GBL is a holding company listed since 1956 whose primary objective is to create value for its shareholders.

GBL strives to develop a diversified portfolio of quality, focused on a targeted number of global industrial and services companies, leaders on their market, in which it plays an active role as a professional shareholder over the long term.

GBL invests and divests depending on the companies’ development and on market opportunities in order to achieve its objective of value creation, while maintaining a solid financial structure.

GBL is listed on Euronext Brussels (Ticker: GBLB BB; ISIN code: BE0003797140) and is part of the BEL20 index.

www.gbl.be

Additional information can be found on our website, among which: • Historical information on GBL • Annual and half-year reports as well as quarterly press releases • Adjusted net assets on a weekly basis • Press releases • Our investments • A market consensus

Investor information Online registration in order to receive investor information (notifications of publication, press releases, etc.) is available on our website.

Investor relations Hans D’Haese [email protected] Tel.: +32 2 289 17 71 Half-yearly Report on 30 June 2017

Message from the Co-CEOs ...... 04 Risk management ...... 18

Key financial data...... 04 Consolidated results - Economic Key figures ...... 05 presentation ...... 19 Financial position ...... 05 Cash earnings...... 19 Outlook for 2017 ...... 05 Net dividends from investments ...... 20 Mark to market and other non-cash ...... 21 Highlights ...... 06 Operating companies and Sienna Capital ...... 22 Eliminations, capital gains, impairments and reversals ...... 23 Organisation chart and adjusted net assets ...... 08 Organisation chart at 30 June 2017 ...... 08 Half-yearly IFRS financial statements ...... 24 Adjusted net assets ...... 08 Consolidated statement of comprehensive income ...... 24 Components of the adjusted net assets at 30 June 2017...... 09 Consolidated balance sheet ...... 25 Consolidated statement of changes in shareholders’ equity ...... 26 Portfolio at 30 June 2017 ...... 11 Consolidated statement of cash flows ...... 27 Strategic Investments ...... 12 Imerys ...... 12 Notes ...... 28 LafargeHolcim ...... 12 Accounting policies and seasonality ...... 28 SGS ...... 13 Estimates and judgements ...... 28 adidas ...... 13 Presentation of the consolidated financial statements...... 28 Pernod Ricard ...... 14 Umicore ...... 14 Statutory Auditor’s report ...... 42 Total ...... 15 Incubator Investments ...... 15 Glossary ...... 43 Ontex...... 15 Burberry...... 16 For further information...... 46 Parques Reunidos...... 16 Sienna Capital ...... 17 Ergon Capital Partners ...... 17 Sagard ...... 17 Kartesia ...... 17 Mérieux Développement...... 17 PrimeStone ...... 17 BDT Capital Partners...... 17

Financial calendar

2 November 2017 March 2018 24 April 2018 Early May 2018 End July 2018 Third quarter 2017 Annual results Ordinary General First quarter 2018 Half-year 2018 results 2017 Meeting 2018 results results

Note: the above-mentioned dates depend on the agenda of the Board of Directors meetings and are thus subject to change. Half-yearly Report 4 on 30 June 2017 Message from the Co-CEOs

The first half of 2017 has seen the financial markets benefit from a value). In March 2017, GBL participated in the capital increase of favourable evolution of the political environment in Europe, as a result Ontex and, following this operation, has maintained its stake in the of the French and Dutch elections. The macroeconomic environment company’s capital at 19.98% (EUR 512 million in market value at also gave momentum to the markets through a combination of solid end of June 2017). Finally, GBL also announced on 12 April 2017, indicators in the Unites States, an acceleration of growth in Europe, the acquisition of a 15% stake in the capital of Parques Reunidos, and the good performance of emerging markets, notably in China. a reference operator within the leisure park sector in Europe, Some uncertainties however still remain in the financial markets, North America and Asia, listed on the Madrid stock exchange which are closely monitoring the central banks’ ongoing or expected (EUR 201 million of market value at end of June 2017). normalization processes of their monetary policies. The The reinvestment of the proceeds from Total and ENGIE disposals implementation by the American administration of its publicized remains a priority, along with the active management of the reforms, the outcomes of Brexit negotiations, the rebound in participations in portfolio. GBL has notably continued to play an protectionist risks and the global geopolitical context could bring active role through the governing bodies of LafargeHolcim in order some volatility back into financial markets. to support the group in its strategic objectives including commercial In this favourable but uncertain environment, GBL’s adjusted net excellence policy, asset management, implementation of synergies assets grew by 6.5% during the first half of 2017 and its TSR reached and balance sheet refinancing. The announcement of the 18.6% over the last 12 months. appointment of Jens Jenisch as CEO of LafargeHolcim as from The consolidated net result at 30 June 2017 was impacted by September 2017 was greeted positively by GBL. exceptional events, i.e. mostly the capital gain realised on the GBL has moreover successfully issued a EUR 500 million disposal by Ergon Capital Partners III of its stake in Golden Goose inaugural institutional bond in May 2017. This transaction allows the (EUR 112 million, group’s share). group to lengthen its debt maturity profile and further diversify its The cash earnings are resilient, displaying a small progression financing sources. compared to the first half of 2016 notwithstanding the gradual exit Lastly, and effective as of 1st August 2017, Xavier Likin, Group from high-yielding assets of the energy sector which will have a Controller of GBL since 2012, will replace William Blomme as Group dilutive impact on the full year 2017. Chief Financial Officer. The group expresses its gratitude to William GBL has further implemented its strategy of sectorial and Blomme for its collaboration and professionalism over the last years. geographical diversification, notably through new investments in Burberry, Ontex and Parques Reunidos. GBL holds a 3.95% stake Ian Gallienne Gérard Lamarche in Burberry’s capital at end of June 2017 (EUR 327 million of market Co-CEO Co-CEO Key financial data

The Board of Directors, held on 31 July 2017, approved GBL’s financial statements, produced in accordance with IAS 34 – Interim IFRS consolidated financial statements for the first half of 2017. These Financial Reporting, underwent a limited audit by the Auditor Deloitte.

In EUR million At the end At the end At the end At the end (group’s share) of June 2017 of June 2016 of March 2017 of December 2016

Consolidated net result 474 (888) 233 (458) Cash earnings 359 350 83 440 Adjusted net assets 18,099 14,977 18,530 16,992 Market capitalisation 13,601 11,853 13,732 12,863 Discount 24.9% 20.9% 25.9% 24.3% Net cash / (Net debt) (150) (874) 489 225 Loan to Value 0.8% 5.5% 0.0% 0.0%

Adjusted net assets Inaugural institutional bond issue of Consolidated net result of + 6.5% EUR 500 EUR 474 over the period million million over the period to EUR 18.1 with a coupon of 1.375% billion and a 7-year maturity ANAANA 10 10 ans ans

3030 June June 2017 2017 18,09918,099

20162016 16,99216,992

20152015 15,18815,188

20142014 15,26115,261

00 1010 1515 2020 55

3030 June June 2017 2017 359359 Cash earnings Cash earnings 3030 June June 2016 2016 350350 1010 ans ans 3030 June June 2015 2015 339339 Half-yearly Report 30 June 2014 319 30 June 2014 on 30 June 2017 319 5 00 100100 200200 300300 400400

Key figures

Adjusted net assets Net result (group’s share) ANA 10 ans ANA 10 ans In EUR million In EUR million

30 June 2017 18,099 3030 June June 2017 2017 474474 30 June 2017 18,099 2016 16,992 3030 June June 2016 2016 -- 888888 2016 16,992 2015 15,188 ResultantResultant net net 3030 June June 2015 2015 720720 2015 15,188 1010 ans ans 2014 15,261 3030 June June 2014 2014 502502 2014 15,261 0 10 15 20 -1000-1000 -800-800 -600-600 -400-400 -200-200 00 200200 400400 600600 800800 0 5 10 15 20 5

Cash earnings Gross dividend per share In EUR million In EUR 359 30 June 2017 2017 2.93 30 June 2017 359 2017 2.93 Cash earnings 30 June 2016 350 Cash earnings 20162016 2.862.86 10 ans 30 June 2016 350 10 ans 30 June 2015 339 2015 30 June 2015 339 ResultantResultant net net 2015 2.792.79 Year of payment Year 30 June 2014 319 1010 ans ans of payment Year 2014 30 June 2014 319 2014 2.722.72 0 100 200 300 400 0 100 200 300 400 00 11 22 33

Financial position At 30 June 2017, the net debt amounts to EUR 150 million Committed credit lines amount to EUR 2,150 million as a consequence of investments (mainly in Ontex, Burberry and (EUR 2,150 million at 31 December 2016) and mature in 2021 Parques30 June 2017 Reunidos) for EUR 579 million, and the dividend474 payment and 2022. They are fully undrawn at 30 June 2017. 30 June 2017 474 (EUR 473 million).30 June 2016 - 888 These cash outflows are partly offset by the This position does not include the company’s commitments 30 June 2016 - 888 Resultant net cash earnings30 June 2015 and the divestments (EUR 459 million). 720 in respect of Sienna Capital, which amounted to EUR 565 million Resultant net 30 June 2015 720 10 ans 10 ans 30 June Relative 2014 to the portfolio’s value (adjusted for the treasury502 shares at the end of June 2017 (EUR 601 million at 31 December 2016). 30 June 2014 502 (1) underlying-1000 the-800 convertible-600 -400bonds)-200 of EUR0 18.2200 billion,400 the600 net debt800 is Finally, at 30 June 2017, the 5,693,841 treasury shares -1000 -800 -600 -400 -200 0 200 400 600 800 at 0.8% at 30 June 2017. represented 3.5% of the issued capital (3.7% at end of 2016). The weighted average maturity of the gross debt is 3.5 years at end of June 2017 (1.3 years at year-end 2016).

In EUR million2017 2.93 30 June 2017 31 December 2016 2017 2.93 Bonds 2016 2.86 850 350 2016 2.86 Resultant net ENGIE exchangeable2015 bonds 2.79 - 306 Resultant net 2015 2.79 10 ans GBL of payment convertibleYear 2014 bonds 450 450 10 ans of payment Year 2.72 2014 2.72 Others 0 1 2 3 57 43 0 1 2 3 Gross debt 1,357 1,150 Gross cash (excluding treasury shares) 1,207 1,375 Net cash / (Net debt) (150) 225

(1) Including 5 million treasury shares underlying GBL convertible bonds

Outlook for 2017

During the first half of 2017, GBL has further reinvested the In this context, and in the absence of major events, GBL proceeds from disposals of the high-yielding assets of the energy anticipates to pay a 2017 dividend at least equivalent to that sector. Given the seasonality of the dividend contributions, the relating to the 2016 financial year. cash earnings related to the second half of 2017 will be negatively impacted by this asset rotation. The results at 30 September 2017 will be published on 2 November 2017. Half-yearly Report 6 on 30 June 2017

During the first half of 2017, GBL has further implemented the Highlights geographical and sectorial diversification of its portfolio, while maintaining a solid financial structure giving it the flexibility required to seize investment opportunities. This was reflected in the equity investment in Parques Reunidos, the strengthening of the positions in Burberry and Ontex, the exit from the ENGIE group and the placement of an inaugural institutional bond.

Further diversification of the portfolio

Equity investment in Parques Reunidos

• Acquisition of a 15% position in Parques Reunidos announced on 12 April 2017, representing a market value of EUR 201 million at end of June 2017 • Reference operator of leisure parks in Europe, North America and Asia, listed on the Madrid stock exchange • Representation of GBL in the Board of Directors following the co-option of Colin Hall on 25 April 2017

Strengthening of the position in Burberry

• Announcement by Burberry that GBL had crossed the threshold of 3.0% of the voting rights in the company on 28 February 2017 • Reinforcement of the shareholding in Burberry, from 2.95% at year-end 2016 to 3.95% at end of June 2017, for a market value of EUR 327 million

Participation in the capital increase of Ontex

• Participation in March 2017 in the capital increase of Ontex aiming at refinancing the company after the acquisition of the “hygienic consumables” activity of Hypermarcas • Unchanged shareholding of 19.98% following the transaction • Representation of GBL in the Board of Directors following the appointment of Michael Bredael at the Annual General Meeting of 24 May 2017 GBL RapportHalf-yearly Annuel Report 2016 Faitson 30 marquants June 2017 7

Maintaining a solid financial structure

Maturity of the bonds exchangeable into Success of the inaugural institutional bond ENGIE shares issue

• Redemption in cash of the outstanding nominal amount • EUR 500 million bond issue, with a coupon of 1.375% and under the bonds exchangeable into ENGIE shares for maturing on 23 May 2024 EUR 306 million, at maturity on 7 February 2017 • Issuance allowing GBL to reinforce its liquidity profile, lengthen • Disposal of the residual ENGIE shares underlying the the debt maturity profile from 1.3 years at year-end 2016 to bonds exchangeable into ENGIE shares (i.e. 11.9 million 3.5 years at end of June 2017 and further diversify its financing shares or 0.5% of the capital for EUR 145 million), sources by successfully establishing the group’s credit quality generating a consolidated gain of EUR 1 million on the institutional bond market • Residual stake of less than 0.1% of the capital at • Oversubscription of almost 3 times by a diversified base 30 June 2017 of primarily French, Belgian and Anglo-Saxon institutional investors

Sienna Capital Solid momentum in terms of asset rotation

Disposal of Golden Goose Acquisition of Ipackchem Expected performance of and ELITech • Acquisition by Sagard 3 of a stake in KCO III in line with target Ipackchem, one of the global leaders in returns Golden Goose the manufacturing of “barrier” packaging, • At 30 June 2017, Kartesia Credit • Sale to Carlyle of the majority stake whose products are mainly used in the Opportunities III (KCO III) is now fully held by Ergon Capital Partners III transport and storage of aromas, invested in primary and secondary (ECP III) in Golden Goose, an Italian fragrances and agrochemical products transactions and has distributed to designer of contemporary footwear, for which permeability, contamination its investors a total amount of clothing and accessories and evaporation constraints are critical EUR 84 million, representing c.18% • Net consolidated capital gain on of capital called disposal of EUR 112 million (GBL’s share)

