	15.0
Investments in associates and JV valued at FV through P&L	38.3
Total investments in Portfolio	86.8

2c – Available-for-sale investments in other companies

At 30 June 2017, the DeA Capital Group was a minority shareholder of Kenan Investments (the indirect parent company of Migros), Crescita, Stepstone, Harvip, TLcom Capital LLP (management company under UK law) and TLcom II Founder Partner SLP (limited partnership under UK law).

The investment in Kenan Investments is recorded in the Consolidated Financial Statements to 30 June 2017 at EUR 66.8 million (compared with EUR 66.9 million at 31 December 2016). This amount (indirectly corresponding to approximately 5.2% of Migros' capital, i.e. 30.50% of Migros' capital via the Group's investment in Kenan Investments) reflects:

• net proceeds (EUR 17.8 million) realised on 1 June 2017 following the exercise of the put option on the 9.75% stake in Migros;
• an increase in the fair value reserve (EUR 17.7 million) due to the combined effect of the rise in the price per share (TRY 27.56 per share at 30 June 2017, versus TRY 17.58 per share at 31 December 2016), and the devaluation of the Turkish lira against the euro (4.02 TRY/EUR at 30 June 2017, versus 3.72 TRY/EUR at 31 December 2016).

The investment in Crescita SPAC is recorded in the Consolidated Financial Statements to 30 June 2017 at EUR 8.7 million, with an increase in fair value of EUR 0.9 million compared with the initial investment of EUR 7.8 million. For more details about the investment, see the comments in the Report on Operations above.

The table below provides details of equity investments in other companies at 30 June 2017 by business segment.

(EUR million)	Private Equity Investment	Alternative Asset Management	Total
Kenan Investments	66.8	0.0	66.8
Crescita	8.7	0.0	8.7
Minority interests	0.2	0.0	0.2
Total	75.7	0.0	75.7

2d – Available-for-sale funds

This item relates to investments in units of three funds of funds (IDeA I FoF, ICF II and ICF III), two theme funds (IDeA ToI and IDeA CCR I with two sub-funds), six venture capital funds and 13 real estate funds, totalling approximately EUR 181.5 million in the Consolidated Financial Statements to 30 June 2017, compared with EUR 182.8 million at the end of 2016.

(EUR thousand)	Balance at 1.1.2017	Increases (Capital call)	Decreases (Capital distribution)	Impairment	Fair value adjustment	Translation effect	Balance at 30.6.2017
Venture capital funds	9,488	0	(147)	(37)	(436)	2	8,870
IDeA I FoF	69,015	432	(5,379)	0	826	0	64,894
ICF II	47,000	172	(1,805)	0	(374)	0	44,993
ICF III Core	520	56	0	0	(17)	0	559
ICF III Credit & Distressed	2,897	0	0	0	(88)	0	2,809
ICF III Emerging Markets	3,489	0	0	0	(266)	0	3,223
IDeA ToI	5,196	2,149	0	0	(264)	0	7,081
IDeA CCR I CD	75	0	(2)	0	0	0	73
IDeA CCR I NF	0	1,687	0	0	(67)	0	1,620
Santa Palomba	402	0	0	0	13	0	415
IDeA FIMIT SGR Funds	44,705	0	(34)	(518)	2,838	0	46,991
Total funds	182,787	4,496	(7,367)	(555)	2,165	2	181,528

The table below provides a breakdown of the funds in the portfolio at 30 June 2017 by business segment.

(EUR million)	Private Equity Investment	Alternative Asset Management	Total
Venture capital funds	8.9	0.0	8.9
IDeA I FoF	64.9	0.0	64.9
ICF II	45.0	0.0	45.0
ICF III	6.6	0.0	6.6
IDeA ToI	7.1	0.0	7.1
IDeA CCR I	1.7	0.0	1.7
Santa Palomba	0.4	0.0	0.4
IDeA FIMIT SGR Funds	0.0	46.9	46.9
Total funds	134.6	46.9	181.5

3a – Deferred tax assets

The balance on the item "deferred tax assets" comprises the value of deferred tax assets minus deferred tax liabilities, where they may be offset.

