DeA Capital_relazione_finanziaria_semestrale_30 giugno_2012_eng_final

Half-Year Report to 30 June 2012

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HALF-YEAR REPORT

TO 30 JUNE 2012 ______________________

First half of 2012

Board of Directors of DeA Capital S.p.A. Milan, 29 August 2012


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DeA Capital S.p.A. (the company or the parent company)

Corporate information DeA Capital S.p.A. is subject to the management and co-

ordination of De Agostini S.p.A. Registered office: Via Borgonuovo, 24, 20121 Milan, Italy Share capital: EUR 306,612,100 (fully paid up), represented by shares with a nominal unit value of EUR 1, Each, totalling 306,612,100 shares (27,606,590 of which 29,101,553 own shares at 30 June 2012) Tax code, VAT code and recorded in the Milan Register of Companies under no. 07918170015

Board of Directors (*) Chairman Lorenzo Pellicioli Chief Executive Officer Paolo Ceretti Directors Lino Benassi (1)

Rosario Bifulco (1/4/5) Marco Boroli Daniel Buaron Claudio Costamagna (3/5) Marco Drago Roberto Drago Severino Salvemini (2/3/5) (#)

Board of Statutory Auditors (*) Chairman Angelo Gaviani Regular Auditors Gian Piero Balducci

Cesare Andrea Grifoni Alternate Auditors Andrea Bonafè

Maurizio Ferrero Giulio Gasloli

Secretariat of the Diana Allegretti Board of Directors Manager responsible for Manolo Santilli preparing the company’s accounting statements Independent auditors KPMG S.p.A. (*) In office until the approval of the financial statements to 31 December 2012 (#) Co-opted by the Board of Directors of DeA Capital S.p.A. on 14 May 2012 (1) Member of the Internal Audit Committee (2) Member and Chairman of the Internal Audit Committee (3) Member of the Remuneration Committee (4) Member and Co-ordinator of the Remuneration Committee (5) Independent director


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Contents

Interim Report on Operations

1. Profile of DeA Capital S.p.A. 2. Information for shareholders 3. The Group’s key Balance Sheet and Income Statement figures

4. Significant events in the first half of 2012 5. Results of the DeA Capital Group 6. Other information

Summary consolidated half-year financial statements for the period 1 January to 30 June 2012

Statement of responsibilities for consolidated financial statements to 30 June 2012 Independent Auditors’ Report (Original report available in Italian version only)


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Interim Report on Operations


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

With an investment portfolio of around EUR 850 million and assets under management of over EUR 10,500 million, DeA Capital S.p.A. is currently one of Italy’s largest alternative investment operators. The company, which operates in both the private equity investment and alternative asset management businesses, is listed on the FTSE Italia STAR segment of the Milan stock exchange, and heads the De Agostini Group in the area of financial investments. DeA Capital has "permanent" capital, and therefore has the advantage – compared with traditional private equity funds, which are normally restricted to a pre-set duration – of greater flexibility in optimising the timing of entry to and exit from investments. In terms of investment policy, this flexibility allows it to adopt an approach based on value creation over the medium to long term. PRIVATE EQUITY INVESTMENT

ALTERNATIVE ASSET MANAGEMENT

Direct investments In the services sector, in Europe and Emerging Europe

Indirect investments In private equity funds of funds, co-investment funds and theme funds

IDeA Capital Funds SGR, which manages private equity funds (funds of funds, co-investment funds and theme funds) Assets under management: EUR 1.2 billion

IDeA FIMIT SGR, which manages

real estate funds Assets under management: EUR 9.3 billion

Soprarno SGR, which manages total return funds and other services companies (IDeA SIM, IDeA Servizi Immobiliari and IDeA Agency)


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At the end of the first half of 2012, the corporate structure of the Group headed by DeA Capital S.p.A. (DeA Capital Group, or the Group) is as summarised below:

DeA CapitalS.p.A.

Shareholdings andVC Funds

100%

DeA CapitalInvestments S.A.(Luxembourg)

QuotaIDeAOF I

QuotaIDeA I

Fund of Funds

ShareholdingKenan

Investments

ShareholdingSanté

ShareholdingSigla

Luxembourg

ShareholdingMigros

ShareholdingStepstone

IDeA ServiziImmobiliari

IDeA Agency

100%

IDeACapital Funds

SGR

100%

100%

SoprarnoSGR

65%

QuotaICF II

100%

65%

ShareholdingSigla

ShareholdingGDS

Private Equity Investment

Alternative Asset Management

Holding Companies

IDeASIM

QuotaEESS

IFIM

100%

20,98%

40,32%

IDeA FIMITSGR

QuotaAVA

Direct Private Equity Investment Indirect Private Equity Investment

DeA CapitalReal Estate


With regard to the corporate structure shown above, on 1 January 2012 the merger by incorporation of the wholly-owned subsidiary IDeA Alternative Investments into DeA Capital S.p.A., which was decided by the Boards of Directors of these companies on 26 July 2011, became effective. The purpose of the merger, which entailed the reorganisation of the DeA Capital Group’s corporate structure, is to centralise within the parent company the cash flows from, and the determination of strategic guidelines for, the alternative asset management business. Subsequently, on 28 March 2012, an agreement was signed with Deb Holding, a company controlled by the director Daniel Buaron that holds 30% of the share capital of FARE Holding. The purpose of the agreement was to bring forward, with effect from 24 April 2012, the exercise of the option to sell the stake in FARE Holding held by Deb Holding to DeA Capital S.p.A. Under the agreements stipulated, on 24 April 2012 DeA Capital S.p.A. took full control of FARE Holding, and changed the company name of FARE Holding and its subsidiaries FARE and FAI, to DeA Capital Real Estate, IDeA Servizi Immobiliari and IDeA Agency respectively. Lastly, on 11 April 2012 an agreement was signed with Massimo Caputi and the company he controls, Feidos S.p.A., which together own a stake of 41.69% in I.F.IM. (IFIM), which in turn holds a stake of 20.98% in IDeA FIMIT SGR. The purpose of the agreement was to bring forward, to this date, the exercise of the option to sell the stakes in IFIM held by Massimo Caputi and Feidos to DeA Capital S.p.A. Following the transaction, DeA Capital S.p.A. acquired full control of IFIM.


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At 30 June 2012, the DeA Capital Group reported group shareholders’ equity of EUR 728.3 million, corresponding to a net asset value (NAV) of EUR 2.62 per share, with an investment portfolio of EUR 849.9 million. More specifically, the investment portfolio, which consists of private equity investments of EUR 448.6 million, private equity investment funds of EUR 172.4 million and net assets relating to the Alternative Asset Management business of EUR 228.9 million, is detailed below.

Investment portfolio

n. EUR/mln

Equity investments 8 448.6

Funds 12 172.4

Private Equity Investment 20 621.0

Alternative Asset Management (*) 6 228.9

Investment portfolio 26 849.9

(*) Equity investments in subsidiaries relating to Alternative Asset Management are valued using the equity method in this table.

30.06.2012

PRIVATE EQUITY INVESTMENT

o Main equity investments

strategic shareholding in Générale de Santé (GDS), France's leading private healthcare provider, whose shares are listed on the Eurolist market in Paris (with a free float of less than 5% and low trading volumes). The investment is held through the Luxembourg-registered company Santé S.A., an associate of the DeA Capital Group (with a stake of 42.89%)

minority shareholding in Migros, Turkey's biggest food retail chain, whose

shares are listed on the Istanbul Stock Exchange. The investment is held through the Luxembourg-registered company Kenan Investments S.A., an investment recorded in the AFS portfolio of the DeA Capital Group (with a stake of 17.03%)

strategic shareholding in Sigla, which provides finance to all customer

segments (salary-backed loans and personal loans) and services non-performing loans in Italy. The investment is held through the Luxembourg-registered company Sigla Luxembourg S.A., an associate of the DeA Capital Group (with a stake of 41.39%)


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o Funds

units in four funds managed by the subsidiary IDeA Capital Funds SGR i.e. in

the funds of funds IDeA I Fund of Funds (IDeA I FoF) and ICF II, in the co-investment fund IDeA Opportunity Fund I (IDeA OF I, formerly IDeA CoIF I) and in the theme fund IDeA Energy Efficiency and Sustainable Growth (IDeA EESS)

a unit in the real estate fund Atlantic Value Added (AVA) managed by

IDeA FIMIT SGR

other units in seven venture capital funds.

ALTERNATIVE ASSET MANAGEMENT

controlling interest in IDeA Capital Funds SGR (100%), which manages private equity funds (funds of funds, co-investment funds and theme funds) with about EUR 1.2 billion in assets under management and four funds

controlling interest in IDeA FIMIT SGR (61.30%), Italy's largest real

estate asset management company with about EUR 9.3 billion in assets under management and 23 funds (including five listed funds)

controlling interest in Soprarno SGR (65%), which manages total return

funds, in IDeA Servizi Immobiliari/IDeA Agency (100%), which operates in project, property and facility management and real estate brokerage, and in IDeA SIM (65%), which operates in investment consultancy


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2. Information for shareholders

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

De Agostini SpA

58.3%

Treasury stock9.5%

Mediobanca4.8%

DEB Holding*

3.8%

Free float23.6%

(#) Figures to 30 June 2012 (*) Company controlled by director Daniel Buaron


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Share performance (°)

- Period from 11 January 2007, when DeA Capital S.p.A. began operations, to 30 June 2012

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

DeA Capital LPX 50 FTSE Star FTSE All

- Period from 1 January 2012 to 30 June 2012

1.10

1.20

1.30

1.40

1.50

1.60

DeA Capital FTSE All FTSE STAR LPX 50

(°) Source: Bloomberg


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Investor relations

DeA Capital S.p.A. maintains stable and structured relationships with institutional and individual investors.

In 2012, the company continued its communications campaign, participating in the Milan Star Conference in March 2012 and holding meetings and conference calls with portfolio managers and financial analysts from Italy and abroad.

Coverage of the DeA Capital stock is currently carried out by Equita SIM and Intermonte SIM, the two main intermediaries on the Italian market, with Intermonte SIM acting as a specialist.

The research prepared by these intermediaries is available in the Investor Relations section of the website www.deacapital.it.

In December 2008, the DeA Capital share joined the LPX50® and LPX Europe® indices. The LPX® indices measure the performance of the major listed companies operating in private equity (“Listed Private Equity” or LPE). Due to its high degree of diversification by region and type of LPE investment, the LPX50® index has become one of the most popular benchmarks for the LPE asset class. The method used to constitute the index is published in the LPX Equity Index Guide. For further information, please visit: www.lpx.ch.

The website is the primary mode of contact for individual investors, who may choose to subscribe to a mailing list and send questions or requests for information and documents to the company's Investor Relations area, which is committed to answering queries promptly, as stated in the Investor Relations Policy published on the site. A quarterly newsletter is also published for individual investors with the aim of keeping them updated on key news, as well as providing clear and simple analysis of quarterly results and share performance.

DeA Capital also launched a mobile site www.deacapital.mobi in July 2012. This new tool will enable stakeholders to access key information about DeA Capital including updates on share performance, new financial publications and the calendar of corporate events, as well as a wealth of other information, via their mobile phone or smartphone.

Performance of the DeA Capital share at 30 June 2012 The company’s share declined by 54.7% between 11 January 2007, when DeA Capital S.p.A. began operations, and 30 June 2012. In the same period of time, the FTSE All-Share®, FTSE Star® and LPX50® reported performances of -64.1%, -42.5% and -50.1% respectively. The DeA Capital share lost 3.5% in the first half of 2012, while the FTSE All-Share®, the Italian market’s general index, declined 4.2%, the FTSE Star® gained 5.7% and the LPX50® gained 7.9%; the share’s liquidity was lower in the first half of 2012 than in 2011, with average daily trading volumes of around 105,000 shares. The share prices recorded in the first half of 2012 are shown below. (in Euro) 1 Jan – 30 Jun 2012 Maximum price 1.49 Minimum price 1.24 Average price 1.34 Price at 30 June 2012 (EUR per share) 1.28 Market capitalisation at 30 June 2012 (EUR million)

355


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3. The Group’s key Balance Sheet and Income Statement figures

Key Consolidated Income Statement and Balance Sheet figures at 30 June 2012, compared with the corresponding figures at 30 June 2011 and 31 December 2011, are shown below.

NAV/share (EUR) 2.62 2.74 2.38Group NAV 728.3 792.2 669.0

Group net profit/(loss) 1.3 9.3 (43.6)

Comprehensive income (Group share) 63.3 38.5 (70.2)(Statement of Performance – IAS 1)

Investment portfolio 849.9 796.9 775.9Net financial position – Holding Companies (118.2) (5.8) (113.5)

Net financial position consolidated (113.1) 18.1 (102.5)

(EUR million) June 30, 2012 June 30, 2011December 31,2011

The table below shows the change in the NAV during the first half of 2012:

Group NAV at 31.12.11 669.0 280.7 2.38

Purchase of own shares (4.3) (3.2) 1.34

Other comprehensive income - Statement of Performance – IAS 1 63.3

Other movements of NAV 0.3

Group NAV at 30.06.12 728.3 277.5 2.62

(*) Average price of purchases in 2012

Change in Group NAV Total value (EUR m)

No. Shares (millions)

Value per share (€)

*


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4. Significant events in the first half of 2012

The significant events that occurred in the first half of 2012 are reported below.

Private equity funds – paid calls and distributions On 12 January 2012, 16 April 2012 and 3 May 2012, the DeA Capital Group increased its investment in the IDeA I FoF, ICF II, IDeA OF I and IDeA EESS funds, with total payments of EUR 16.2 million (EUR 10.3 million, EUR 4.5 million, EUR 0.5 million and EUR 0.9 million respectively). On 16 April 2012 the DeA Capital Group received capital reimbursements totalling EUR 8.7 million from the IDeA I FoF and ICF II funds (EUR 7.4 million and EUR 1.3 million respectively) to be used in full to reduce the carrying value of the units.

Acquisition of the remaining shares in FARE Holding and IFIM On 28 March 2012, an agreement was signed with Deb Holding, a company controlled by the director Daniel Buaron that holds 30% of the share capital of FARE Holding. The purpose of the agreement was to anticipate, with effect from 24 April 2012, the exercise of the put option held by Deb Holding on its own stake in FARE Holding. The transaction, which enabled DeA Capital S.p.A. to acquire full control of FARE Holding, set the price of the stake at EUR 31.8 million, in addition to the payment of amounts corresponding to the NAV of units of the Atlantic 1 and Atlantic 2/Berenice funds (in line with the amount booked under the net financial position at 31 December 2011), payable as of 12 December 2013. The agreement also stipulates payment to Deb Holding of an amount equal to 30% of any dividends to be distributed by FARE Holding for 2012. In accordance with the agreements already in place, director Daniel Buaron resigned from his positions at IDeA FIMIT SGR and FARE Holding, with effect from 12 April 2012 (the date of the approval of the 2011 financial statements of IDeA FIMIT SGR) and 24 April 2012 respectively. Under the agreements stipulated, on 24 April 2012 DeA Capital S.p.A. changed the company name of FARE Holding and its subsidiaries FARE and FAI, to DeA Capital Real Estate, IDeA Servizi Immobiliari and IDeA Agency respectively. On 11 April 2012 the agreement was signed with Massimo Caputi and the company he controls, Feidos S.p.A., which together own a stake of 41.69% in I.F.IM. (IFIM), which in turn holds 20.98% in IDeA FIMIT SGR, for the purpose of anticipating, on this date, the exercise of the option to sell to DeA Capital S.p.A. the stakes in IFIM held by Massimo Caputi and Feidos. The transaction, which enabled DeA Capital S.p.A. to acquire full control of IFIM, was concluded for EUR 19.3 million. The agreement also provides for the payment to the sellers of a supplement to the price (earn-out), connected to the completion, by IDeA FIMIT SGR - by 30 June 2013 - of a list of potential new funds, negotiations for which were already under way when Massimo Caputi sold his stake.


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In accordance with agreements in force, Massimo Caputi resigned from his positions at IDeA FIMIT SGR and IFIM, with effect from 12 April 2012.

Dividends from alternative asset management activities On 27 March 2012, the shareholders’ meeting of IDeA Servizi Immobiliari (previously FARE) approved the payment of a dividend totalling EUR 3.0 million (paid on 31 March 2012), all of which was payable to DeA Capital S.p.A.. On 12 April 2012, the shareholders’ meeting of IDeA FIMIT SGR S.p.A. approved the payment of a dividend totalling EUR 11.8 million, of which around EUR 7.2 million to FARE Holding (now DeA Capital Real Estate) and IFIM, a wholly-owned subsidiary of DeA Capital S.p.A. The dividend was paid on 25 May 2012. On 17 April 2012, the shareholders' meeting of IDeA Capital Funds SGR approved the company's financial statements to 31 December 2011 and voted to pay dividends totalling EUR 4.8 million entirely to DeA Capital S.p.A. The dividend was paid on 13 July 2012. In light of the above, the dividends paid in 2012 from Alternative Asset Management activities to the holding company totaled EUR 15.0 million.

Share buy-back plan

On 17 April 2012, the shareholders’ meeting approved a new plan to buy and sell own shares. The plan cancelled and replaced the previous plan authorised by the shareholders’ meeting on 19 April 2011, which was scheduled to expire on 19 October 2012. The new plan will have the same objectives as the previous one, including the purchase of own shares to be used for extraordinary operations and share incentive plans, offering shareholders a means of monetising their investment, stabilising the share price and regulating trading within the limits of the legislation in force. The authorisation specifies that purchases may be carried out, for a maximum period of 18 months starting from 17 April 2012, in accordance with all procedures allowed by current regulations, and that DeA Capital S.p.A. may also sell the shares purchased for the purposes of trading. The unit price for the purchase of the shares is set by the Board of Directors, but in any case must not be more than 20% above or below the share’s reference price on the trading day prior to each purchase. In contrast, the authorisation to sell own shares already held in the company’s portfolio and any shares bought in the future was granted for an unlimited period, to be implemented using the methods deemed most appropriate and at a price to be determined on a case-by-case basis by the Board of Directors, which must not, however, be more than 20% below the share's reference price on the trading day prior to the sale (apart from in certain exceptional cases specified in the plan). Sale transactions may also be carried out for trading purposes. Also on 17 April 2012, the company’s Board of Directors resolved to initiate the plan to buy and sell own shares authorised by the shareholders’ meeting, and to this end vested the Chairman of the Board of Directors and the Chief Executive Officer with all the necessary powers, to be exercised jointly or severally and with full powers of delegation.