ELITech • ECP III reached an agreement with Acquisition of Xeris & Ivantis PAI Partners for the sale of ELITech Group, a manufacturer of specialty • Acquisition by Mérieux Participations II in-vitro diagnostics equipment and (MP II) of a minority stake in Xeris reagents Pharmaceuticals Inc. : biopharmaceuti- cal company developing injectable • Estimated net consolidated capital therapeutics for multiple indications gain on disposal of EUR 102 million including diabetes (GBL’s share) at 30 June 2017 • Acquisition by MP II of a minority stake in Ivantis Inc., a company dedicated to the development of new and innovative solutions for glaucoma Half-yearly Report 8 on 30 June 2017

Organisation chart and adjusted net assets

Organisation chart at 30 June 2017 % of share capital (% of voting rights) 3.5% (0.0%)

53.6% 9.4% 16.2% 7.5% 7.5% 17.0% 0.6% 19.98% 3.95% 15.2% (68.0%) (9.4%) (16.2%) (7.5%) (10.9%) (17.0%) (1.2%) (19.98%) (3.97%) (15.2%)

Strategic Investments Incubator Investments Sienna Capital Adjusted net assets At 30 June 2017, GBL’s adjusted net assets totalled EUR 18.1 billion (EUR 112.17 per share) compared with EUR 17.0 billion (EUR 105.31 per share) at the end of 2016, up by 6.5% (+ EUR 6.86 per share). Relative to the share price of EUR 84.29 (+ 5.7% over the first half of the year), the discount at the end of June 2017 was 24.9%, slightly increasing compared with the end of 2016. 30 June 2017 31 December 2016 30 June 2016 Holding Share price Portfolio % in capital In EUR In EUR million In % In EUR million In EUR million Strategic Investments 15,658 88.1 14,615 13,120 Imerys 53.6 76.15 3,263 18.4 3,088 2,465 LafargeHolcim 9.4 50.27 2,877 16.2 2,857 2,124 SGS 16.2 2,124 2,692 15.1 2,445 2,417 adidas 7.5 167.75 2,632 14.8 2,356 1,933 Pernod Ricard 7.5 117.25 2,332 13.1 2,048 1,991 Umicore 17.0 60.90 1,160 6.5 1,032 - Total 0.6 43.29 701 3.9 789 1,397 ENGIE - - 793 Incubator Investments 1,223 6.9 730 1,385 Ontex 19.98 31.11 512 2.9 423 318 Burberry 3.95 18.89 327 1.8 230 - Parques Reunidos 15.2 16.44 201 1.1 - - Umicore - - - 881 Others 183 1.0 77 186 Sienna Capital 891 5.0 955 912 Portfolio 17,772 100 16,300 15,417 Treasury shares 476 467 433 Exchangeable/convertible bonds (450) (757) (779) Bank debt and Bonds (907) (393) (1,357) Cash/quasi-cash/trading (1) 1,207 1.375 1,263 Adjusted net assets (global) 18,099 16,992 14,977 Adjusted net assets per share (in EUR) (2) 112.17 105.31 92.82 Share price per share (in EUR) 84.29 79.72 73.46 Discount (in %) 24.9 24.3 20.9 The value of GBL’s adjusted net assets is published on GBL’s website on a weekly basis. At 28 July 2017, adjusted net assets per share stood at EUR 112.80 up 7.1% compared with its level at the beginning of the year, reflecting a discount of 24.4% on the share price on that date (EUR 85.31).

(1) The value of the investment in ENGIE (EUR 21 million for a stake of 0.1% at 30 June 2017) has been included since 31 December 2016 in the “Cash/quasi-cash/trading” item in the calculation of GBL’s adjusted net assets (2) Based on 161,358,287 shares Half-yearly Report on 30 June 2017 9

Components of the adjusted net assets at 30 June 2017 The tables mentioned below present the reconciliation of each component of the adjusted net assets with the IFRS consolidated financial statements resumed from page 24.

Portfolio At 30 June 2017, GBL’s portfolio included in the adjusted net assets amounted to EUR 17,772 million (EUR 16,300 million at 31 December 2016). The reconciliation of this item with the IFRS consolidated financial statements is set out below: In EUR million 30 June 2017 31 December 2016 30 June 2016

Portfolio value as presented in: Adjusted net assets 17,772 16,300 15,417 Segment information (Holding) - pages 31 to 33 13,620 12,401 12,041 Available-for-sale investments 13,620 12,401 12,041

Reconciliation items 4,152 3,899 3,376 Adjusted net assets Fair value of Imerys, consolidated using the full consolidation method in IFRS 3,263 3,088 2,465 At 30 June 2017, GBL’s adjusted net assets totalled EUR 18.1 billion (EUR 112.17 per share) compared with EUR 17.0 billion (EUR 105.31 Value of Sienna Capital, consolidated in the Sienna Capital segment 891 955 912 per share) at the end of 2016, up by 6.5% (+ EUR 6.86 per share). Relative to the share price of EUR 84.29 (+ 5.7% over the first half of the Reclassification of ENGIE shares, included in gross cash in 2016 and shown under available-for-sale (1) (145) - year), the discount at the end of June 2017 was 24.9%, slightly increasing compared with the end of 2016. investments in IFRS 30 June 2017 31 December 2016 30 June 2016 Others (1) 1 (1) Holding Share price Portfolio % in capital In EUR In EUR million In % In EUR million In EUR million Treasury shares Strategic Investments 15,658 88.1 14,615 13,120 Treasury shares, valued at their historic value, are recorded as a deduction from shareholders’ equity in IFRS. The treasury shares Imerys 53.6 76.15 3,263 18.4 3,088 2,465 included in the adjusted net assets (EUR 476 million at 30 June 2017 and EUR 467 million at 31 December 2016) are valued using the LafargeHolcim 9.4 50.27 2,877 16.2 2,857 2,124 method set out in the glossary on page 43. SGS 16.2 2,124 2,692 15.1 2,445 2,417 adidas 7.5 167.75 2,632 14.8 2,356 1,933 Gross debt Pernod Ricard 7.5 117.25 2,332 13.1 2,048 1,991 At 30 June 2017, gross debt of EUR 1,357 million (EUR 1,150 million at 31 December 2016) is detailed as follows: Umicore 17.0 60.90 1,160 6.5 1,032 - Total 0.6 43.29 701 3.9 789 1,397 In EUR million 30 June 2017 31 December 2016 31 December 2016 ENGIE - - 793 Incubator Investments 1,223 6.9 730 1,385 ENGIE exchangeable bonds - 306 329 Ontex 19.98 31.11 512 2.9 423 318 GBL convertible bonds 450 450 450 Burberry 3.95 18.89 327 1.8 230 - Bonds 850 350 350 Parques Reunidos 15.2 16.44 201 1.1 - - Drawdown under bank credit lines - - 200 Umicore - - - 881 Debt related to prepaid forward sales - - 764 Others 183 1.0 77 186 Others 57 43 43 Sienna Capital 891 5.0 955 912 Gross debt, as per the adjusted net assets 1,357 1,150 2,136 Portfolio 17,772 100 16,300 15,417 Treasury shares 476 467 433 Gross debt, included in the segment information (Holding) - pages 31 to 33: Exchangeable/convertible bonds (450) (757) (779) Non-current financial liabilities 991 477 823 Bank debt and Bonds (907) (393) (1,357) Current financial liabilities 350 656 1,091 Cash/quasi-cash/trading (1) 1,207 1.375 1,263 Adjusted net assets (global) 18,099 16,992 14,977 Adjusted net assets per share (in EUR) (2) 112.17 105.31 92.82 Reconciliation items 16 17 222 Share price per share (in EUR) 84.29 79.72 73.46 Bank debt compensation - fixed-term deposits - - 200 Discount (in %) 24.9 24.3 20.9 Impact of the recognition of financial liabilities at amortised cost in IFRS 16 17 22 The value of GBL’s adjusted net assets is published on GBL’s website on a weekly basis. At 28 July 2017, adjusted net assets per share stood at EUR 112.80 up 7.1% compared with its level at the beginning of the year, reflecting a discount of 24.4% on the share price on that date (EUR 85.31). Half-yearly Report 10 on 30 June 2017

Gross cash At 30 June 2017, gross cash excluding treasury shares stands at EUR 1,207 million (EUR 1,375 million at 31 December 2016). The table below sets out the various components in accordance with GBL’s consolidated financial statements: In EUR million 30 June 2017 31 December 2016 30 June 2016

Gross cash as presented in: Adjusted net assets 1,207 1,375 1,263 Segment information (Holding) - pages 31 to 33 1,213 1,235 1,057 Trading assets 880 1,020 629 Cash and cash equivalents 320 213 436 Other current assets 43 42 61 Trade payables (3) (2) (2) Tax liabilities (4) (8) (5) Other current liabilities (23) (30) (62)

Reconciliation items (6) 140 206 Bank debt compensation - fixed-term deposits - - 200 Reclassification of ENGIE shares previously taken into account in the portfolio value in the adjusted net assets and included in gross cash since 31 December 2016 1 145 - Others (7) (5) 6

Net debt Net debt of EUR 150 million at 30 June 2017 (net cash of EUR 225 million at 31 December 2016) presents the following Loan to Value ratio: In EUR million 30 June 2017 31 December 2016 30 June 2016

Gross cash (excluding treasury shares) 1,207 1,375 1,263 Gross debt (1,357) (1,150) (2,136) Net debt (excluding treasury shares) (150) n.a. (874) Market value of the portfolio 17,772 16,300 15,417 Market value of treasury shares underlying GBL convertible 421 399 367 bonds Adjusted market value of the portfolio 18,193 16.699 15,784 Loan to Value 0.8% 0.0% 5.5% Half-yearly Report on 30 June 2017 11

GBL’s strategy consists in holding a Portfolio at diversified portfolio, structured around three 30 June 2017 types of assets with a view to creating value for its shareholders over the long term.

Strategic Investments Sectorial and geographic diversification Investments generally larger than one billion euros, primarily in of the GBL portfolio listed companies, in which GBL can exercise a marked influence over the long terme. 6% Sienna Capital & others 4% Energy sector They represent the bulk of the portfolio.

Incubator Investments 15% Services A limited selection of investments of lower size (EUR 250 million – 41% Industry EUR 1 billion), listed or not, having the potential to eventually become strategic, within which GBL seeks to become a core shareholder and, for mid-sized companies, to possibly hold a majority stake.

Sienna Capital 34% Consumer Sienna Capital comprises significant investments in private equity, debt or specific thematic funds. GBL intends to reinforce the diversification of its portfolio and achieve its value creation objectives while pursing the development of its alternative investments within 1.8% United Kingdom 1.1% Spain Sienna Capital. 6.1% Others 9.4% Belgium

35.5% France

14.8% Germany

31.3% Switzerland

Overview of the portfolio

Strategic Incubator Sienna Capital Investments Investments At 30/06/17 At 30/06/17 At 30/06/17 88.1% 6.9% 5.0% EUR 15.7 EUR 1.2 EUR 0.9 billion billion billion Half-yearly Report 12 on 30 June 2017

Strategic Investments

Imerys is world leader LafargeHolcim is the world in speciality minerals leader in construction with 270 sites materials: cement, in 50 countries aggregates and concrete 53.6% 9.4% Capital held by GBL Capital held by GBL

GBL data at 30 June 2017 GBL data at 30 June 2017 Market value of investment Market value of investment (EUR million) ...... 3,263 (EUR million) ...... 2,877 Voting rights (%) ...... 68.0 Voting rights (%) ...... 9.4 Contribution Contribution to GBL’s portfolio (%) ...... 18.4 to GBL’s portfolio (%) ...... 16.2

Half-year results 2017 Half-year results 2017 • Revenue grew organically by 1.8% and by 4.3% at • Net sales were up 4.4% like-for-like, and down 6.5% on a comparable exchange rates (external growth of 2.5%). reported basis, at CHF 12.5 billion. Taking into account the positive currency effect (1.6%), • Operating EBITDA Adjusted increased by 11.5% on a like- revenue increased by 5.9% to EUR 2,220 million. for-like basis supported by favourable pricing, cost discipline • Current operating income grew by 6.7% to EUR 313 million and synergies, but decreased by 1.5% on a reported basis after perimeter changes and the currency effect. The margin at CHF 2.5 billion. has grown by 10 bps to 14.1%. • The increase in net debt over the semester mainly reflects • Net income from current operations (group’s share) the dividend payment in May 2017 representing a total increased by 3.2% and the net result (group’s share) payout of CHF 1.2 billion. by 8.9%. • Compared with 31 December 2016, net debt rose to Key financial data EUR 1,509 million due primarily to the dividend payment. (in CHF million) 30/06/2017 31/12/2016 30/06/2016 Net sales 12,480 26,904 13,342 Key financial data Operating EBITDA Adjusted (1) 2,536 5,825 2,573 (in EUR million) 30/06/2017 31/12/2016 30/06/2016 Operating EBITDA Margin Adjusted (%) (1) 20 22 19 Revenue 2,220 4,165 2,097 Net income 1,013 2,090 293 Current EBITDA 428 819 417 Market capitalisation 33,319 32,561 24,604 Current operating income 313 582 293 Net debt (in billion) 15.7 14.7 18.1 Net income from current operations (group’s share) 190 362 184 Outlook for 2017 Net income (group’s share) 172 293 158 LafargeHolcim forecasts demand in its markets to increase Market capitalisation 6,089 5,734 4,584 by 1 to 3%. The group further expects a double-digit like-for- Net debt 1,509 1,367 1,524 like growth in Operating EBITDA Adjusted; recurring EPS growth of more than 20%; and a net debt to Operating Outlook for 2017 EBITDA Adjusted ratio of around 2x. The group is committed In a constant market and currency environment, Imerys to maintain an investment grade rating and to return excess foresees above 7% year-on-year growth in net income from cash to shareholders through dividend payments and a share current operations in 2017. The group will benefit from the buyback program of up to CHF 1 billion over 2017-2018. integration of its recent acquisitions, in particular Kerneos, and from its development strategy as well as its operational excellence and innovation programmes in order to achieve those objectives.