At 30 June 2017, deferred tax assets totalled EUR 1.8 million at 30 June 2017, compared with EUR 2.0 million at 31 December 2016.

3b – Other non-current assets

This item, valued at EUR 25.4 million at 30 June 2017, compared with EUR 30.1 million at 31 December 2016, relates mainly to the receivable from the IDeA OF I fund for the sale of 1% of Manutencoop, and the receivable from the Beta Immobiliare fund (pertaining to IDeA FIMIT) relating to the final variable fee. The receivable from the Beta Immobiliare fund corresponds to the portion of the overperformance fee that has accrued since the fund was launched and which IDeA FIMIT SGR expects to receive when the fund is liquidated.

CURRENT ASSETS

Current assets totalled approximately EUR 110.1 million at 30 June 2017, compared with EUR 130.0 million at 31 December 2016.

4a – Trade receivables

This item amounted to EUR 17.1 million at 30 June 2017, compared with EUR 11.2 million at 31 December 2016. The item mainly includes receivables of IDeA FIMIT SGR.

4b – Available-for-sale financial assets

At 30 June 2017, available-for-sale financial assets totalled EUR 4.2 million, broadly unchanged on the figure at 31 December 2016. The item includes investments to be regarded as a temporary use of cash.

4c – Financial receivables

This item amounted to EUR 0.6 million at 30 June 2017, compared with EUR 2.7 million at 31 December 2016. At 30 June 2017, this item mainly related to the residual receivable due from the purchasers of the majority stake in IRE for the deferred purchase price component, which is expected to be received in April 2018.

4d – Tax receivables relating to the tax consolidation scheme

At 30 June 2017, receivables totalled EUR 2.3 million, unchanged on the figure at 31 December 2016. It includes receivables relating to the national tax consolidation scheme for the Group headed by De Agostini S.p.A.

4e – Other tax receivables

At 30 June 2017, other receivables totalled EUR 3.3 million, compared with EUR 9.2 million at 31 December 2016. The item chiefly includes advance payments on IRAP and IRES, tax deductions in the form of advance payments on interest, IRES tax credits to be carried forward and VAT receivables.

4f – Other receivables

At 30 June 2017, other receivables totalled EUR 5.4 million, compared with EUR 4.0 million at 31 December 2016. The item includes guarantee deposits, advances to suppliers and prepaid expenses.

4g – Cash and cash equivalents (bank deposits and cash)

At 30 June 2017, this item was EUR 77.2 million, compared with EUR 96.4 million at 31 December 2016. The change, totalling EUR -19.2 million, is mainly attributable to the extraordinary dividend paid by DeA Capital S.p.A. (EUR -31.2 million), changes in own shares (EUR -4.9 million) and the net cash generated by private equity investments (EUR +14.4 million).

4h – Held-for-sale assets

At 30 June 2017, the item totalled EUR 11.5 million (unchanged on 31 December 2016) and relates to the investment in Sigla Luxembourg.

SHAREHOLDERS' EQUITY

5 – Shareholders' equity

At 30 June 2017, Consolidated Shareholders' Equity totalled around EUR 646.1 million, including EUR 515.4 million pertaining to the Group, compared with EUR 661.0 million (EUR 529.2 million pertaining to the Group) at 31 December 2016.

The decrease in Group shareholders' equity in the first half of 2017 (EUR 13.8 million) was mainly due to the extraordinary dividend paid (EUR -31.2 million), the reasons already discussed in the Statement of Performance (IAS 1) (EUR +21.9 million) and the effects of the share buy-back plan (EUR -4.4 million). With regard to the Statement of Performance, the positive result of EUR 21.9 million is mainly due to the investment in Kenan Investments / Migros (EUR +17.7 million).

On 15 May 2017, in accordance with the vote of the Shareholders' Meeting on 20 April 2017, DeA Capital S.p.A. made a partial distribution of the share premium reserve in an amount of EUR 0.12 per share, i.e. based on the total number of shares net of treasury shares held, in an amount of around EUR 31.2 million.

The table below provides details of changes in the fair value reserve in the first half of 2017.