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Stock option and performance share plans On 17 April 2012, the shareholders’ meeting approved the DeA Capital Stock Option Plan 2012–2014. To implement the resolution of the shareholders' meeting, the Board of Directors of DeA Capital S.p.A., at its meeting held on the same day, allocated a total of 1,350,000 options to certain employees of the company and its subsidiaries and of the parent company, De Agostini S.p.A., who carry out important roles. In line with the criteria specified in the regulations governing the DeA Capital Stock Option Plan 2012-14, the Board of Directors also set the exercise price for the options allocated at EUR 1.3363, which is the arithmetic mean of the official prices of ordinary DeA Capital shares on the Mercato Telematico Azionario, the Italian screen-based trading system organised and managed by Borsa Italiana S.p.A., on the trading days between 17 March 2012 and 16 April 2012. The shareholders’ meeting also approved a paid capital increase, in divisible form, without option rights, via the issue of a maximum of 1,350,000 shares to service the DeA Capital Stock Option Plan 2012-2014. The shareholders’ meeting also approved the Performance Share Plan 2012–2014. To implement the resolution of the shareholders' meeting, the Board of Directors allocated a total of 302,500 units (representing the right to receive ordinary shares of the company, free of charge, under the terms and conditions of the plan) to certain employees of the company and its subsidiaries and of the parent company, De Agostini S.p.A., who carry out important roles for the company. The shares allocated due to the vesting of units will be drawn from the own shares already held by the company. The terms and conditions of the DeA Capital Stock Option Plan 2012–2014 and the Performance Share Plan 2012-2014 are described in the information prospectus prepared in accordance with art. 84-bis of Consob Resolution 11971 of 14 May 1999, available to the public at the registered office of DeA Capital S.p.A. and on the company’s website www.deacapital.it in the section Corporate Governance/Incentive Plans.

Remuneration report, amendments to the articles of association and reduction in the number of directors

The shareholders’ meeting of 17 April 2012 also approved the company’s remuneration policy and, lastly:

a. the amendments to articles 11 and 18 of the company’s articles of association and the introduction of the new article 27 on the issue of “Gender equality in the composition of boards of directors and statutory auditors” (the “pink quotas”)

b. the reduction in the number of directors from 11 to ten following the resignation of director Andrea Guerra

c. the amendment to article 5 of the articles of association to incorporate the capital increase approved by the shareholders' meeting

The text of the amended articles has been made available in accordance with the legal deadlines at the registered office of DeA Capital S.p.A. at Via Borgonuovo 24, Milan, and on the company's website www.deacapital.it in the section Corporate Governance/Articles of Association.


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Resignation of a director and co-option of a new director On 4 May 2012, director Alberto Dessy, who qualified as an “independent” director and who was also Chairman of the Internal Audit Committee and a member of the Remuneration Committee and the Supervisory Board of DeA Capital S.p.A., resigned with immediate effect. His decision was due to an increase in professional commitments incompatible with continuing to hold office in DeA Capital S.p.A. On 11 May 2012, the Board of Directors co-opted Severino Salvemini as a “non-executive” and “independent” director to replace Alberto Dessy, pursuant to art. 11 of the articles of association and art. 2386 of the Italian Civil Code. After verifying that Severino Salvemini met the requirements of independence, the Board of Directors approved the appointment of Salvemini as Chairman of the Internal Audit Committee, Lead Independent Director and a member of the Remuneration Committee and the Supervisory Board of DeA Capital S.p.A.


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5. Results of the DeA Capital Group

The results reported by the DeA Capital Group for the period relate to the businesses below:

Private Equity Investment, which includes the reporting units that carry out private

equity investment, broken down into equity investments (Direct Investments) and investments in funds (Indirect Investments)

Alternative Asset Management, which includes reporting units involved in asset

management activities and related services, with a focus on the management of private equity and real estate funds

The DeA Capital Group’s investment portfolio

The composition of the DeA Capital Group's investment portfolio in the Private Equity Investment and Alternative Asset Management business areas, as defined above, are summarised in the table below. Investment portfolio

n. EUR/mln

Equity investments 8 448.6

Funds 12 172.4

Private Equity Investment 20 621.0

Alternative Asset Management (*) 6 228.9

Investment portfolio 26 849.9

(*) Equity investments in subsidiaries relating to Alternative Asset Management are valued using the equity method in this table.

30.06.2012

Details on portfolio asset movements in the first six months of 2012 are provided in the sections on the Private Equity Investment and Alternative Asset Management businesses below.


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Private Equity Investment

In terms of equity investments, at 30 June 2012, the DeA Capital Group was a shareholder of:

Santé, indirect parent company of Générale de Santé (valued at EUR 233.7 million) Kenan Investments, indirect parent company of Migros (valued at EUR 192.1 million) Sigla Luxembourg, the direct parent company of Sigla (valued at EUR 21.7 million)

The DeA Capital Group is also a shareholder in five companies (Elixir Pharmaceuticals Inc., Kovio Inc., Stepstone, Harvip Investimenti and Alkimis SGR - whose value at 30 June 2012 was EUR 1.1 million overall. With regard to funds, at 30 June 2012 the DeA Capital Group held units in:

IDeA I FoF (valued at EUR 104.6 million) IDeA OF I (valued at EUR 40.3 million) ICF II (valued at EUR 12.7 million) AVA (valued at EUR 2.4 million) IDeA EESS and seven other venture capital funds (with a total value of approximately

EUR 12.4 million) Valuations of equity investments and funds in the portfolio reflect estimates made using the information available on the date this document was prepared. Please see the notes to the financial statements below for further details on valuations and related estimates.


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Investments in associates

- Santé (parent company of GDS)

Headquarters: France Sector: Healthcare Website: www.generale-de-sante.fr Investment details: On 3 July 2007, DeA Capital S.p.A. finalised the purchase, through its wholly-owned subsidiary DeA Capital Investments, of a 43.01% equity investment in Santé S.A., the parent company of Générale de Santé S.A. both directly and through Santé Dévéloppement Europe S.A.S. At 30 June 2012, the DeA Capital Group's shareholding was 42.89% (i.e. 42.99% in income statement terms).

Brief description: Founded in 1987 and listed on the Eurolist market in Paris since 2001, Générale de Santé is a leading player in the private healthcare sector in France with revenues of about EUR 2 billion at end-2011. France is the second largest country in Europe in terms of annual healthcare expenditure after Germany. Its healthcare system is one of the most advanced in the world, is still heavily fragmented and is marked by the presence of numerous independent hospitals. The company has approximately 19,400 employees and 106 clinics in total. In addition, it is the main independent association of doctors in France (more than 5,000 doctors). Its activities include medicine, surgery, obstetrics, oncology and radiotherapy, mental health, subacute pathologies and rehabilitation. The company operates under the following names: Générale de Santé Cliniques (acute care), Médipsy (psychiatry), Dynamis (rehabilitation) and Généridis (radiotherapy). The investment in Santé, which is reported under “Investments in associates”, is valued at approximately EUR 233.7 million in the consolidated financial statements to 30 June 2012 (EUR 235.2 million at 31 December 2011). The change compared with 31 December 2011 is due to the combined effect of the profit for the period of EUR 1.2 million, the EUR 0.5 million increase in the fair value of the interest rate swaps taken out to hedge interest rate risk on debt exposure, and the payment of dividends totalling EUR 3.2 million.


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Générale de Santé (EUR millio First Half 2012 First Half 2011 % chg.

Revenues 1,014 1,030 -1.5%

EBITDA 146 144 1.3%

EBIT 78 55 43.3%

Group net profit 28 14 102.2%

Net financial debt (847) (877) -3.4% With regard to GDS’s operating performance, revenues in the first half of 2012 declined slightly compared with the previous year, but were up by 2.2% on a same-structure basis (i.e. excluding the impact on the 2011 figures of the clinics sold during that year), due to growth in services volumes (particularly in medicine and surgery). The average tariff increase forecast for medical, surgical and obstetric services for 2012 was 0.19%, and 0.29% for psychiatry. This increase in revenues resulted in growth in operating profit, mainly due to the impact on personnel costs of the plan to streamline the central structures and regional coordination, which was completed during 2011 (the “Plan Social”). Comparison with the 2011 EBIT and net result, figures show that these were affected by one-off costs relating to the Plan Social. Net debt was broadly unchanged (EUR 847 million at 30 June 2012 compared with EUR 854 million at 31 December 2011) due to the balancing between operating cash flow and financial income. In strategic and organisational terms, the overall regional reorganisation plan, which, as mentioned above, started with the redesign of the central structures, aimed at creating “centres” to coordinate the operations of several clinics, continues this financial year with the intermediate stage of defining the medical projects for these “centres”. These projects take the form of medical service plans and are intended to create a chain of clinics and identify centres of excellence by medical specialisation, enabling provision to be optimised relative to the needs of the regions in question. The aim of this reorganisation into coordination centres is to enhance GDS’ operating efficiency, and, at the same time, strengthen the Group's profile as an operator of excellence in French healthcare.


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- Sigla Luxembourg (parent company of Sigla)

Headquarters: Italy Sector: Consumer creditWebsite: www.siglacredit.it Investment details: On 5 October 2007, DeA Capital Investments finalised the acquisition of a stake (currently 41.39%) in Sigla Luxembourg, the holding company that controls Sigla, which operates in Italy and provides finance to all customer segments. Brief description: Sigla, which is recorded in the special list pursuant to art. 107 of the T.U.B. (Italian consolidated banking law) with effect from 31 March 2011, specialises in personal loans and "salary-backed loans". It is a benchmark operator in the provision of financial services to households, and operates throughout Italy chiefly through a network of agents. The company’s product range of personal loans and salary-backed loans was expanded in 2011 to include the servicing of portfolios of unsecured non-performing loans (personal loans and credit cards).

The investment in Sigla Luxembourg, which is recorded under “Investments in associates”, was worth around EUR 21.7 million in the consolidated financial statements to 30 June 2012. The change compared with 31 December 2011 is due to the impact of the loss made in the period. Sigla (EUR million) First Half 2012 First Half 2011 % chg.

Loans to customers* 82.6 87.8 -5.9%

Revenues from loans to customer 2.1 2.8 -25.1%

CQS granted 43.3 68.5 -36.8%

Revenues from CQS 2.3 3.4 -31.5%

Group net profit (0.6) 0.0 n.a.

* Net receivables exclude salary-backed loans (CQS) In terms of Sigla's operating performance, the Group's results in the first half of 2012 should be seen in the context of the difficult macroeconomic environment. This environment has affected both demand for financing, which is still limited due to stagnant consumption, and supply behaviour, influenced by the funding crunch. From a regulatory point of view, Presidential Decree 141/2010, which will redefine the distribution network for salary-backed loans around exclusive distribution agents, will shortly come into force. This should benefit the more structured operators such as Sigla, helping it to position itself in this current phase of market contraction. In the first half of 2012, salary-backed loans fell by 36.8%. At margins level, the decline in revenues from salary-backed loans and personal loans (due to the company's progressive repositioning around salary-backed loans, which are typically less capital–intensive) was partially reabsorbed at bottom-line level due to measures to improve structural efficiency.


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Investments in other companies

- Kenan Investments (indirect parent company of Migros)

Headquarters: TurkeySector: Food retail Website: www.migros.com.tr Investment details: In 2008, the DeA Capital Group acquired about 17% of the capital of Kenan Investments, the company heading the structure to acquire the controlling interest in Migros. Brief description: Migros was established in 1954, and is the leading company in the food retail sector in Turkey with a share of about 34% in the organised retail market. Growth in the food retail sector in Turkey is a relatively recent phenomenon, brought about by the transition from traditional systems such as bakkals (small stores typically run by families) to an increasingly widespread organised distribution model driven by expansion and the modernisation process under way in Turkey. The company has a total of 764 outlets (at 31 March 2012) with a total net sales area of approximately 809,000 square metres. Migros is present in all seven regions of Turkey, and has a marginal presence abroad, in Kazakhstan and Macedonia. The company operates under the following names: Migros, Tansas and Macrocenter (supermarkets), 5M (hypermarkets), Ramstore (supermarkets abroad) and Kangurum (online store). The extraordinary transactions recently completed by Migros include the sale, on 24 August 2011, of Şok (the discount arm of the Group) to Yildiz Holding Group, a leading Turkish food producer, for approximately TRY 600 million. The business sold consisted of some 1,200 supermarkets, with revenues in 2010 of TRY 1.2 billion (or around 19% of Migros’s consolidated revenues). The equity investment in Kenan Investments is recorded in the consolidated financial statements to 30 June 2012 at EUR 192.1 million (compared with EUR 127.1 million at 31 December 2011). The increase was due to the rise in the value of Migros shares (TRY 17.9 per share at 30 June 2012, compared with approximately TRY 12.6 per share at 31 December 2011, and the strengthening of the Turkish lira against the euro (2.28 TRY/EUR at 30 June 2012 versus 2.44 TRY/EUR at 31 December 2011). The effect on the NAV of the DeA Capital Group of this change in fair value was partially offset by the allocation of around EUR 9.7 million in carried interest, which is to be paid to the lead investor, BC Partners, depending on the overall capital gain. This was partly recognised in the income statement (EUR 3.0 million) and partly in the fair value reserve (EUR 6.7 million).


23

Migros (mln YTL)

FirstQuarter

2012

FirstQuarter

2011 % chg.

Revenues 1,455 1,271 14.5%

EBITDA 99 89 10.9%

EBIT 53 51 3.1%

Group net profit 62 (128) n.s.

Net financial debt (1,587) (1,612) 1.5%

* Awaiting publication of the data of the first quarter 2012 - the data for year 2011 are provided In macroeconomic terms, the Turkish economy experienced GDP growth of around 3% y/y in the first quarter of 2012. While this was slower than growth recorded in 2011, domestic spending held up well. The food retail sector in Turkey remains buoyant: growth in commercial space continues apace (11.7% in 12 months) and the supermarket segment maintains its dominant position. In terms of Migros' operating performance, results for the first quarter of 2012 showed that revenues grew by 14.5% compared with the corresponding period in 2011 (with reference to the area of activities that excludes the discount division sold in August 2011), driven by the expansion of the network of sales outlets (100 new supermarkets were opened in 12 months), accompanied by more modest growth in EBITDA, and broadly stable operating profit. The net result increased, due to the revaluation of the debt component in Euro following the rise of the Turkish lira (2.38 TRY/EUR at 31 March 2012 versus 2.44 TRY/EUR at end-2011). As Migros announced previously, the company intends to expand the network by opening about 100 new points of sale per year in 2012 and the medium term. The new openings will mainly be in the form of small supermarkets of between 150 and 2,500 square metres. Specifically, the 150-350 square metre size will be used in high-traffic residential areas with a special emphasis on fresh products and a much broader assortment than in discount stores.


24

- Other investments

Other investments totaled approximately EUR 1.1 million in the consolidated financial statements to 30 June 2012.

CompanyRegistered

office Business sector % holding

Alkimis SGR Italy Asset management company 10.00

Elixir Pharmaceuticals Inc. USA Biotech 1.30

Harvip Investimenti S.p.A. Italy Distressed real estate and other investments 25.00

Kovio Inc. USA Printed circuitry 0.42

Stepstone Acquisition Sàrl Luxembourg Special Opportunities 36.72


25

Funds At 30 June 2012, the DeA Capital Group’s PEI business included investments (other than the investment in the IDeA OF I fund and in the AVA real estate fund, which are classified under “Investments in associates”, based on the units held) in two funds of funds (IDeA I FoF and ICF II), one theme fund (IDeA EESS) and another seven venture capital funds for a total of approximately EUR 172.4 million (corresponding to the estimated fair value calculated using the information available on the date this document was prepared). Residual commitments associated with all the funds in the portfolio were approximately EUR 154.4 million (in their respective original currencies of denomination: EUR 150.9 million and GBP 2.8 million).