(1) Operating EBITDA Adjusted and related margin were adjusted for the period ending 30 June 2016 in line with new group reporting policy

Financial communication Financial communication Vincent Gouley Tel.: +33 1 44 34 92 00 (Paris) Analyst/Investor Relations Tel.: +41 58 858 87 87 (Zurich) Tel.: +33 1 49 55 64 69 [email protected] [email protected] www.lafargeholcim.com www.imerys.com Half-yearly Report on 30 June 2017 13

Strategic Investments

SGS is the world adidas is the leader in inspection, European leader in verification, testing and sports equipment certification 16.2% 7.5% Capital held by GBL Capital held by GBL

GBL data at 30 June 2017 GBL data at 30 June 2017 Market value of investment Market value of investment (EUR million) ...... 2,692 (EUR million) ...... 2,632 Voting rights (%) ...... 16.2 Voting rights (%) ...... 7.5 Contribution Contribution to GBL’s portfolio (%) ...... 15.1 to GBL’s portfolio (%) ...... 14.8

Half-year results 2017 Half-year results 2017 • Revenue grew organically by 3.4% and by 4.9% on a • Revenue increased by 18% on a currency-neutral basis to constant currency basis (external growth: 1.5%). After the EUR 10,485 million. From a brand perspective, currency- slightly positive currency effect (+ 0.1%), turnover increased neutral revenues grew 19% for adidas and 9% for Reebok. by 5.0% to CHF 3,047 million. • Gross margin improved slightly to 49.9% (2016: 49.8%), • A djusted operating income increased by 4.9% on a constant reflecting the positive effects from an improved pricing, currency basis and by 4.3% to CHF 428 million after the product and channel mix as well as lower input costs, which currency effect. Margin remained stable at 14.1% despite the were largely offset by unfavourable currency developments. weak performance of Oil & Gas activities and new • Operating profit grew 20% to EUR 1,142 million, representing investments in transformation projects. an operating margin of 10.9%, an increase by 0.1%. • S GS also recorded doubtful receivables in the Governments • During the half-year, adidas completed the planned & Institutions services activity, the bulk of these amounts divestiture of TaylorMade and CCM Hockey. should however be recovered. • C ompared with 31 December 2016, net debt rose to Key financial data EUR 1,136 million due primarily to the dividend payment. (in EUR million) 30/06/2017 31/12/2016 30/06/2016 Revenue (1) 19,291 8,761 Key financial data 10,485 Gross profit (1) 5,227 9,379 4,364 (in CHF million) 30/06/2017 31/12/2016 30/06/2016 Operating profit (1) 1,142 1,491 950 Revenue 3,047 5,985 2,901 Net income from continuing operations (1) 809 1,019 671 Adjusted EBITDA 570 1,198 550 Market capitalisation 35,096 31,414 26,874 Adjusted operating income 428 919 411 Net debt 735 103 1,028 Profit (group’s share) 276 543 258 Market capitalisation 18,164 16,208 17,413 Net debt 1,136 736 990 Outlook for 2017 Management at adidas revised its guidance upward due to Outlook for 2017 the strong financial performance year to date. The company SGS forecasts solid organic revenue growth, an increase now expects sales to increase between 17% and 19% in the adjusted operating income at constant exchange rates (previously between 12% and 14%). The operating profit is and robust cash flow generation. expected to increase between 24% and 26% (previously between 13% and 15%).

(1) These key figures reflect continuing operations as a result of the divestiture of the Rockport business and the planned divestiture of TaylorMade, Ashworth and CCM Hockey

Financial communication Financial communication Jean-Luc de Buman Sebastian Steffen Senior Vice President Investor Relations World of Sports Tel.: +41 227 39 93 31 Tel.: +49 9132 84 2920 [email protected] [email protected] www.sgs.com www.adidas-group.com Half-yearly Report 14 on 30 June 2017

Strategic Investments

Pernod Ricard is Umicore is a group the world’s specialised in materials co-leader in technology and the recycling Wines & Spirits of precious metals 7.5% 17.0% Capital held by GBL Capital held by GBL

GBL data at 30 June 2017 GBL data at 30 June 2017 Market value of investment Market value of investment (EUR million) ...... 2,332 (EUR million) ...... 1,160 Voting rights (%) ...... 10.9 Voting rights (%) ...... 17.0 Contribution Contribution to GBL’s portfolio (%) ...... 13.1 to GBL’s portfolio (%) ...... 6.5

Half year results 2016/17 Half-year results 2017 • Half-year sales (July - December 2016) stood at • Revenues (excluding metal) grew by 7% to EUR 1,454 million EUR 5,061 million, growing organically by 4%. The strategic and recurring EBIT increased by 16% to EUR 204 million, international brands increased strongly while the premium reflecting the positive growth in each division, which was wines and local brands experienced limited growth. particularly significant in the case of Energy & Surface • Profit from recurring operations also grew organically Technologies. by 4% to EUR 1,500 million, with an operating margin • ROCE increased to 15.9% vs. 14.6% in the first half of 2016. increasing by 60 bps to 29.6%. • Net debt was EUR 556 million, up by EUR 260 million • Net profit from recurring operations rose by 5% as a result compared to 31 December 2016 following the acquisition of of the increase in profit from recurring operations and the Ordeg, investments in additional production capacity and an decrease in the average cost of debt, partially offset by a increase in working capital requirements. rise in the average tax rate. • Net debt increased by EUR 237 million in comparison with Key financial data 30 June 2016 to EUR 8,953 million, due to the payment of (in EUR million) 30/06/2017 31/12/2016 30/06/2016 the dividend and a negative currency effect. Revenues (excluding metal) 1,454 2,668 1,354 Recurring EBIT 204 351 176

Key financial data 31/12/2016 30/06/2016 31/12/2015 Recurring net profit (group’s share) 134 233 111 (in EUR million) (H1) (Financial year) (H1) Net profit (group’s share) 119 131 46 Sales 8,682 4,958 5,061 Market capitalisation 6,821 6,065 5,182 Profit from recurring operations 1,500 2,277 1,438 Net debt 556 296 298 Net profit from recurring operations (group’s share) 957 1,381 909 Outlook for 2017 Net profit (group’s share) 1,235 886 914 Umicore expects full year recurring EBIT to be at the high Market capitalisation 27,325 26,569 27,922 end of the previously guided range of EUR 370 million to Net debt 8,953 8,716 9,258 EUR 400 million assuming current market conditions continue to prevail. Excluding discontinued operations, this equates to Outlook for 2017 the high end of a range of EUR 355 million to EUR 385 million. Pernod Ricard closes its financial year on 30 June and will publish its results on 31 August 2017. At the publication of the nine-month sales (3% of published growth and 4% of organic growth), the group’s management reiterated its objective of growth of the profit from recurring operations ranging between 2% and 4% for the full financial year.

Financial communication Financial communication Julia Massies Evelien Goovaerts Vice-President, Financial Communication & Investor Relations Investor Relations Tel.: +33 1 41 00 42 02 Tel.: +32 2 227 78 38 [email protected] [email protected] www.pernod-ricard.com www.umicore.com Half-yearly Report on 30 June 2017 15

Strategic Investments Incubator Investments

Total is a global, Ontex is a global leader integrated oil and gas specialised in hygienic group, with a presence consumables in chemicals

0.6% 19.98% Capital held by GBL Capital held by GBL

GBL data at 30 June 2017 GBL data at 30 June 2017 Market value of investment Market value of investment (EUR million) ...... 701 (EUR million) ...... 512 Voting rights (%) ...... 1.2 Voting rights (%) ...... 19.98 Contribution Contribution to GBL’s portfolio (%) ...... 3.9 to GBL’s portfolio (%) ...... 2.9

Half-year results 2017 Half-year results 2017 • The environment was characterised by a 30% and 14% • Revenue stands at EUR 1,174 million, up 22% on a reported increase in the price of Brent and in refining margins basis, driven by the acquisition of Ontex Brazil. On a like-for- respectively, while the dollar weakened compared to like basis, growth was of 5.2%, with a positive contribution the euro. from each division and each category. • In this context, the adjusted net operating income from • Adjusted EBITDA grew by 17.4% but the margin dropped business segments rose by 25% to USD 5.5 billion with by 50 bps to 12.3%, due to pressures on the supply chain, substantial growth in Exploration - Production (+ 92%) and increasing raw materials prices, a changing business mix Gas, Renewables & Power (+ 34%). Adjusted net income following the acquisitions and higher distribution costs. (group share) and adjusted fully-diluted earnings per share • Net debt at 30 June 2017 was EUR 744 million, up by rose by 32% and 29% respectively. ROACE grew to 8.1%. EUR 79 million compared to 31 December 2016 notably • Net debt fell over the half year, resulting in a debt ratio of 20.3%. following the acquisition of Ontex Brazil (closing in early March 2017), leading to a net financial debt/adjusted Key financial data EBITDA ratio of 2.75x. (in USD million) 30/06/2017 31/12/2016 30/06/2016 Revenue 81,098 149,743 70,056 Key financial data Adjusted net operating income from (in EUR million) 30/06/2017 31/12/2016 30/06/2016 business segments 5,515 9,420 4,402 Revenue 1,174 1,993 963 Adjusted net income (group’s share) 5,032 8,287 3,810 Adjusted EBITDA 145 249 123 Net income (group’s share) 4,886 6,196 3,694 Operating profit (EBIT) 107 194 95 Market capitalisation (in EUR million) 108,279 118,376 108,586 Adjusted net profit (group’s share) 72 132 66 Net debt 21,961 27,121 29,828 Market capitalisation 2,562 2,115 2,116 Net debt (1) 744 665 660 Outlook for 2017 Total is continuing its efforts to reduce its break-even point. Outlook for 2017 The results of the cost reduction programme make it possible Ontex is forecasting revenue growth ahead of to confirm the target of USD 3.5 billion for 2017, and the its underlying markets for 2017. The recent acquisition of decrease in production costs to USD 5.5/barrel in 2017 and Ontex Brazil is anticipated to perform in line with the group’s then USD 5.0/barrel in 2018. In the Upstream segment, annual expectations for 2017. The macroeconomic environment will growth in production should be above 4% in 2017. In the remain challenging, with volatile exchange rates and ongoing Downstream segment, the refining and petrochemicals margins pressures on raw materials costs. remain favourable at the start of the third quarter. Organic investments will amount to between USD 14 and 15 billion.

(1) Net debt includes earn-outs on acquisitions

Financial communication Financial communication Mike Sangster Philip Ludwig Director of Financial Communication Investor Relations Tel.: +44 207 719 79 62 Tel.: +32 53 333 730 [email protected] [email protected] www.total.com www.ontex-global.com Half-yearly Report 16 on 30 June 2017

Incubator Investments

Burberry is a British luxury Parques Reunidos is a fashion house with leading operator of leisure international recognition parks with a global presence

3.95% 15.2% Capital held by GBL Capital held by GBL

GBL data at 30 June 2017 GBL data at 30 June 2017 Market value of investment Market value of investment (EUR million) ...... 327 (EUR million) ...... 201 Voting rights (%) ...... 3.97 Voting rights (%) ...... 15.2 Contribution Contribution to GBL’s portfolio (%) ...... 1.8 to GBL’s portfolio (%) ...... 1.1

Full year 2016/2017 results Half-year results 2017 • 2016/2017 was a year of transition during which Burberry took • Revenues grew by 4.0% on a like-for-like basis and by 4.3% strategic actions to maintain the long-term success of its brand. to EUR 254 million on a reported basis. • Revenue stands at GBP 2.8 billion, a drop by 2% in organic • Reported EBITDA increased by 33% to EUR 7 million terms but an increase of 10% in reported figures, impacted by reflecting the strong performance in Spain. foreign exchange rates. • Net income achieved a 45% improvement at • Adjusted operating profit dropped by 21% in organic terms to EUR - 59 million following the substantial reduction of GBP 459 million, due to lower wholesale income, particularly interest expenses due to capital structuring post IPO. in the US and Beauty, and reduced licensing income. • C ompared with 30 September 2016, net debt decreased • Net cash as at 31 March 2017 was GBP 809 million, up by slightly to EUR 536 million due to positive foreign GBP 149 million compared to 31 March 2016 as a result of the exchange impacts. decrease in investments and the positive impact of the variation in working capital requirements. Key financial data (in EUR million) 30/06/2017 30/09/2016 30/06/2016 Key financial data Revenues 254 584 243 (in GBP million) 31/03/2017 31/03/2016 31/03/2015 EBITDA 7 188 5 Revenue 2,766 2,515 2,523 Operating profit (66) 91 (61) Gross margin (%) 70 70 70 Net income (59) 4 (106) Adjusted operating profit 459 418 455 Market capitalisation 1,327 995 1,054 Attributable profit 287 310 336 Net debt 536 540 686 Market capitalisation 7,559 6,075 7,707 Net debt (net cash) (809) (660) (552) Outlook for 2017 Parques Reunidos closes its financial year at 30 September. Outlook for 2017/2018 At the publication of the 2016 annual revenue, the group’s In the current challenging environment, Burberry management had communicated its objective of a high single continues to undertake strategic actions to protect the brand. digit growth of its EBITDA. The company also intends to pursue its cost reduction programme, the target being GBP 100 million in savings by March 2019. The group has also announced that the cash will be used to invest in growth and improve shareholder return. In April, Burberry sold the licence of its perfumes and cosmetics to the US company Coty.

