INTERIM MANAGEMENT REPORT TO 31 MARCH 2017

First Quarter 2017

______________________

Board of Directors Milan, 10 May 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 46,929,395 treasury shares at 31 March 2017) Tax code, VAT code and recorded in the Milan Register of Companies under no. 07918170015

Board of Directors ()*

Chairman Lorenzo Pellicioli

Chief Executive Officer Paolo Ceretti

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

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 quarter of 2017
1. Results of the DeA Capital Group
1. Other information

Consolidated Financial Statements and Notes to the Accounts for the period 1 January to 31 March 2017

Statement of Responsibilities for the Interim Management Report to 31 March 2017

Interim Report on Operations

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

With assets under management of more than EUR 11,000 million and an investment portfolio of approximately EUR 470 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 funds of funds 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 excellent quality, built up over time, of the management team, which has over 180 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 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 31 March 2017, DeA Capital S.p.A. reported Group shareholders' equity of EUR 540.4 million, corresponding to a net asset value (NAV) of EUR 2.08 per share (compared with EUR 2.03 per share at 31 December 2016), with an investment portfolio of EUR 472.8 million.

More specifically, the investment portfolio consists of Private Equity Investment shareholdings of EUR 94.7 million, Private Equity Investment funds of EUR 208.7 million and net assets relating to the Alternative Asset Management business of EUR 169.4 million.

At 31 March 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, Turkey's leading food retail chain operator, whose shares are listed on the Istanbul Stock Exchange. The investment is held through the Luxembourg-registered company Kenan Investments S.A., an investment recorded in the AFS portfolio of the DeA Capital Group (with a stake of 17.1%);
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 and nine managed funds;
controlling interest in IDeA FIMIT SGR (64.3%), Italy's largest independent real estate asset management company, with about EUR 9.0 billion in assets under management and 41 managed funds (including five listed funds);
controlling interest in SPC (68.7%), 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 0.5 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.

2. Information for shareholders

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

(#) Figures at 31 March 2017

Note: At the date of this document, there were 47,244,082 treasury shares representing 15.41% of share capital.

Share performance (°)

- From 11 January 2007, when DeA Capital S.p.A. began operations, to 31 March 2017

- From 1 January 2016 to 31 March 2017

(°) Source: Bloomberg

The performance of the DeA Capital share

From 11 January 2007, when DeA Capital S.p.A. began operations, to 31 March 2017, the Company's share price declined by 27.9%. In the same period, the FTSE All-Share® and LPX50® fell by 46.7% and 3.3% respectively.

The DeA Capital share rose by 30.7% in 2017, while the Italian market index FTSE All-Share® gained 7.8% and the LPX50® increased by 5.0%.

The share's liquidity increased considerably compared with 2016, with average daily trading volumes of around 375,000 shares.

The DeA Capital share prices recorded in the first quarter of 2017 are shown below.

(in EUR)	1 Jan – 31 Mar 2017
Maximum price	1.57
Minimum price	1.16
Average price	1.25
Price at 31 March 2017 (EUR per share)	1.57
Market capitalisation at 31 March 2017
(EUR million)	481

NB: Capitalisation net of treasury shares: approximately EUR 408 million

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

The DeA Capital Group's key income statement and statement of financial position figures to 31 March 2017 are shown below, compared with the corresponding figures to 31 December 2016 and 31 March 2016.

(EUR million)	31.3.2017	31.12.2016
NAV/share (EUR)	2.08	2.03
Group NAV	540.4	529.2
Investment portfolio	472.8	448.8
Net financial position - Holding companies	66.1	79.7
Consolidated net financial position	89.1	103.1

(EUR million)	First quarter 2017	First quarter 2016
Group net profit/(loss)	6.8	0.3
Comprehensive income (Group share) (Statement of Performance – IAS 1)	13.1	1.3

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

Change in Group NAV	Total value (EUR m)	No. shares (millions)	Value per share (EUR)
"Adjusted" Group NAV at 31.12.2016	529.2	261.2	2.03
Purchase of own shares	(2.1)	(1.5)	(* ) (1.37)
Comprehensive income - Statement of Performance – IAS 1	13.1
Other changes in NAV	0.3
Group NAV at 31.03.2017	540.4	259.7	2.08

(*) Average price of purchases in 2017

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

	March 31, 2017			December 31, 2016
	M€	€/Sh.	M€	€/Sh.

Private Equity Investment
- Kenan Inv. / Migros	74.9	0.29	66.9	0.26
- Funds - Private Equity / Real Estate	208.7	0.80	202.9	0.78
- Other (Sigla, Crescita,)	19.8	0.08	11.7	0.04
Total PEI (A)	303.4	1.17	281.5	1.08

Alternative Asset Management
- IDeA FIMIT SGR	124.0	0.48	122.7	0.47
- IDeA Capital Funds SGR	38.4	0.15	37.7	0.14
- Other (IRE / SPC)	7.0	0.03	6.9	0.03
Total AAM (B)	169.4	0.66	167.3	0.64

Investment Portfolio (A+B)	472.8	1.83	448.8	1.72

Other net assets (liabilities)	1.5	0.00	0.7	0.00
Net Financial Position Holdings	66.1	0.25	79.7	0.31

NAV	540.4	2.08	529.2	2.03

4. Significant events in the first quarter of 2017

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

Funds – paid calls/distributions

In the first quarter of 2017, the DeA Capital Group increased its investments in the ICF III, IDeA ToI and IDeA CCR I funds with payments totalling EUR 2.2 million.

At the same time, the DeA Capital Group received capital reimbursements of EUR 0.1 million from the Atlantic Value Added fund.

Thus, in the first quarter of 2017, the funds in which DeA Capital S.p.A. has invested produced a net negative cash balance totalling EUR 2.1 million for the portion relating to the Group.

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

During the first quarter 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 stake 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 and has no residual commitments.

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 31 March 2017 the DeA Capital Group was a shareholder of:

Kenan Investments, the indirect parent company of Migros (valued at EUR 74.9 million);
Sigla Luxembourg, the parent company of Sigla (valued at EUR 11.5 million);
Crescita, a special purpose acquisition company (valued at EUR 8.1 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 31 March 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 68.5 million);
ICF II (valued at EUR 46.5 million);
ICF III (valued at EUR 6.9 million);
IDeA OF I (valued at EUR 43.8 million);
IDeA EESS (valued at EUR 22.1 million);
IDeA ToI (valued at EUR 7.2 million);
IDeA CCR I (valued at EUR 0.1 million);
Venere (valued at EUR 3.6 million);
Santa Palomba (valued at EUR 0.4 million);
six venture capital funds (with a total value of approximately EUR 9.6 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.