- IDeA OF I

IDeA Opportunity Fund IHeadquarters: Italy Sector: Private Equity Website: www.ideasgr.it Investment details: IDeA OF I is a closed-end fund under Italian law for qualified investors, which began activity on 9 May 2008, and is managed by IDeA Capital Funds SGR. At its meeting on 20 July 2011, the Board of Directors of IDeA Capital Funds SGR approved a number of regulatory changes. These included changing the name of the IDeA Co-Investment Fund I to IDeA Opportunity Fund I (IDeA OF I) and extending investment opportunities to qualified minority interests, independently or via syndicates. DeA Capital Investments and DeA Capital S.p.A. have subscribed for a total commitment of up to EUR 101.8 million in the fund. Brief description: IDeA OF I has total assets of approximately EUR 217 million. Its objective is to conduct invest operations via syndicates with a lead investor, or independently, by purchasing qualified minority interests. At 30 June 2012, IDeA OF I had called up approximately 52.6% of the total commitment after making five investments:

- on 8 October 2008, it acquired a 5% stake in Giochi Preziosi S.p.A., a company active in the production, marketing and sale of children’s games with a product line covering childhood to early adolescence

- on 22 December 2008, it acquired a 4% stake in Manutencoop Facility Management

S.p.A. through subscription to a reserved capital increase This company is Italy’s leading integrated facility management company, providing and managing a wide range of property management services and other services for individuals and


26

government agencies

- on 31 March 2009, it acquired a 17.43% stake in Grandi Navi Veloci S.p.A., an Italian shipping company that transports passengers and goods on various routes around the Mediterranean Sea. On 2 May 2011, with the finalisation of Marinvest's entry into the shareholder structure of Grandi Navi Veloci S.p.A. through the subscription of a reserved capital increase, the stake held by IDeA OF I was diluted to 9.21%

- on 10 February 2011, it invested in a bond that is convertible into shares of Euticals

S.p.A., the Italian leader in the production of active ingredients for pharmaceutical companies that operate in the generics sector, for EUR 10 million. As part of an extraordinary operation that involved the transfer of the controlling stake in Euticals S.p.A., on 3 April 2012, these bonds were transferred to the acquisition vehicle - Lauro 57 – currently owner of 100% of the capital of Euticals S.p.A.; in exchange, it acquired a stake of 7.77% in the acquisition vehicle (registering a capital gain of EUR 6.9 million);

- on 25 February 2011, it purchased a 9.29% stake in Telit Communications PLC, the

third-largest producer of machine-to-machine communications systems in the world; the stake held by OF I was subsequently diluted to 9.13% due to the exercise by the company's management of stock options

The units held in IDeA OF I were reported in the consolidated financial statements to 30 June 2012 at EUR 40.3 million, a change versus 31 December 2011 relating to capital calls totalling EUR 0.5 million, an increase in fair value delta of EUR 0.4 million, and a pro-rata net result for the period of EUR 2.6 million. The table below shows the key figures for IDeA OF I at 30 June 2012.

IDeA OF IRegistered

office

Year of commit

mentFund Size

Subscribed commitment

% DeA Capital in

fund

Euro (€)

IDeA Opportunity Fund I Italia 2008 216,550,000 101,750,000 46.99

Residual Commitments

Total residual commitment in: Euro 48,158,996


27

- IDeA I FoF

IDeA I Fund of Funds Headquarters: Italy Sector: Private Equity Website: www.ideasgr.it Investment details: IDeA I FoF is a closed-end fund under Italian law for qualified investors, which began activity on 30 January 2007 and is managed by IDeA Capital Funds SGR. DeA Capital Investments and DeA Capital S.p.A. have subscribed for a total commitment of up to EUR 173.5 million in the fund. Brief description: IDeA I FoF, which has total assets of approximately EUR 681 million, invests its assets in units of unlisted closed-end funds that are mainly active in the local private equity sector of various countries. It optimises the risk-return profile through careful diversification of assets among managers with a proven track record of returns and solidity, different investment approaches, geographical areas and maturities. At the date of the latest report available, the IDeA ICF II portfolio was invested in 42 funds with different investment strategies; these funds in turn hold around 436 positions in companies with various degrees of maturity that are active in geographical regions with different growth rates. The funds are diversified in the buy-out (control) and expansion (minorities) categories, with overweighting towards medium- and small-scale transactions and special situations (distressed debt/equity and turnaround). At 30 June 2012, IDeA I FoF had called up 71.1% of its total commitment and had made distributions totalling 19.5% of that commitment.


28

Other important information: Below is an analysis of the portfolio, updated to the date of the latest report available, broken down by year of investment, geographical area, type and sector.

Breakdown by industry(1)Breakdown by type(2)

Breakdown by vintage(1) Breakdown by geography(2)

21%

Uncommitted1%Global

RoW 14%

US

20%

Europe44%

9%

6%

Uncommitted1%Special Situations

18%

Expansion

VC5%

Asset Based PE

Small Buyout

14%

Mid Buyout31%

Large Buyout

15%

5% 13%

12%

10%

Distressed Portfolio

Materials

IT

Media3%Financials4%Pharma1%Healthcare6%

Cons. Staples6%

Cons. Discretionary

12%

14%Energy

Transportation 8%Industrials

2%

RE

4%Leisure

24%

14%2007

6%2006

3%

20053%

2000-20042012

3%

201111%

2010

2009

18%2008

18%

Notes 1. % of the FMV of the invested capital at 30 June 2012 2. % of fund size, based on paid-in exposure (capital invested + residual commitments) at 30 June 2012

The IDeA FoF units are valued at approximately EUR 104.6 thousand in the consolidated financial statements to 30 June 2012, with a change during the period relating to net investment of EUR +2.8 million and an increase in fair value delta of EUR 5.5 million. The table below shows the key figures for IDeA I FoF at 30 June 2012.

IDeA I FoFRegistered

office

Year of commit

mentFund Size


% DeA Capital in

fund

Euro (€)

IDeA I Fund of Funds Italia 2007 681,050,000 173,500,000 25.48




29

- ICF II

ICF II Headquarters: Italy Sector: Private Equity Website: www.ideasgr.it Investment details: ICF II is a closed-end fund for qualified investors under Italian law, which began activity on 24 February 2009 and is managed by IDeA Capital Funds SGR. DeA Capital Investments and DeA Capital S.p.A. have subscribed for a total commitment of up to EUR 51 million in the fund. Brief description: ICF II, which had total assets of EUR 281 million, invests its assets in units of unlisted closed-end funds that are mainly active in the local private equity sector of various countries. It optimises the risk-return profile through careful diversification of assets among managers with proven historical returns and solidity, different investment approaches, geographical areas and maturities. The fund started building its portfolio by focusing on funds in the area of mid-market buy-outs, distressed and special situations, loans, turnarounds and funds with a specific sector slant, targeting in particular opportunities offered in the secondary market. At the date of the latest report available, the ICF II portfolio was invested in 23 funds with different investment strategies; these funds in turn hold positions in around 137 companies with various degrees of maturity that are active in geographical regions with different growth rates. At 30 June 2012, ICF II had called up 24.8% of the total commitment. Other important information: Below is an analysis of the portfolio, updated to the date of the latest report available, broken down by year of investment, geographical area, type and sector.


30

12%

Global

RoW 28%

US

26%

Europe34%

13%

23%Special Situations

Expansion

VC7% Small/Mid Buyout

44%

Large Buyout

13%

2%

2008

3%

2007

1%

2004-2006

2011 29%

2010

27%

200928%

10%2012

10% 8%

Distressed Portfolio24%

Energy 1%Materials 4%

Industrial

Leisure

5%

IT17% Media

3%Financials

Healthcare3%

Cons. Staples10%

Cons. Discretionary

14%

Breakdown by vintage(1) Breakdown by geography(2)

Breakdown by type(2) Breakdown by industry(1)

Notes 1. % of the FMV of the invested capital at 30 June 2012 2. % of the commitment, based on paid-in exposure (capital invested + residual commitments) at 30 June

2012 The ICF II units are valued at approximately EUR 12.7 million in the consolidated financial statements to 30 June 2012, with a change in the period mainly related to net investment of EUR +3.2 million. The table below shows the key figures for ICF II at 30 June 2012.

ICF IIRegistered

office

Year of commit

mentFund Size


% DeA Capital in

fund

Euro (€)

ICF II Italia 2009 281,000,000 51,000,000 18.15




31

- IDeA EESS

IDeA Efficienza Energetica e Sviluppo Sostenibile (Energy Efficiency and Sustainable Development) Headquarters: Italy Sector: Private Equity Website: www.ideasgr.it Investment details: IDeA EESS is a closed-end fund under Italian law for qualified investors, which began operating on 1 August 2011 and is managed by IDeA Capital Funds SGR. DeA Capital Investments and DeA Capital S.p.A. have subscribed for a total commitment of up to EUR 12.8 million in the fund. Brief description: IDeA EESS is a closed-end mutual fund under Italian law for qualified investors, which seeks to acquire minority and controlling interests in unlisted companies in Italy and abroad (particularly Germany, Switzerland and Israel), by investing jointly with local partners. The fund is dedicated to investing in small and medium-sized manufacturing and service companies operating in the field of energy savings and the efficient use of natural resources. It focuses on the development of faster and cheaper solutions in the use of renewable energy sources without compromising effectiveness in reducing CO2 emissions, against a backdrop of sustained growth in global energy demand. In accordance with the objective of an overall size of EUR 100 million for the fund, IDeA Capital Funds SGR is continuing its fund raising activities in both Italy and other countries, where contacts with a number of leading institutional investors are in progress. At 30 June 2012, IDeA EESS had called up about 8.4% of the total commitment. On 18 April 2012, the fund signed an investment agreement to acquire 48% of Domotecnica Italiana S.r.l. (independent Italian franchising of thermo-hydraulic installers) for approximately EUR 2.6 million, as well as a commitment to subscribe, within the next 18 months, to capital increases totalling EUR 2.0 million (IDeA EESS pro-rata share: EUR 1.0 million). The ICF II units are valued at approximately EUR 0.7 million in the consolidated financial statements to 30 June 2012, with a change in the period that includes contributions in the form of capital calls of EUR 0.9 million. The table below shows the key figures for IDeA EESS at 30 June 2012.

IDeA EESS Registered

office

Year of commit

mentFund Size


% DeA Capital in

fund

Euro (€)

IDeA Efficienza Energetica e Sviluppo Sostenibile Italia 2011 53,450,000 12,800,000 23.95




32

- AVA

Atlantic Value Added Headquarters: Italy Sector: Private Equity – Real Estate Website: www.ideafimit.it Investment details: The "Atlantic Value Added Closed-End Speculative Real Estate Mutual Fund" is a mixed-contribution fund for qualified investors that began its operations on 23 December 2011. DeA Capital Investments subscribed to a total commitment in the fund of up to EUR 5 million (corresponding to 9.1% of the overall commitment), with a payment already made of EUR 2.5 million (five class A units). Brief description: The Atlantic Value Added fund began its operations with a primary focus on real estate investments in the office and residential markets with a potential for growth in value. The duration of the fund is eight years. The fund, which is managed by the subsidiary IDeA FIMIT SGR, completed the first closing with a commitment of around EUR 55 million. On 29 December 2011, the fund made its first investment totalling EUR 41.5 million through the purchase/subscription of 83 units in the Venere Fund, a closed-end speculative reserved real estate fund managed by IDeA FIMIT SGR. The Venere Fund's real estate portfolio consists of 15 properties primarily for residential purposes located in northern Italy. Units in the AVA fund were reported in the consolidated financial statements to 30 June 2012 at around EUR 2.4 million. The change is due to the pro-rata net result for the period. The table below shows the key figures for AVA at 30 June 2012.

AVARegistered

office

Year of commit

mentFund Size


% DeA Capital in

fund

Euro (€)

Atlantic Value Added Italia 2011 55,000,000 5,000,000 9.09




33

- Units in venture capital funds

Units in venture capital funds are all concentrated in the parent company DeA Capital S.p.A., and are valued at approximately EUR 11.7 million in the consolidated financial statements to 30 June 2012. The table below shows the key figures for venture capital funds in the portfolio at 30 June 2012.

Venture Capital FundsRegistered

office

Year of commit

mentFund Size

Subscribed commitme

nt

% DeA Capital in fund

Dollars (USD)

Doughty Hanson & Co Technology UK EU 2004 271,534,000 1,925,000 0.71 GIZA GE Venture Fund III Delaware U.S.A. 2003 211,680,000 10,000,000 4.72 Israel Seed IV Cayman Islands 2003 200,000,000 5,000,000 2.50 Pitango Venture Capital II Delaware U.S.A. 2003 125,000,000 5,000,000 4.00 Pitango Venture Capital III Delaware U.S.A. 2003 417,172,000 5,000,000 1.20

Total Dollars 26,925,000

Euro (€)

Nexit Infocom 2000 Guernsey 2000 66,325,790 3,819,167 5.76

Sterlings (GBP)

Amadeus Capital II UK EU 2000 235,000,000 13,500,000 5.74




34


At 30 June 2012, DeA Capital S.p.A. was the owner of:

100% of IDeA Capital Funds SGR 61.30% of IDeA FIMIT SGR (including 40.32% held through DeA Capital Real Estate

and 20.98% through IFIM) 100% of IDeA Servizi Immobiliari/IDeA Agency (which operates in project,

property and facility management and real estate brokerage), 65% of Soprarno SGR (which operates in asset management through the management of total return funds) and 65% of IDeA SIM (which operates in investment consultancy, with no temporary or permanent holdings of liquid assets or clients’ financial instruments, and with no assumption of risk)

- IDeA Capital Funds SGR

Headquarters: Italy Sector: Alternative Asset Management - Private EquityWebsite: www.ideasgr.it Investment details: IDeA Capital Funds SGR is one of the leading independent Italian asset management companies operating in the management of direct funds and funds of private equity funds. The asset management company manages four closed-end private equity funds, including two funds of funds (IDeA I FoF and ICF II), a "direct" co-investment fund (IDeA OF I) and a sector fund dedicated to energy efficiency (IDeA EESS). The investment programmes of IDeA Capital Funds SGR, which are regulated by the Bank of Italy and Consob, leverage the management team's wealth of experience in the sector. The investment strategies of funds of funds focus on building a diversified portfolio in private equity funds in the top quartile or that are next-generation leaders with balanced asset allocation through diversification by:

Industrial sector Investment strategy and stages (buy-outs, venture capital, special situations, etc.) Geographical region (Europe, US and the Rest of the World) Year (commitments with diluted investment periods over time)

The investment strategies of the "direct" co-investment fund focus on minority interests in medium to large-sized LBOs together with leading qualified investors with businesses that primarily focus on Europe, and diversification as a function of the appeal of individual sectors by limiting investments during the early stage and excluding purely real estate investments. The investment philosophy of the EESS sector fund is focused on growth capital and buyout private equity to support the growth of small and medium-sized enterprises with excellent products or services in the energy efficiency and sustainable growth arena. Investments in infrastructure for the generation of energy from renewable sources or early stage investments can be made in compliance with regulatory restrictions. The main geographical focus of these funds is Italy.


35

The table below summarises the value of assets under management and management fees for IDeA Capital Funds SGR at 30 June 2012.

(EUR million)Asset Under Management at 30.06.2012

Management fees

at 30.06.2012

IDeA Capital Funds SGRICF II 281 1.4 IDeA EESS 53 0.5 IDeA I FoF 681 2.8 IDeA OF I 217 1.1 Total IDeA Capital Funds SGR 1,232 5.9

With regard to operating performance, the company reported overall management fees for the first half of 2012 in line with the same period last year, as the increase arising from the additional EUR 53 million in assets under management for the IDeA Energy Efficiency and Sustainable Development Fund (first and second closing in second half of 2011) was offset by lower management fees relating to the IDeA I FoF fund.

IDeA Capital Funds SGR (EUR million)

FirstHalf2012

FirstHalf2011

AUM 1,232 1,179

Management fees 5.9 5.9

EBT 3.2 3.8

Net profit 2.0 2.5


36

- IDeA FIMIT SGR

Headquarters: Italy Sector: Alternative Asset Management - Real EstateWebsite: www.firstatlantic.it Investment details: IDeA FIMIT SGR is the largest independent real estate asset management company in Italy, with around EUR 9.3 billion in assets under management and 23 managed funds (including five listed funds). This puts it among the major partners of Italian and international investors in promoting, creating and managing closed-end mutual investment funds in real estate. IDeA FIMIT SGR has three main lines of business:

the development of real estate mutual investment funds dedicated to institutional clients and private investors

the promotion of innovative real estate financial instruments to satisfy investors’ increasing demands

the professional management (technical, administrative and financial) of real estate funds with the assistance of in-house experts as well as the best independent technical, legal and tax advisors on the market.

The company has concentrated its investment in transactions with low risk, a stable return, low volatility, simple financial structure and, most importantly, an emphasis on real estate value. In particular, the asset management company specialises in "core" and "core plus" properties, but its major investments also include important "value added" transactions.

Due in part to successful transactions concluded in recent years, the asset management company is able to rely on a panel of prominent unit-holders consisting of Italian and international investors with a high standing such as pension funds, bank and insurance groups, capital companies and sovereign funds. On 28 June 2012, IDeA FIMIT SGR and Duemme SGR signed a deed of transfer, effective 1 July 2012, for a business division comprising joint real estate investment funds managed by Duemme SGR, a subsidiary of the Banca Esperia Group specialising in asset management services. The transfer of the business division enables IDeA FIMIT SGR to take on the management of eight real estate funds with assets that include around 60 buildings, worth a total of approximately EUR 560 million. This transaction confirms IDeA FIMIT SGR’s position as Italian leader and puts it among the major real estate asset management companies in Europe, thanks also to the expansion of its circle of institutional investors. This highly strategic transaction enables IDeA FIMIT SGR to further increase the value of its managed assets and reach the threshold of EUR 10 billion in assets under management with 31 real estate funds managed.


37

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

(EUR million)Asset Under Management at 30.06.2012

Management fees

at 30.06.2012

Breakdown of fundsAtlantic 1 669 2.8 Atlantic 2 Berenice 532 1.2 Alpha 477 2.1 Beta 214 1.3 Delta 360 1.4 Listed funds 2,252 8.8

Reserved funds 7,037 23.5

Total 9,289 32.3 Some of the key financials of the listed funds (Atlantic 1, Atlantic 2, Alpha, Beta and Delta – figures in Euro) in the asset management portfolio are also provided below, with an analysis of the real estate portfolio at the date of the latest report available, broken down by geographical area and by intended use. Atlantic 1 30/06/2012

Market value of real estate 642,930,000Historical cost and capitalised charges 619,809,181Loan 358,098,945Net Asset Value ("NAV") 288,536,260NAV / Share (Euro) 553Market price/share (Euro) 230Dividend Yield* 5.38%

* Ratio of income per share to average nominal value of the share

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

Lombardia66%

Lazio15%

Campania13%

Piemonte6%

Offices82%

Commerc. 18%


38

Atlantic 2 - Berenice 30/06/2012



Atlantic 2: Diversification by geographical area Atlantic 2: Diversification by intended use

Lombardia44%

Lazio 40%

Piemonte14%

Altri 2%

Offices69%

Industrial 31%

Alpha 30/06/2012

Market value of real estate 418,700,000Historical cost and capitalised charges 323,005,970Loan 73,518,806Net Asset Value ("NAV") 392,336,766NAV / Share (Euro) 3,777Market price/share (Euro) 1,270Dividend Yield* 6.97%


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

Lombardia12%

Lazio 83%

Emilia 5% Offices60%

Other40%


39

Beta 30/06/2012



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

Umbria26%

Sardegna 39%

Lazio 35%

Offices41%

Hotels39%

Specific use19%

Commercial1%

Delta 30/06/2012

Market value of real estate 342,531,667Historical cost and capitalised charges 373,440,569Loan 141,164,486Net Asset Value ("NAV") 216,578,523NAV / Share (Euro) 103Market price/share (Euro) 27Dividend Yield* n.a.