Financial communication Financial communication Tel.: +44 20 3367 3524 Juan Barbolla [email protected] Head of Investor Relations www.burberryplc.com Tel.: +34 91 526 97 00 [email protected] www.parquesreunidos.es Half-yearly Report on 30 June 2017 17

GBL intends to reinforce the diversification of its portfolio and achieve its value-creation objectives by pursuing the development of its alternative investments within its subsidiary Sienna Capital

Sienna Capital aims to generate attractive risk-adjusted returns by constructing a diversified portfolio of investment managers performing well in their area of expertise (e.g. private equity, debt and specific thematic funds). Sienna Capital is an active and involved partner for the managers it invests with. Sienna Capital supports managers by helping them raise money, attract talent and source investment opportunities as well as by providing advice on good governance and best practices.

At 30 June 2017, Sienna Capital’s portfolio was composed • In addition, Kartesia is emerging as a leading pan-European of six managers deploying capital via twelve funds into about credit franchise and has launched a new investment fund, Kartesia hundred underlying individual portfolio companies. The portfolio Credit Opportunities IV (KCO IV). At 30 June 2017, the total includes investments in private equity funds (Ergon, Sagard), fund commitment was EUR 624 million, with a final target of debt funds (Kartesia), healthcare growth capital funds (Mérieux EUR 750 million before year-end 2017. As a long term supportive Développement), a fund whose strategy consists of acquiring partner, Sienna Capital committed EUR 150 million to KCO IV long-term shareholdings in mid-sized European companies (same amount as KCO III) to anchor the first close. (PrimeStone), and a fund which provides long-term capital to • Finally, the underlying portfolio of BDT is performing well. family- and founder-led businesses (BDT Capital Partners). Consistent with the strategic vision of Sienna Capital to serve The portfolio of Sienna Capital at 30 June 2017 was valued at as an “incubator” for GBL, regular discussions are held with BDT EUR 891 million which represents 5.0% of GBL’s portfolio value. about potential co-investment opportunities which should produce results over time. Performance in the first half of 2017 • In the first half of 2017, all managers with whom Sienna Capital Outlook for 2017 has partnered showed clear signs of value creation. At the level • New investments are expected for several funds included of Ergon, the exit of Golden Goose in March 2017 and the sale of in Sienna Capital’s portfolio. Exits are planned for the Sagard ELITech in July 2017 will generate total proceeds from ECP III to and Kartesia funds. Sienna Capital estimated at EUR 271 million. For Sagard, the • Sienna Capital is also selectively reviewing new investment underlying companies included in its portfolio showed encouraging opportunities. performances with higher EBITDA levels and a decrease in net debt. PrimeStone is now nearly fully-invested and has begun to deliver some successful exits. Key financial data

In EUR million - 30/06/2017 Total

Initial commitment 663 398 300 75 150 113 1,699

Capital invested 484 262 151 39 150 48 1,134

Remaining commitment 179 137 149 36 - 65 565

Realised proceeds 473 194 25 0 - - 692

Value of the shareholding 270 191 164 42 172 51 891 (Sienna Capital’s portfolio)

Share in Sienna Capital’s 30% 21% 18% 5% 19% 6% 100% portfolio

Financial information Aurélie Comptour CFO [email protected] www.sienna-capital.com Half-yearly Report 18 on 30 June 2017

GBL will continue to face the same risks in the second half of Risk 2017. Each of the major investments in the portfolio held by management GBL is exposed to the specific risks indicated in GBL’s 2016 annual report (pages 38-39) which refers to the reference documents of the different shareholdings. This table categorises the main risks related to GBL’s activities and the various factors and measures mitigating their potential negative impact. A chapter included in the Annual Report 2016 (see pages 38 to 45 and 173-174) deals with these risks, their management and the monitoring activities introduced by the company.

Main risks Risk factors Mitigants

Exogenous • Changes in financial markets, notably with regards • Geographic and sector diversification of the to the volatility of share price and interest and portfolio with differentiated cyclical exposure Risks associated with shifts in foreign exchange rates • Ongoing legislative monitoring of the primary external factors such as • Changes in macroeconomic variables (growth regions of activity economic, political or legislative rates, monetary policy, inflation, raw materials and • Systematic monitoring and analysis of macro- change commodity prices, etc.) economic scenarii, markets and investment thesis • Regulatory or budgetary policy changes, for example involving tax reform • Specific developments affecting certain geo- graphic areas (Eurozone, emerging countries, etc.) Strategy • Differing visions or understanding of the • Formal decision-making process involving all assessment of strategic priorities and inherent governance bodies and the management Risks resulting from the definition, risks • Ongoing monitoring of key performance indicators implementation and continuation • Validity of the parameters underlying investment and regular updates of assumptions and forecasts of the group’s guidelines and thesis • Periodic portfolio review at different hierarchical strategic developments • Geographic or sector concentration of levels investments • Investment diversification

Cash and cash • Access to liquidity • Rigorous and systematic analysis of considered equivalents, financial • Net debt leverage and maturity profile transactions instruments and • Quality of counterparties • Diversification of investments and counterparties financing • Interest rate exposure • Limitation of net indebtedness • Volatility of derivative instruments • Definition of trading limits Risks associated with the • Relevance of forecasts or expectations • Strict counterparty selection process management of cash and cash • Developments in financial markets • Formal delegations of authority with the aim to equivalents, financial instruments achieve appropriate segregation of duties and financing • Systematic reconciliation of cash data and the accounting Operations • Complexity of the regulatory environment • Internal procedures and control activities regularly • Adequacy of systems and procedures reviewed Risks resulting from inadequacies • Exposure to fraud and litigation • Hiring, retention and training of qualified staff or failures in internal procedures, • Retention and development of employees’ skills • Implementation of delegations of authority to staff management or systems in ensure an appropriate segregation of duties place. Risk of non- compliance • Maintenance of and investments in IT systems with quality standards, contractual and legal provisions and ethical • Internal Code of Conduct and Corporate norms Governance Charte

Specific risks related to GBL indirectly faces specific risks related to the Imerys: www.imerys.com participations, which are identified and LafargeHolcim: www.lafargeholcim.com the participations addressed by the companies themselves within SGS: www.sgs.com the framework of their own internal control. The adidas: www.adidas-group.com analysis conducted by these companies in terms Pernod Ricard: www.pernod-ricard.com of risk identification and internal control is Umicore: www.umicore.com described in the reference documents available Total: www.total.com on their website. Ontex: www.ontexglobal.com Burberry: www.burberryplc.com Parques Reunidos: www.parquesreunidos.com Half-yearly Report on 30 June 2017 19

This section focuses on the economic Consolidated results presentation of GBL’s income statement Economic presentation to determine IFRS net profit or loss. The financial statements, prepared in accordance with IAS 34, are presented from page 24 onwards.

In EUR million 30 June 2017 30 June 2016 Mark Operating to market companies Eliminations, and other (associated or capital gains, Cash non-cash consolidated) and impairments and Group’s share earnings items Sienna Capital reversals Consolidated Consolidated (1)

Profit (loss) of associates and consolidated operating companies - - 103.5 - 103.5 90.2 Net dividends from investments 360.8 0.1 - (80.1) 280.8 251.9 Interest income (expenses) (10.0) (2.1) (1.4) - (13.5) (20.1) Other financial income (expenses) 25.1 6.6 - (16.9) 14.8 72.3 Other operating income (expenses) (16.7) (0.7) (11.1) - (28.5) (21.9) Gains (losses) from disposals, impairments and reversals 117.8 of non-current assets - - 110.4 7.4 (1.260.8) Tax (0.1) - (0.5) - (0.6) - IFRS consolidated net result (6 months 2017) 359.1 3.9 200.9 (89.6) 474.3 IFRS consolidated net result (6 months 2016) 349.5 41.9 130.2 (1.410.0) - (888.4)

Consolidated net result, group’s share, at 30 June 2017 stood at EUR 474 million, compared with EUR - 888 million at 30 June 2016.

This result was primarily affected by: • the net dividends from investments amounting to EUR 281 million; • the net capital gain made on the sale of the participation in Golden Goose by ECP III for EUR 112 million (GBL’s share); • the Imerys contribution amounting to EUR 93 million.

Cash earnings (EUR 359 million compared with EUR 350 million)

In EUR million 30 June 2017 30 June 2016

Net dividends from investments 360.8 361.2 Interest income (expenses) (10.0) (13.4) Other income (expenses): financial 25.1 27.2 operating (16.7) (15.7) Gains (losses) from disposals, impairements and reversals of non-current assets - (9.8) Tax (0.1) - Total 359.1 349.5

(1) The figures presented for comparative purposes have been restated in order to take into account the reclassification of the net capital gain on the disposal of activities of De Boeck by ECP III for EUR 51 million GBL’s share from the item “Profit (loss) of associates and consolidated operating companies” to the item “Gains (losses) from disposals, impairments and reversals of non-current assets” Half-yearly Report 20 on 30 June 2017

Net dividends from investments Net dividends from investments in the first half of 2017 are flat compared with 2016. In EUR million 30 June 2017 30 June 2016

LafargeHolcim 107.0 77.9 SGS 82.8 72.9 Imerys 80.1 75.0 adidas 26.7 18.8 Pernod Ricard (interim) 18.7 17.9 Total (interim and balance) 17.9 38.8 Umicore (balance) 13.3 13.3 Ontex 9.0 5.2 Parques Reunidos 3.0 - ENGIE (balance) 0.1 23.2 Sienna Capital - 18.2 Others 2.2 - Total 360.8 361.2

These changes primarily reflect the increase in unit dividends Umicore approved during the second quarter of 2017 the from LafargeHolcim, SGS, Imerys and adidas, as well as the increase balance of the dividend for 2016 of EUR 0.70 per share (unchanged in dividends from the Incubator portfolio following the carried out compared with 2016). The contribution of Umicore amounted to investments. EUR 13 million at 30 June 2017. The partial disposal in 2016 of the investments in Total and ENGIE Ontex distributed a dividend of EUR 0.55 per share during the reduces this growth. first half of 2017 for 2016 (compared with EUR 0.46 per share the LafargeHolcim distributed a dividend of CHF 2.00 per share previous year), corresponding to an amount of EUR 9 million for GBL. for 2016 (CHF 1.50 per share at 30 June 2016), contributing Parques Reunidos approved during the first half of 2017 a EUR 107 million at 30 June 2017. dividend of EUR 0.25 per share, representing a contribution of SGS paid an annual dividend of CHF 70 per share (CHF 68 per EUR 3 million for 2017. share in 2016), representing EUR 83 million at 30 June 2017. Net interest expenses (EUR 10 million) benefit from partial Imerys approved in the second quarter of 2017 an annual buyback of bonds exchangeable into ENGIE shares, with dividend of EUR 1.87 per share (EUR 1.75 in 2016), corresponding consecutive cancellation of the repurchased bonds, carried out in to a total collection of EUR 80 million for GBL. the course of 2016 and the repayment, on 7 February 2017, of the adidas distributed a dividend of EUR 2.00 per share in the residual bonds. second quarter of 2017 (compared with EUR 1.60 per share in 2016), Other financial income (expenses) (EUR 25 million) mainly representing EUR 27 million at 30 June 2017. comprise trading income of EUR 11 million (EUR 12 million in 2016) Pernod Ricard declared an interim dividend of EUR 0.94 per and dividends collected on treasury shares (EUR 17 million). share in the second quarter of 2017 (compared with EUR 0.90 per Other operating income (expenses) amounted to share the previous year), representing EUR 19 million, the payment EUR - 17 million at the end of June 2017 and have slightly increased of the balance of the dividend being expected in the second half of compared with the previous year. the year. Gains (losses) from disposals, impairments and reversals Total approved a dividend of EUR 2.45 per share for 2016 and of non-current assets of EUR 10 million in 2016 included the total paid, during the half year, the last quarterly interim dividend and the cost relating to the repurchases of exchangeable bonds into ENGIE balance on the 2016 dividend, i.e. EUR 0.61 and EUR 0.62 per share shares (including banking fees). respectively. Total’s contribution to the results for the first six months thus amounted to EUR 18 million. Half-yearly Report on 30 June 2017 21

Mark to market and other non-cash items (EUR 4 million compared with EUR 42 million) In EUR million 30 June 2017 30 June 2016

Net dividends from investments 0.1 (16.1) Interest income (expenses) (2.1) (4.3) Other financial income (expenses) 6.6 62.1 Other operating income (expenses) (0.7) 2.7 Gains (losses) from disposals, impairments and reversals of non-current assets - (2.5) Total 3.9 41.9

Net dividends from investments included at 30 June 2016, on This non-monetary loss of EUR 5 million includes the change the one hand, the reversal of Total’s interim dividend which had been in the value of the call options on underlying securities implicitly recognised under this item at the end of 2015 and, on the other hand, embedded in the outstanding convertible bonds issued in 2013. the recognition of the fi rst interim dividend of 2016, announced in In 2017, the change in value of these derivative instruments has been April 2016 and which was paid in October 2016. primarily attributable to the fluctuations, since 1 January 2017, in the Interest income (expenses) include the impact of the valuation stock price of the GBL share. at amortised cost of the exchangeable bonds into ENGIE shares and Profit at 30 June 2017 illustrates, as commented on in previous the convertible bonds into GBL shares (EUR - 2 million compared closings, the accounting asymmetry and volatility of periodic results, with EUR - 4 million last year). which will persist throughout the lifetime of the convertible bonds. Furthermore, the item “Other financial income (expenses)” includes the mark to market of the trading portfolio and derivative instruments (EUR 12 million compared with EUR - 10 million in 2016) as well as the derivative component embedded in the exchangeable and convertible bonds (EUR - 5 million compared with EUR 72 million in 2016). Half-yearly Report 22 on 30 June 2017

Operating companies (associates or consolidated) and Sienna Capital (EUR 201 million compared with EUR 130 million) In EUR million 30 June 2017 30 June 2016 (1)

Profit (loss) of associates and consolidated operating companies 103.5 90.2 Interest income (expenses) (1.4) (2.4) Other operating income (expenses) (11.1) (8.9) Gains (losses) on disposals, impairments and reversals of non-current assets 110.4 51.3 Tax (0.5) - Total 200.9 130.2

Net profit (loss) of associates and consolidated operating companies amounts to EUR 104 million in 2017, to be compared with EUR 90 million at 30 June 2016: In EUR million 30 June 2017 30 June 2016 (1)

Imerys 93.1 86.3 Sienna Capital 10.4 3.9 ECP I & II (1.4) (0.1) Operating subsidiaries of ECP III (3.5) (2.8) Kartesia 11.1 6.8 Mérieux Participations II 4.2 - Total 103.5 90.2

Imerys (EUR 93 million compared with EUR 86 million) Sienna Capital (EUR 10 million compared with EUR 4 million) Net income from current operations increased by 3.2% to Net profit (loss) of associates and consolidated operating EUR 190 million in the first half of 2017 (EUR 184 million in the first companies at Sienna Capital stands at EUR 10 million, compared half of 2016), notably as a result of the improved current operating with EUR 4 million last year. The result for the period mainly includes income, at EUR 313 million (EUR 293 million in the first half of 2016). the share of Kartesia’s result attributable to GBL (EUR 11 million in The net result, group’s share, amounted to EUR 172 million 2017) compared with EUR 7 million in 2016. (EUR 158 million in the first half of 2016). Imerys contributed EUR 93 million to GBL’s consolidated net The gains (losses) on disposals, impairments and reversals result in 2017 (EUR 86 million in 2016), reflecting the consolidation of non-current assets mainly consist of the net capital gain of the rate for Imerys of 54.1% in 2017 (54.6% in 2016). disposal of Golden Goose by ECP III (EUR 112 million). In 2016, this The press release related to the Imerys’ results for the first half item consisted primarily of the net capital gain on the disposal of of 2017 is available at www.imerys.com. De Boeck’s activities by ECP III (EUR 51 million GBL’s share).