It 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 still under way.

Sigla (mln €)	First Quarter 2017	First Quarter 2016	Change
CQS granted	50.5	40.6	24.4%
Revenues from CQS	3.2	2.9	9.0%
Group net profit	0.5	0.5	0.0%

* Receivables for personal loans net of impairment provisions

With the consumer credit market continuing to experience solid growth in 2017 (+9.7% in salary-backed loans in February 2017, compared with +7.3% in 2016), Sigla has continued to raise new funding (around EUR 400 million raised in the first part of 2017) to meet the significant growth in salary-backed loans disbursed (+24%).

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 27.7 million at 31 March 2017) and the pronounced reduction in financial debt (from EUR 32 million at 31 December 2014 to EUR 2.9 million at 31 March 2017, an improvement of around EUR 30 million in the last two years).

Investments in other companies

- Kenan Investments (holder of a shareholding in Migros)

Registered office: Turkey Sector: Food retail

Website: www.migros.com.tr

Investment details:

In 2008, the DeA Capital Group acquired about 17% of the capital of Kenan Investments, the company heading the structure to acquire an interest in Migros.

This interest currently stands at 40.25%, after the sale of a similar stake in Anadolu Endüstri Holding, a leading Turkish conglomerate, which was completed in 2015.

Brief description:

Migros was established in 1954 and is the leading company in the food retail sector in Turkey. The company has 1,794 sales outlets (at 31 March 2017), with a total net area of 1,412 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 3 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.

The stake in Kenan Investments is recorded in the Consolidated Financial Statements to 31 March 2017 at EUR 74.9 million (compared with EUR 66.9 million at 31 December 2016). This amount (indirectly corresponding to approximately 6.9% of Migros' capital, i.e. 40.25% of Migros' capital via the Group's investment in Kenan Investments) reflects a price per share of Migros of:

- TRY 26.00 (plus interest of 7.5% per annum from 30 April 2015) for the stake subject to put/call options agreed with Anadolu on 9.75% of Migros and exercisable from 30 April 2017;
- TRY 22.16, being the market price on 31 March 2017 for the remaining stake (30.5% of Migros' capital).

The increase in the value of the stake in Kenan Investments at 31 March 2017 compared with 31 December 2016 is attributable to the combined effect of the rise in the share price (TRY 22.16 per share at 31 March 2017 compared with TRY 17.58 per share at 31 December 2016) and the depreciation of the Turkish lira against the euro (3.89 TRY/EUR at 31 March 2017 versus 3.72 TRY/EUR at 31 December 2016).

Migros (mln YTL)	First Quarter 2017	First Quarter 2016	Change
Revenues	3,114	2,411	29.1%
EBITDA	156	148	5.6%

Net financial debt	(2,450)	(1.805) (#)	-645 mln YTL

(#) December, 31 2016

Funds

At 31 March 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 208.7 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 31 March 2017.

Residual commitments for all the funds in the portfolio were approximately EUR 105.3 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 31 March 2017, IDeA I FoF had called up 85.4% of its total commitment and had made distributions totalling 74.6% 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 IDeA FoF units are valued at approximately EUR 68.5 million in the Consolidated Financial Statements to 31 March 2017, a reduction on the value at 31 December 2016 (EUR 69.0 million) due to the decrease of 0.5 million in fair value).

The table below shows the key figures for IDeA I FoF at 31 March 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		25,348,342

- 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 operations 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 31 March 2017, ICF II had called up around 71.7% of its total commitment and had made distributions totalling 28.5% 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 ICF II units are valued at approximately EUR 46.5 million in the Consolidated Financial Statements to 31 March 2017, a reduction on the value at 31 December 2016 (EUR 47.0 million) due to the decrease of 0.5 million in fair value).

The table below shows the key figures for ICF II at 31 March 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		14,447,712

- 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 operations 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 parts:

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 31 March 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 6.9 million in the Consolidated Financial Statements to 31 March 2017, in line with the figure for 31 December 2016. This was due to the combination of net capital calls totalling EUR 0.1 million and a decrease in fair value of EUR 0.1 million.

The table below shows the key figures for ICF III at 31 March 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 operations 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 31 March 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).

The units held in IDeA OF I were reported in the Consolidated Financial Statements to 31 March 2017 at EUR 43.8 million, a decrease on the figure at 31 December 2015 (EUR 44.2 million). This was due to the combination of pro-rata net profit of EUR 0.8 million for the period and a decrease in fair value of EUR 1.2 million.

The table below shows a breakdown of the fund's NAV at 31 March 2017.

(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	12.6	5.9
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	17.0	8.0
2IL Orthopaedics LTD (Corin)	Orthopedic implants	29.3%	October 31, 2012	15.3	7.2
Elemaster	Electronic boards with high technological content	10.0%	February 27, 2013	8.5	4.0
Total portfolio investments			83.5	39.2
Other long term receivables				10.0	4.8
Cash and cash equivalents				0.1	0.0
Total Net equity				93.2	43.8

The table below shows the key figures for IDeA OF I at 31 March 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 2011 and 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 31 March 2017, IDeA EESS had called up 76.3% of the total commitment and distributed 33.6% of that commitment, after making nine investments (of which eight were still in the portfolio at that date).

The units held in IDeA EESS were reported in the Consolidated Financial Statements to 31 March 2017 at approximately EUR 22.1 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 5.2 million for the period (mainly associated with the marking to market of the SMR stock in the portfolio).

The table below shows a breakdown of the fund's NAV at 31 March 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	26.6%	April 23, 2013	29.8	9.1
Zephyro	Energy services for complex structures	8.1%	December 11, 2013	6.3	1.9
Meta Fin	Electronics components for safety systems	21.5%	February 13, 2014	7.0	2.1
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				70.3	21.4
Other assets (liabilities)				(0.2)	(0.1)
Cash and cash equivalents				2.5	0.8
Total Net equity				72.6	22.1

(*) On the date hereof, the bankruptcy proceedings were not yet completed

The table below shows the key figures for IDeA EESS at 31 March 2017.

IDeA EESS	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Euro (€)
IDeA Efficienza Energetica e Sviluppo Sostenibile	Italy	2011	100,000,000	30,400,000	30.40
Residual Commitments
Total residual commitment in:		Eur		7,219,940

- 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 had 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 31 March 2017, IDeA ToI had called up 34.4% of its total commitment from subscribers, after making four investments, two of which were completed in the first quarter of 2017.

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.

Subsequently, 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 7.2 million in the Consolidated Financial Statements to 31 March 2017 (EUR 5.2 million at 31 December 2016). The changes during the period were mainly due to capital calls of EUR 2.1 million and a EUR 0.1 million decrease in fair value.