(EUR thousand)	Balance at 1.1.2017	Change in Fair Value	Tax Effect	Other movements	Balance at 30.6.2017
Direct Investments / Shareholdings	3,668	283	0	0	3,951
Funds and other reserves	64,174	15,999	(586)	0	79,587
Total	67,842	16,282	(586)	0	83,538

Shareholders' equity attributable to minorities

At 30 June 2017, shareholders' equity attributable to minorities was approximately EUR 130.6 million, compared with EUR 131.8 million at 31 December 2016. This item relates to the shareholders' equity attributable to minorities resulting from the line-by-line consolidation of IDeA FIMIT SGR, the IDeA OF I fund and the subsidiary SPC.

The table below summarises details of the financial information of IDeA FIMIT SGR and IDeA OF I, before elimination of the intercompany relationships with the Group's other companies, as at 30 June 2017.

		IDeA FIMIT SGR	IDeA OF I Fund
(EUR thousand)		First Half 2017 First Half 2016	First Half 2017	First Half 2016
Alternative Asset Management fees	20,039	20,401	0	0
Net profit/(loss) for the year	(1,004)	2,365	2,248	(5,432)
Profit/(loss) attributable to minorities	(1,670)	844	1,192	(2,880)
Other profit/(loss), net of tax effect	2,014	2,030	686	3,590
Total comprehensive profit/(loss) for the year	1,011	4,395	2,934	(1,842)
Total comprehensive profit/(loss) for the year attributable to minorities	(951)	1,569	1,555	(976)
(EUR thousand)	30.6.2017	31.12.2016	30.6.2017	31.12.2016
Current assets	31,823	30,175	2,271	136
Non-current assets	194,284	200,107	95,604	93,886
Current liabilities	(14,734)	(14,870)	(941)	(22)
Non-current liabilities	(10,663)	(10,738)	0	0
Net assets	200,710	204,674	96,934	94,000
Net assets attributable to minorities	79,304	82,031	51,385	49,829
(EUR thousand)	First Half 2017	First Half 2016	First Half 2017	First Half 2016
CASH FLOW from operations	643	(7,843)	1,182	(5,612)
CASH FLOW from investment assets	(332)	(218)	0	0
CASH FLOW from financial assets	(1,808)	(1,937)	978	3,400
NET INCREASE IN CASH AND CASH EQUIVALENTS	(1,496)	(9,998)	2,161	(2,212)
Dividends paid to minorities during the year	(1,808)	(1,937)	0	0

NON-CURRENT LIABILITIES

At 30 June 2017, non-current liabilities totalled EUR 12.7 million, compared with EUR 12.8 million at 31 December 2016.

6a – Deferred tax liabilities

This item totalled EUR 8.6 million at 30 June 2017, unchanged on 31 December 2016. It mainly included deferred tax liabilities related to the tax effects of allocating part of the acquisition cost of the subsidiaries in the purchase price allocation (PPA) phase.

6b – End-of-service payment fund

At 30 June 2017, this item totalled EUR 3.9 million, compared with EUR 4.0 million at 31 December 2016, and included end-of-service payments that are part of defined benefit plans, which were therefore valued using actuarial assessments.

CURRENT LIABILITIES

At 30 June 2017, current liabilities totalled EUR 25.2 million, compared with EUR 27.0 million at 31 December 2016.

7a – Trade payables

At 30 June 2017, other payables totalled EUR 5.8 million, compared with EUR 6.0 million at 31 December 2016.

7b – Payables in respect of staff and social security organisations

At 30 June 2017, this item was EUR 5.4 million, compared with EUR 7.0 million at 31 December 2016, and primarily comprised the liability to staff for unused leave, bonuses, and payables to social security organisations.

7c – Current tax payables

At 30 June 2017, this item was EUR 2.8 million, compared with EUR 2.9 million at 31 December 2016, and mainly related to the EUR 2.4 million payable of IDeA Capital Funds SGR in relation to the national tax consolidation scheme of the Group headed by De Agostini S.p.A.

7d – Other tax payables

Other tax payables totalled EUR 1.2 million at 30 June 2017, compared with EUR 1.4 million at 31 December 2016, and chiefly relate to the payable to the tax authorities for taxes deducted from the income of employees and self-employed staff.