(1) The figures presented for comparative purposes have been restated in order to take into account the reclassification of the net capital gain on the disposal of activities of De Boeck by ECP III for EUR 51 million GBL’s share from the item “Profit (loss) of associates and consolidated operating companies” to the item “Gains (losses) from disposals, impairments and reversals of non-current assets” Half-yearly Report on 30 June 2017 23

Eliminations, capital gains, impairments and reversals (EUR - 90 million compared with EUR - 1,410 million)

In EUR million 30 June 2017 30 June 2016

Eliminations of dividends (Imerys and Sienna Capital) (80.1) (93.2) Other financial income (expenses) (GBL) (16.9) (17.0) Capital gains on disposals (Total and others) 8.1 428.1 Impairments on AFS investments and reversals of non-current assets (LafargeHolcim, ENGIE and others) (0.7) (1,727.9) Total (89.6) (1,410.0)

Eliminations of dividends Impairments on AFS investments and reversals of Net dividends from operating investments (associates or non-current assets consolidated companies) are eliminated and represent At 30 June 2016, this item included mainly: EUR 80 million from Imerys. • An impairment of EUR 1,682 million on the LafargeHolcim investment, adjusting the book value of these securities Other financial income (expenses) (EUR 66.49 per share) to their market value at 30 June 2016 This item includes the elimination of the dividend on treasury (EUR 37.10 per share); and shares amounting to EUR - 17 million. • An additional impairment of EUR 44 million, accounted for the ENGIE investment in the first quarter of 2016, thus adjusting the Capital gains on disposals book value of these securities (EUR 14.44 per share at end In 2017, the eliminations, capital gains, impairments and reversals December 2015) to their market value at 31 March 2016 are not significant. This item included in 2016 the capital gain from (EUR 13.64 per share). the sale of 1.1% of Total’s capital for EUR 428 million. Half-yearly Report 24 on 30 June 2017 Half-yearly IFRS financial statements

Consolidated statement of comprehensive income

In EUR million Notes 30 June 2017 30 June 2016 (1)

Share of profit (loss) of associates 3 13.9 6.7 Net dividends from investments 4 280.8 251.9 Other operating income (expenses) from investing activities 5 (29.1) (21.9) Gains (losses) from disposals, impairments and reversals of non-current assets from investing activities 4 130.3 (1,256.4) Available-for-sale investments 6.1 (1,312.1) Subsidiaries 124.2 55.9 Other non-current assets - (0.2) Financial income (expenses) from investing activities 6 1.3 52.2 Profit (loss) from investing activities 397.2 (967.5)

Turnover 2,382.9 2,262.2 Raw materials and consumables (728.9) (717.6) Employees expenses (546.8) (485.9) Depreciation on tangible and intangible assets (139.0) (131.7) Other operating income (expenses) from operating activities 5 (678.0) (653.6) Gains (losses) from disposals, impairments and reversals of non-current assets from operating activities (1.5) (7.7) Financial income (expenses) from the operating activities 6 (50.2) (36.3) Profit (loss) from consolidated operating activities 238.5 229.4

Income taxes (75.9) (73.0)

Consolidated profit (loss) for the period 559.8 (811.1) Attributable to the group 474.3 (888.4) Attributable to non-controlling interests 85.5 77.3

Other comprehensive income: Items that will not be reclassified subsequently to profit or loss Actuarial gains (losses) 15.8 (46.4) Total items that will not be reclassified to profit or loss after tax 15.8 (46.4)

Items that may be reclassified subsequently to profit or loss Available-for-sale investments - change in fair value 8 922.4 296.5 - - recycling in result on disposals/impairment 8 (2.2) 1,230.0 Currency translation adjustments for consolidated companies (147.9) 13.6 Cash flow hedges (4.2) (3.9) Total items that may be reclassified to profit or loss after tax 768.1 1,536.2

Other comprehensive income (loss) after tax 783.9 1,489.8

Comprehensive income (loss) 1,343.7 678.7 Attributable to the group 1,322.2 609.0 Attributable to non-controlling interests 21.5 69.7

Consolidated earnings per share for the period 8 Basic 3.05 (5.72) Diluted 3.01 (5.72)

(1) The figures presented for comparative purposes have been restated in order to take into account the reclassification of the net capital gain on the disposal of activities of De Boeck by ECP III for EUR 56 million GBL’s share from the item “Gains (losses) from disposals, impairments and reversals of non-current assets from investing activities” to the item “Gains (losses) from disposals, impairments and reversals of non-current assets from operating activities” Half-yearly Report on 30 June 2017 25

Consolidated balance sheet

In EUR million Notes 30 June 2017 30 June 2016 (1) In EUR million Notes 30 June 2017 31 December 2016

Share of profit (loss) of associates 3 13.9 6.7 Non-current assets 18,966.7 17,945.3 Net dividends from investments 4 280.8 251.9 Intangible assets 167.6 288.4 Other operating income (expenses) from investing activities 5 (29.1) (21.9) Goodwill 1,831.3 1,928.7 Gains (losses) from disposals, impairments and reversals of non-current assets from investing activities 4 130.3 (1,256.4) Tangible assets 2,300.6 2,392.5 Available-for-sale investments 6.1 (1,312.1) Investments 14,420.2 13,137.5 Subsidiaries 124.2 55.9 Investments in associates 3 369.7 360.5 Other non-current assets - (0.2) Available-for-sale investments 4 14,050.5 12,777.0 Financial income (expenses) from investing activities 6 1.3 52.2 Other non-current assets 155.8 99.6 Profit (loss) from investing activities 397.2 (967.5) Deferred tax assets 91.2 98.6

Turnover 2,382.9 2,262.2 Current assets 3,860.2 3,927.5 Raw materials and consumables (728.9) (717.6) Inventories 725.7 749.2 Employees expenses (546.8) (485.9) Trade receivables 694.2 685.1 Depreciation on tangible and intangible assets (139.0) (131.7) Trading financial assets 886.2 1,023.5 Other operating income (expenses) from operating activities 5 (678.0) (653.6) Cash and cash equivalents 7 1,048.1 1,086.1 Gains (losses) from disposals, impairments and reversals of non-current assets from operating activities (1.5) (7.7) Other current assets 345.7 383.6 Financial income (expenses) from the operating activities 6 (50.2) (36.3) Assets held for sale 10 160.3 - Profit (loss) from consolidated operating activities 238.5 229.4 Total assets 22,826.9 21,872.8 Income taxes (75.9) (73.0)

Consolidated profit (loss) for the period 559.8 (811.1) Shareholders’ equity 17,187.7 16,374.2 Attributable to the group 474.3 (888.4) Share capital 653.1 653.1 Attributable to non-controlling interests 85.5 77.3 Share premium 3,815.8 3,815.8 Reserves 11,283.6 10,398.1 Other comprehensive income: Non-controlling interests 1,435.2 1,507.2 Items that will not be reclassified subsequently to profit or loss Actuarial gains (losses) 15.8 (46.4) Non-current liabilities 4,146.5 3,226.5 Total items that will not be reclassified to profit or loss after tax 15.8 (46.4) Financial liabilities 7 3,370.9 2,383.5 Provisions 335.0 345.8 Items that may be reclassified subsequently to profit or loss Pensions and post-employment benefits 266.5 304.5 Available-for-sale investments - change in fair value 8 922.4 296.5 Other non-current liabilities 57.9 63.1 - - recycling in result on disposals/impairment 8 (2.2) 1,230.0 Deferred tax liabilities 116.2 129.6 Currency translation adjustments for consolidated companies (147.9) 13.6 Cash flow hedges (4.2) (3.9) Current liabilities 1,492.7 2,272.1 Total items that may be reclassified to profit or loss after tax 768.1 1,536.2 Financial liabilities 7 417.7 1,270.2 Trade payables 490.7 483.3

Other comprehensive income (loss) after tax 783.9 1,489.8 Provisions 22.9 23.6 Tax liabilities 105.1 104.6

Comprehensive income (loss) 1,343.7 678.7 Other current liabilities 346.4 390.4 Attributable to the group 1,322.2 609.0 Liaibilities associated with assets held for sale 10 109.9 - Attributable to non-controlling interests 21.5 69.7 Total shareholders’ equity and liabilities 22,826.9 21,872.8

Consolidated earnings per share for the period 8 Basic 3.05 (5.72) Diluted 3.01 (5.72)

(1) The figures presented for comparative purposes have been restated in order to take into account the reclassification of the net capital gain on the disposal of activities of De Boeck by ECP III for EUR 56 million GBL’s share from the item “Gains (losses) from disposals, impairments and reversals of non-current assets from investing activities” to the item “Gains (losses) from disposals, impairments and reversals of non-current assets from operating activities” Half-yearly Report 26 on 30 June 2017

Consolidated statement of changes in shareholders’ equity

Currency Share­holders’ Non- Share- Share Revaluation Treasury translation Retained equity – controlling holders’ In EUR million Capital premium reserves shares adjustments earnings group’s share interests equity

At 31 December 2015 653.1 3,815.8 1,728.9 (244.8) (72.9) 7,365.5 13,245.6 1,297.9 14,543.5

Consolidated profit (loss) for the year - - - - - (888.4) (888.4) 77.3 (811.1) Other comprehensive income (loss) - - 1,526.5 - 7.0 (36.1) 1,497.4 (7.6) 1,489.8 Total comprehensive income (loss) - - 1,526.5 - 7.0 (924.5) 609.0 69.7 678.7 Dividends - - - - - (444.5) (444.5) (64.0) (508.5) Cost of stock options - - - 7.6 - - 7.6 - 7.6 Other movements - - - - - (11.7) (11.7) 7.7 (4.0)

At 30 June 2016 653.1 3,815.8 3,255.4 (237.2) (65.9) 5,984.8 13,406.0 1,311.3 14,717.3

Consolidated profit (loss) for the year - - - - - 430.7 430.7 69.5 500.2 Other comprehensive income (loss) - - 934.4 - 32.4 50.3 1,017.1 56.2 1,073.3 Total comprehensive income (loss) - - 934.4 - 32.4 481.0 1,447.8 125.7 1,573.5 Dividends ------(0.5) (0.5) Treasury shares’ acquisitions/sales - - - 1.2 - - 1.2 - 1.2 Other movements - - - - - 12.0 12.0 70.7 82.7

At 31 December 2016 653.1 3,815.8 4,189.8 (236.0) (33.5) 6,477.8 14,867.0 1,507.2 16,374.2

Consolidated profit (loss) for the year - - - - - 474.3 474.3 85.5 559.8 Other comprehensive income (loss) - - 920.2 - (78.6) 6.3 847.9 (64.0) 783.9 Total comprehensive income (loss) - - 920.2 - (78.6) 480.6 1,322.2 21.5 1,343.7 Dividends - - - - - (455.9) (455.9) (69.0) (524.9) Treasury shares’ acquisitions/sales - - - 16.0 - - 16.0 - 16.0 Other movements - - - - - 3.2 3.2 (24.5) (21.3)

At 30 June 2017 653.1 3,815.8 5,110.0 (220.0) (112.1) 6,505.7 15,752.5 1,435.2 17,187.7

Shareholders’ equity was impacted during the first half of 2017 mainly by: • the distribution by GBL on 4 May 2017 of a gross dividend of EUR 2.93 per share (EUR 2.86 in 2016), representing EUR 456 million, taking into account the treasury shares held by GBL; • the change in the fair value of GBL’s portfolio of available-for-sale investments (detailed in note 8.1); • negative foreign currency translation adjustments; and • the consolidated result for the period. Half-yearly Report on 30 June 2017 27