The table below shows the key figures for IDeA ToI at 31 March 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 operations 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 has total assets of EUR 262.8 million, is a closed-end mutual fund under Italian law, for qualified investors, which aims to help relaunch medium-sized Italian companies that are facing financial difficulties but have solid business fundamentals (Target Companies), sharing the profits between creditors and new investors, by

- 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 parts:

Loans segment, which has acquired loans and financial equity instruments relating to financing operations for the Target Companies from eight banks for a consideration of approximately EUR 177 million, in exchange for the allocation of units in the fund's loans segment;
New finance segment, 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 31 March 2017, the new finance segment had called up 1.3% of the total commitment.

The units in IDeA CCR I are valued at approximately EUR 0.1 million in the Consolidated Financial Statements to 31 March 2017 (unchanged on the figure at 31 December 2016). The table below shows the key figures for the IDeA CCR I fund at 31 March 2017.

IDeA CCR I	Registered office	Year of commitment	Fund Size	Subscribed commitment	% DeA Capital in fund
Euro (€)
IDeA CCR I	Italy	2016	262,809,252	15,150,000	5.76
of which:
Segment New Financing			85,250,000	15,075,000	17.68
Segment C redit			177,559,252	75,000	0.04
Residual Commitments
Total residual commitment in:		Eur		14,002,310

- Venere

Registered office: Italy

Sector: Private Equity – Real Estate

Website: www.ideafimit.it

Investment details:

In March 2017, the Group completed the early liquidation of the Atlantic Value Added fund via the distribution in kind of the units held in the Venere fund and of the remaining liquidity.

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

Brief description:

The fund, which is managed by the subsidiary IDeA FIMIT SGR and has a commitment of around EUR 77 million, comprises real estate of 15 buildings for predominantly residential use, comprising five free-standing buildings and ten property units that were sold in portions. The real estate portfolio is located in northern Italy, mainly in Milan, where there are seven buildings representing approximately 76% of the assets by market value.

The units in the Venere fund were valued at approximately EUR 3.6 million in the Consolidated Financial Statements to 31 March 2017 (EUR 3.7 million at 31 December 2016). The changes were mainly due to distributions of EUR 0.1 million in the period.

The table below shows the key figures for the Venere fund at 31 March 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 31 March 2017 (unchanged on the figure at 31 December 2016).

The table below shows the key figures for the Santa Palomba fund at 31 March 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 9.6 million in the Financial Statements to 31 March 2017 (EUR 9.5 million at 31 December 2016). The increase compared with the end of last year was due to a EUR 0.1 million rise in fair value.

The table below shows the key figures for venture capital funds in the portfolio at 31 March 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		4,342,776

Alternative Asset Management

At 31 March 2017, DeA Capital S.p.A. was the owner of:

100% of IDeA Capital Funds SGR;
64.3% of IDeA FIMIT SGR;
68.7% of SPC (which operates in debt recovery in Italy);
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 31 March 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 31 March 2017.

(EUR million)	Asset Under Management at 31 march 2017	Management fees at 31 march 2017
IDeA Capital Funds SGR
IDeA I FoF	681	0.8
IDeA OF I	217	0.5
ICF II	281	0.4
IDeA EESS	100	0.3
Idea Crescita Globale	55	0.3
ICF III	67	0.1
Taste of Italy	218	1.1
Investitori Associati IV	55	0.2
IDeA CCR I	263	0.5
Total IDeA Capital Funds SGR	1,937	4.2

With regard to operating performance, the company posted a year-on-year increase of EUR 300 million in assets under management at the end of the first quarter of 2017; this is mainly due to the third and fourth closings of the IDeA ToI fund (EUR 78 million) and the closing of the IDeA CCR I fund (EUR 263 million), which were completed in 2016.

IDeA Capital Funds SGR (EUR million)	First Quarter 2017	First Quarter 2016
AUM	1,937	1,627
Management fees	4.2	4.2
EBITDA	1.0	1.1
Net profit	0.7	0.7

- 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 9.0 billion in assets under management and 41 managed funds (including five listed funds). This makes it a benchmark operator, on behalf of Italian and international institutional investors, in the promotion, creation and management of mutual real estate investment funds.

IDeA FIMIT SGR undertakes 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 31 march 2017	Management fees at 31 march 2017
Breakdown of funds
Atlantic 1	535	0.4
Atlantic 2 Berenice	155	0.2
Alpha	338	1.0
Beta	67	0.1
Delta	203	0.6
Listed funds	1,298	2.3
Reserved funds	7,685	7.8
Total IDeA FIMIT SGR	8,983	10.1

The table below summarises the value of assets under management and management fees for IDeA FIMIT SGR at 31 March 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	31.12.2016
Market value of properties	511,230,000
Historical cost and capitalised
charges	536,367,281
Financing	258,901,087
Net Asset Value (NAV)	266,886,710
NAV/unit (EUR)	511.7
Market price/unit (EUR)	248.0
Dividend yield from investment*	5.21%

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

Atlantic 1: Diversification by geographical area Atlantic 1: Diversification by intended use

Atlantic 2 - Berenice	31.12.2016
Market value of properties	143,663,000
Historical cost and capitalised charges	187,485,854
Financing	60,000,000
Net Asset Value (NAV)	80,400,412
NAV/unit (EUR)	134.0
Market price/unit (EUR)	79.5
Dividend yield from investment*	8.65%

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

Alpha	31.12.2016
Market value of properties	296,700,000
Historical cost and capitalised charges	305,253,869
Financing	2,628,719
Net Asset Value (NAV)	321,994,233
NAV/unit (EUR)	3,099.8
Market price/unit (EUR)	1,305.0
Dividend yield from investment*	4.79%

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

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

Beta	31.12.2016
Market value of properties Historical cost and capitalised	47,228,000
charges	71,898,355
Net Asset Value (NAV)	46,701,015
NAV/unit (EUR)	174.0
Market price/unit (EUR)	126.0
Dividend yield from investment*	7.89%

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

Beta: Diversification by geographical area Beta: Diversification by intended use

Delta	31.12.2016
Market value of properties	193,092,000
Historical cost and capitalised charges	256,494,624
Net Asset Value (NAV)	195,551,846
NAV/unit (EUR)	92.9
Market price/unit (EUR)	64.3
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, the company posted a year-on-year increase of more than EUR 1,000 million in assets under management at the end of the first quarter of 2017. This was due in particular to the launch of the following funds: (i) Yielding (EUR 0.5 billion) and Alveare (EUR 0.2 billion), which were completed in 2016, and (iii) Broggi (EUR 0.4 billion), completed in 2017.