7e – Other payables

At 30 June 2017, other payables amounted to EUR 9.3 million, compared with EUR 8.3 million at 31 December 2016. Of these, an amount of EUR 7.7 million related to payables due by IDeA FIMIT SGR to managed funds (for VAT) and to distributors.

Notes to the Consolidated Income Statement

8 – Alternative Asset Management fees

In the first half of 2017, Alternative Asset Management fees totalled EUR 27.7 million, compared with EUR 28.5 million in the same period of 2016; these related mainly to management fees paid to IDeA FIMIT SGR and to IDeA Capital Funds SGR for the funds they manage.

9 – Income from investments valued at equity

This item includes the share of income from companies valued at equity for the period. In the first half of 2017, income from investments valued at equity was positive at EUR 5.3 million (EUR -0.1 million in the same period of 2016); this mainly relates to the result of IDeA EESS, which was affected by the revaluation of the listed SMRE stock.

10 – Other investment income/expenses

Other net income from investments in shareholdings and funds totalled EUR 7.2 million in the first half of 2017, compared with net expenses of EUR 1.9 million in the same period of 2016. This mainly relates to effects linked to the exercise of the put option on a 9.75% stake in Migros (EUR 3.8 million) and the profit reported on the investments held by the IDeA Opportunity Fund (EUR 3.6 million).

11 – Service revenues

This item totalled EUR 0.2 million in the first half of 2017 (EUR 7.5 million in the same period of 2016) and mainly relates to services provided by IRE for consultancy, management and the sale of real estate held in the portfolios of the real estate funds. Following the sale of the controlling stake in IRE, the latter were deconsolidated.

12a – Personnel costs

In the first half of 2017, personnel costs totalled EUR 14.8 million in the first half of 2017, compared with EUR 16.3 million in the same period of 2016.

At 30 June 2017, the average number of employees was 190. The table below shows changes in the average number of Group employees in the first half of 2017.

Position			1.1.2017 Recruits Departures	Other changes	Consolidation area change	30.6.2017	Average
Senior Managers	33	2	(1)	2	0	36	34
Junior Managers	56	4	(2)	1	0	59	57
Staff	97	18	(10)	(3)	0	102	99
Total	186	24	(13)	0	0	197	190

12b – Service costs

In the first half of 2017, service costs totalled EUR 9.0 million, compared with EUR 11.3 million in the same period of 2016. The decrease is mainly due to the deconsolidation of IRE in the first half of 2016.

12c – Depreciation, amortisation and impairment losses

This item totalled EUR 6.0 million, compared with EUR 3.1 million in the same period of 2016, and notably includes the impairment of the goodwill relating to SPC, as redefined following the finalisation of the purchase price allocation (PPA), totalling EUR 2.4 million, as well as the EUR 2.3 million write-down of intangible assets from variable fees relating to IDeA FIMIT SGR. Please see the table of changes in intangible and tangible assets for a breakdown into subitems.

12d – Other costs

Other costs totalled EUR 5.5 million in the first half of 2017, compared with EUR 1.6 million in the same period of 2016. This item consists of pro-rata non-deductible VAT on costs incurred by IDeA FIMIT SGR in the first half of 2017 (EUR 0.7 million) and the impairment of receivables due to IDeA FIMIT (EUR 4.1 million, of which EUR 3.8 million relates to final variable fees for the Beta fund and EUR 0.3 million to receivables for management fees).

13 – Financial income (expenses)

Financial income totalled EUR 0.3 million in the first half of 2017 (EUR 0.5 million in the same period of 2016), and financial expenses were EUR 0.5 million (EUR 1.8 million in the yearearlier period).

Financial income

(EUR thousand)	First Half 2017	First Half 2016
Interest income	322	450
Income from financial instruments valued at fair value through profit and loss	0	0
Foreign exchange gains	2	2
Other income	0	5
Total	324	522

Financial expenses

(EUR thousand)	First Half 2017	First Half 2016
Interest expense	18	107
Exchange losses	407	1,652
Financial charge IAS 19	25	26
Other	0	0
Total	450	1,785

14 – Income tax

Income tax came to EUR +0.4 million in the first half of 2017, compared with EUR -0.9 million in the first half of 2016.