Consolidated statement of cash flows

In EUR million Notes 30 June 2017 30 June 2016

Cash flow from operating activities 10 645.2 502.8 Consolidated profit (loss) for the period 559.8 (811.1) Adjustments for: Income taxes 75.9 73.0 Interest income (expenses) 6 50.5 53.6 Share of profit (loss) of associates 3 (15.9) (11.6) Dividends from investments in non-consolidated companies 4 (280.8) (251.9) Net depreciation and amortisation expenses 139.7 132.3 Gains (losses) on disposals, impairments and reversals of non-current assets (135.5) 1,251.2 Other income items not involving a cash impact (0.4) (62.5) Interest received 10.7 14.2 Interest paid (69.7) (48.9) Dividends received from investments in non-consolidated companies 278.5 290.9 Dividends received from investments in associates 3 2.7 22.5 Income taxes paid (60.3) (44.7) Changes in the working capital (42.2) (48.1) Changes in the trading assets 143.4 6.6 Changes in other receivables and payables (11.2) (62.7)

Cash flow from investing activities 10 (466.9) (16.8) Acquisitions of: Investments (572.1) (983.2) Subsidiaries, net of cash acquired (83.3) (56.8) Tangible and intangible assets (160.4) (129.8) Other financial assets (48.9) - Disposals/Divestments of: Investments 242.9 1,054.8 Subsidiaries, net of cash paid 150.4 69.9 Tangible and intangible assets 4.2 23.4 Other financial assets 0.3 4.9

Cash flow from financing activities 10 (190.0) (39.4) Capital increase from non-controlling interests 25.7 14.2 Dividends paid by the parent company to its shareholders (455.9) (444.5) Dividends paid by the subsidiaries to non-controlling interests (69.0) (64.0) Proceeds from financial liabilities 1,137.4 1,445.0 Repayments of financial liabilities (846.3) (932.9) Net changes in treasury shares 16.0 7.6 Others 2.1 (64.8)

Effect of exchange rate fluctuations on funds held (11.7) 20.0

Net increase/(decrease) in cash and cash equivalents 10 (23.4) 466.6

Cash and cash equivalents at the beginning of the period 7 1,086.1 898.0 Cash and cash equivalents at the end of the period 7 1,062.7 (1) 1,364.6

(1) Taking into account the cash included in assets held for sale (EUR 15 million in 2017 and EUR 0 million in 2016) Half-yearly Report 28 on 30 June 2017 Notes

Accounting policies and seasonality Concerning Ontex, SGS and Umicore, the representation of GBL The condensed consolidated financial statements have been on the Board of Directors of those companies is not sufficient to prepared in accordance with International Financial Reporting demonstrate the existence of significant influence. Moreover, GBL’s Standards (IFRS) as adopted by the European Union. representation on the Boards of Directors is limited to the mandates The consolidated financial statements for the half-year ended of the Directors and does not come from a contractual or legal right 30 June 2017 are in conformity with IAS 34 – Interim Financial but from a resolution at Shareholders’ General Meeting. Reporting and have been approved on 31 July 2017. For Parques Reunidos, also, the GBL’s representation on the The accounting and calculation methods used in the interim Board of Directors is not sufficient to demonstrate the existence of financial statements are identical to those used in the annual financial significant influence. Moreover, the representation does not result statements for 2016, apart from the application, by the group, of new from a contractual right or legal. standards, interpretations and revisions which have become Taking these different factors into account, GBL has entered into mandatory since 1st January 2017. These new standards did not the accounting treatment of its investments in Ontex, Umicore, SGS have any material impact on GBL’s consolidated financial statements. and Parques Reunidos as available-for-sale financial assets at GBL did not opt for the early application of new and amended 30 June 2017. standards and interpretations which will enter into force after 31 December 2017. IFRS 9 – Financial Instruments and subsequent Presentation of the consolidated financial amendments (applicable for annual periods beginning on or after statements 1 January 2018) will in particular affect the treatment of The consolidated statement of comprehensive income separately unconsolidated investments that are not held for trading purposes. presents: The group should in particular choose between the accounting of • Investing activities gains and losses on these investments under profit or loss or in Components of income resulting from investing activities, which shareholders’ equity (other comprehensive income). This choice include the operations of GBL and of its subsidiaries whose main has not yet been made by GBL and will not have any impact on purpose is investment management. This includes Sienna Capital the shareholders’ equity. The other aspects of IFRS 9 (credit risk as well as the profit (loss) of operating associates and non- and hedge accounting) should not have significant impacts on the consolidated operating companies (LafargeHolcim, SGS, adidas, group’s accounts. Pernod Ricard, ...); and Lastly, the seasonality of results is previously detailed in the • Consolidated operating activities outlook for 2017. Components of income from consolidated operating activities, i.e. from consolidated operating companies (Imerys as well as the Estimates and judgements sub-groups ELITech, Benito, Sausalitos, Looping, ...). In terms of judgment, GBL analysed the accounting treatment to be applied to the investment in Ontex, Umicore, SGS and Parques 1. Changes in group structure Reunidos, and particularly the classification (i) in investments in In February 2017, Ergon Capital Partners III concluded an associates (IAS 28), with the recognition of GBL’s share in the profit or agreement relating to the sale of its majority stake in Golden Goose, loss and shareholders’ equity of Ontex, Umicore, SGS and Parques an Italian designer of contemporary footwear, clothing and Reunidos, respectively or (ii) in available-for-sale assets (IAS 39), with accessories. The net consolidated capital gain on disposal amounts the recognition of these investments at their fair value and the to EUR 112 million (group’s share). The net cash inflow of this recognition of the dividend through profit or loss. transaction amounts to EUR 147 million. In accordance with IAS 28, it is assumed that a group does not Ergon Capital Partners III also entered into exclusive negotiations exercise significant influence if the percentage holding is less than with PAI Partners during the second quarter of 2017, for the sale of its 20.00%, unless it can be clearly demonstrated. According to this stake in ELITech Group. As per 30 June 2017, GBL considers that the standard, significant influence is usually demonstrated in the case criteria under IFRS 5 – Non-current Assets Held for Sale and of (i) representation on the Board of Directors, (ii) participation in Discontinued Operations are fulfilled. Consequently, the assets and policy-making processes, (iii) material transactions between the liabilities of ELITech have been reclassified respectively as assets investor and the company owned, (iv) the exchanging of management held for sale and liabilities associated with assets held for sale. personnel or (v) the supplying of critical technical information. At 30 June 2017, these four financial assets are held respectively at 19.98%, 17.0%, 16.2% and 15.2%. Half-yearly Report on 30 June 2017 29

2. Segment information IFRS 8 – Operating Segments requires that segments be identified based on internal reports which are regularly presented to the main operating decision-maker for the purpose of managing the allocation of resources to the segments and assessing their performance.

In compliance with IFRS 8, the group has identified three segments: • Holding: consists of the parent company GBL and its subsidiaries. Its main activity is to manage investments as well as the non- consolidated operating companies and associates. • Imerys: consists of the Imerys group, a French group listed on Euronext Paris, which holds leading positions in each of its four business lines (Energy Solutions & Specialities; Filtration & Performance Additives; Ceramic Minerals; High Resistance Minerals). • Sienna Capital: includes, on the one hand, under investment activities; the companies Sienna Capital, ECP, ECP II and III, Sagard, Sagard II and III, PrimeStone, BDT Capital Partners II, KCO III et IV, and Mérieux Participations I and II; and, on the other, under consolidated operating businesses, the operating subsidiaries of ECP III (sub-groups ELITech, Benito, Sausalitos, Looping, ...).

The results, assets and liabilities of a segment include all the components directly attributable to it. The accounting standards applied to these segments are the same as those described in the section entitled “Accounting policies and seasonality”.

2.1. Segment information – Consolidated income statement for the period ended 30 June 2017 and 30 June 2016 Period ended 30 June 2017 In EUR million Holding Imerys  Sienna Capital Total

Share of profit (loss) of associates - - 13.9 13.9 Net dividends from investments 280.8 - - 280.8 Other operating income (expenses) from investing activities (17.4) - (11.7) (29.1) Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities 7.4 - 122.9 130.3 Financial income (expenses) from investing activities 2.7 - (1.4) 1.3 Profit (loss) from investing activities 273.5 - 123.7 397.2

Turnover - 2,220.3 162.6 2,382.9 Raw materials and consumables - (687.5) (41.4) (728.9) Employee expenses - (475.0) (71.8) (546.8) Depreciation of tangible and intangible assets - (123.2) (15.8) (139.0) Other operating income (expenses) from operating activities - (644.6) (33.4) (678.0) Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities - (1.5) - (1.5) Financial income (expenses) of the operating activities - (42.2) (8.0) (50.2) Profit (loss) from consolidated operating activities - 246.3 (7.8) 238.5

Income taxes (0.1) (73.1) (2.7) (75.9)

Consolidated profit (loss) for the period 273.4 173.2 113.2 559.8 Attributable to the group 273.4 93.1 107.8 474.3 Half-yearly Report 30 on 30 June 2017

Period ended 30 June 2016 In EUR million Holding Imerys  Sienna Capital Total

Share of profit (loss) of associates - - 6.7 6.7 Net dividends from investments 251.9 - - 251.9 Other operating income (expenses) from investing activities (13.0) - (8.9) (21.9) Gains (losses) on disposals, impairments and reversals of non-current assets from investing activities (1,312.1) - 55.7 (1,256.4) Financial income (expenses) from investing activities 54.6 - (2.4) 52.2 Profit (loss) from investing activities (1,018.6) - 51.1 (967.5)

Turnover - 2,096.7 165.5 2,262.2 Raw materials and consumables - (655.9) (61.7) (717.6) Employee expenses - (446.9) (39.0) (485.9) Depreciation of tangible and intangible assets - (116.7) (15.0) (131.7) Other operating income (expenses) from operating activities - (611.4) (42.2) (653.6) Gains (losses) on disposals, impairments and reversals of non-current assets from operating activities - (7.7) - (7.7) Financial income (expenses) of the operating activities - (27.5) (8.8) (36.3) Profit (loss) from consolidated operating activities - 230.6 (1.2) 229.4

Income taxes - (70.5) (2.5) (73.0)

Consolidated profit (loss) for the period (1,018.6) 160.1 47.4 (811.1) Attributable to the group (1,018.6) 86.3 43.9 (888.4) Half-yearly Report on 30 June 2017 31

2.2. Segment information – Consolidated balance sheet at 30 June 2017, 31 December 2016 and 30 June 2016 Period ended 30 June 2017 In EUR million Holding Imerys  Sienna Capital Total

Non-current assets 13,630.7 4,309.8 1,026.2 18,966.7 Intangible assets - 72.4 95.2 167.6 Goodwill - 1,692.6 138.7 1,831.3 Tangible assets 11.0 2,184.5 105.1 2,300.6 Investments 13,619.7 123.8 676.7 14,420.2 Investments in associates - 115.7 254.0 369.7 Available-for-sale investments 13,619.7 8.1 422.7 14,050.5 Other non-current assets - 147.0 8.8 155.8 Deferred tax assets - 89.5 1.7 91.2

Current assets 1,242.6 2,358.8 258.8 3,860.2 Inventories - 711.3 14.4 725.7 Trade receivables 0.2 665.8 28.2 694.2 Trading financial assets 879.9 6.3 - 886.2 Cash and cash equivalents 319.5 702.8 25.8 1,048.1 Other current assets 43.0 272.6 30.1 345.7 Assets held for sale - - 160.3 160.3

Total assets 14,873.3 6,668.6 1,285.0 22,826.9

Non-current liabilities 1,030.7 2,902.8 213.0 4,146.5 Financial liabilities 991.2 2,189.9 189.8 3,370.9 Provisions 1.4 333.6 - 335.0 Pensions and post-employment benefits 4.9 261.2 0.4 266.5 Other non-current liabilities 21.6 33.0 3.3 57.9 Deferred tax liabilities 11.6 85.1 19.5 116.2

Current liabilities 379.2 931.9 181.6 1,492.7 Financial liabilities 350.0 51.6 16.1 417.7 Trade payables 2.6 460.2 27.9 490.7 Provisions - 22.9 - 22.9 Tax liabilities 3.8 98.9 2.4 105.1 Other current liabilities 22.8 298.3 25.3 346.4 Liabilities associated with assets held for sale - - 109.9 109.9

Total liabilities 1,409.9 3,834.7 394.6 5,639.2 Half-yearly Report 32 on 30 June 2017

Period ended 31 December 2016 In EUR million Holding Imerys  Sienna Capital Total

Non-current assets 12,413.0 4,343.3 1,189.0 17,945.3 Intangible assets - 81.6 206.8 288.4 Goodwill - 1,674.7 254.0 1,928.7 Tangible assets 12.1 2,271.9 108.5 2,392.5 Investments 12,400.9 130.6 606.0 13,137.5 Investments in associates - 122.5 238.0 360.5 Available-for-sale investments 12,400.9 8.1 368.0 12,777.0 Other non-current assets - 90.2 9.4 99.6 Deferred tax assets - 94.3 4.3 98.6

Current assets 1,273.9 2,389.1 264.5 3,927.5 Inventories - 712.5 36.7 749.2 Trade receivables 0.1 608.1 76.9 685.1 Trading financial assets 1,019.5 4.0 - 1,023.5 Cash and cash equivalents 212.5 809.6 64.0 1,086.1 Other current assets 41.8 254.9 86.9 383.6

Total assets 13,686.9 6,732.4 1,453.5 21,872.8

Non-current liabilities 507.6 2,356.7 362.2 3,226.5 Financial liabilities 477.4 1,601.7 304.4 2,383.5 Provisions 0.5 343.8 1.5 345.8 Pensions and post-employment benefits 4.7 295.4 4.4 304.5 Other non-current liabilities 16.4 43.1 3.6 63.1 Deferred tax liabilities 8.6 72.7 48.3 129.6

Current liabilities 695,4 1,461,5 115,2 2,272.1 Financial liabilities 655.8 595.4 19.0 1,270.2 Trade payables 2.1 422.7 58.5 483.3 Provisions - 22.6 1.0 23.6 Tax liabilities 7.6 79.1 17.9 104.6 Other current liabilities 29.9 341.7 18.8 390.4

Total liabilities 1,203.0 3,818.2 477.4 5,498.6 Half-yearly Report on 30 June 2017 33