As regards management fees, the year-earlier period benefited from a one-off structuring fee of EUR 0.4 million for the purchase of a building for BVK.

IDeA FIMIT SGR (EUR million)	First Quarter 2017	First Quarter 2016
AUM	8,983	7,872
Management fees	10.1	10.5
EBITDA	3.5	4.2
Net profit	1.8	1.8
-of which:
- Shareolders	1.9	1.6
- Owner of financial equity instruments	(0.1)	0.2

62%

- 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 the restructuring, outsourced management and 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 value 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.

The holding in SPC, which was fully consolidated by the DeA Capital Group from July 2016, increased the Group's net profit by EUR 0.1 million in the first quarter of 2017.

SPC (EUR million)	First Quarter 2017
Revenues	471
EBITDA	0.2
Net profit	0.1

- 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 a value of EUR 5.4 million in the Consolidated Financial Statements to 31 March 2017.

Turning to management performance, the company was affected in the first quarter of 2017 by the completion of some project management tasks during 2016 (revenue was EUR 1.4 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 Quarter 2017	First Quarter 2016
Revenues	2.5	4.2
EBITDA	0.1	1.6
Net profit	0.0	1.1

Consolidated Income Statement

In the first quarter of 2017, consolidated net profit was around EUR 8.3 million (of which EUR 6.8 million related to the Group), compared with a loss of around EUR 1.0 million (of which EUR +0.3 million related to the Group) in the same period in 2016.

Revenues and other income break down as follows:

- Alternative Asset Management fees of EUR 13.9 million (EUR 14.1 million in the same period of 2016);
- income from investments valued at equity of EUR 5.2 million, linked to the performance of the EESS fund;
- other investment income, net of expenses, totalling EUR 2.0 million (net investment expenses of EUR 2.6 million in the same period of 2016);
- service revenues of EUR 0.3 million (EUR 4.4 million recorded in 2016), lower due to the deconsolidation of IRE from June 2016.

In the first quarter of 2017, costs totalled EUR 12.8 million, compared with EUR 15.7 million in the same period of 2016.

The quarter's costs break down into EUR 11.0 million relating to Alternative Asset Management, EUR 0.5 million to Private Equity Investment and EUR 1.3 million to holding company activities. Alternative Asset Management costs include the effects of the amortisation of intangible assets, totalling EUR 0.3 million, recorded when a portion of the purchase price of the investments was allocated.

Net financial income, which totalled EUR 0.2 million at 31 March 2017 (EUR -0.8 million in the year-earlier period), mainly comprised interest income.

The total tax impact for the first quarter of 2017 (EUR -0.5 million, in line with the figure for the year-earlier period) is the result of taxes of EUR 1.0 million due in respect of Alternative Asset Management activities (EUR 1.9 million due in the first quarter of 2016) and tax credits of EUR +0.5 million relating to holding company activities (EUR +1.3 million in the first quarter of 2016).

Of the consolidated net profit of EUR 8.3 million, EUR +6.9 million was attributable to Private Equity Investment, EUR +2.6 million to Alternative Asset Management and EUR -1.2 million to holding company operations/eliminations.

Of the Group's net profit of EUR 6.8 million, EUR +6.0 million was attributable to Private Equity Investment, EUR +2.0 million to Alternative Asset Management and EUR -1.2 million to holding company operations/eliminations.

Summary Consolidated Income Statement

	First	First
	Quarter	Quarter
(EUR thousand)	2017	2016

Alternative Asset Management fees	13,856	14,132
Income (loss) from equity investments	5,187	0
Other investment income/expense	2,049	(2,584)
Income from services	321	4,446
Other income	54	53
Other expenses (* )	(12,824)	(15,713)
Financial income and expenses	193	(811)
PROFIT/(LOSS) BEFORE TAX	8,836	(477)
Income tax	(505)	(529)
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	8,331	(1,006)
Profit (Loss) from discontinued operations/held-for-sale assets	0	0
PROFIT/(LOSS) FOR THE PERIOD	8,331	(1,006)
- Group share	6,754	260
- Non controlling interests	1,577	(1,266)

Earnings per share, basic (€)	0.026	0.001

Earnings per share, diluted (€)	0.026	0.001

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

Performance by business in 2017

(EUR thousand)	Private Equity Investment	Alternative Asset Management	Holdings/ Eliminations	Consolidated

Alternative Asset Management fees	0	14,319	(463)	13,856
Income (loss) from equity investments	5,134	53	0	5,187
Other investment income/expense	2,090	(41)	0	2,049
Income from services	0	228	147	375
Other expenses	(479)	(10,997)	(1,348)	(12,824)
Financial income and expenses	156	0	37	193
PROFIT/(LOSS) BEFORE TAXES	6,901	3,562	(1,627)	8,836
Income tax	0	(968)	463	(505)
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	6,901	2,594	(1,164)	8,331
Profit (Loss) from discontinued operations/held-for-sale assets	0	0	0	0
PROFIT/(LOSS) FOR THE PERIOD	6,901	2,594	(1,164)	8,331
- Group share	5,955	1,963	(1,164)	6,754
- Non controlling interests	946	631	0	1,577

Performance by business in 2016

		Alternative
	Private Equity	Asset	Holdings/
(EUR thousand)	Investment	Management	Eliminations	Consolidated

Alternative Asset Management fees	0	14,629	(497)	14,132
Income (loss) from equity investments	0	0	0	0
Other investment income/expense	(2,402)	(182)	0	(2,584)
Income from services	0	4,394	105	4,499
Other expenses	(556)	(13,758)	(1,399)	(15,713)
Financial income and expenses	(863)	37	15	(811)
PROFIT/(LOSS) BEFORE TAXES	(3,821)	5,120	(1,776)	(477)
Income tax	0	(1,852)	1,323	(529)
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	(3,821)	3,268	(453)	(1,006)
Profit (Loss) from discontinued operations/held-for-sale assets	0	0	0	0
PROFIT/(LOSS) FOR THE PERIOD	(3,821)	3,268	(453)	(1,006)
- Group share	(1,854)	2,567	(453)	260
- Non controlling interests	(1,967)	701	0	(1,266)

Comprehensive Income – 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 +13.1 million compared with approximately EUR +1.3 million in the same period of 2016. This comprised:

net profit of EUR 6.8 million recorded on the Income Statement;
profits posted directly to shareholders' equity totalling EUR 6.3 million (due mainly to the increase in the fair value of Migros).