(EUR thousand)	First Half 2017	First Half 2016
Current taxes:
Income from tax consolidation scheme	735	1,037
- IRES	(432)	(1,461)
- IRAP	(538)	(1,199)
- Other tax	0	(50)
Total Current taxes	(235)	(1,673)
Deferred taxes for the period:
- Charges for deferred/prepaid taxes	(187)	(1,076)
- Income from deferred/prepaid taxes	862	1,499
- Use of deferred tax liabilities	0	361
- Use of deferred tax assets	0	0
Total deferred taxes	675	784
Total income tax	440	(889)

15 – Earnings per share

Basic earnings per share are calculated by dividing net profit attributable to the Group's shareholders by the weighted average number of shares outstanding, in both cases relating to the period.

Diluted earnings per share are calculated by dividing net profit attributable to the Group's shareholders by the weighted average number of shares outstanding during the period, including any diluting effects of any existing stock option plans that are currently "in the money".

(EUR thousand)	First Half 2017	First Half 2016
Consolidated net profit/(loss) - Group share (A)	6,235	1,904
Weighted average number of ordinary shares outstanding (B)	259,890,427	266,557,823
Basic earnings/(loss) per share (€ per share) (C=A/B)	0.024 -	0.007
Restatement for dilutive effect	0	- 0
Consolidated net profit/(loss) restated for dilutive effect (D)	6,235	1,904
Weighted average number of shares to be issued for the exercise of
stock options (E)	162,211	956,844
Total number of shares outstanding and to be issued (F)	260,052,638	267,514,667
Diluted earnings/(loss) per share (€ per share) (G=D/F)	0.024	0.007

Other information

Transactions with parent companies, subsidiaries and related parties

Transactions with related parties, including those with other Group companies, were carried out in accordance with the Procedure for Related Party Transactions adopted by the Company with effect from 1 January 2011, in accordance with the provisions of the Regulation implemented pursuant to art. 2391-bis of the Italian Civil Code with Consob Resolution 17221 of 12 March 2010, as subsequently amended. During the first half of the year, the Company did not carry out any atypical or unusual transactions with related parties. In addition, it did not carry out any "significant transactions" as defined in the above-mentioned procedure. Transactions with related parties during the first half of 2017 were carried out under standard market conditions for the nature of the goods and/or services offered.

With regard to transactions with parent companies, note the following:

1) DeA Capital S.p.A. has signed a service agreement with the controlling shareholder, De Agostini S.p.A., for the latter to provide operating services in administration, finance, control, legal, corporate, tax, investor relations, and institutional and press services.

This agreement, which is automatically renewed each year, is priced at market rates, and is intended to allow the Company to maintain a streamlined organisational structure in keeping with its development policy, while obtaining sufficient operational support.

In addition, on 1 January 2013, DeA Capital S.p.A. signed an "Agreement to sub-let property for use other than residential use" with the controlling shareholder, De Agostini S.p.A. The agreement relates to parts of a building located at Via Brera, 21, Milan, comprising space for office use, warehousing and car parking.

This agreement is renewable every six years after an initial term of seven years.

2) DeA Capital S.p.A., IDeA Capital Funds SGR and DeA Capital Real Estate have adopted the national tax consolidation scheme of the De Agostini Group (the Group headed by De Agostini S.p.A., formerly B&D Holding di Marco Drago e C. S.a.p.a.). This option was exercised jointly by each company and De Agostini S.p.A. through the signing of the "Regulation for participation in the national tax consolidation scheme for companies in the De Agostini Group" and notifying the tax authorities of this option pursuant to the procedures and terms and conditions laid down by law. The option is irrevocable unless the requirements for applying the scheme are not met.

The option is irrevocable for DeA Capital S.p.A. for the three-year period 2017-2019, for IDeA Capital Funds SGR for the three-year period 2015-2017 and for DeA Capital Real Estate for the three-year period 2016-2018.