Period ended 30 June 2016 In EUR million Holding Imerys  Sienna Capital Total

Non-current assets 12,053.6 4,140.1 1,097.5 17,291.2 Intangible assets - 72.9 208.3 281.2 Goodwill - 1,619.1 142.5 1,761.6 Tangible assets 12.9 2,131.6 106.6 2,251.1 Investments 12,040.7 146.3 624.4 12,811.4 Investments in associates - 144.5 222.7 367.2 Available-for-sale investments 12,040.7 1.8 401.7 12,444.2 Other non-current assets - 87.7 9.6 97.3 Deferred tax assets - 82.5 6.1 88.6

Current assets 1,129.9 2,462.5 230.7 3,823.1 Inventories - 722.5 39.8 762.3 Trade receivables 0.3 638.4 60.7 699.4 Trading financial assets 628.7 9.6 - 638.3 Cash and cash equivalents 436.0 810.2 118.4 1,364.6 Other current assets 64.9 281.8 11.8 358.5

Total assets 13,183.5 6,602.6 1,328.2 21,114.3

Non-current liabilities 847.6 2,878.1 320.7 4,046.4 Financial liabilities 822.9 2,115.9 258.7 3,197.5 Provisions 0.5 310.1 1.5 312.1 Pensions and post-employment benefits 3.1 372.6 3.8 379.5 Other non-current liabilities 14.4 46.6 3.8 64.8 Deferred tax liabilities 6.7 32.9 52.9 92.5

Current liabilities 1,161.0 1,080.4 109.2 2,350.6 Financial liabilities 1,091.0 252.7 19.8 1,363.5 Trade payables 2.3 448.7 58.7 509.7 Provisions - 21.2 1.3 22.5 Tax liabilities 4.5 84.2 15.0 103.7 Other current liabilities 63.2 273.6 14.4 351.2

Total liabilities 2,008.6 3,958.5 429.9 6,397.0 Half-yearly Report 34 on 30 June 2017

3. Associates 3.1 Share of profit (loss) In EUR million 30 June 2017 30 June 2016

ECP I & II (1.4) (0.1) Kartesia 11.1 6.8 Mérieux Participations II 4.2 - Share of profit (loss) of associates – investing activities 13.9 6,7 Associates related to consolidated operating activities (shown under "Other operating income (expenses)") 2.0 4.9 Total 15.9 11.6

Kartesia’s result (EUR 11 million at 30 June 2017) primarily includes interests on loans and the variation in the fair value of these loans.

3.2. Value of investments under equity method Investing activities Operating activities Total Mérieux In EUR million ECP I & II Kartesia Participations II I.P.E. Others

At 31 December 2016 19.2 155.1 24.5 39.2 122.5 360.5 Investments - 13.5 4.6 - - 18.1 Reimbursements/disposals - (15.9) - - (2.2) (18.1) Profit (loss) for the period (1.4) 11.1 4.2 1.3 0.7 15.9 Distribution - - (0.1) - (2.6) (2.7) Other movements - - (1.3) - (2.7) (4.0)

At 30 June 2017 17.8 163.8 31.9 40.5 115.7 369.7

The “Others” heading includes the associated companies of Imerys. Half-yearly Report on 30 June 2017 35

4. LafargeHolcim, SGS, adidas, Pernod Ricard, Total and other available-for-sale investments 4.1. Net dividends from investments In EUR million 30 June 2017 30 June 2016

LafargeHolcim 107.0 77.9 SGS 82.8 72.9 adidas 26.7 18.8 Pernod Ricard 18.7 17.9 Total 18.0 22.7 Umicore 13.3 13.3 Ontex 9.0 5.2 Parques Reunidos 3.0 - ENGIE 0.1 23.2 Others 2.2 - Total 280.8 251.9

Net dividends from investments in the first half of 2017 posted an increase of EUR 29 million compared with 2016. These changes essentially reflect the increase in unitary dividends from LafargeHolcim, SGS and adidas, as well as the increase in dividends from the Incubator portfolio following the acquisitions made. The partial disposal of the stake in Total and ENGIE in 2016 has reduced this growth.

4.2. Fair value and variation Investments in listed companies are valued on the basis of the share price at the reporting date. Investments held by the “Funds”, namely Sagard, Sagard II and Sagard 3, Mérieux Participations I, BDT Capital Partners II and PrimeStone are re-valued at their fair value, determined by the managers of these funds according to their investment portfolio. (Impairments)/ Reversals Change in 31 December Acquisitions/ in case revaluation Results of In EUR million 2016 (Disposals) of disposal reserves Funds/Others 30 June 2017

LafargeHolcim 2,857.1 - - 20.3 - 2,877.4 SGS 2,444.5 - - 247.1 - 2,691.6 adidas 2,356.0 - - 276.2 - 2,632.2 Pernod Ricard 2,048.0 - - 265.7 18.7 2,332.4 Umicore 1,031.6 - - 128.6 - 1,160.2 Total 789.1 0.3 - (88.2) 0.1 701.3 Ontex 422.6 44.1 - 45.2 - 511.9 Burberry 229.9 78.7 - 20.1 (1.6) 327.1 ENGIE 144.8 (261.4) 117.7 0.1 - 1.2 Funds 364.0 19.6 (1.7) 42.2 (3.2) 420.9 Parques Reunidos - 212.8 - (14.6) 3.0 201.2 Others 89.4 125.1 0.2 (19.5) (2.1) 193.1 Fair value 12,777.0 219.2 116.2 923.2 14.9 14,050.5 Half-yearly Report 36 on 30 June 2017

4.3. Gains (losses) on disposals, impairments and reversals of non-current assets In EUR million 30 June 2017 30 June 2016

Capital gains on disposals of available-for-sale investments 8.5 428.1 Capital gains on disposals of subsidiaries 124.2 55.9 Impairments of available-for-sale investments (2.4) (1,727.9) Total cost related to the repurchases of bonds exchangeable into ENGIE shares - (12.3) Others - (0.2) Total 130.3 (1,256.4)

The gains (losses) on disposals, impairments and reversals of non-current assets mainly consists of the gain on the disposal of Golden Goose by ECP III (EUR 124 million). At 30 June 2016, this heading included mainly: • The capital gain from the sale of 1.1% of Total’s capital for EUR 428 million; • The capital gain from the disposal of De Boeck’s activities by ECP III (EUR 56 million, GBL’s share) ; • An impairment of EUR 1,682 million on the LafargeHolcim investment, adjusting the book value of these shares (EUR 66.49 per share) to their market value at 30 June 2016 (EUR 37.10 per share); • An additional impairment of EUR 44 million, accounted for the ENGIE investment in the first quarter of 2016, thus adjusting the book value of these shares (EUR 14.44 per share at end December 2015) to their market value at 31 March 2016 (EUR 13.64 per share); and • The repurchase of the bonds exchangeable into ENGIE shares which generated a total cost of EUR 12 million at 30 June 2016.

5. Other operating income (expenses) In EUR million 30 June 2017 30 June 2016

Other operating income 0.9 0.5 Other operating expenses (30.0) (22.4) Other operating income (expenses) – investing activities (29.1) (21.9)

Other operating income 23.8 36.2 Other operating expenses (703.8) (694.7) Share of profit (loss) of associates belonging to consolidated operating activities 2.0 4.9 Other operating income (expenses) – consolidated operating activities (678.0) (653.6)

6. Financial income (expenses) In EUR million 30 June 2017 30 June 2016

Interest income on cash, cash equivalents and non-current assets - 2.2 Interest expenses on financial liabilities (13.5) (22.3) Gain (losses) on trading securities and derivatives 17.9 74.5 Other financial income (expenses) (3.1) (2.2) Financial income (expenses) – investing activities 1.3 52.2

Interest income on cash, cash equivalents and non-current assets 5.4 6.0 Interest expenses on financial liabilities (42.4) (39.5) Gain (losses) on trading securities and derivatives (1.4) 5.0 Other financial income (expenses) (11.8) (7.8) Financial income (expenses) - consolidated operating activities (50.2) (36.3) Half-yearly Report on 30 June 2017 37

Financial income (expenses) from investing activities totalled EUR 1 million (compared with EUR 52 million in 2016). They mainly include : • the mark to market of the derivative component associated with the exchangeable bonds into ENGIE shares and with GBL convertible bonds (EUR - 5 million in 2017 compared with EUR 72 million in 2016). This non-monetary loss of EUR 5 million includes the change in the value of the call options on underlying securities implicitly contained in the convertible bonds issued by GBL in 2013; • the mark to market of the trading portfolio and the derivative instruments (EUR 12 million in 2017 compared with EUR - 10 million in 2016).

Financial income (expenses) on consolidated operating activities resulted essentially from interest expenses on Imerys’ debt amounting to EUR 33 million.

7. Cash and debt 7.1. Cash and cash equivalents In EUR million 30 June 2017 31 December 2016

Deposit (maturity <3 months) 202.8 240.9 Current accounts 845.3 845.2 Total 1,048.1 1,086.1

At 30 June 2017, a large majority of cash was held in fixed-term deposits and current accounts with various financial institutions. The slight decrease of cash and cash equivalents during the six month period stems primarily from a decrease in Imerys’ deposits.

7.2. Debt In EUR million 30 June 2017 31 December 2016

Non-current financial liabilities 3,370.9 2,383.5 Convertible bonds (GBL) 438.7 434.2 Bonds (GBL) 495.9 - Bonds (Imerys) 2.185,4 1,596.2 Other non-current financial liabilities 250.9 353.1 Current financial liabilities 417.7 1,270.2 Exchangeable bonds (GBL) - 305.8 Retail Bond (GBL) 350.0 350.0 Bonds (Imerys) - 500.0 Bank debt (Imerys) 41.6 65.4 Other current financial liabilities 26.1 49.0

The group’s debt increased by EUR 135 million, primarily at GBL, due to the issuance of a new institutional bond of EUR 500 million. This increase is partially compensated by the redemption in cash of the outstanding nominal amount under the bonds exchangeable into ENGIE shares for EUR 306 million. At 30 June 2017, GBL had undrawn committed credit lines for an amount of EUR 2,150 million (EUR 2,150 million at 31 December 2016).

Exchangeable and convertible bonds (GBL) Bonds convertible into GBL shares The book value of this bond (excluding the option) was EUR 439 million at 30 June 2017 (EUR 434 million at 31 December 2016). The option component was valued at fair value on the reporting date for an amount of EUR 15 million (EUR 10 million at 31 December 2016) as shown under “Other non-current liabilities”. Bondholders may request the exchange of their bonds for GBL shares subject to the option of GBL to instead pay in cash all or part of the value of GBL shares in lieu of such exchange. Half-yearly Report 38 on 30 June 2017

Bonds exchangeable into ENGIE shares During the year 2016, GBL repurchased 6,910 bonds exchangeable into ENGIE shares for a total amount of EUR 691 million in nominal value. These repurchases generated an expense of EUR 13 million, including banking fees. The book value of this bond (excluding the option) was EUR 306 million at 31 December 2016. The option component was valued at fair value on the reporting date (for an amount of EUR 0 million, as shown under “Other current liabilities”). The outstanding nominal under the bonds exchangeable into ENGIE shares was redeemed in cash for EUR 306 million at maturity on 7 February 2017.

Bonds (GBL) During the first semester of the year, GBL issued an institutional bond of EUR 500 million, with a coupon of 1.375% and maturing on 23 May 2024. The book value of this loan amounts to EUR 496 million at 30 June 2017. The bonds issued in June 2010 for EUR 350 million bearing a 4% coupon are maturing in December 2017.

Bonds (Imerys) Imerys has issued listed and non-listed bonds. The detail of these bond issues at 30 June 2017 is as follows: Nominal value in currency Nominal Effective Listed/ Maturity Fair value Carrying amount In million interest rate interest rate Non-listed date In EUR million In EUR million

JPY 7,000 3.40% 3.47% Non-listed 16/09/2033 80.4 55.3 USD 30 5.28% 5.38% Non-listed 06/08/2018 27.9 26.8 EUR 300 2.50% 2.60% Listed 26/11/2020 324.3 304.5 EUR 100 2.50% 1.31% Listed 26/11/2020 108.1 101.5 EUR 600 1.50% 1.63% Listed 15/01/2027 602.0 604.1 EUR 500 2.00% 2.13% Listed 10/12/2024 534.4 505.6 EUR 300 0.88% 0.96% Listed 31/03/2022 303.4 300.7 EUR 300 1.88% 1.92% Listed 31/03/2028 307.9 301.4 Total 2,288.4 2,199.9

The detail of these bond issues at 31 December 2016 is as follows: Nominal value in currency Nominal Effective Listed/ Maturity Fair value Carrying amount In million interest rate interest rate Non-listed date In EUR million In EUR million

JPY 7,000 3.40% 3.47% Non-listed 16/09/2033 84.0 57.2 USD 30 5.28% 5.38% Non-listed 06/08/2018 30.8 29.1 EUR 300 2.50% 2.60% Listed 26/11/2020 324.2 300.7 EUR 100 2.50% 1.31% Listed 26/11/2020 108.1 100.3 EUR 500 5.00% 5.09% Listed 18/04/2017 524.9 517.6 EUR 500 2.00% 2.13% Listed 10/12/2024 509.8 500.6 EUR 300 0.88% 0.96% Listed 31/03/2022 305.5 302.0 EUR 300 1.88% 1.92% Listed 31/03/2028 314.5 304.2 Total 2,201.8 2,111.7

Other non-current financial liabilities This heading mainly includes the debts of the operating subsidiaries of ECP III. These debts are contracted with banks and non-controlling interests. Half-yearly Report on 30 June 2017 39

8. Shareholders’ equity 8.1. Revaluation reserves These reserves include changes in the fair value of available-for-sale investments. Pernod Parques Lafarge- In EUR million Total SGS ENGIE Ricard Umicore Ontex Reunidos Holcim adidas Burberry Funds Others Total

At 31 December 2016 413.7 264.6 - 1,222.1 372.2 12.2 - 733.6 1,089.4 24.7 58.3 (1.0) 4,189.8 Change resulting from the change in fair value (88.2) 247.1 0.1 264.5 (1) 128.1 (1) 44.8 (1) (14.6) 20.3 275.3 (1) 20.1 42.2 (17.3) 922.4 Transfers to profit (loss) (disposal/impairment) ------(2.2) (2.2)

At 30 June 2017 325.5 511.7 0.1 1,486.6 500.3 57.0 (14.6) 753.9 1,364.7 44.8 100.5 (20.5) 5,110.0

8.2. Earnings per share Consolidated net result for the period (group’s share) In EUR million 30 June 2017 30 June 2016

Basic 474.3 (888.4) Diluted 484.6 (905.9)

Number of shares In million of shares 30 June 2017 30 June 2016

Issued shares 161.4 161.4 Treasury shares at beginning of the period (5.9) (6.1) Weighted changes for the period - - Weighted average number of shares used to determine basic earnings per share 155.5 155.3 Impact of financial instruments with diluting effect: Convertible bonds 5.0 5.0 Stock options (in the money) 0.2 0.3 Weighted average number of shares used to determine diluted earnings per share 160.7 160.6

At 30 June 2017, GBL held, directly and through its subsidiaries, 5,693,841 GBL shares, representing 3.5% of the issued capital.