* No distributions

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

Hotel62%

Other34%

Offices4%

Lombardia4% Sardegna

41%

Veneto 14%

Calabria 11%

Emilia 10%

Abruzzo10%

Campania 4%

Piemonte 3%

Toscana 3%


40

With regard to IDeA FIMIT SGR’s operating performance, the comparison between the income statement for the first half of 2012 and for the same period of the previous year (see the table below) is of limited significance, in view of the changes in business structure that took place on 3 October 2011, with the integration between FARE SGR and FIMIT SGR, and the establishment of IDeA FIMIT SGR.

IDeA FIMIT SGR (EUR million)FirstHalf2012

FirstHalf

2011*

AUM 9,289 3,197

Management fees 32.3 10.1

EBT 8.8 5.4

EBT - before PPA 14.5 5.4

Net profit 11.6 3.4

(*)Data are referred to FARE SGR


41

Financial Review - Income statement

The Group reported a net profit of approximately EUR 1.3 million for the first half of 2012, compared with a net profit of EUR 9.3 million in the same period of 2011. When comparing the results of the first half of 2012 with those of the corresponding period of 2011, note the significant change in the basis of consolidation in Alternative Asset Management, which has included the contribution of FIMIT SGR since 3 October 2011 (the date on which the integration with FARE SGR became effective). Revenues and other income break down as follows:

- alternative asset management fees totalling EUR 39.9 million - a contribution from investments valued at equity of EUR +3.2 million (EUR -11.2 million

in 2011), due to the investment in Santé (around EUR +1.2 million) and the units in IDeA OF I (EUR +2.6 million)

- other investment income, net of liabilities, totalling EUR 0.7 million (EUR 27.4 million in the same period of 2011)

- other revenues and income totalling EUR 4.9 million due largely to the alternative asset management business (EUR 5.1 million in the same period of 2011)

Operating costs totaled EUR 41.2 million (EUR 23.0 million in the same period of 2011), of which EUR 31.7 million was attributable to Alternative Asset Management, EUR 3.7 million to the Private Equity Investment business and EUR 5.8 million to holding company activities. Note that Alternative Asset Management costs include the impact of amortising intangible assets recorded during the allocation of a portion of the purchase price of the investments, totalling EUR 7.0 million. Financial income and charges, which totaled EUR -5.0 million at 30 June 2012 (EUR -0.9 million in the same period of 2011), mainly related to the cost of exercising the put option on subsidiaries’ minority holdings, income generated from cash and cash equivalents, financial charges and income/charges on derivative contracts. The overall positive tax impact of EUR 3.9 million in the first half of 2012 (EUR -5.3 million in the same period of 2011) is the combined result of tax benefits of EUR 1.2 million relating to Alternative Asset Management activities, EUR 1.6 million relating to the Private Equity Investment business and EUR 1.1 million for taxes relating to holding activities. Of the total consolidated net profit of EUR 6.3 million, about EUR 1.2 million was attributable to the Private Equity Investment business, around EUR 14.1 million to Alternative Asset Management and approximately EUR -9.0 million to holding company operations/eliminations.


42

Summary Group Income Statement

(Euro thousands)

FirstHalf2012

FirstHalf2011

Alternative Asset Management fees 39,948 17,986Income (loss) from equity investments 3,193 (11,174)Other investment income/expense 672 27,433Income from services 4,645 4,896Other income 215 172Other expenses (41,247) (23,029)Financial income and expenses (4,960) (944)PROFIT/(LOSS) BEFORE TAXES 2,466 15,340Income tax 3,880 (5,258)PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS 6,346 10,082 Profit (Loss) from discontinued operations/held-for-sale assets 0 0PROFIT/(LOSS) FOR THE PERIOD 6,346 10,082 - Group share 1,290 9,331 - Non controlling interests 5,056 751

Earnings per share, basic (€) 0.005 0.032

Earnings per share, diluted (€) 0.005 0.032 Summary Group Income Statement - performance by business in the first half of 2012

(Euro thousands)Private Equity

Investment

Alternative Asset

ManagementHoldings/

Eliminations Consolidated

Alternative Asset Management fees 0 39,948 0 39,948Income (loss) from equity investments 3,396 (138) (65) 3,193Other investment income/expense 0 187 485 672Income from services 20 4,722 118 4,860Other expenses (3,721) (31,681) (5,845) (41,247)Financial income and expenses (95) (179) (4,686) (4,960)PROFIT/(LOSS) BEFORE TAXES (400) 12,859 (9,993) 2,466Income tax 1,635 1,224 1,021 3,880PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS 1,235 14,083 (8,972) 6,346 Profit (Loss) from discontinued operations/held-for-sale assets 0 0 0 0PROFIT/(LOSS) FOR THE PERIOD 1,235 14,083 (8,972) 6,346 - Group share 1,235 8,684 (8,629) 1,290 - Non controlling interests 0 5,399 (343) 5,056 Summary Group Income Statement - performance by business in the first half of 2011


Investment

Alternative Asset

ManagementHoldings/


Alternative Asset Management fees 0 17,986 0 17,986Income (loss) from equity investments (11,174) 0 0 (11,174)Other investment income/expense 27,378 55 0 27,433Income from services 19 4,859 190 5,068Other expenses (3,416) (15,866) (3,747) (23,029)Financial income and expenses (137) 157 (964) (944)PROFIT/(LOSS) BEFORE TAXES 12,670 7,191 (4,521) 15,340Income tax (1,735) (3,476) (47) (5,258)PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS 10,935 3,715 (4,568) 10,082 Profit (Loss) from discontinued operations/held-for-sale assets 0 0 0 0PROFIT/(LOSS) FOR THE PERIOD 10,935 3,715 (4,568) 10,082 - Group share 10,935 2,964 (4,568) 9,331 - Non controlling interests 0 751 0 751


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Financial Review - Statement of Performance - IAS 1

Comprehensive income or the Statement of Performance (IAS 1), in which performance for the year is reported for the portion attributable to the Group including results posted directly to shareholders' equity, reflects a net positive balance of approximately EUR 63.3 million compared with a net positive balance of around EUR 38.5 million in the same period of 2011. Results posted directly to shareholders' equity in the first half of 2012 mainly relate to the increase in fair value of Kenan Investments/Migros (EUR +58.4 million) attributable to the adjustment of the valuation on the basis of the market value of Migros shares at 30 June 2012 of TRY 17.9 per share (compared with a figure of around TRY 12.6 per share implied in the valuation at 31 December 2011), as well as the updating of the Turkish lira/Euro exchange rate.

(Euro thousands)

FirstHalf2012

FirstHalf2011

Profit/(loss) for the period (A) 6,346 10,082

Gains/(Losses) on fair value of available-for-sale financial assets 60,016 24,714

Share of other comprehensive income of associates 890 4,461

Other comprehensive income, net of tax (B) 60,906 29,175Total comprehensive income for the period (A)+(B) 67,252 39,257

Total comprehensive income attributable to: - Group Share 63,250 38,506 - Non Controlling Interests 4,002 751


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Financial Review – Balance Sheet

Below is the Group’s balance sheet at 30 June 2012 compared with 31 December 2011.

(Euro thousand) June 30,2012 December 31,2011

ASSETS

Non-current assetsIntangible and tangible assets

Goodwill 210,113 210,134 Intangible assets 112,564 119,648 Property, plant and equipment 1,193 1,269

Total intangible and tangible assets 323,870 331,051 Investments

Investments valued at equity 304,008 302,141 Other available-for-sale companies 192,439 127,380 Available-for-sale funds 167,160 159,673 Other avalaible-for-sale financial assets 324 936

Total Investments 663,931 590,130 Other non-current assets

Deferred tax assets 3,806 4,077 Loans and receivables 1,845 1,632 Other non-current assets 25,728 25,729

Total other non-current assets 31,379 31,438 Total non-current assets 1,019,180 952,619

Current assetsTrade receivables 5,741 6,070 Available-for-sale financial assets 8,301 13,075 Financial receivables 3,257 1 Tax receivables from Parent companies 7,187 5,929 Other tax receivables 5,243 2,677 Other receivables 5,918 6,128 Cash and cash equivalents 19,496 46,764

Total current assets 55,143 80,644 Total current assets 55,143 80,644

Assets relating to joint ventures - - Held-for-sale assets - - TOTAL ASSETS 1,074,323 1,033,263

SHAREHOLDERS' EQUITY AND LIABILITIESSHAREHOLDERS' EQUITY

Net equity Group 728,283 669,045 Minority interests 133,261 134,324 Shareholders' equity 861,544 803,369

LIABILITIESNon-current liabilities

Deferred tax liabilities 27,252 40,506 Provisions for employee termination benefits 2,656 2,127 Long term financial loans 142,168 160,020

Total non-current liabilities 172,076 202,653 Current liabilities

Trade payables 15,934 10,322 Payables to staff and social security organisations 7,396 7,497 Current tax 8,766 903 Other tax payables 3,722 3,585 Other payables 1,011 1,023 Short term financial loans 3,874 3,911

Total current liabilities 40,703 27,241 Liabilities relating to joint ventures - - Held-for-sale liabilities - - TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 1,074,323 1,033,263


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At 30 June 2012, group shareholders’ equity was approximately EUR 728.3 million, compared with EUR 669.0 million at 31 December 2011. The increase of around EUR 59.3 million in this item in the first half of 2012 was due mainly to the events described in the Statement of Performance – IAS 1 (totalling EUR 63.3 million) and to the effects of the share buyback plan (expenses of EUR 4.3 million).

Financial Review – Net debt

At 30 June 2011, consolidated net debt was approximately EUR 113.1 million, as shown in the table below, which provides a breakdown of assets and liabilities and a comparison with the same figures at 31 December 2010: Net financial position Change

(EUR million)

Cash and cash equivalents 19.5 46.8 (27.3)Available-for-sale financial assets 8.3 13.0 (4.7)Financial receivables 5.1 1.6 3.5Non-current financial liabilities (142.2) (160.0) 17.8Current financial liabilities (3.8) (3.9) 0.1TOTAL (113.1) (102.5) (10.6)

June 30,2012December 31,2011

The change in consolidated net debt in the first half of 2012 was due to the combined effect of the factors below:

cash outlay of EUR 4.3 million for the share buyback plan payment of dividends to third parties totalling EUR 6.3 million operating cash flow (mainly comprising fees/revenues for services, net of current

expenses and investment costs, as well as the result of financial and tax management), broadly stable.

The company believes that the cash and cash equivalents and the other financial resources available are sufficient to meet the requirement relating to payment commitments already subscribed in funds, also taking into account the amounts expected to be called up/distributed by these funds. With regard to these residual commitments, totalling EUR 154.4 million at 30 June 2012, the company believes that the funds and credit lines currently available, as well as those that will be generated by its operational and financing activities, will enable the DeA Capital Group to meet the financing required for its investment activity and to manage working capital and repay debts when they become due. The following points relate to the individual items that make up the consolidated net cash position:

the item “Cash and cash equivalents” relates to cash and bank deposits, including interest accrued during the period, held in the name of Group companies

"available-for-sale financial assets" include investments to be regarded as a temporary use of cash

"non-current financial liabilities" mainly include:

- the use of EUR 80.0 million from the credit line provided by Mediobanca for the same amount (maturing on 16 December 2015 and subject to a variable rate of three-month Euribor + spread. At 30 June 2012, the covenant tests for this credit line were successfully passed (i.e. max. debt and debt to equity ratio)

- an amount of EUR 12.8 million relating to the medium-term loan taken out by IDeA FIMIT SGR with Banca Intermobiliare di Investimenti e Gestioni S.p.A. in 2009


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(maturing on 31 March 2014 with a floating rate of three-month Euribor + spread) for the purchase of units in the Omicron Plus fund

- EUR 0.9 million for the estimated future cost for the DeA Capital Group of exercising the pro-rata share of the put options on Santé shares held by the senior management of GDS

- EUR 1.6 million for the fair value estimate of payables for put options on minority interests in subsidiaries

- EUR 45.0 million, as part of the full acquisition of the FARE Holding group, in relation to the payment of the deferred purchase price, and the earn-out that DeA Capital anticipates paying


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6. Other information

Main risks and uncertainties to which the parent company and consolidated Group companies are exposed

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

The risks set out below consider the characteristics of the market and the operations of parent company DeA Capital S.p.A. and the companies included in the Group’s consolidated financial statements, as well as the periodic monitoring conducted partly through the regulatory policies adopted by the Group. There could, however, be risks that are currently unidentified or not considered significant that could have an impact on the Group's operations.

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

A.1. Risks relating to general economic conditions

The operating performance and financial position of the DeA Capital Group are affected by the various factors that make up the macro-economic environment, including increases or decreases in GDP, investor and consumer confidence, interest rates, inflation, the costs of raw materials and unemployment.

The ability to meet medium- to long-term objectives could be affected by general economic performance, which could slow the development of sectors the Group has invested in, and at the same time, the business of the investee companies.

A.2. Socio-political events

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

A.3. Regulatory changes

Many Group companies conduct their operations in highly regulated sectors and markets. Any changes to or developments in the legislative or regulatory framework that affect the costs and revenues structure of investee companies or the tax regime applied, could have negative effects on the Group’s financial results, and necessitate changes in the Group’s strategy.

To combat this risk, the Group has established procedures to constantly monitor sector regulation and any changes thereto, in order to seize business opportunities and respond to any changes in the prevailing legislation and regulations in good time.


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A.4. Performance of the financial markets

The company’s ability to meet its strategic and management objectives could depend on the performance of public markets. A negative trend on the public markets could have an effect on the private equity sector in general, making investment and divestment transactions more complex, and on the Group’s capacity to increase the fair value of investments in particular.

The value of investments held directly or indirectly through funds in which the company has invested could be affected by factors such as comparable transactions concluded on the market, sector multiples and market volatility.

These factors that cannot be directly controlled by the Group are constantly monitored in order to identify appropriate response strategies that involve both the provision of guidance for the management of Group companies, and the investment and value enhancement strategy for the assets held.

A.5. Exchange rates

Holding investments in currencies other than the euro exposes the Group to changes in exchange rates between currencies.

The investment in Kenan Investments is managed as a special case, since although it was made in euro, the underlying asset is expressed in Turkish lira. Taking into account the time horizon of the investment, it is believed that the expected return on the investment is able to absorb any devaluation of the underlying currency, in line with the outlook for the currency.

A.6. Interest rates Ongoing financing operations that are subject to variable interest rates could expose the Group to an increase in related financial charges, in the event that the reference interest rates rise significantly.

DeA Capital S.p.A. has established appropriate strategies to hedge against the risk of fluctuations in interest rates. Given the partial hedge of the underlying, the company classifies these strategies as speculative instruments, even though they are put in place for hedging purposes.

At the same time, it should be remembered that changes in interest rates can influence the outcomes of the impairment tests carried out by affecting the calculation of cash flow discount rates. B. Strategic risks

B.1. Concentration of the Private Equity investment portfolio

The private equity investment strategy adopted by the Group includes:

- direct investments (in equity investments) - indirect investments (in funds)


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

To address these risk scenarios, the Group pursues an asset allocation strategy aimed at creating a balanced portfolio with a moderate risk profile.

Furthermore, the combination of direct and indirect investments, which, by their nature, guarantee a high level of diversification, helps reduce the level of asset concentration.

B.2. Concentration of Alternative Asset Management activities In Alternative Asset Management, in which the Group is mainly active through the companies IDeA Capital Funds SGR and IDeA FIMIT SGR, events could arise as a result of excessive concentration that would hinder the achievement of the level of expected returns. These events could be due to:

Private equity/absolute return funds

o concentration of the management activities of asset management companies across a limited number of funds, in the event that one or more funds decides to cancel its asset management mandate

o concentration of the financial resources of the funds managed in a limited number of sectors and/or geographical areas, in the event of currency, systemic or sector crises

o for closed funds, concentration of the commitment across just a few subscribers, in the event of a counterparty experiencing financial difficulties

Real estate funds

o concentration of real estate present in the portfolio of managed funds in a few cities and/or in limited types of property (management/commercial), in the event of a crisis on the property market concerned

o concentration in respect of certain important tenants, in the event that these withdraw from the rental contracts, which could lead to a vacancy rate that has a negative impact on the funds' financial results and the valuation of the property managed

o concentration of the maturities of numerous real estate funds within a narrow timeframe, with related high availability of property on the market, leading to a decrease in property values and an increase in selling times

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

B.3. Key resources (governance/organisation) The success of the DeA Capital Group depends to a large extent on its executive directors and key management figures, their ability to efficiently manage the business and the normal activities of individual Group companies, as well as knowledge of the market and the professional relationships established.

The departure of one or more of these key resources, without a suitable replacement being found, as well as an inability to attract and retain new and qualified resources, could impact growth targets and have a negative effect on the Group’s activities and financial results.

To mitigate this risk, the Group has put in place HR management policies that correspond closely to the needs of the business, and incentive policies that are periodically reviewed, in


50

light of, among other things, the general economic climate and the results achieved by the Group.