(EUR thousand)	First Quarter 2017	First Quarter 2016
Profit/(loss) for the period (A)	8,331	(1,006)

Comprehensive income/expense which might be subsequently reclassified within the profit (loss) for the period Comprehensive income/expense which will not be	4,819	940
subsequently reclassified within the profit (loss) for the period	178	(47)
Other comprehensive income, net of tax (B)	4,997	893
Total comprehensive income for the period (A)+(B)	13,328	(113)
Total comprehensive income attributable to: - Group Share - Non Controlling Interests	13,054 274	1,332 (1,445)

Consolidated statement of financial position

Below is the Group's statement of financial position at 31 March 2017, compared with 31 December 2016.

(EUR thousand)	March 31, 2017	December 31, 2016
ASSETS

Non-current assets
Intangible and tangible assets
Goodwill	129,399	129,399
Intangible assets	26,753	27,184
Property, plant and equipment	1,967	2,145
Total intangible and tangible assets	158,119	158,728
Investments
Investments valued at equity	38,429	33,449
Investments held by Funds - available for sale investments	83,571	84,084
	45,214	47,845
- invest. in associates and JV valued at FV through P&L Other available-for-sale companies	38,357 83,206	36,239 67,166
Available-for-sale funds	183,744	182,787
Other avalaible-for-sale financial assets	22	22
Total Investments	388,972	367,508
Other non-current assets
Deferred tax assets	2,149	1,992
Loans and receivables	1,083	960
Tax receivables from Parent companies	552	0
Other non-current assets	30,147	30,147
Total other non-current assets	33,931	33,099
Total non-current assets	581,022	559,335
Current assets
Trade receivables	17,979	11,191
Available-for-sale financial assets	4,211	4,242
Financial receivables	2,450	2,715
Tax receivables from Parent companies	2,532	2,282
Other tax receivables	6,586	9,190
Other receivables	6,327	3,976
Cash and cash equivalents	82,560	96,438
Total current assets	122,645	130,034
Total current assets	122,645	130,034
Held-for-sale assets TOTAL ASSETS	11,487 715,154	11,487 700,856

SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Net equity Group	540,438	529,203
Minority interests	132,117	131,844
Shareholders' equity LIABILITIES	672,555	661,047
Non-current liabilities
Deferred tax liabilities	8,653	8,588
Provisions for employee termination benefits	3,690	4,016
Long term financial loans	19	19
Payables to staff	207	207
Total non-current liabilities	12,569	12,830
Current liabilities
Trade payables	5,240	6,019
Payables to staff and social security organisations	7,705	7,033
Current tax	3,074	2,941
Other tax payables	745	1,429
Other payables	12,115	8,335
Short term financial loans	1,151	1,222
Total current liabilities	30,030	26,979
Held-for-sale liabilities	-	-
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	715,154	700,856

At 31 March 2017, Group shareholders' equity was EUR 540.4 million, compared with EUR 529.2 million at 31 December 2016. The increase of around EUR 11.2 million in this item in the first quarter of 2017 was due to the reasons set out in the Statement of Performance – IAS 1 (EUR 13.1 million).

Consolidated net financial position

At 31 March 2017, the consolidated net financial position was EUR 89.1 million, as shown in the table below, which provides a comparison with 31 December 2016:

Net financial position (EUR million)	31.3.2017	31.12.2016	Change
Cash and cash equivalents Available-for-sale financial assets	82.6 4.2	96.4 4.2	(13.8) 0.0
Financial receivables	3.5	3.7	(0.2)
Non-current financial liabilities	0.0	0.0	0.0
Current financial liabilities	(1.2)	(1.2)	0.0
TOTAL	89.1	103.1	(14.0)
of which:
- Alternative Asset Management	22.9	23.3	(0.4)
- Private Equity Investment	0.1	0.1	0.0
- Holdings	66.1	79.7	(13.6)

The change in the consolidated net financial position in the first quarter of 2017 (EUR -14.0 million) was mainly due to net investments made in private equity (EUR -9.9 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

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 at standard market terms for the nature of the goods and/or services offered.

Other information

At 31 March 2017, the Group had 193 employees (186 at the end of 2016), including 34 senior managers, 60 middle managers and 99 clerical staff. Of these, 178 worked in Alternative Asset Management and 15 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 major importance in the consolidated financial statements, it is hereby 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.

Consolidated Financial Statements and Notes to the Accounts for the period 1 January – 31 March 2017

Consolidated Statement of Financial Position

ASSETS Non-current assets Intangible and tangible assets Goodwill 129,399 129,399 Intangible assets 26,753 27,184 Property, plant and equipment 1,967 2,145 Total intangible and tangible assets 158,119 158,728 Investments Investments valued at equity 38,429 33,449 Investments held by Funds 83,571 84,084 - available for sale investments 45,214 47,845 - invest. in associates and JV valued at FV through P&L 38,357 36,239 Other available-for-sale companies 83,206 67,166 Available-for-sale funds 183,744 182,787 Other avalaible-for-sale financial assets 22 22 Total Investments 388,972 367,508 Other non-current assets Deferred tax assets 2,149 1,992 Loans and receivables 1,083 960 Tax receivables from Parent companies 552 0 Other non-current assets 30,147 30,147 Total other non-current assets 33,931 33,099 Total non-current assets 581,022 559,335 Current assets Trade receivables 17,979 11,191 Available-for-sale financial assets 4,211 4,242 Financial receivables 2,450 2,715 Tax receivables from Parent companies 2,532 2,282 Other tax receivables 6,586 9,190 Other receivables 6,327 3,976 Cash and cash equivalents 82,560 96,438 Total current assets 122,645 130,034 Total current assets 122,645 130,034 Held-for-sale assets 11,487 11,487 TOTAL ASSETS 715,154 700,856 SHAREHOLDERS' EQUITY AND LIABILITIES SHAREHOLDERS' EQUITY Net equity Group 540,438 529,203 Minority interests 132,117 131,844 Shareholders' equity 672,555 661,047 LIABILITIES Non-current liabilities Deferred tax liabilities 8,653 8,588 Provisions for employee termination benefits 3,690 4,016 Long term financial loans 19 19 Payables to staff 207 207 Total non-current liabilities 12,569 12,830 Current liabilities Trade payables 5,240 6,019 Payables to staff and social security organisations 7,705 7,033 3,074 2,941 Current tax Other tax payables 745 1,429 Other payables 12,115 8,335 Short term financial loans 1,151 1,222 Total current liabilities 30,030 26,979 Held-for-sale liabilities - - TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 715,154 700,856	(EUR thousand)	March 31, 2017	December 31, 2016

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	First
(EUR thousand)	Quarter 2017	Quarter 2016