3) In order to allow more efficient use of liquidity and the activation of credit lines with potentially better terms and conditions compared with those that may be obtained from banks, DeA Capital S.p.A. has signed a framework agreement (Framework Agreement) with the Parent Company De Agostini S.p.A. for the provision of short-term intercompany loans/deposits.

Deposit/financing operations falling within this Framework Agreement shall be activated only subject to verification that the terms and conditions, as determined from time to time, are advantageous, and will be provided on a revolving basis, and with maturities of not more than three months. The Framework Agreement has a duration of one year and is automatically renewed each year.

The amounts involved in the deposit/financing operations will, however, always be below the thresholds defined for "transactions of lesser importance" pursuant to Consob Regulation 17221/2010 (Related Party Transactions) and the internal Procedure for Related Party Transactions adopted by DeA Capital S.p.A.

Note that there have been no deposit/financing transactions between DeA Capital S.p.A. and the Parent Company De Agostini S.p.A. since the above framework agreement was signed.

* * *

In the first half of 2017, the Company also carried out transactions with its subsidiaries under market conditions.

During the first half of 2017, the Company did not hold, purchase or sell, through a trust company or third party, any shares in the Parent Company De Agostini S.p.A.

The table below summarises the amounts of trade-related transactions between DeA Capital Group companies.

			30.6.2017			First Half 2017
(EUR thousand)	Trade receivables Tax receivables		Other tax receivables	Tax payables		Trade payables Income from servicesFinancial income Personnel costs			Service costs
Sigla S.r.l.	0	0	0	0	0	0	0	0	0
Innovation Real Estate Group	0	0	0	0	0	0	0	0	0
De Agostini S.p.A.	83	3,037	130	2,354	33	173	64	(45)	0
Gruppo De Agostini Editore S.p.A.	0	0	0	0	0	0	0	0	(131)
Lottomatica S.p.A.	0	0	0	0	0	13	0	0	0
DeA Factor S.p.A.	0	0	0	0	0	0	0	0	0
De Agostini Invest S.A.	0	0	0	0	0	0	0	0	0
Total related parties	83	3,037	130	2,354	33	186	64	(45)	(131)
Total financial statement line item	17,089	3,037	3,290	2,789	5,824	27,887	324	(14,752)	(9,007)
As % of financial statement line item	0.5%	100.0%	4.0%	84.4%	0.6%	0.7%	19.8%	0.3%	1.5%

Directors' and auditors' remuneration

In the first half of 2017, remuneration payable to the Parent Company's directors and auditors for the performance of their duties totalled EUR 147.9 thousand and EUR 75.5 thousand respectively.

Stock options and performance shares

The Company has in place stock option plans for shares and performance share plans for the Boards of Directors, auditors and managers with strategic responsibilities.

- Stock options

			Options outstanding at 1 January		Options granted during 2017			Options	Options	Options outstanding at 30 June 2017
			2017					exercised	lapsed/
								during 2017	cancelled
									during 2017
Beneficiary	Position	Number of options	Average exercise	Average	Number of options	Average exercise	Average	Number of	Number of	Number of options	Average exercise	Average expiry date
			price	expiry date		price	expiry date	options	options		price
Paolo Ceretti	CEO	950,000	1.02	5	0	0	0	81,728	551,043	317,229	1.02	5

- Performance shares

				Units outstanding at 1 January 2017		Units granted during 2017 Units Units lapsed/ exercised cancelled during 2017 during 2017		Units outstanding at at 30 June 2017
Beneficiary	Position	Number of Units	Units Price	Average expiry date	Number of Units	Units Price	Average expiry date	Number of Units	Number of Units	Number of Units	Units Price	Average expiry date
Paolo Ceretti	CEO	120,000	1.44	3	0	0	0	68,272	51,728	0	0	0
Paolo Ceretti	CEO	250,000	1.46	4	0	0	0	0	0	250,000	1.46	4
Paolo Ceretti	CEO	350,000	1	4	0	0.00	0	0	0	350,000	1.00	4
Paolo Ceretti	CEO	0	0	0	350,000	1.36	4	0	0	350,000	1.36	4
Key Management		60,000	1.44	3	0	0	0	34,135	25,865	0	0	0
Key Management		125,000	1.46	4	0	0	0	0	0	125,000	1.46	4
Key Management		150,000	1.34	4	0	0	0	0	0	150,000	1.34	4
Key Management		450,000	1	4	0	0.00	0	0	0	450,000	1.19	4
Key Management		0	0	0	475,000	1.36	4	0	0	475,000	1.36	4