Summary earnings per share In EUR 30 June 2017 30 June 2016

Basic 3.05 (5.72) Diluted 3.01 (5.72)

9. Financial instruments To reflect the importance of inputs used when measuring at fair values, the group classifies these valuations according to a hierarchy composed of the following levels: • level 1: listed prices (non-adjusted) in active markets for identical assets or liabilities; • level 2: inputs, other than the listed prices included within level 1, that are observable for the asset or liability concerned , either directly (i.e. prices) or indirectly (i.e. derived from prices); and • level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).

(1) Including a tax impact of EUR - 1.2 million, EUR - 0.5 million, EUR - 0.4 million and EUR - 0.9 million on Pernod Ricard, Umicore, Ontex and adidas respectively Half-yearly Report 40 on 30 June 2017

The tables below show a comparison of the book value and the fair value of the financial instruments at 30 June 2017, as well as the fair value hierarchy. The category, according to IAS 39, uses the following abbreviations: AFS: Available-For-Sale financial assets HTM: financial assets Held-To-Maturity LaR: Loans and Receivables FVTPL: financial assets/liabilities at Fair Value Through Profit and Loss OFL: Other Financial Liabilities HeAc: Hedge Accounting Category Hierarchy In EUR million under IAS 39 Carrying amount Fair value of fair values

Financial assets Non-current assets Available-for-sale investments Listed companies AFS 13,619.7 13,619.7 Level 1 Other companies AFS 430.8 430.8 Level 3 Other non-current assets Derivative instruments - hedging HeAc 8.6 8.6 Level 2 Derivative instruments - others FVTPL 16.2 16.2 Level 2 Other financial assets LaR 124.4 124.4 - Current assets Trade receivables LaR 694.2 694.2 - Trading financial assets FVTPL 886.2 886.2 Level 1 Cash and cash equivalents LaR 1,048.1 1,048.1 - Other current assets Derivative instruments - hedging HeAc 7.8 7.8 Level 2 Derivative instruments - others FVTPL 0.3 0.3 Level 2 Other financial assets LaR 40.6 40.6 -

Financial liabilities Non-current liabilities Financial liabilities Derivative instruments - hedging HeAc 16.2 16.2 Level 2 Derivative instruments - others FVTPL (0.4) (0.4) Level 2 Other financial liabilities OFL 3,355.1 3,503.1 - Other non-current liabilities Derivative instruments - hedging HeAc 0.1 0.1 Level 2 Derivative instruments - others FVTPL 15.1 15.1 Level 2 Current liabilities

Financial liabilities Derivative instruments FVTPL (3.5) (3.5) Level 2 Other financial liabilities OFL 421.2 427.9 - Trade payables OFL 490.7 490.7 - Other current liabilities Derivative instruments - hedging HeAc 2.7 2.7 Level 2 Derivative instruments - others FVTPL 4.6 4.6 Level 2 Other current liabilities OFL 17.0 17.0 -

There is no significant transfer between the different levels during the period closed on 30 June 2017. Half-yearly Report on 30 June 2017 41

10. Assets and liabilities associated with assets held for sale In EUR million 30 June 2017 31 December 2016 Cash flow from operating activities (2.8) - Cash flow from investing activities (4.3) - Cash flow from financing activities (4.4) - Net variation in cash and cash equivalents (11.5) -

Assets and liabilities associated with assets held for sale include ELITech for which exclusive negotiations were outstanding as of 30 June 2017 related to the sale of that financial asset. Those include the following elements:

In EUR million 30 June 2017 31 december 2016 Non-current assets 104.4 - Current assets 55.9 - Assets held for sale 160.3 - Non-current liabilities 11.4 - Current liabilities 98.5 - Liabilities associated with assets held for sale 109.9 -

11. Subsequent events

Burberry – Threshold crossing • Burberry announced, on 24 July 2017, that GBL had crossed the 4 % threshold in the voting rights of the company.

Sienna Capital

Ergon Capital Partners – Acquisition of Keesing • Agreement signed by ECP III to acquire a majority stake in Keesing Media Group, the leading European publisher of puzzle magazines, from Telegraaf Media Group; • This transaction is subject to approval at an Extraordinary General Meeting at the end of August 2017.

Ergon Capital Partners – Disposal of ELITech • The exclusive negotiations with PAI Partners regarding the disposal of the stake held by ECP III in ELITech were finalised on 25 July 2017. This transaction will generate in the third quarter of 2017 a consolidated capital gain estimated at 30 June 2017 at EUR 102 million, GBL’s share.

12. Certification of Responsible Persons Ian Gallienne and Gérard Lamarche, Managing Directors, and William Blomme, Chief Financial Officer, certify, in the name and onbehalf of GBL, that to the best of their knowledge: • The condensed consolidated financial statements for the six months ended 30 June 2017 have been prepared in accordance with IFRS and present a true and fair view of the assets, financial position and results of GBL and its consolidated companies (1); • The half-yearly report presents a true and fair view of the business developments, results and position of GBL and its consolidated companies; • The main risks and uncertainties regarding the remaining months of 2017 are in keeping with the assessment presented in the section “Risk Management and Internal Control” of GBL’s 2016 Annual Report and take into account the current economic and financial environment.

(1) “Consolidated companies” are GBL’s subsidiaries within the meaning of Article 6 of the Companies Code Half-yearly Report 42 on 30 June 2017 Statutory Auditor’s report Half-yearly Report on 30 June 2017 43 Glossary

Adjusted net assets Economic analysis of the result The change in GBL’s adjusted net assets is, along with the Cash earnings change in its stock price, cash earnings and result, an important • Cash earnings primarily include dividends from investments and criterion for assessing the performance of the group. The adjusted treasury shares, income coming mainly from cash management, net assets are a conventional reference obtained by adding gross net earnings from the trading activity and tax refunds, less cash and treasury shares to the fair value of the investment portfolio general overheads, gross debt-related charges and taxes. and deducting gross debt. All these results relate to the Holding activity. • Cash earnings also constitute an indicator for determining the The following valuation principles are applied for the portfolio: company’s dividend payout level. • Investments in listed companies and treasury shares are valued at the closing price. However, the value of shares underlying any Mark to market and other non-cash commitments made by the group is capped at the conversion/ • The concept of mark to market is one of the foundations of the exercise price. fair value method of valuation as defined in IFRS international • Investments in unlisted companies are valued at their book value, accounting standards, the principle of which is to value assets less any impairment losses. and liabilities at their market value on the last day of the • Regarding the portfolio of Sienna Capital, the valuation financial year. corresponds to the sum of its investments, marked to market, as • Mark to market and other non-cash items in GBL’s accounts determined by fund managers, to which is added Sienna reflect the changes in fair value of the financial instruments Capital’s net cash or, where applicable, to which is deducted bought or issued (bonds, exchangeables or convertibles, trading Sienna Capital’s net debt. assets, options, ...), the actuarial costs of financial liabilities valued at their amortised cost, as well as the adjustment of certain cash Portfolio earnings items in accordance with IFRS rules (dividends decided The portfolio includes: but not paid out during the financial year but after the date of • The available-for-sale investments and investments in associates approval of the financial statements, etc.). All these results relate in the Holding segment; to the Holding activity. • Imerys; and • Sienna Capital and the companies active in private equity, debt Operating companies (associates or consolidated and specific thematic funds. entities) and Sienna Capital • This column shows earnings from associated operational Cash and debt companies, namely operational companies in which the group Net cash or, where applicable, net debt (excluding treasury has significant influence. Significant influence is presumed to shares), consists of gross cash and gross debt. Gross debt includes exist if the group has more than 20% of the voting rights, directly all the financial liabilities of the Holding segment (convertible and or indirectly through its subsidiaries. Associated operational exchangeable bonds, bonds and bank debt), valued at their nominal companies are recorded in the consolidated financial statements repayment value. Gross cash includes the cash and cash equivalents using the equity method. as well as the quasi-liquidities (trading assets, etc.) of the Holding • Also included is income, group’s share, from consolidated segment. This is valued at the book or market value (for trading operational companies, i.e. controlled by the group. Control is assets). The cash and debt indicators are presented for the Holding presumed to exist when GBL has more than 50% of the voting segment to reflect GBL’s own financial structure and the financial rights in an entity, either directly or indirectly. resources available to implement its strategy. • This column also includes the contribution of income from Sienna Capital. Half-yearly Report 44 on 30 June 2017

Eliminations, capital gains, impairments and reversals Payment of dividend and ESES system The eliminations, capital gains, impairments and reversals include ESES, for Euroclear Settlement for Euronext-zone Securities, the elimination of dividends received from own shares, as well those is the single platform for the stock market transactions of Euronext received from associated or operational consolidated companies as Brussels, Paris and Amsterdam and non-stock market transactions well as gains (losses) on disposals, impairments and reversals on involving securities traded on these markets (OTC). non-current assets and on discontinued activities. All these results relate to the Holding activity. The theoretical distribution calendar for the dividend is as follows: • Ex-Date: date (at market opening) from which the underlying Discount share is traded without its dividend or ex-entitlement; The discount is defined as the percentage difference between • Record Date (Ex-date+1): date on which positions are recorded the market capitalisation and the value of the adjusted net assets. by the central depository (at market closing, after clearing) in order to determine which shareholders are entitled to dividends; Loan to Value • Payment Date: date of payment of the dividend in cash, at the The Loan to Value ratio is calculated on the basis of (i) GBL’s net earliest the day after the Record Date. debt relative to (ii) the portfolio’s value of GBL increased by the value of the treasury shares underlying the bonds convertible into GBL Given the time needed for settlement-delivery and ownership shares. The valuation methods applied to the portfolio and treasury transfer relative to D+2 (D being the transaction date), the last day shares are identical to those used for the adjusted net assets. on which the share is traded with entitlement to dividend distribution is the day before the Ex-Date. Weighted average number of ordinary shares (basic calculation) Group’s shareholding This corresponds to the number of outstanding ordinary shares • In capital: the percentage interest held directly and indirectly at the start of the period, less treasury shares, adjusted by the through consolidated intermediate companies, calculated on number of ordinary shares reimbursed (capital reduction) or issued the basis of the number of shares in issue on 31 December. (capital increase), or sold or bought back during the period, • In voting rights: the percentage held directly or indirectly multiplied by a time-based weighting factor. through consolidated intermediate companies, calculated on the basis of the number of voting rights existing on 31 December, Weighted average number of ordinary shares including suspended voting rights. (diluted calculation) It is obtained by adding potential dilutive shares to the Liquidity profile weighted average number of ordinary shares (basic calculation). The liquidity profile corresponds to the sum of gross cash and the In this case, potential dilutive shares correspond to call options undrawn amount of committed credit lines. granted by the group. Gross dividend return The gross dividend return is defined as the ratio between collected dividends to the share price in the beginning of the period.

Operating company An operating company is defined as a company having a commercial or industrial activity, by opposition to an investing company (“holding”). Half-yearly Report on 30 June 2017 45

System Paying Agent In ESES, the entity that proceeds with distribution is known as the System Paying Agent. This is the party responsible within Euroclear Belgium for distribution to other participants of the resources related to a specific distribution. The system paying agent may be either an external paying agent (a CSD participant) or the CSD itself.

Total Shareholder Return or TSR The Total Shareholder Return or TSR is calculated based on the change in the stock price over the considered period, taking into account the gross dividend(s) received during that period and reinvested in shares when received, on an annualised basis.

Velocity on float (%) The velocity on float, expressed as a percentage, is an indicator of the stock market activity of a listed company, which corresponds to the ratio between the number of shares traded over a financial year on the stock exchange and the float on 31 December of that financial year. A listed company’s float, or floating capital, corresponds to the part of the shares actually liable to be traded on the stock exchange. It can be expressed in value, but is more often expressed as a percentage of the market capitalisation. Half-yearly Report 46 on 30 June 2017

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For more information about GBL: Tel.: +32 (0)2 289 17 17 www.gbl.be

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© Photography: Cover: © SGS Group Management S.A. - 2017 - all rights reserved, © Imerys, © Pernod Ricard - Marc-André Desanges, © LafargeHolcim, © Total, © Burberry, © Depositphotos Inc. for Ontex, © adidas. Page 6: © Parque Warner Madrid, © Burberry, © Depositphotos Inc. for Ontex. Page 12: © Imerys, © Lafarge Holcim. Page 13: © SGS Group Management S.A., © adidas group. Page 14: © Pernod Ricard -Marc-André Dessanges, © Umicore. Page 15: © Total, © Depositphotos Inc. for Ontex. Page 16: © Burberry, © Parque Warner Madrid.