Alternative Asset Management fees	13,856	14,132
Income from equity investments	5,187	0
Other investment income/expense	2,049	(2,584)
Income from services	321	4,446
Other income	54	53
Personnel costs	(7,419)	(7,702)
Service costs	(4,145)	(5,815)
Depreciation, amortization and impairment	(653)	(1,557)
Other expenses	(607)	(639)
Financial income	211	242
Financial expenses	(18)	(1,053)
PROFIT/(LOSS) BEFORE TAX	8,836	(477)
Income tax	(505)	(529)
PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS	8,331	(1,006)
Profit (Loss) from discontinued operations/held-for-sale assets	0	0
PROFIT/(LOSS) FOR THE PERIOD	8,331	(1,006)
- Group share	6,754	260
- Non controlling interests	1,577	(1,266)
Earnings per share, basic (€)	0.026	0.001

Earnings per share, diluted (€)	0.026	0.001

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

(Euro thousands)	First Quarter 2017	First Quarter 2016

Profit/(loss) for the period (A)	8,331	(1,006)


Comprehensive income/expense which might be subsequently
reclassified within the profit (loss) for the period	4,819	940
Gains/(Losses) on fair value of available-for-sale financial
assets	4,819	940

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	178	(47)

Gains/(losses) on remeasurement of defined benefit plans	178	(47)
Other comprehensive income, net of tax (B)	4,997	893
Total comprehensive income for the period (A)+(B)	13,328	(113)

Total comprehensive income attributable to:
- Group Share	13,054	1,332
- Non Controlling Interests	274	(1,445)

Consolidated Cash Flow Statement - Direct Method

(EUR thousand)	First Quarter 2017	First Quarter 2016
CASH FLOW from operating activities

Investments in funds and shareholdings	(10,014)	(2,235)
Capital reimbursements from funds	292	4,722
Proceeds from the sale of investments	88	3,438
Interest received	45	130
Interest paid	(9)	(4)
Cash distribution from investments	142 0	49
Realized gains (losses) on exchange rate derivatives		(1)
Taxes paid Dividends received	(63) 0	(25) 0
Management and performance fees received	8,325	12,767
Revenues for services	292	3,029
Operating expenses	(10,942)	(14,728)

Net cash flow from operating activities	(11,844)	7,142
CASH FLOW from investment activities
Acquisition of property, plant and equipment	(12)	(23)
Sale of property, plant and equipment	1	0
Purchase of licenses	(6)	(208)

Net cash flow from investing activities	(17)	(231)
CASH FLOW from investing activities
Acquisition of financial assets	0	0
Sale of financial assets	0	1
Share capital issued	0	1,550
Own shares acquired	(2,092)	(1,031)
Dividends paid	0	(4,592)
Loan	75	134
Quasi-equity loan	0	0
Bank loan paid back	0	0
Net cash flow from financing activities	(2,017)	(3,938)
CHANGE IN CASH AND CASH EQUIVALENTS	(13,878)	2,973

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	(97)
CASH AND CASH EQUIVALENTS AT END OF PERIOD	82,560	126,441
Held-for-sale assets and minority interests	0	0

CASH AND CASH EQUIVALENTS AT END OF PERIOD	82,560	126,441

Consolidated Statement of Changes in Shareholders' Equity

(EUR thousand)	Share Capital	Treasury share reserve, capital reserve, retained earnings	Fair value Reserve	Total Group	Non controlling interests	Consolidated net equity
Total at 31 December 2015	263,923	220,887	62,178	546,988	138,172	685,160
Cost of stock options	0	104	0	104	0	104
Purchase of own shares	(799)	(232)	0	(1,031)	0	(1,031)
Other changes	0	16	0	16	(3,107)	(3,091)
Total comprehensive income	0	260	1,072	1,332	(1,445)	(113)
Total at 31 March 2016	263,124	221,035	63,250	547,409	133,620	681,029

(EUR thousand)	Share Capital	Treasury share reserve, capital reserve, retained earnings	Fair value Reserve	Total Group	Non controlling interests	Consolidated net equity
Total at 31 December 2016	261,207	200,154	67,842	529,203	131,844
Cost of stock options	0	224	0	224	0
Purchase of own shares	(1,524)	(567)	0	(2,091)	0	661,047 224 (2,091)
Other changes Total comprehensive income	0 0	48 6,754	0 6,300	48 13,054	(1) 274	47 13,328

Structure and content of the Consolidated Interim Financial Statements to 31 March 2017

The Consolidated Interim Financial Statements to 31 March 2017 (hereinafter the "Consolidated Financial Statements") comprise the document stipulated by art. 2.2.3 of the Stock Market Regulations (FTSE Italia STAR segment). Information regarding the Company's operating performance and financial position is prepared in accordance with the valuation and measurement criteria set out by the International Financial Reporting Standards (IFRS), issued by the International Accounting Standards Board (IASB) and adopted by the European Commission pursuant to the procedures set out at art. 6 of Regulation (EC) no. 1606/2002 of the European Parliament and Council of 19 July 2002. The accounting standards used in the Consolidated Financial Statements do not differ significantly from those used in the Financial Statements for the Year Ending 31 December 2016.

The Consolidated Financial Statements comprise the following: the Statement of Financial Position, the Income Statement, the Cash Flow Statement, the Statement of Changes in Shareholders' Equity and the Statement of Comprehensive Income (IAS 1) – and these Notes to the Accounts; they are also accompanied by the Interim Report on Operations and the Statement of Responsibilities for the Interim Management Report.

The Consolidated Financial Statement have not been audited by the Independent Auditors.

Financial information is discussed with reference to the first quarter of 2017 and the same period of 2016; information on the Statement of Financial Position relates to 31 March 2017 and 31 December 2016. The consolidated statements are provided in the same format as those relating to 31 December 2016.

As allowed by IAS/IFRS, the preparation of the Consolidated Financial Statements required the use of significant estimates by the Company's management, especially with regard to the valuations of the investment portfolio (equity investments and funds). These valuations were calculated by directors based on their best judgement and estimation using the knowledge and evidence available at the time the Consolidated Financial Statements were prepared. However, due to objective difficulties in making assessments and the lack of a liquid market, the values assigned to such assets could differ, perhaps and in some cases significantly, from those that could be obtained when the assets are sold.

In accordance with the provisions of IAS/IFRS and current laws, the Company authorised the publication of the Interim Management Report by the legal deadline.

Scope of consolidation

At 31 March 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
Idea Real Estate S.p.A.	Milan, Italy	Euro	50,000	100.00%	Full consolidation
SPC S.p.A.	Milan, Italy	Euro	104,147	68.69%	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

Notes to the Consolidated Statement of Financial Position

NON-CURRENT ASSETS

Non-current assets totalled approximately EUR 581.0 million at 31 March 2017, compared with EUR 559.3 million at 31 December 2016.