Disclosure relating to sovereign exposures

Pursuant to Consob Communication DEM/11070007 of 5 August 2011 (which incorporates ESMA statement 2011/266 issued on 28 July 2011) on the information to be provided in financial reports regarding listed companies' exposure to sovereign debt securities and in relation to current trends on the international markets, the only assets relating to sovereign exposure held by the DeA Capital Group at 30 June 2017 have a carrying value of EUR 1,415 thousand and comprise Italian government treasury certificates maturing in 2022.

Atypical or unusual transactions

In the first half of 2017, there were no atypical or unusual transactions as defined by Consob Communication 6064293 of 28 July 2006.

Significant non-recurring events and transactions

In the first half of 2017, the DeA Group did not undertake any significant non-recurring transactions as defined by the Consob Communication; the partial indirect sale of the stake in Migros (following the exercise of the put option on a 9.75% stake in Migros by Kenan Investments) is considered to be part of ordinary operations.

Net financial position

Please see the Report on Operations, as mentioned above, for the net financial position of the DeA Capital Group.

Significant events after the end of the period and outlook

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

AAM funds – paid calls/distributions

After the end of the first half of 2017, the DeA Capital Group increased its investments in the IDeA I FoF, ICF II, IDeA ToI and ICF III funds with payments totalling EUR 2.0 million.

At the same time, the DeA Capital Group received capital reimbursements from the IDeA I FoF, ICF II and Venere funds (EUR 7.8 million, EUR 3.6 million and EUR 0.5 million respectively) to be used in full to reduce the carrying value of the units.

Sale of investments in Sigla and SiCollection

On 7 July 2017, Sigla Luxembourg, a 41.4%-owned investee company of DeA Capital S.p.A, signed an agreement for the sale of two investments (100% of the capital) held in Sigla and SiCollection to Alchemy Special Opportunities Fund (Alchemy).

Sigla, which is recorded in the register of intermediaries pursuant to art. 106 of the Italian Consolidated Banking Law (TUB), operates in salary-backed loans, while SiCollection is active in the servicing of non-performing loans. Alchemy specialises in investments in private equity and special situations in Europe and has a proven track record in the financial services sector.

The transaction includes, inter alia, the standard reps and warranties for this type of agreement. It is subject to conditions precedent, which include obtaining the necessary approval of the supervisory authorities. Completion is expected by the end of 2017.

The consideration for the sale, net of transaction costs and expenses relating to the management equity plan (for Sigla Luxembourg), is expected to generate a pro-rata share of around EUR 11.8 million for DeA Capital (slightly higher than the book value of the investment in Sigla Luxembourg).

Increased voting rights for DeA Capital S.p.A. shares held by the Parent Company De Agostini S.p.A.

On 7 July 2017, an increase was made to the voting rights relating to 178,795,798 ordinary shares of DeA Capital S.p.A., held by De Agostini S.p.A. (subsidiary of B&D Holding di Marco Drago e C. S.a.p.a.), pursuant to Art. 127-quinquies of the T.U.F. and the provisions of the Articles of Association.

Following this increase, De Agostini S.p.A. – which holds approximately 58.3% of the share capital of DeA Capital S.p.A. – held approximately 73.7% of the related voting rights.

Acquisition of Yard by IRE

On 24 July 2017, Innovation Real Estate (IRE), a 45%-owned investee company of the DeA Capital Group, completed the acquisition of the Yard Group, a full-service provider operating in the real estate sector, which has a customer/services mix that is complementary to that of IRE. The transaction, which does not involve any share exchanges, will take the form of a merger by incorporation of Yard into IRE, and is expected to complete by 2018.