C. Operating risks

C.1. Investment operations

Investment operations conducted by the Group are subject to the risks typical of private equity activities, such as an accurate valuation of the target company and the nature of the transactions carried out, which require the acquisition of strategic shareholdings, but not controlling interests, governed by appropriate shareholders’ agreements. The Group has implemented a structured process of due diligence on target companies, involving the different levels of group management concerned and the careful definition of shareholders’ agreements in order to conclude agreements in line with the investment strategy and the risk profile chosen by the Group.

C.2. Compliance with covenants

Some investment operations were concluded using financial leverage to invest in the target companies. For financing contracts signed by investee companies, often accompanied by real guarantees, specific covenants are in place, failure to comply with which could necessitate recapitalisation operations for those investee companies and lead to an increase in financial charges relating to debt refinancing. Failure to comply with covenants attached to loans could have negative effects on both the financial situation and operations of investee companies, and on the value of the investment. The Group constantly monitors the significant reference parameters for the financial obligations taken on by investee companies, in order to identify any unexpected variance in good time.

C.3. Divestment operations

As a general rule, the Group invests over a medium-/long-term time horizon, normally three to six years for investments made through the acquisition of direct shareholdings in companies or up to ten years for investments made through funds. Over the investment management period, external situations could arise that might have a significant impact on the operating results of the investee companies, and consequently on the value of the investment itself. Furthermore, in the case of co-investment, guiding the management of an investee company could prove problematic or unfeasible, and it may ultimately prove impossible to dispose of the stakes held owing to lock-up clauses. The divestment strategy could therefore be negatively affected by various factors, some of which cannot be foreseen at the time the investments are made. There is therefore no guarantee that expected earnings will be realised given the risks resulting from the investments made. To combat these risk situations, the Group has defined a process to monitor the performance of its investee companies, facilitated by its representation on the management bodies of significant investee companies, with a view to identifying any critical situations in good time.


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C.4. Funding risk

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


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Transactions with parent companies, subsidiaries and related parties

Transactions with related parties, including intercompany transactions, were typical, usual transactions that are part of the normal business activities of Group companies. Such transactions are concluded at standard market terms for the nature of the goods and/or services offered. As required by Consob Communication of 28 July 2006, information on related-party transactions is presented in the appropriate section of the notes to the summary consolidated half-year financial statements at 30 June 2012.

Other information At 30 June 2012, the Group had 174 employees (167 at the end of 2011), including 35 senior managers, 51 middle managers and 88 clerical staff. Broken down by business area, 155 of these worked in Alternative Asset Management and 19 in Private Equity Investment/the holding company. These staff levels do not include personnel on secondment from the parent company De Agostini S.p.A. In this regard, the company signed a service agreement with the controlling shareholder, De Agostini S.p.A., for the latter to provide operating services in the administration, finance, control, legal, corporate and tax areas. This agreement, which is renewable annually, is priced at market rates, and is intended to allow the company to maintain a streamlined organisational structure in keeping with its development policy, and at the same time to obtain adequate operational support. DeA Capital S.p.A. and IDeA Capital Funds SGR have adopted the national tax consolidation scheme of the B&D Group (the Group headed by B&D Holding di Marco Drago e C. S.a.p.a.). This option was exercised jointly by each of the two companies and by B&D Holding di Marco Drago e C. S.a.p.a. by signing the "Regulation for participation in the national tax consolidation scheme for companies in the De Agostini Group" and providing notification of this option to the tax authorities pursuant to the procedures and terms and conditions set out by law. As regards DeA Capital S.p.A., the option, which was renewed in 2011, is irrevocable for the three-year period of 2011-2013 unless the requirements for applying the scheme are not met; with reference to IDeA Capital Funds SGR, the option was subscribed during this year with reference to the three-year period of 2012-2014. With regard to the regulatory requirements set out in art. 36 of the Market Regulation on conditions for the listing of parent companies of companies formed or regulated by laws of non-EU countries and of significant importance in the consolidated financial statements, it is hereby noted that no Group company falls within the scope of the above-mentioned provision. Furthermore, conditions prohibiting listing pursuant to art. 37 of the Market Regulation relating to companies subject to the management and coordination of other parties do not apply.


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Summary consolidated half-year financial statements for the period 1 January to 30 June 2012


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1. Consolidated Statement of Financial Position

(Euro thousand) Notes June 30,2012 December 31,2011

ASSETS

Non-current assetsIntangible and tangible assets

Goodwill 1a 210,113 210,134 Intangible assets 1b 112,564 119,648 Property, plant and equipment 1c 1,193 1,269

Total intangible and tangible assets 323,870 331,051 Investments

Investments valued at equity 2a 304,008 302,141 Other available-for-sale companies 2b 192,439 127,380 Available-for-sale funds 2c 167,160 159,673 Other avalaible-for-sale financial assets 2d 324 936

Total Investments 663,931 590,130 Other non-current assets

Deferred tax assets 2e 3,806 4,077 Loans and receivables 2f 1,845 1,632 Other non-current assets 2g 25,728 25,729

Total other non-current assets 31,379 31,438 Total non-current assets 1,019,180 952,619

Current assetsTrade receivables 3a 5,741 6,070 Available-for-sale financial assets 3b 8,301 13,075 Financial receivables 3c 3,257 1 Tax receivables from Parent companies 3d 7,187 5,929 Other tax receivables 3e 5,243 2,677 Other receivables 3f 5,918 6,128 Cash and cash equivalents 3g 19,496 46,764

Total current assets 55,143 80,644 Total current assets 55,143 80,644

Assets relating to joint ventures - - Held-for-sale assets - - TOTAL ASSETS 1,074,323 1,033,263

SHAREHOLDERS' EQUITY AND LIABILITIESSHAREHOLDERS' EQUITY

Net equity Group 728,283 669,045 Minority interests 4 133,261 134,324 Shareholders' equity 861,544 803,369

LIABILITIESNon-current liabilities 5a

Deferred tax liabilities 5b 27,252 40,506 Provisions for employee termination benefits 5b 2,656 2,127 Long term financial loans 5c 142,168 160,020

Total non-current liabilities 172,076 202,653 Current liabilities

Trade payables 6a 15,934 10,322 Payables to staff and social security organisations 6b 7,396 7,497 Current tax 6c 8,766 903 Other tax payables 6d 3,722 3,585 Other payables 6e 1,011 1,023 Short term financial loans 6f 3,874 3,911

Total current liabilities 40,703 27,241 Liabilities relating to joint ventures - - Held-for-sale liabilities - - TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 1,074,323 1,033,263 Pursuant to Consob Resolution 15519 of 27 July 2006, the impact of dealings with related parties on the balance sheet, income statement and cash flow statement is explained in the notes to the financial statements.


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2. Consolidated Income Statement

(Euro thousands) Notes

FirstHalf2012

FirstHalf2011

Alternative Asset Management fees 7a 39,948 17,986Profit/(loss) from equity investments valued at equity 7b 3,193 (11,174)Other investment income/expenses 7c 672 27,433Service revenue 7d 4,645 4,896Other revenues and income 215 172Personnel costs 8a (16,217) (9,702)Service costs 8b (14,052) (10,220)Depreciation, amortization and impairment 8c (7,740) (2,137)Other charges 9 (3,238) (970)Financial income 10 525 1,429Financial expenses 10 (5,485) (2,373)PROFIT/(LOSS) BEFORE TAXES 2,466 15,340Income tax 11 3,880 (5,258)PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS 6,346 10,082 Profit (Loss) from discontinued operations/held-for-sale assets 0 0PROFIT/(LOSS) FOR THE PERIOD 6,346 10,082 - Group share 1,290 9,331 - Non controlling interests 5,056 751

Earnings per share, basic (€) 12 0.005 0.032

Earnings per share, diluted (€) 12 0.005 0.032 Pursuant to Consob Resolution 15519 of 27 July 2006, the impact of dealings with related parties on the balance sheet, income statement and cash flow statement is explained in the notes to the financial statements.


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3. Statement of Comprehensive Income (Statement of Performance - IAS 1) Comprehensive income or the Statement of Performance (IAS 1), in which performance for the year is reported for the portion attributable to the Group including results posted directly to shareholders' equity, reflects a net positive balance of approximately EUR 63.3 million compared with a net positive balance of around EUR 38.5 million in the same period of 2011. Results posted directly to shareholders' equity in the first half of 2012 mainly relate to the increase in fair value of Kenan Investments/Migros (EUR 58.4 million) attributable to the adjustment of the valuation on the basis of the market value of Migros shares at 30 June 2012 of TRY 17.9 per share (compared with a figure of around TRY 12.6 per share implied in the valuation at 31 December 2011), as well as the update of the Turkish lira/Euro exchange rate.

(Euro thousands)

FirstHalf2012

FirstHalf2011

Profit/(loss) for the period (A) 6,346 10,082

Gains/(Losses) on fair value of available-for-sale financial assets 60,016 24,714

Share of other comprehensive income of associates 890 4,461

Other comprehensive income, net of tax (B) 60,906 29,175Total comprehensive income for the period (A)+(B) 67,252 39,257

Total comprehensive income attributable to: - Group Share 63,250 38,506 - Non Controlling Interests 4,002 751


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4. Consolidated Cash Flow Statement (direct method)

(Euro thousands)

FirstHalf2012

FirstHalf2011

CASH FLOW from operating activities

Investments in companies and funds (35,477) (25,475)Acquistions of subsidiaries net of cash acquired 0 0Capital reimbursements from funds 10,684 9,776Proceeds from the sale of investments 5,205 2,350Interest received 439 411Interest paid (1,633) (1,285)Cash distribution from investments 1,108 50,551Realised gains (losses) on exchange rate derivatives (344) (576)Taxes paid (5,878) (3,129)Taxes refunded 0 0Dividends received 0 270Management and performance fees received 40,550 16,864Revenues for services 5,357 5,132Operating expenses (34,346) (18,108)

Net cash flow from operating activities (14,335) 36,781

CASH FLOW from investment activities

Acquisition of property, plant and equipment (236) (163)Sale of property, plant and equipment 0 0Purchase of licenses (62) 0

Net cash flow from investing activities (298) (163)

CASH FLOW from investing activities

Acquisition of financial assets (1,457) (8,708)Sale of financial assets 0 1,296Share capital issued 0 0Share capital issued:stock option plan 0 0Own shares acquired (4,274) (14,563)Own shares sold 0 0Interest from financial activities 0 0Dividends paid (6,290) (2,700)Warrant 0 0Managers Loan 0 1,683Bank loan (614) 0

Net cash flow from financing activities (12,635) (22,992)

CHANGE IN CASH AND CASH EQUIVALENTS (27,268) 13,626

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 46,764 86,517Cash and cash equivalents relating to held-for-sale assets 0 0Cash and cash equivalents at beginning of period 46,764 86,517

0 7,101

CASH AND CASH EQUIVALENTS AT END OF PERIOD 19,496 107,244

Held-for-sale assets and minority interests 0 0

CASH AND CASH EQUIVALENTS AT END OF PERIOD 19,496 107,244

EFFECT OF CHANGE IN BASIS OF CONSOLIDATION: CASH AND CASH EQUIVALENTS

Pursuant to Consob Resolution 15519 of 27 July 2006, the impact of dealings with related parties on the balance sheet, income statement and cash flow statement is explained in the notes to the financial statements.


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5. Statement of Changes in Consolidated Shareholders’ Equity

(EUR thousand)Share

Capital

Treasury share reserve,capital

reserve, retained earnings

Fair Value reserve

Profit (loss) for the Group

Total Group

Non controlling

interests

Consolidated net equity

Total at 31.12.10 294,013 466,567 29,723 (26,348) 763,955 552 764,507Allocation of 2010 net profit 0 (26,348) 0 26,348 0 0 0Cost of stock options 0 266 0 0 266 0 266Shares transferred for IDeA acquisition 4,807 1,036 0 0 5,843 0 5,843Purchase of own shares (9,945) (4,618) (14,563) 0 (14,563)Pro-rata bonus shares of Santè 0 387 0 0 387 0 387Effect of diluting Santè in GDS 0 (2,210) 0 0 (2,210) 0 (2,210)Other changes 0 57 0 0 57 376 433Put option on 30% of FARE Holding 0 0 0 0 0 (891) (891)Total comprehensive profit/(loss) 0 0 29,175 9,331 38,506 751 39,257

Total at 30.06.11 288,875 435,137 58,898 9,331 792,241 788 793,029

(EUR thousand)Share

Capital

Treasury share reserve,capital

reserve, retained earnings

Fair Value reserve

Profit (loss) for the Group

Total Group

Non controlling

interests

Consolidated net equity

Total at 31.12.11 280,697 428,793 3,132 (43,577) 669,045 134,324 803,369Allocation of 2011 net profit 0 (43,577) 0 43,577 0 0 0Cost of stock options 0 476 0 0 476 0 476Purchase of own shares (3,186) (1,088) (4,274) 0 (4,274)Other changes 0 (214) 0 0 (214) (5,065) (5,279)Total comprehensive profit/(loss) 0 0 61,960 1,290 63,250 4,002 67,252

Total at 30.06.12 277,511 384,390 65,092 1,290 728,283 133,261 861,544


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6. Notes to the financial statements

Structure and content of the summary consolidated half-year financial statements to 30 June 2012 The summary consolidated half-year financial statements to 30 June 2012 comprise the Consolidated Balance Sheet, Consolidated Income Statement, Consolidated Statement of Comprehensive Income (Statement of Performance), Consolidated Cash Flow Statement, Statement of Changes in Consolidated Shareholders' Equity and these notes to the accounts. They are also accompanied by the Interim Report on Operations and a Statement of responsibilities for accounts pursuant to art. 154-bis of Legislative Decree 58/98. Information regarding the company’s operating performance refers to the first half of 2012 and the first half of 2011; information relating to the balance sheet refers to 30 June 2012 and 31 December 2011. The consolidated financial statements have the same format as those presented in the financial statements to 31 December 2011. The Consolidated Balance Sheet provides a breakdown of current and non-current assets and liabilities with separate reporting for those resulting from discontinued or held-for-sale operations. The Consolidated Income Statement breaks down costs and revenues based on their nature. The Consolidated Cash Flow Statement is prepared using the "direct method". Unless otherwise indicated, all tables and figures included in these notes to the accounts are reported in EUR thousand. Statement of compliance with accounting standards The summary consolidated half-year financial statements to 30 June 2012 were prepared in accordance with the principle that the business is a going concern, and with the International Accounting Standards adopted by the European Union and approved by the date this document was prepared (the International Accounting Standards, or individually, IAS/IFRS, or collectively IFRS - International Financial Reporting Standards) and in accordance with art. 154-ter of Legislative Decree 58/1998 that implements the "Transparency Directive". "IFRS" also means all interpretations of the International Financial Reporting Interpretations Committee (IFRIC), including those previously issued by the Standing Interpretations Committee (SIC), and approved by the European Union. The summary consolidated half-year financial statements to 30 June 2012 are prepared in summary format in accordance with IAS 34 (Interim financial reporting). They therefore do not contain all of the information required for the year-end consolidated financial statements, and they must be read in conjunction with the consolidated financial statements prepared for the year ended 31 December 2011. As allowed by IAS/IFRS, the preparation of the summary consolidated half-year financial statements to 30 June 2012 required the use of significant estimates by the company's management, especially with regard to fair value assessments of the investment portfolio (shareholdings and funds). Such fair value assessments were determined by directors based on their best judgement and estimates using the knowledge and evidence available at the time the summary consolidated half-year financial statements to 30 June 2012 were prepared. However, due to objective difficulties in making assessments and the absence of a liquid market, the values assigned to such assets could differ, perhaps significantly, from those that could be obtained by selling the assets. For a more complete description of the most significant assessment processes for the Group, see the consolidated financial statements to 31 December 2011.


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In accordance with the provisions of IAS/IFRS and current laws, the company authorised the publication of the Half-Year Report to 30 June 2012 by the legal deadline.

Accounting standards, amendments and interpretations applied for the first time The valuation criteria adopted on the basis of International Accounting Standards are consistent with the principle that the company is a going concern, and except as noted below, were not changed from those used in the preparation of the consolidated financial statements at 31 December 2011, to which reference should be made for additional details. The Group adopted the following amendments to the accounting standards for the first time from 1 January 2012. Amendments to IFRS 7 (Financial instruments: Disclosures On 7 October 2010, the IASB published the amendment to IFRS 7 (Disclosures – transfers of financial assets), which requires further information on transfers of financial assets. The changes to IFRS 7 aim to promote greater transparency in relation to the risks associated with transactions where, when a financial asset is transferred, the transferring company continues to be exposed, within certain limits, to risks associated with the derecognised financial asset (known as "continuing involvement"). Additional information is also required on significant transfers of financial assets at particular times (e.g. at the end of an accounting period). The adoption of this amendment did not have any material impact on the valuation of items in the financial statements and in the related disclosure requirements. Future accounting standards, amendments and interpretations Accounting standards, amendments and interpretations that are not yet applicable and have not been adopted in advance by the Group, but were approved for adoption in the European Union as of 31 July 2012. The International Accounting Standards, together with the interpretations and changes to existing IASB-approved accounting standards and interpretations that were ratified for adoption in the European Union on 31 July 2012, are as follows: IAS 1(Presentation of items of other comprehensive income) On 16 June 2011, the IASB issued amendments to IAS 1 (Presentation of items of other comprehensive income), which determine the grouping and components of the statement of comprehensive income according to whether or not they can be reclassified to the income statement. The amendments to IAS 1 must be applied in the financial statements for periods starting from 1 July 2012 onwards.

Amendments to IAS 19 (Employee benefits) On 16 June 2011, the IASB issued amendments to IAS 19 (Employee benefits) that introduce the obligation to recognise actuarial gains and losses in the statement of comprehensive income, removing the option of using the "corridor" method and requiring the recognition of actuarial gains and losses resulting from the revaluation of liabilities and assets in the statement of comprehensive income. The amendments to IAS 19 must be applied in the financial statements for periods starting from 1 July 2012 onwards.