Intangible assets and property, plant and equipment

This item includes goodwill (EUR 129.4 million), other intangible assets (EUR 26.7 million) and property, plant and equipment (EUR 2.0 million).

Goodwill, which amounted to EUR 129.4 million at 31 March 2017 (unchanged from 31 December 2016), relates to the acquisitions of IDeA Capital Funds SGR and IFIM/FIMIT SGR.

Intangible assets mainly relate to customer contracts, which arise from the allocation of the merger costs for the acquisition of FIMIT SGR.

Investments in associates

This item, which amounted to EUR 38.4 million at 31 March 2017 (compared with EUR 33.4 million at 31 December 2016), relates to units in the IDeA EESS and Venere funds and to the investment in IRE.

The table below provides a breakdown of the investments at 31 March 2017 by area of activity:

(EUR million)	Private Equity Investment	Alternative Asset Management	Total
IDeA EESS fund	22.1	0.0	22.1
Venere fund	3.6	7.3	10.9
IRE group	0.0	5.4	5.4
Total	25.7	12.7	38.4

Shareholdings held by funds

At 31 March 2017, the DeA Capital Group was a minority shareholder, through the IDeA OF I fund, in Giochi Preziosi, Manutencoop, Euticals, Elemaster, Talgo, Corin and Iacobucci. The latter three companies were measured at fair value with changes recognised in the Income Statement pursuant to IAS 28.18. This item, which totalled EUR 83.5 million at 31 March 2017 (EUR 84.1 million at 31 December 2016), relates to the assets below:

(EUR million)	31.3.2017
Investments in Portfolio
Giochi Preziosi	5.2
Manutencoop Facility Management	18.9
Lauro Cinquantasette (Euticals)	12.6
Elemaster	8.5
Investments available for sale	45.2
Iacobucci HF Electronics	6.0
Pegaso Transportation Investments (Talgo)	17.0
2IL Orthopaedics LTD (Corin)	15.3
Investments in associates and JV valued at FV through P&L	38.3
Total investments in Portfolio	83.5

Available-for-sale investments in other companies

At 31 March 2017, the DeA Capital Group was a shareholder in Kenan Investments (indirect parent company of Migros), Crescita and Harvip.

- TRY 26.00 (plus interest of 7.5% per annum from 30 April 2015) for the stake subject to put/call options agreed with Anadolu on 9.75% of Migros and exercisable from 30 April 2017;
- TRY 22.16, being the market price on 31 March 2017 for the remaining stake (30.5% of Migros' capital).

The table below provides details of equity investments in other companies at 31 March 2017 by area of activity.

(EUR million)	Private Equity Investment	Total
Kenan Investments	74.9	74.9
Crescita	8.1	8.1
Minority interests	0.2	0.2
Total	83.2	83.2

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), six venture capital funds and 12 real estate funds, totalling approximately EUR 183.7 million in the consolidated accounts to 31 March 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	Reclass Balance at 31.3.2017
Venture capital funds	9,488	0	0	(30)	191	(24)	9,625
IDeA I FoF	69,015	0	0	0	(485)	0	68,530
ICF II	47,000	0	0	0	(529)	0	46,471
ICF III Core	520	56	0	0	(13)	0	563
ICF III Credit & Distressed	2,897	0	0	0	(51)	0	2,846
ICF III Emerging Markets	3,489	0	0	0	(33)	0	3,456
IDeA ToI	5,196	2,149	0	0	(130)	0	7,215
IDeA CCR I CD	75	0	0	0	0	0	75
IDeA CCR I NF	0	31	0	0	0	0	31
Santa Palomba	402	0	0	0	0	0	402
IDeA FIMIT SGR Funds	44,705	0	(34)	(184)	43	0	44,530
Total funds	182,787	2,236	(34)	(214)	(1,007)	(24)	183,744

The table below provides a breakdown of the funds in the portfolio at 31 March 2017 by area of activity.

(EUR million)	Private Equity Investment	Alternative Asset Management	Total
Venture capital funds	9.6	0.0	9.6
IDeA I FoF	68.5	0.0	68.5
ICF II	46.5	0.0	46.5
ICF III	6.9	0.0	6.9
IDeA ToI	7.2	0.0	7.2
IDeA CCR I	0.1	0.0	0.1
Santa Palomba	0.4	0.0	0.4
IDeA FIMIT SGR Funds	0.0	44.5	44.5
Total funds	139.2	44.5	183.7

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 31 March 2017, deferred tax assets totalled EUR 2.1 million, compared with EUR 2.0 million at 31 December 2016.

Other non-current assets

This item, valued at EUR 30.1 million at 31 March 2017 (unchanged from 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 property fund corresponding 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

At 31 March 2017, current assets totalled EUR 122.6 million, versus EUR 130.0 million at 31 December 2016. The item mainly comprised:

EUR 82.6 million relating to cash and cash equivalents (EUR 96.4 million at 31 December 2016);
EUR 18.0 million relating to commercial loans (EUR 11.2 million at 31 December 2016);
- EUR 4.2 million relating to investments to be considered as a temporary use of cash (unchanged compared with 31 December 2016);
- EUR 2.5 million relating to financial receivables in connection with the loan agreement for Sigla (EUR 2.7 million at 31 December 2016).

SHAREHOLDERS' EQUITY

NON-CURRENT LIABILITIES

At 31 March 2017, non-current liabilities totalled EUR 12.6 million, compared with EUR 12.8 million at 31 December 2016.

Deferred tax liabilities

This item totalled EUR 8.7 million at 31 March 2017, compared with EUR 8.6 million at 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.

End-of-service payment fund

At 31 March 2017, this item totalled EUR 3.7 million (EUR 4.0 million at 31 December 2016), and includes end-of-service payments that are part of defined benefit plans, which were therefore valued using actuarial assessments.

CURRENT LIABILITIES

At 31 March 2017, current liabilities totalled EUR 30.0 million (EUR 27.0 million at 31 December 2016) and mainly consisted of trade payables (EUR 5.2 million), payables to staff and social security institutions (EUR 7.7 million) and other payables (EUR 12.1 million).

Notes to the Consolidated Income Statement

Alternative Asset Management fees

In the first quarter of 2017, Alternative Asset Management fees totalled EUR 13.9 million, compared with EUR 14.1 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.

Income from investments valued at equity

This item, which was EUR 5.2 million in the first quarter of 2017, includes income from the associates valued at equity for the period.

Other investment income/expenses

Other net income from investments in shareholdings and funds totalled EUR 2.0 million in the first quarter of 2017, compared with net expenses of EUR 2.6 million in the same period of 2016.