SPC capital increase

In July 2017, paid calls totalling EUR 2.5 million were made on the capital of SPC (DeA Capital share: EUR 2 million). Following the subsequent shareholder resolutions (to cover losses and increase the share capital), these decreased the DeA Capital Group's stake in SPC to 80% (from the previous 85%).

OUTLOOK

In relation to Private Equity Investment, work will continue on enhancing the value of the portfolio investments, while simultaneously assessing the possibility of new initiatives, on a more modest scale than previously, mainly with a view to club deals / co-investment (including with the funds managed by the asset management platform). Using the capital already available, as well as proceeds from the sale of assets currently held in the portfolio and from redemptions of the funds in which DeA Capital S.p.A. has invested, the Group will also continue to sponsor new initiatives promoted by the asset management platform, (by investing in funds launched by this platform).

In relation to Alternative Asset Management, work will continue on developing the platform, aiming to consolidate the leadership in Italy and to widen the investor base and the product range, with a greater presence in the NPL segment. Against this backdrop, in order to make optimal use of internal know-how and with a view to encouraging the recognition of DeA Capital as an integrated platform (Private Equity, Real Estate and NPL), there will be a strengthening of the coordination of the development and investor coverage functions.

In terms of assets, DeA Capital S.p.A. will continue to maintain a solid financial structure while simultaneously ensuring cash returns for shareholders (through dividends and buy-backs), according to the available funds.

Statement of responsibilities for the Consolidated Financial Statements Half-Year Report to 30 June 2017

STATEMENT OF RESPONSIBILITIES FOR THE SUMMARY CONSOLIDATED HALF-YEAR REPORT TO 30 JUNE 2017 (PURSUANT TO ART. 154-BIS OF LEGISLATIVE DECREE 58/98)

The undersigned, Paolo Ceretti, as Chief Executive Officer, and Manolo Santilli, as the manager responsible for preparing the Company's financial statements, hereby certify, pursuant to art. 154-bis, paragraphs 3 and 4 of Legislative Decree 58 of 24 February 1998 that, based on the characteristics of the company, the administrative and accounting procedures for preparing the Summary Consolidated Half-Year Report of the DeA Capital Group to 30 June 2017 were appropriate and effectively applied.

The assessment as to the suitability of the administrative and accounting procedures for preparing the Summary Consolidated Half-Year Report to 30 June 2017 was based on a process established by DeA Capital S.p.A. in keeping with the Internal Control - Integrated Framework model issued by the Committee of Sponsoring Organisations of the Treadway Commission, which is the generally accepted reference framework at international level.

It should be noted in this regard that, as described in the notes to the Summary Consolidated Half-Year Report to 30 June 2017, the preparation of the Summary Consolidated Half-Year Report to 30 June 2017, as permitted by IAS/IFRS, required the use of significant estimates by the Company's management, especially with regard to fair value assessments of the investment portfolio (shareholdings and funds). These fair value measurements were determined by the directors based on their best estimates and judgement, using their knowledge and evidence available at the time the summary consolidated half-year financial statements to 30 June 2017 were prepared. However, due to objective difficulties in making assessments and the absence of a liquid market, the values assigned to such assets could differ, in some cases significantly, from those that could be obtained when the assets are sold.

The undersigned further certify that the Summary Consolidated Half-Year Report to 30 June 2017:

• - was prepared in accordance with the applicable international accounting standards recognised in the European Community pursuant to (EC) European Parliamentary and Council Regulation 1606/2002 of 19 July 2002 and, in particular, IAS 34 (Interim Financial Reporting), and the rules issued to implement art. 9 of Legislative Decree 38/2005;
• - correspond to book and accounting entries of the Group companies;
• - provide a true and fair view of the operating performance and financial position of the issuer and all the companies included in the consolidation.

The Interim Report on Operations contains references to significant events that occurred in the first six months of 2017 and their impact on the Summary Consolidated Half-Year Financial Statements to 30 June 2017, together with a description of the main risks and uncertainties for the remaining six months of the year, and information on significant related-party transactions.

Milan, 8 September 2017

Paolo Ceretti Manolo Santilli

Chief Executive Officer Manager responsible for preparing the Company's accounting statements