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We do not anticipate that the potential adoption of the standards and interpretations noted above will have a material impact on the valuation of the Group's assets, liabilities, costs and revenues.

Accounting principles, amendments and interpretations that are not yet applicable, have not been adopted in advance by the Group and not yet approved for adoption in the European Union as of 31 July 2012 The International Accounting Standards, interpretations and changes to existing IASB-approved accounting standards and interpretations that had not been ratified for adoption in the European Union as of 31 July 2012 are as follows: Amendments to IAS 12 (Income taxes) On 20 December 2010, the IASB published a number of amendments to IAS 12 (Income taxes), which clarify how to calculate deferred taxes on real estate investment measured at fair value. To provide a simplified approach, the amendments introduce the presumption, when calculating deferred taxes, that the carrying amount of the underlying asset will be recovered entirely by sale, unless there is clear evidence that it can be recovered through use. As a result of these changes, the document SIC 21 (Income Taxes - recovery of revalued, non-depreciable assets) was withdrawn at the same time. The entire contents of this document are now covered in IAS 12. The amendments to IAS 12 are awaiting ratification by the European Commission. IFRS 9 (Financial instruments) On 12 November 2009, the IASB issued the first part of IFRS 9, which only amends the requirements for classifying and valuing the financial assets that are currently specified in IAS 39; once completed, it will fully replace IAS 39. Financial liabilities do not fall within the scope of IFRS 9, since the IASB intends to go into greater detail on aspects related to the inclusion of own credit risk in the fair value measurement of financial liabilities. Thus, financial liabilities continue to fall within the scope of IAS 39.

The endorsement process for IFRS 9 is currently on hold, and this standard is not applicable in the EU, ahead of the European Commission's full assessment of the plan to completely replace IAS 39.

IFRS 10 (Consolidated financial statements) On 12 May 2011, the IASB published the accounting standard IFRS 10 (Consolidated financial statements), which is intended to replace IAS 27 (Consolidated and separate financial statements) and SIC 12 (Consolidation – special purpose entities). The new standard sets out a single model of consolidation that identifies control as the basis for the consolidation of all types of entities. The new standard defines the concept of control on the basis of the concurrence of three essential elements:

power over the investee company exposure to or the right to variable returns from its involvement with the investee

company the ability to use that power over the investee to affect the amount of the investor's

returns


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The standard will come into force from 1 January 2013, but can be applied in advance. However, the standard is not yet applicable in the European Union because it has not yet been approved by the EU. IFRS 11 (Joint arrangements) On 12 May 2011, the IASB published the accounting standard IFRS 11 (Joint arrangements), which is intended to replace IAS 31 (Interests in joint ventures) and SIC 13 (Jointly controlled entities – non-monetary contributions by venturers). The new standard governs the principles for reporting all joint arrangements. These are divided into two categories, according to the economic substance of the arrangements between the parties:

joint operations, whereby the parties to the arrangement acquire rights to certain assets and assume obligations for certain liabilities

joint ventures, whereby the parties have rights to the net value of a set of jointly controlled assets and liabilities.

In the first case, the investor recognises the assets and liabilities acquired (along with the associated income and expense) according to the IAS/IFRS standards governing the individual elements; in the second, the pro-rata interest in the joint venture is recognised using the equity method. The standard will come into force from 1 January 2013, but can be applied in advance. However, the standard is not yet applicable in the European Union because it has not yet been approved by the EU. IFRS 12 (Disclosure of interests in other entities) On 12 May 2011, the IASB published the accounting standard IFRS 12 (Disclosure of interests in other entities) regarding the information to be provided in the financial statements on interests in other entities, including subsidiaries, associates and joint ventures. This information must enable users of the financial statements to understand the nature of the risks associated with the investments in strategic shareholdings that will form part of the company's assets over the long term. The information must also indicate the effects of these investments on financial position, financial performance and cash flows. The standard will come into force from 1 January 2013, but can be applied in advance. However, the standard is not yet applicable in the European Union because it has not yet been approved by the EU. IFRS 13 (Fair value measurement) On 12 May 2011, the IASB published the accounting standard IFRS 13 (Fair value measurement), which provides a single definition of the concept of fair value and a framework for how it should be applied when another IFRS permits or requires its use. More specifically, IFRS 13 sets out a clear definition of fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (or exit price). This definition highlights that fair value is a measure that must be based on the market and not the valuing entity. In other terms, the measurement process must take into account the assumptions that market participants would use when pricing the asset or liability in current conditions, including assumptions on risk. As a consequence, the intention to hold an asset or cancel or fail to meet a liability is of no relevance in measuring fair value. The standard will come into force from 1 January 2013, but can be applied in advance. However, the standard is not yet applicable in the European Union because it has not yet been approved by the EU.


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Amendments to IAS 32 (Offsetting financial assets and financial liabilities) On 16 December 2011, the IASB published a number of amendments to IAS 32 (Financial instruments: presentation), clarifying how certain criteria for offsetting financial assets and liabilities, as set out in IAS 32, should be applied. The amendments, which are awaiting ratification by the European Commission, must be applied from 1 January 2014. Amendments to IFRS 7 (Disclosure – offsetting financial assets and financial liabilities) On 16 December 2011, the IASB published a number of amendments to IFRS 7 (Financial instruments: additional information). The amendment requires information to be disclosed on the effects or potential effects of contracts to offset financial assets and liabilities on the statement of financial position. The amendments to IFRS 7, which are awaiting ratification by the European Commission, must be applied from 1 January 2013. Amendments to IFRS 1 (Government Loans) On 13 March 2012, the IASB published an amendment to IFRS 1 (First-time adoption of International Financial Reporting Standards) regarding government loans taken out at interest rates lower than market rates. The amendment introduced the option for entities that are adopting IFRS for the first time to use the same simplified rules as those permitted to entities that made the transition to International accounting standards in 2005. This means they do not have to change the carrying value calculated according to previous accounting standards for loans already taken out at the date of transition to international accounting standards. The amendments to IFRS 1, which are awaiting ratification by the European Commission, must be applied in the financial statements of periods starting from 1 July 2013 onwards. They may also be applied in advance. Improvements to IFRS On 17 May 2012, the IASB published its “Annual Improvements to IFRS – 2009-2011 Cycle”, detailing the minor changes to be made to existing accounting standards. The document contains a series of improvements to five accounting standards (IFRS 1, IAS 1, IAS 16, IAS 32 and IAS 34). The amendments will apply to financial statements for periods from 1 January 2013 onwards. It may also be applied in advance. Transition guidance On 28 June 2012, the IASB published “Consolidated Financial Statements, Joint Arrangements and Disclosure of Interests in Other Entities: Transition Guidance” (Amendments to IFRS 10, IFRS 11 and IFRS 12). The amendment clarifies the transitional provisions of IFRS 10. The amendments, which are awaiting ratification by the European Commission, must be applied from 1 January 2013.

* * *


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The accounting standards and criteria used in the summary consolidated half-year financial statements to 30 June 2012 may not coincide with IFRS provisions that will come into effect on 31 December 2012 as a result of the future position of the European Commission regarding the approval of International Accounting Standards or the issue of new standards, interpretations or implementation guides by the International Accounting Standards Board (IASB) or International Financial Reporting Interpretation Committee (IFRIC).

* * *

Use of estimates and assumptions in the preparation of the summary consolidated half-year financial statements to 30 June 2012. The company must make assessments, estimates and assumptions that affect the application of accounting principles and the amounts of assets, liabilities, costs and revenues recorded in the financial statements. Estimates and related assumptions are based on past experience and other factors deemed reasonable in the case concerned; these have been used to estimate the carrying value of assets and liabilities that cannot be easily obtained from other sources. Since these are estimates, the results obtained should not necessarily be considered definitive. These estimates and assumptions are reviewed regularly. Any changes resulting from revisions to accounting estimates are recorded in the period when the revision is made if such revisions only affect that period. If the revision affects current and future periods, the change is recorded in the period in which the revision is made and in related future periods. With the understanding that the use of reasonable estimates is an essential part of preparing these summary consolidated half-year financial statements, the items where the use of estimates in the summary consolidated half-year financial statements is most prevalent are stated below:

• valuation of financial assets not listed in active markets • valuation of financial assets listed in active markets, but considered illiquid on the reference market

The process described above is made particularly complicated by the significant levels of volatility in the current macroeconomic and market environment, which affect the main financial indicators that have a bearing on the above valuations. An estimate may be adjusted as a result of changes in the circumstances on which it was based, or as a result of new information. Any change in the estimate is applied prospectively and has an impact on the income statement in the period in which the change occurred and potentially on income statements in future periods.

* * * Basis of consolidation As a result of the events described in the Interim Report on Operations, the basis of consolidation at 30 June 2012 changed compared with 31 December 2011 as a result of:

the merger by incorporation of IDeA Alternative Investments into DeA Capital S.p.A., completed on 1 January 2012

the acquisition of full control of IFIM on 11 April 2012 the acquisition of full control of FARE Holding on 24 April 2012, at which time FARE

Holding changed its name to DeA Capital Real Estate, and its subsidiaries FARE and FAI changed their names to IDeA Servizi Immobiliari and IDeA Agency.


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As a result, at 30 June 2012, the following companies formed part of the DeA Capital Group's basis of consolidation: Company Registered office Currency Share capital % holding Consolidation methodDeA Capital S.p.A. Milan, Italy Euro 306,612,100 HoldingDeA Capital Investments S.A. Luxembourg Euro 515,992,516 100% Full consolidation (IAS 27)Santè S.A. Luxembourg Euro 99,922,400 42.89% Equity accounted (IAS 28)Sigla Luxembourg S.A. Luxembourg Euro 482,684 41.39% Equity accounted (IAS 28)IDeA Capital Funds SGR S.p.A. Milan, Italy Euro 1,200,000 100.00% Full consolidation (IAS 27)Soprarno SGR S.p.A. Florence, Italy Euro 2,000,000 65.00% Full consolidation (IAS 27)IDeA SIM S.p.A. Milan, Italy Euro 120,000 65.00% Full consolidation (IAS 27)IDeA OF I Milan, Italy Euro - 46.99% Equity accounted (IAS 28)Atlantic Value Added Rome, Italy Euro - 27.27% Equity accounted (IAS 28)DeA Capital Real Estate S.p.A. Milan, Italy Euro 600,000 100.00% Full consolidation (IAS 27)IDeA Servizi Immobiliari S.p.A. Milan, Italy Euro 500,000 100.00% Full consolidation (IAS 27)IDeA Agency S.r.l. Milan, Italy Euro 105,000 100.00% Full consolidation (IAS 27)I.F.IM. S.r.l. Milan, Italy Euro 10,000 100.00% Full consolidation (IAS 27)IDeA FIMIT SGR S.p.A. Rome, Italy Euro 16,757,574 61.30% Full consolidation (IAS 27)Harvip Investimenti S.p.A. Milan, Italy Euro 3,150,000 25.00% Equity accounted (IAS 28) The shares held in Santé are subject to a lien in favour of the entities providing credit lines available for companies forming part of the control structure of Générale de Santé (i.e. Santé and Santé Développement Europe). The above list meets the requirements of Consob Resolution 11971 of 14 May 1999 and subsequent amendments (art. 126 of the Regulation).


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Notes to the Consolidated Balance Sheet NON-CURRENT ASSETS Non-current assets totaled approximately EUR 1,019.2 million at 30 June 2012, compared with EUR 952.6 million at 31 December 2011. 1a - Goodwill

Goodwill, which amounted to EUR 210.1 million at 30 June 2012 (broadly unchanged from 31 December 2011), relates to the acquisitions of FARE Holding (now called DeA Capital Real Estate), IDeA Capital Funds SGR, and IFIM / FIMIT SGR. IAS 36 requires that goodwill, and hence the cash-generating unit (CGU), or groups of CGUs to which it has been allocated, is subject to impairment tests at least annually and that certain qualitative and quantitative indicators of impairment are monitored continuously to check for the existence of conditions that would require impairment testing to be carried out more frequently Note that with regard to the position at 30 June 2012, the qualitative and quantitative analysis conducted did not reveal any issues that would require impairment procedures to be instigated. Consequently, the above-mentioned process will be applied annually for the preparation of the 2012 financial statements. Specifically, the DeA Capital stock’s performance reveals that the company’s market capitalisation is significantly less than its net asset value (NAV); with regard to the value of goodwill, however, this situation is not considered to be a specific indicator of impairment as it is considered that the reason for the difference is due to the trend on the financial markets. 1b - Intangible assets Intangible assets, and changes in their balances, are indicated in the table below.

(Euro thousand)Historical

cost at Jan.1, 2012

Cum. amort.& prov.charges

at Jan. 1, 2012

Net book value at

Jan.1, 2012

Historical cost at June

30, 2012

Cum. amort.& prov.charges at June 30,

2012

Net book value at June

30, 2012

Concessions, licence fees & trademarks 3,337 (1,132) 2,205 3,838 (1,728) 2,110Computer software & other licen 137 (24) 113 153 (51) 102Development costs 229 (160) 69 229 (172) 57Other intangible assets 141,241 (23,980) 117,261 141,241 (30,946) 110,295Total 144,944 (25,296) 119,648 145,461 (32,897) 112,564

(Dati in migliaia di Euro)Balance at

Jan.1, 2012Additions Amortization

Change in consolidation

area

Balance at June 30, 2012

Concessions, licence fees & trademarks 2,205 363 (458) 0 2,110Computer software & other licen 113 6 (17) 0 102Development costs 69 0 (12) 0 57Other intangible assets 117,261 0 (6,966) 0 110,295Total 119,648 369 (7,453) 0 112,564 Other intangible assets mainly relate to customer contracts, which arise from the allocation of the costs of the business combinations for the acquisition of FARE Holding, IDeA Capital Funds SGR and FIMIT SGR, and are recorded separately from goodwill in accordance with IFRS 3, having verified that: - they are identifiable separately from goodwill


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- their fair value can be reliably and realistically quantified - they arise from transferable contractual or legal rights 1c - Tangible assets

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

(Euro thousand)Historical

cost at Jan.1, 2012

Cum. amort.& prov.charges

at Jan. 1, 2012

Net book value at

Jan.1, 2012

Historical cost at June

30, 2012

Cum. amort.& prov.charges at June 30,

2012

Net book value at June

30, 2012

Plant 312 (264) 48 315 (280) 35Furniture and fixtures 1,408 (906) 502 1,349 (943) 406Computer and office equipment 1,333 (983) 350 1,374 (1,049) 325Motor vehicles 451 (193) 258 451 (240) 211Other tangible assets 372 (261) 111 512 (296) 216Total 3,876 (2,607) 1,269 4,001 (2,808) 1,193

(Euro thousand)Balance at

Jan.1, 2012Additions Amortization Decrease

Change in consolidation

area

Balance at June 30, 2012

Plant 48 4 (11) (6) 0 35Furniture and fixtures 502 8 (84) (20) 0 406Computer and office equipment 350 64 (89) 0 0 325Motor vehicles 258 0 (46) (1) 0 211Other tangible assets 111 141 (36) 0 0 216Total 1,269 217 (266) (27) 0 1,193 Ordinary depreciation rates, which are based on the use of assets by category, are 20% for specific plant assets, 12% for furniture and furnishings, and 20% for equipment and electronic office machinery. 2 - Financial investments and other non-current assets Financial investments in shareholdings and funds are the Group's typical assets. The total value of these investments and other non-current assets rose from EUR 621.6 million at end-2011 to EUR 695.3 million at 30 June 2012. 2a - Investments in associates

This item, which totaled EUR 304.0 million at 30 June 2012 (EUR 302.1 million at 31 December 2011), relates to the assets below:

- the investment in Santé is reported in the consolidated financial statements to 30 June 2012 at approximately EUR 233.7 million (EUR 235.2 million at 31 December 2011). The decrease compared with 31 December 2011 is due to the combined effect of the profit for the period of EUR 1.2 million, the increase in the fair value of the interest rate swaps taken out to hedge interest rate risk on debt exposure (EUR 0.5 million) and the payment of dividends (EUR 3.2 million).

- the investment in Sigla Luxembourg was worth approximately EUR 21.7 million in the

consolidated financial statements to 30 June 2012. The change in value compared with the figure at 31 December 2011 relates to the profit for the period.

- the units held in IDeA OF I were reported in the consolidated financial statements to 30

June 2012 at EUR 40.3 million. The change in value compared with the figure at 31 December 2011 is attributable to capital calls of EUR 0.5 million, an increase of EUR 0.4 million in the delta fair value and pro-rata net profit for the period of EUR 2.6 million.


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- the units held in the AVA fund were reported in the consolidated financial statements to

30 June 2012 at approximately EUR 7.4 million. The change in value compared with the figure at 31 December 2011 relates to the profit for the period.

- the investment in Harvip Investimenti S.p.A was worth around EUR 0.9 million in the consolidated financial statements to 30 June 2012. The change in value compared with the figure at 31 December 2111 was due to the profit for the period.

The table below provides details of investments in associates at 30 June 2012, by area of activity.

(Euro million)Private Equity

InvestmentAlternative Asset

ManagementTotal

Santè 233.7 0.0 233.7Sigla 21.7 0.0 21.7IDeA OF I 40.3 0.0 40.3Fondo AVA 2.4 5.0 7.4Harvip Investimenti S.p.A. 0.9 0.0 0.9Total 299.0 5.0 304.0 2b – Investments in other companies – available for sale

At 30 June 2012, the DeA Capital Group was a minority shareholder of Kenan Investments (the indirect parent company of Migros), Stepstone, Alkimis SGR, two US companies operating in the biotech and printed electronics sectors, TLcom Capital LLP (management company under English law) and TLcom II Founder Partner SLP (limited partnership under English law). The total amount reported for these equity investments in the consolidated financial statements to 30 June 2012 was approximately EUR 192.4 million, compared with EUR 127.4 million at 31 December 2011. The investment in Kenan Investments was recorded in the consolidated financial statements to 30 June 2012 at EUR 192.1 million (compared with EUR 127.1 million at 31 December 2011), taking into account the net increase in fair value of EUR 65 million in the first half of 2012. The increase is due to the rise in the value of Migros shares (TRY 17.9 per share at 30 June 2012, compared with approximately TRY 12.6 per share at 31 December 2011), and the strengthening of the Turkish lira against the euro (2.28 TRY/EUR at 30 June 2012 versus 2.44 TRY/EUR at 31 December 2011). The effect on the NAV of the DeA Capital Group of this change in fair value was partially offset by the allocation of EUR 9.7 million in carried interest, which is to be paid to the lead investor, BC Partners, depending on the overall capital gain. This was partly recognised in the income statement (EUR 3.0 million) and partly in the fair value reserve (EUR 6.7 million).