Service revenues

This item, which was EUR 0.3 million in the first quarter of 2017 (EUR 4.4 million as at 31 March 2016), was lower year on year due to the deconsolidation of IRE from June 2016.

Personnel costs

In the first quarter of 2017, personnel costs totalled EUR 7.4 million, compared with EUR 7.7 million in the same period of 2016.

Service costs

Service costs totalled EUR 4.1 million in the first quarter of 2017, compared with EUR 5.8 million in the same period of 2016.

Amortisation/depreciation

This item was EUR 0.7 million in the first quarter of 2017 (EUR 1.6 million in the same period of 2016) and included amortisation relating to purchase price allocation.

Financial income (charges)

Financial income totalled EUR 0.2 million in the first quarter of 2017 (EUR 0.2 million in the same period of 2016) and financial charges were minimal (EUR 1.1 million in the same period of 2016).

Income tax

Income tax due totalled EUR 0.5 million in the first quarter of 2017, in line with the figure for the same period of 2016.

Significant events after the end of the period and outlook

SIGNIFICANT EVENTS AFTER THE END OF THE PERIOD

Funds – paid calls/distributions

After the end of the first quarter of 2017, the DeA Capital Group increased its investments in the IDeA I FoF, ICF II and IDeA CCR funds with payments totalling EUR 1.5 million.

At the same time, the DeA Capital Group received capital reimbursements from the IDeA I FoF, ICF II and Venere funds (EUR 5.4 million, EUR 1.8 million and EUR 0.4 million respectively) to be used in full to reduce the carrying value of the units.

Dividends from Alternative Asset Management

On 12 April 2017, IDeA Capital Funds SGR approved dividends totalling EUR 1.5 million, attributable entirely to DeA Capital S.p.A.

On 28 April 2017, IRE paid dividends totalling EUR 1.4 million, of which approximately EUR 0.6 million was attributable to the DeA Capital Group.

On 28 April 2017, IDeA FIMIT SGR paid dividends totalling EUR 5.1 million, of which approximately EUR 3.3 million was attributable to the DeA Capital Group.

In summary, dividends approved/paid during 2017 by the Alternative Asset Management business to the DeA Capital Group's holding companies totalled EUR 5.4 million (EUR 9.7 million in 2016).

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.

Performance share plans

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 a total of 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 so that the allocation will not have a dilutive effect.

In May 2017, 209,863 own shares (approx. 0.1% of the share capital) were allocated as a result of the vesting of the 2014-2016 performance share plan.

Receipt of the penultimate tranche of the proceeds of the sale of 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.

OUTLOOK

With regard to the Private Equity Investment area, the Company will continue its efforts to increase the value of the investments in its portfolio, and will evaluate opportunities for new co-investment/club deal initiatives – including with funds managed by the platform – of a smaller unit size than in the past. The Group will also continue to sponsor new initiatives promoted by the asset management platform, and will use its available capital, partly arising from the sale of assets currently held in the portfolio, to invest in funds launched by this platform.

Turning to Alternative Asset Management, the Group will continue to develop platforms for both private equity (through IDeA Capital Funds SGR) and real estate (through IDeA FIMIT SGR); its aims are to consolidate its leadership in Italy and expand its investor base and product range, with a greater focus on the NPL segment in its broadest sense. Within this framework, in order to best capitalise on its internal know-how, the Group will strengthen coordination of its development/investor coverage functions, with the additional aim of raising awareness of DeA Capital as an integrated platform comprising private equity, real estate and NPL.

The Company will also continue to maintain a solid financial structure, optimised by returning profits to shareholders (including through buy-back operations), based on the available liquidity.

Statement of Responsibilities for the Interim Management Report to 31 March 2017

STATEMENT OF RESPONSIBILITIES FOR THE INTERIM MANAGEMENT REPORT TO 31 MARCH 2017 (PURSUANT TO ART. 154-BIS OF LEGISLATIVE DECREE 58/98)

Manolo Santilli, Chief Financial Officer of DeA Capital S.p.A., the manager responsible for preparing the company's accounting statements, hereby declares, pursuant to art. 154-bis, para. 2 of the Testo Unico della Finanza law, that the information contained in this document accurately represents the figures in the company's accounting records.

Milan, 10 May 2017

Manolo Santilli

Manager responsible for preparing the Company's accounting statements

AI assistant

DEA Capital — Interim / Quarterly Report 2017

4211_10-k-afs_2017-05-12_12376163-40f0-4775-af29-c4455f45483b.pdf

INTERIM MANAGEMENT REPORT TO 31 MARCH 2017

DeA Capital S.p.A.

Board of Directors (*)

Board of Statutory Auditors (*)

Contents

Report on Operations

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

PRIVATE EQUITY INVESTMENT

o Main shareholdings

o Funds

ALTERNATIVE ASSET MANAGEMENT

2. Information for shareholders

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

Share performance (°)

- From 11 January 2007, when DeA Capital S.p.A. began operations, to 31 March 2017

- From 1 January 2016 to 31 March 2017

The performance of the DeA Capital share

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

4. Significant events in the first quarter of 2017

Funds – paid calls/distributions

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

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

5. Results of the DeA Capital Group

Private Equity Investment

Investments in associates

- Sigla Luxembourg (Parent Company of Sigla)

Registered office: Italy

Investment details:

Brief description:

Investments in other companies

Brief description:

Funds

- IDeA I FoF

IDeA I Fund of Funds

Brief description:

Other important information:

- ICF II

ICF II

Brief description:

Other important information:

- ICF III

ICF III

Brief description:

- IDeA OF I

IDeA Opportunity Fund I

Investment details:

Brief description:

- IDeA EESS

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

Brief description:

The table below shows the key figures for IDeA EESS at 31 March 2017.

- IDeA ToI

IDeA Taste of Italy (ToI)

Brief description:

- IDeA CCR I

IDeA Corporate Credit Recovery I (IDEA CCR I)

Brief description:

- Venere

Brief description:

Santa Palomba

- Venture capital funds

Alternative Asset Management

- IDeA Capital Funds SGR

Website: www.ideasgr.com Investment details:

- IDeA FIMIT SGR

- SPC

Investment details:

- Innovation Real Estate

Consolidated Income Statement

Summary Consolidated Income Statement

Performance by business in 2017

Performance by business in 2016

Comprehensive Income – Statement of Performance (IAS 1)

Consolidated statement of financial position

Consolidated net financial position

6. Other information

Transactions with parent companies, subsidiaries and related parties

DEA Capital Interim / Quarterly Report 2017

Board of Directors ()*

Board of Statutory Auditors ()*