The table below provides details of equity investments in other companies at 30 June 2012, by area of activity.



ManagementTotal

Kenan Investments 192.1 0.0 192.1Partecipazioni minori 0.3 0.0 0.3Total 192.4 0.0 192.4


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2c - Funds – available for sale At the end of the first half of 2012, the DeA Capital Group reported investments in units of two funds of funds (IDeA I FoF and ICF II), one theme fund (IDeA EESS), 11 real estate funds and units of seven venture capital funds. These are reported at a total value of approximately EUR 167.2 million in the consolidated financial statements corresponding to their estimated fair value at 30 June 2012. The table below shows changes to the funds during the first half of 2012.

(EUR thousand)Balance at

1.1.2012Increase

(Capital call)

Decrease (Capital

Distribution)Impairment

Fair Value Adjustment

Translation effect

Balanca at 30.06.2012

Venture Capital Funds 12,234 0 (494) (327) (125) 359 11,647

IDeA I FoF 96,234 10,237 (7,426) 0 5,542 0 104,586

ICF II 9,322 4,529 (1,314) 0 253 0 12,790

IDeA EESS 19 858 0 0 (182) 0 695

Atlantic 1 Fund 2,603 0 (8) 0 (673) 0 1,922

Atlantic 2 Fund 2,691 0 (36) (999) 0 0 1,656

Alpha Immobiliare Fund 2,359 0 0 0 (382) 0 1,977

Gamma Immobiliare Fund 1,059 0 0 0 8 0 1,067

Beta Immobiliare Fund 2,150 0 0 0 (745) 0 1,405

Delta Immobiliare Fund 1,706 0 0 0 (666) 0 1,040

Omicron Plus Immobiliare Fund 20,699 0 (614) 0 (1,110) 0 18,975

Senior Fund 2,107 0 0 0 (112) 0 1,995

Conero Fund 6,268 0 0 0 (83) 0 6,185

Theta Immobiliare Fund 222 0 0 0 (9) 0 213

AGRIS Fund 0 1,000 0 0 6 0 1,006Total Funds 159,673 16,623 (9,892) (1,326) 1,722 359 167,160 The financial assets relating to units of funds managed by IDeA FIMIT SGR are considered long-term investments. This item includes: • mandatory investments (as stipulated by the Bank of Italy Regulation of 14 April 2005) in managed funds that are not reserved for qualified investors. The latter are to be held in the portfolio until the funds' maturity date. However, they were not classified as "held-to-maturity assets" since they are variable rate financial instruments. It was therefore decided to record them in this "residual" category in accordance with IAS 39, which specifies that they should be measured at fair value with a balancing entry in an appropriate unavailable reserve pursuant to Legislative Decree 38/2005 • optional investments in managed funds that for qualified and other investors.

The table below provides a breakdown of the funds in the portfolio at 30 June 2012 by area of activity.



ManagementTotal

Venture Capital Funds 11.6 0.0 11.6IDeA I FoF 104.6 0.0 104.6ICF II 12.7 0.1 12.8IDeA EESS 0.7 0.0 0.7Fondi IDeA FIMIT SGR 0.0 37.5 37.5Total 129.6 37.6 167.2


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2d - Other available-for-sale financial assets At 30 June 2012, this item totaled EUR 0.3 million (compared with EUR 0.9 million at 31 December 2011) and includes two minority interests held by IDeA Servizi Immobiliari.

2e - Deferred taxes The balance on the item “deferred tax assets” comprises the value of deferred tax assets minus deferred tax liabilities, where they may be offset.

At 30 June 2012, deferred tax assets totaled EUR 3.8 million, compared with EUR 4.1 million at 31 December 2011.

No significant deferred tax income was allocated against the substantial tax losses reported by DeA Capital S.p.A. (approximately EUR 108.0 million to be reported without limitation, EUR 13.6 million transferred to the Group national consolidated tax scheme in the tax year 2010/2011, and EUR 4.1 million to cover losses generated in the first half of 2012 and transferred to the consolidated tax scheme) and by DeA Capital Investments (around EUR 170 million) as there was not enough evidence that sufficient taxable profit would be generated in future years against which such tax losses could be recovered.

2f - Loans and receivables This item totaled EUR 1.8 million at 30 June 2012, compared with EUR 1.6 million at 31 December 2011, and mainly relates to loans (EUR 1 million) to the senior management of GDS for the capital increase at Santé, which was completed in 2009.

2g – Other non-current assets This item, valued at EUR 25.7 million at 30 June 2012, is in line with the value at end-2011, and mainly refers to the receivable from the Beta Immobiliare Fund concerning the final variable commission. The calculation was done pursuant to the provisions of the operating regulations of the Beta Immobiliare fund, taking account of the NAV. This receivable corresponds to the portion of the overperformance commission accrued since the beginning of the fund’s operations that the asset management fund expects to receive. CURRENT ASSETS At 30 June 2012, current assets totaled EUR 55.1 million, compared with EUR 80.6 million at 31 June 2011. 3a - Trade receivables At 30 June 2012, receivables totaled EUR 5.7 million, compared with EUR 6.1 million at 31 December 2011. The item mainly includes receivables from the clients of IDeA Servizi Immobiliari (EUR 3.6 million) and IDeA FIMIT SGR (EUR 1.2 million). 3b - Available-for-sale financial assets At 30 June 2012 available-for-sale financial assets totaled EUR 8.3 million, versus EUR 13.1 million at 31 December 2011. The item includes investment to be regarded as a temporary use of cash. 3c - Financial receivables This item, which was EUR 3.3 million at 30 June 2012, mainly relates to the receivable from the subsidiary, Santé, for the payment of dividends approved. 3d – Tax receivables relating to the consolidated tax scheme This item amounted to EUR 7.2 million at 30 June 2012, compared with EUR 5.9 million at 31 December 2011. It included receivables relating to the national tax consolidation scheme for the Group headed by B&D Holding di Marco Drago e C. S.a.p.a. (the parent company of De Agostini S.p.A.). 3e – Other tax receivables At 30 June 2012, other receivables totaled EUR 5.2 million, compared with EUR 2.7 million at 31 December 2011. The item chiefly includes advance payments on IRAP (regional tax on manufacturing operations) and IRES (corporate income tax) to be reported.


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3f - Other receivables At 30 June 2012, these receivables totaled EUR 5.9 million, compared with EUR 6.1 million at 31 December 2011. This item mainly includes receivables for guarantee deposits, advances to suppliers and miscellaneous accrued income and deferred charges. The deferred charges of EUR 1.9 million reported by IDeA FIMIT SGR relate to the costs of drawing up a non-competition agreement with a former director of the company. Miscellaneous receivables reported by IDeA FIMIT SGR, totalling EUR 4.0 million, relate to costs incurred on plans to create and develop new real estate funds. The largest amount relates to costs incurred on a real estate contribution fund belonging for the Enel Group. »The costs concerned had been held under development assets to be determined, and at the end of 2011 the customer decided not to move forward with the project. IDeA FIMIT SGR is currently liaising with the Enel Group to determine the amount that the latter should be charged. 3g - Cash and cash equivalents (bank deposits and cash) At 30 June 2012, this item was EUR 19.5 million, compared with EUR 46.8 million at 31 December 2011. The overall increase of EUR 27.3 million was due to changes reported in the consolidated cash flow statement included above. SHAREHOLDERS' EQUITY 4 – Shareholders' equity At 30 June 2012, consolidated shareholders' equity totaled around EUR 861.5 million, including EUR 133.3 million pertaining to minorities, compared with EUR 803.4 million (of which EUR 134.3 relates to minorities) at 31 December 2011. The table below provides details of changes in the fair value reserve in the first half of 2012.


Jan. 1, 2012

Change in Fair Value

Tax effectBalance at

June 30, 2012

Direct Investments / Shareholdings (4,101) 57,173 772 53,844Venture capital funds and funds of funds 7,591 5,726 (1,718) 11,599First time adoption IFRS and other reserves (358) 10 (3) (351)Total 3,132 62,909 (949) 65,092 On 17 April 2012, the shareholders’ meeting approved the DeA Capital Stock Option Plan 2012-14. To implement the resolution of the shareholders' meeting, the Board of Directors of DeA Capital S.p.A. allocated a total of 1,350,000 options to certain employees of the company and its subsidiaries, and employees of the parent company De Agostini S.p.A. who perform important roles. In line with the criteria specified in the regulations governing the DeA Capital Stock Option Plan 2012–14, the Board of Directors also set the exercise price for the options allocated at EUR 1.3363, which is the arithmetic mean of the official prices of ordinary DeA Capital shares on the Mercato Telematico Azionario, the Italian screen-based trading system organised and managed by Borsa Italiana S.p.A., on the trading days between 17 March 2012 and 16 April 2012. The shareholders’ meeting also approved a paid capital increase, in divisible form, without option rights, via the issue of a maximum of 1,350,000 ordinary shares to service the DeA Capital Stock Option Plan 2012-2014. The assumptions used in calculating the fair value of the DeA Capital Stock Option Plan are summarised in the table below.


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2004 plan 2005 plan 2010 plan

Assignment march 2011- 2010 Plan 2011 plan 2012 plan

N° options allocated 160,000 180,000 2,235,000 500,000 1,845,000 1,030,000

Average market price at allocation date 2.445 2.703 1.296 1.361 1.550 1.380

Value at allocation date 391,200 486,540 2,897,454 680,300 2,859,750 1,421,400

Average exercise price 2.026 2.459 1.318 1.413 1.538 1.336

Expected volatility 31.15% 29.40% 35.49% 33.54% 33.43% 33.84%

Option expiry date 31/08/2015 30/04/2016 31/12/2015 31/12/2015 31/12/2016 31/12/2017

Risk free yield 4.251% 3.595% 1.884% 2.952% 3.440% 2.470% The shareholders’ meeting also approved the Performance Share Plan 2012–2014. To implement the resolution of the shareholders' meeting, the Board of Directors allocated a total of 302,500 units (representing the right to receive ordinary shares of the company, free of charge, under the terms and conditions of the plan) to certain employees of the company and its subsidiaries and of the parent company, De Agostini S.p.A., who perform important roles for the company. The shares allocated due to the vesting of units will be drawn from own shares already held by the company. NON-CURRENT LIABILITIES At 30 June 2012, non-current liabilities totaled EUR 172.1 million compared with EUR 202.7 million at 31 December 2011. 5a - Deferred tax liabilities At 30 June 2012, this item, comprising deferred tax liabilities, totaled EUR 27.3 million, compared with EUR 40.5 million at 31 December 2011.

Deferred tax liabilities, attributable to intangible assets, include EUR 3.5 thousand relating to the tax impact of allocating a portion of the acquisition cost of IDeA Capital Funds SGR to intangible assets (Customer contracts), and EUR 22.7 thousand relating to the tax impact on intangible assets from variable commissions in respect of the allocation of a portion of the acquisition cost of FIMIT SGR. As required by IFRS 3 (Business Combinations), a deferred tax liability was recorded for the assets identified at the date of acquisition. The change in the period stems from the alignment by IDeA FIMIT SGR of the carrying values of some of the intangible assets recorded at the time of the purchase cost allocation of FIMIT SGR to their market values, for tax purposes (tax redemption or affrancamento fiscale). This operation enabled deferred tax liabilities in respect of customer relationship intangible assets to be released against the cost of withholding tax, with an effect on the net profit for the period of around EUR 6.4 million. 5b - End-of-service payment fund At 30 June 2012, this item totaled EUR 2.7 million, compared with EUR 2.1 million at 31 December 2011, and includes end-of-service payments that are part of defined benefit plans, which were therefore valued using actuarial assessments. 5c - Non-current financial liabilities At 30 June 2012 this item totaled EUR 142.2 million, compared with EUR 160.0 million at 31 December 2011, and mainly relates to:

- the use of EUR 80.0 million from the credit line provided by Mediobanca for the same amount (maturing on 16 December 2015 and subject to a variable rate of three-month Euribor + spread. At 30 June 2012, the covenant tests for this credit line were successfully passed (i.e. max. debt and debt to equity ratio)

- an amount of EUR 12.8 million relating to the medium-term loan taken out by IDeA FIMIT SGR with Banca Intermobiliare di Investimenti e Gestioni S.p.A. in 2009


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(maturing on 31 March 2014 with a floating rate of three-month Euribor + spread) for the purchase of units in the Omicron Plus fund

- EUR 0.9 million for the estimated future cost for the DeA Capital Group of exercising the pro-rata share of the put options on Santé shares held by the senior management of GDS

- EUR 1.6 million for the fair value estimate of payables for put options on minority interests in subsidiaries

- EUR 45.0 million, as part of the full acquisition of the FARE Holding group, in relation to the payment of the deferred purchase price, and the earn-out that DeA Capital anticipates paying to the seller

CURRENT LIABILITIES At 30 June 2012, current liabilities totaled EUR 40.7 million, compared with EUR 27.2 million at 31 December 2011. 6a – Trade payables At 30 June 2012, these payables totaled EUR 15.9 million, compared with EUR 10.3 million at 31 December 2011. 6b – Payables in respect of staff and social security organizations At 30 June 2012, this item totaled EUR 7.4 million, compared with EUR 7.5 million at 31 December 2011, and primarily comprised the liability to staff for untaken leave and payables to social security organizations. 6c – Current tax payables At 30 June 2012, this item totaled EUR 8.8 million, compared with EUR 0.9 million at 31 December 2011, and chiefly comprises the payable for IRES and IRAP, and the payable relating to the tax redemption (affrancamento fiscale) operation by IDeA FIMIT SGR, which enabled deferred tax liabilities on customer relationship intangible assets to be released against the cost of withholding tax. The item includes payables of EUR 0.9 million owed by IDeA Capital Funds SGR in relation to the national tax consolidation scheme of the Group headed by B&D Holding di Marco Drago e C. S.a.p.a. (the parent company of De Agostini S.p.A.). 6d – Other tax payables Other tax payables totaled EUR 3.7 million at 30 June 2012, compared with EUR 3.6 million at 31 December 2011, and chiefly relate to wealth taxes to be paid on Luxembourg assets. 6e - Other payables Other payables totaled EUR 1.0 million at 30 June 2012 and were for accrued charges and miscellaneous payables. 6f – Current financial payables At 30 June 2012, this item was EUR 3.9 million (in line with the figure at end-2011) and mainly relates to the short-term payable for the acquisition of FARE Holding (now DeA Capital Real Estate).


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Notes to the Consolidated Income Statement

7a - Alternative asset management fees At 30 June 2012, fees from the Alternative Asset Management business totaled EUR 39.9 million, compared with EUR 18.0 million in the first half of 2011. These mainly relate to management fees paid to IDeA FIMIT SGR and IDeA Capital Funds SGR for the funds they manage. 7b - Income from investments valued at equity The positive figure of EUR 3.2 million, compared with the negative figure of EUR 11.2 million in the first half of 2011, was mainly attributable to the pro-rata share of the profits or losses made by investments in Santé (EUR +1.2 million), IDeA OF I (EUR +2.6 million), Sigla Luxembourg (EUR -0.3 million) and AVA (-0.2 million). 7c - Other investment income/expenses This item, which totaled EUR 0.7 million, compared with EUR 27.4 million in the first half of 2011 (the latter mainly attributable to the capital gain realized on the distribution received by Kenan Investments for the placement of Migros shares), largely comprises capital gains from distributions of venture capital funds (EUR 0.8 million), income from real estate funds in which IDeA FIMIT SGR holds units (EUR 1.1 million, including EUR 0.9 million from the Omicron Plus fund) and impairment of EUR 1.0 million relating to the valuation of the units in the portfolio of the Atlantic 2 – Berenice fund at the stock market price on 29 June 2012 (last trading day of the six-month period). As the investment was subject to impairment in the financial year 2009, any subsequent writedown is classified as impairment. 7d – Service revenues This item, which totaled EUR 4.6 million (EUR 4.9 million in the same period of 2011), was mainly due to services connected with consultancy, management and the sale of real estate held in the portfolios of real estate funds. 8a - Personnel costs Total personnel costs amounted to EUR 16.2 million in the first half of 2012, compared with EUR 9.7 million in the same six months of 2011. The latter figure did not include the contribution from FIMIT SGR (as control was only acquired in October 2011). At 30 June 2012, the average number of employees was 174 (167 at end-2011). The table below shows changes in the average number of Group employees in the first half of 2012.

Employees

1.1.2012 Recruits Departures 30.06.2012 Average

Senior Managers 33 3 (1) 35 35Junior Managers 42 12 (3) 51 46Staff 92 3 (7) 88 89Total 167 18 (11) 174 170 8b - Service costs In the first half of 2012, service costs totaled EUR 14.1 million, compared to EUR 10.2 million in the first half of 2011. Note that the 2011 figure did not include the contribution from FIMIT SGR as the acquisition took place in October 2011.


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8c - Amortisation and depreciation Please see the table of changes in intangible and tangible assets for a breakdown into sub-items. 9 – Other costs Other costs totaled EUR 3.2 million in the first half of 2012, compared with EUR 1.0 million in the same period of 2011. This item mainly consisted of an amount of EUR 0.6 million for the Luxembourg wealth tax, the pro-rata portion of VAT that is non-deductible on costs incurred by IDeA FIMIT SGR relating to the first half of 2012 (EUR 1.1 million) and losses on receivables due to IDeA FIMIT SGR relating to town planning, environmental and legal due diligence costs incurred for the creation of a real estate fund to which the Enel Group was going to contribute some of its own properties. However, in view of the ongoing regulatory changes to the taxation of real estate funds, the Enel Group decided not to proceed with the plan. The loss of EUR 1.5 million is the estimate at 30 June 2012 of IDeA FIMIT SGR’s portion of the costs (out of a total of around EUR 4.0 million). 10 - Financial income (charges) In the first half of 2012, financial income was EUR 0.5 million (EUR 1.4 million in the first half of 2011), and financial charges were EUR 5.5 million (EUR 2.4 million in the first half of 2011). The tables below provide a summary and comparison of these items for the first half of 2012 and 2011. (Euro thousand) First Half 2012 First Half 2011

Interest income 317 647 Income from financial instruments valued at fair value through profit and loss 193 776

Foreign exchange gains 15 6 Total 525 1,429 (Euro thousand) First Half 2012 First Half 2011

Interest expense 1,858 1,619 Derivative expenses 501 566 Foreign exchange losses 34 188 Other cost for put option 3,092 - Total 5,485 2,373 11 - Income tax Income tax came to EUR +3.9 million in the first half of 2012 (compared with EUR -5.3 million in the same period of 2011). The improvement was due to the alignment by IDeA FIMIT SGR of the carrying values of some of the intangible assets recorded at the time of the purchase cost allocation of FIMIT SGR to their market values, for tax purposes (affrancamento fiscale). The operation enabled deferred tax liabilities on customer relationship intangible assets to be released against the cost of withholding tax, with an effect on the net profit shown for the period of around EUR 6.4 million. Taxes reported in the consolidated income statement are shown below.


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(Euro thousand) First Half 2012 First Half 2011

Current taxes:- Income from tax consolidation scheme 1,005 0- IRES (3,617) (1,201)- IRAP (1,796) (2,799)- Other taxes (5,418) 10Totale Imposte correnti (9,826) (3,990)Imposte differite di competenza del periodo:- Oneri per imposte differite/anticipate (35) (2,180)- Proventi per imposte differite/anticipate 13,337 6- Utilizzo passività fiscali differite 408 912- Utilizzo attività fiscali differite (4) (6)Totale Imposte differite 13,706 (1,268)

Totale Imposte sul reddito 3,880 (5,258) 12 - Earnings per share Basic earnings per share are calculated by dividing net profit for the period attributable to the Group's shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per share are calculated by dividing net profit for the period attributable to the Group's shareholders by the weighted average number of shares outstanding during the period including any diluting effects of stock option plans and existing warrants, in the event that the allocated options are "in the money". The table below shows the income and the share information used to calculate basic and diluted earnings per share.

(Euro thousand) First Half 2012 First Half 2011Consolidated net profit/(loss) - Group share (A) 1,290 9,331Weighted average number of ordinary shares outstanding (B) 278,987,216 293,494,990 Basic earnings/(loss) per share (€ per share) (C=A/B) 0.005 0.032

Restatement for dilutive effect - - Consolidated net profit/(loss) restated for dilutive effect (D) 1,290 9,331Weighted average number of shares to be issued for the exercise ofstock options (E) - - Total number of shares outstanding and to be issued (F) 278,987,216 293,494,990 Diluted earnings/(loss) per share (€ per share) (G=D/F) 0.005 0.032 Options and warrants have a dilutive effect only when the average market price of the share for the period exceeds the strike price of the options or warrants (i.e. when they are "in the money").


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Primary and secondary reporting formats The information on businesses reflects the Group's internal reporting structure. These businesses are:

- Private Equity Investment, which includes the reporting units involved in investment activities and breaks down into equity investments ("direct investments") and investments in funds ("indirect investments")

- Alternative Asset Management, which includes reporting units involved in asset management activities and related services, with a current focus on the management of private equity and real estate funds

Summary Group Income Statement - performance by business in the first half of 2012


Investment

Alternative Asset

ManagementHoldings/


Alternative Asset Management fees 0 39,948 0 39,948Income (loss) from equity investments 3,396 (138) (65) 3,193Other investment income/expense 0 187 485 672Income from services 20 4,722 118 4,860Other expenses (3,721) (31,681) (5,845) (41,247)Financial income and expenses (95) (179) (4,686) (4,960)PROFIT/(LOSS) BEFORE TAXES (400) 12,859 (9,993) 2,466Income tax 1,635 1,224 1,021 3,880PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS 1,235 14,083 (8,972) 6,346 Profit (Loss) from discontinued operations/held-for-sale assets 0 0 0 0PROFIT/(LOSS) FOR THE PERIOD 1,235 14,083 (8,972) 6,346 - Group share 1,235 8,684 (8,629) 1,290 - Non controlling interests 0 5,399 (343) 5,056 Summary Group Income Statement - performance by business in the first half of 2011


Investment

Alternative Asset

ManagementHoldings/


Alternative Asset Management fees 0 17,986 0 17,986Income (loss) from equity investments (11,174) 0 0 (11,174)Other investment income/expense 27,378 55 0 27,433Income from services 19 4,859 190 5,068Other expenses (3,416) (15,866) (3,747) (23,029)Financial income and expenses (137) 157 (964) (944)PROFIT/(LOSS) BEFORE TAXES 12,670 7,191 (4,521) 15,340Income tax (1,735) (3,476) (47) (5,258)PROFIT/(LOSS) FOR THE PERIOD FROM CONTINUING OPERATIONS 10,935 3,715 (4,568) 10,082 Profit (Loss) from discontinued operations/held-for-sale assets 0 0 0 0PROFIT/(LOSS) FOR THE PERIOD 10,935 3,715 (4,568) 10,082 - Group share 10,935 2,964 (4,568) 9,331 - Non controlling interests 0 751 0 751


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Other information

Transactions with parent companies, subsidiaries and related parties

Intercompany transactions The company signed a service agreement with the controlling shareholder, De Agostini S.p.A., for the latter to provide operating services in the administration, finance, control, legal, corporate and tax areas. The agreement, which is renewable annually, is priced at market rates, and is intended to allow the company to maintain a streamlined organisational structure in keeping with its development policy, and to obtain adequate operational support at the same time. DeA Capital S.p.A. has adopted the national tax consolidation scheme of the B&D Group (the Group headed by B&D Holding di Marco Drago e C. S.a.p.a.). This option was exercised jointly by each of the two companies and by B&D Holding di Marco Drago e C. S.a.p.a. by signing the "Regulation for participation in the national tax consolidation scheme for companies in the De Agostini Group" and providing notification of this option to the tax authorities pursuant to the procedures and terms and conditions set out by law. As regards DeA Capital S.p.A., the option, which was renewed in 2011, is irrevocable for the three-year period of 2011-2013 unless the requirements for applying the scheme are not met. With reference to IDeA Capital Funds SGR, the option was subscribed in the current year and is irrevocable for the three-year period of 2012-2014, unless the requirements for applying the scheme are not met. In the first half of 2012, the company also carried out transactions with its subsidiaries under market conditions. In the first half of 2012 the company did not hold, purchase or dispose of any shares of related-party companies, except for the acquisition of the remaining shares in FARE Holding (now DeA Capital Real Estate) and IFIM. Please refer to the Report on Operations for details of these transactions. The table below summarises the amounts of trade-related transactions with related parties.

(Euro thousand) Trade receivables Tax receivables Tax payables Trade payablesIncome from

services Tax income Personnel costs Service costs

B&D Holding di Marco Drago e C. S.a.p.a. 0 7,187 878 0 0 1,022 0 0

De Agostini S.p.A. 25 0 0 407 47 0 155 245

De Agostini Editore S.p.A. 0 0 0 125 0 0 0 88

De Agostini Libri S.p.A. 0 0 0 0 0 0 0 0

Lottomatica S.p.A. 0 0 0 0 0 0 0 0

De Agostini Publishing S.p.A. 0 0 0 0 0 0 0 0

Nova Immobiliare S.p.A. 0 0 0 0 0 0 0 0

De Agostini Invest SA 0 0 0 12 0 0 0 13

Total related parties 25 7,187 878 544 47 1,022 155 346

Total financial statement line item 5,741 7,187 8,766 15,934 4,645 4,412 16,216 14,052

As % of financial statement line item 0.4% 100.0% 10.0% 3.4% 1.0% 23.2% 1.0% 2.5%

Balances at June 30, 2012 2012 Half Year

Consolidated net debt includes an estimate of the fair value of payables to Daniel Buaron, a member of the Board of Directors of DeA Capital S.p.A., relating to the acquisition of FARE Holding (now DeA Capital Real Estate). Directors’ and auditors’ remuneration In the first half of 2012, remuneration due to the parent company's directors and auditors for the performance of their duties totaled EUR 150 thousand and EUR 81 thousand respectively. Stock options and warrants The company has in place stock option plans for shares and warrant plans for the Boards of Directors, auditors and directors with strategic responsibilities. The table below shows changes for the stock option plans.


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Options lapsed

during first half 2012

Beneficiary Position Number of options

Average exercise

price

Average expiry date

Number of options

Average exercise

price

Average expiry date

Number of options

Number of options

Average exercise

price

Average expiry date

Paolo Ceretti CEO 750,000 1.318 5 0 0 0 0 750,000 1.318 5

Paolo Ceretti CEO 750,000 1.538 5 0 0 0 0 750,000 1.538 5

Paolo Ceretti CEO 0 0 0 630,000 1.3363 5 0 630,000 1.3363 5

985,000 1.318 5 0 0 0 0 985,000 1.318 5

500,000 1.413 5 0 0 0 0 500,000 1.413 5

485,000 1.538 5 0 0 0 0 485,000 1.538 5

0 0 0 400,000 1.3363 5 0 400,000 1.3363 5

Key Management

Key Management

Key Management

Key Management

Options outstanding at Jan. 1, 2012 Options granted during first half 2012

Options outstanding at June 30, 2012

Lastly, the shareholders’ meeting approved the Performance Share Plan 2012–2014. To implement the resolution of the shareholders' meeting, the Board of Directors of DeA Capital S.p.A. allocated a total of 132,500 units (representing the right to receive ordinary shares of the company, free of charge, under the terms and conditions of the plan) to the CEO (80,000 units) and certain managers with strategic responsibilities (52,500 units) and employees of the company and its subsidiaries, and of the parent company, De Agostini S.p.A., who perform important roles for the company. Shares allocated due to the vesting of units will be drawn from own shares already held by the company.

Information on the Fair value hierarchy IFRS 7 stipulates that financial instruments reported at fair value should be classified based on a hierarchy that reflects the importance and quality of the inputs used in calculating the fair value. Three levels have been determined: • level 1: the fair value of instruments classified at this level is calculated based on the (unadjusted) quoted prices recorded on an active market for the assets or liabilities being valued • level 2: the fair value of instruments classified at this level is calculated using valuation techniques that use directly or indirectly observable market parameters other than the quoted price of the financial instruments as inputs • level 3: the fair value of instruments classified at this level is calculated using valuation techniques that do not use observable market parameters as inputs The table below shows assets valued at fair value by hierarchical level at 30 June 2012:

(Euro thousand) Level 1 Level 2 Level 3 Total

Other shareholdings available-for-sale 192.1 0.3 192.4

Funds avalilable-for-sale 8.0 159.2 167.2

Other non current financial assets available-for-sale 0.3 0.3

Current financial assets available-for-sale 8.3 8.3

Total assets 16.3 351.3 0.6 368.2 The table below shows changes in level 3 assets between the opening balance and closing balance at 30 June 2012.


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1.1.2012Increase Decrease

Impairment e related

translaction effect

Fair Value Adjustment

Fair Value through Profit

and Loss

Translation adjustments

Balance at 30.06.2012

Stepstone Acquisition S.à r.l. 0 0 0 0 0 0 0 0

Elixir Pharmaceuticals Inc. 0 0 0 0 0 0 0 0

Kovio Inc. 0 0 0 0 0 0 0 0

Other companies 290 0 0 0 0 0 0 290

Other shareholdings available-for-sale 290 0 0 0 0 0 0 290Other non current financial assets available-for-sale 936 20 (632) 0 0 0 0 324

Disclosure relating to sovereign exposures Pursuant to Consob Communication DEM/11070007 of 5 August 2011 (which incorporates ESMA statement 2011/266 issued on 28 July 2011) on the information to be provided in financial reports regarding listed companies’ exposure to sovereign debt securities and in relation to current trends on the international markets, the only assets relating to sovereign exposure held by the DeA Capital Group at 30 June 2012 have a carrying value of EUR 1,560 thousand and comprise Italian government bonds and treasury certificates with maturities of 2014 and 2015 and a nominal value of EUR 1,550 thousand.

Atypical or unusual transactions In the first half of 2012, there were no atypical or unusual transactions as defined by Consob Communication 6064293 of 28 July 2006.

Significant non-recurring events and transactions

In the first half of 2012, the DeA Group did not undertake any significant non-recurring transactions as defined by the above-mentioned Consob Communication.

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


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Significant events after the end of the period and outlook Significant events after the end of the period

Acquisition of the Duemme SGR business division On 28 June 2012, IDeA FIMIT SGR and Duemme SGR signed a deed of transfer, effective 1 July 2012, for the business division comprising joint real estate investment funds managed by Duemme SGR, a subsidiary of the Banca Esperia Group specialising in asset management services. The transfer of the business division enables IDeA FIMIT SGR to take on the management of eight real estate funds with assets that include around 60 buildings, worth a total of EUR 560 million. This transaction confirms IDeA FIMIT SGR’s position as Italian leader and puts it among the major real estate asset management companies in Europe, thanks also to the expansion of its circle of institutional investors. This highly strategic transaction enables IDeA FIMIT SGR to further increase the value of its managed assets and reach, for the first time, the threshold of EUR 10 billion assets under management with 31 real estate funds managed.

Private equity funds – paid calls and distributions On 3 July 2012, the DeA Capital Group increased its investments in the IDeA I FoF, ICF II, IDeA OF I and IDeA EESS funds, with payments totalling EUR 5.9 million (EUR 3.9 million, EUR 1.6 million, EUR 0.3 million and EUR 0.1 million respectively). On the same date, the DeA Capital Group received capital reimbursements totalling EUR 2.2 million from the IDeA I FoF fund, to be used in full to reduce the value of the units.


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Outlook The outlook continues to focus on the strategic development guidelines followed last year, with an emphasis on increasing the value of assets in the Private Equity Investment area and on developing the Alternative Asset Management platform. Specifically, as regards Direct Private Equity Investment, the Group is expected to improve on the results recorded in 2011, both for GDS and for Migros, mainly thanks to major efficiency initiatives in the businesses in question; in terms of Indirect Private Equity Investment (i.e. the funds in which the Group has subscribed to capital commitments), it expects a further improvement in capital distributions, which should largely offset capital calls, thereby reducing net cash requirements. In Alternative Asset Management (the management of own and third-party funds), growth is expected – in line with the difficult economic environment - with the launch of new products/funds and the full integration of FARE SGR and FIMIT SGR. Obviously, the economic environment – for which it is still difficult to make forecasts – will influence the industrial and economic performance of the Group’s assets, as well as the outlook for returns on the investments made. The Group believes, however, that it has built a portfolio well able to withstand any shocks but also able to benefit from improvements in the situation, particularly in terms of the financial markets, which play a significant role in driving expectations regarding growth in the value of investments and the raising of new funds. At the same time, in support of the strategic guidelines set out above, the company will continue to maintain a solid asset and financial structure, implementing any initiative with rigour and discipline.


83

Statement of responsibilities for the Summary consolidated half-year financial statements to 30 June 2012


84

STATEMENT OF RESPONSIBILITIES FOR THE SUMMARY CONSOLIDATED HALF-

YEAR FINANCIAL STATEMENTS TO 30 JUNE 2012 (PURSUANT TO ART. 154-BIS OF LEGISLATIVE DECREE 58/98)

The undersigned, Paolo Ceretti, as Chief Executive Officer, and Manolo Santilli, as the manager responsible for preparing the company's accounting statements, hereby certify, pursuant to art. 154-bis, paras. 3 and 4 of Legislative Decree 58 of 24 February 1998, that based on the characteristics of the company, the administrative and accounting procedures for preparing the summary consolidated half-year financial statements of the DeA Capital Group to 30 June 2012 were appropriate and effectively applied.

The assessment as to the suitability of the administrative and accounting procedures for preparing the summary consolidated half-year financial statements to 30 June 2012 was based on a process established by DeA Capital S.p.A. in keeping with the Internal Control - Integrated Framework model issued by the Committee of Sponsoring Organizations of the Treadway Commission, which is the generally accepted reference framework at international level.

It should be noted in this regard that, as described in the notes to the summary consolidated half-year financial statements to 30 June 2012, a significant portion of the assets are investments stated at fair value. These fair values are determined by the directors based on their best estimates and judgement, using their knowledge and the evidence available at the time the summary consolidated half-year financial statements to 30 June 2012 are prepared. However, due to objective difficulties in making assessments and the lack of a liquid market, the values assigned to such assets could differ, in some cases significantly, from those that could be obtained when the assets are sold.

The undersigned further certify that the summary consolidated half-year financial statements to 30 June 2012:

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

The Interim Report on Operations contains references to significant events that occurred in the first six months of 2012 and their impact on the summary consolidated half-year financial statements to 30 June 2012, together with a description of the main risks and uncertainties for the remaining six months of the year, and information on significant related-party transactions. Milan, 29 August 2012 Paolo Ceretti Chief Executive Officer

Manolo Santilli Manager responsible for preparing the company’s accounts


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Independent Auditors’ Report (Original report available in Italian version only)

Economy & Finance

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