Pargesa : Consolidated results 3Q 2017 (unaudited)

PRESS RELEASE

Geneva, 2 November 2017

Financial results at 30 September 2017 (unaudited):

• Economic operating income1: CHF 348.1 million, compared with CHF 280.8 million in the corresponding period in 2016. Economic operating income at 30 September 2017 reflects:
  • a contribution from the principal shareholdings amounting to CHF 250.9 million, compared with CHF 255.9 million at 30 September 2016; the increase in the operating contribution from Imerys and the dividends received by most of the other non-consolidated shareholdings almost completely offset the anticipated decrease in the contributions from Total and ENGIE in 2017, as a result of the disposals of shares of these companies in 2016 and Q1 2017 by GBL;
  • a contribution of CHF 123.7 million from private equity and other funds activities (9 month 2016: CHF 30.0 million), including Pargesa's share of the gains realized by Ergon Capital Partners III (Sienna Capital) from the sale of its investments in Golden Goose in Q1 (CHF 63.4 million) and ELITech in Q3 (CHF 59.3 million);
  • the non-cash impact of the marking to market or the cancellation of the derivative financial instruments embedded in the exchangeable and convertible bonds issued by GBL, for a net amount of CHF -10.3 million (9 month 2016: CHF +28.6 million). Excluding this impact, economic operating income would have stood at CHF 358.4 million, compared with CHF 252.2 million at 30 September 2016.
• Non-operating income: CHF 0.4 million, compared with a non-operating loss of CHF -594.4 million at 30 September 2016. In 2016, Pargesa's non-operating loss included for CHF -952.0 million the impact of the impairment charge recorded by GBL on its investment in LafargeHolcim, partly offset by the CHF 398.1 million gain recorded at the level of Pargesa, resulting from the sale by GBL of 1.1% of Total's share capital in early 2016.
• As a result of the above, Pargesa's net income stands at CHF 348.5 million at 30 September 2017, compared with a net loss of CHF -313.6 million at 30 September 2016.

1 See definition on page 5

The organization chart below reflects the Group structure at 30 September 2017, with its portfolio composed primarily of seven strategic main shareholdings1):

1) Shareholdings are expressed as a percentage of the capital held.

2) 51.8% of voting rights, taking into account the suspended voting rights related to treasury shares.

3) Investments generally larger than EUR 1 billion in companies in which the Group can exercise clear influence on the long term. These represent the bulk of the Group's portfolio.

4) Comprising a selection of shareholdings that range in size from EUR 250 million to EUR 1 billion in companies which may be public or private, having the potential to eventually become strategic. At 30 September 2017, this portfolio includes the shareholdings in Ontex, Burberry, Parques Reunidos and GEA.

5) Comprising significant investments in private equity, debt or specific thematic funds.

6) Market value in EUR million of the investments held by GBL at 30 September 2017.

7) Estimated value in EUR million at 30 September 2017.

1. 2017 Highlights

   • As a reminder, GBL sold at the beginning of the year 0.5% of ENGIE's share capital, representing almost all of its remaining interest in that company, for net proceeds of EUR 145 million and generating an accounting gain of EUR 1 million.

     As already reported, the remaining balance (EUR 306 million) of the bonds exchangeable for ENGIE shares which were issued by GBL in 2013 was redeemed in cash at maturity, on 7 February 2017.

   • In May 2017, GBL successfully completed a 7-year bond issue for EUR 500 million with a coupon of 1.375%. The proceeds from this issuance are intended to cover GBL's general corporate purposes. This transaction allows GBL to extend its average debt maturity profile and to further diversify its financing sources.

   • On 18 July 2017, Imerys announced that it had completed the acquisition of Kerneos, world leader in high performance calcium aluminates binders. With this operation, Imerys enhances its specialty offering in high-potential markets and improves its growth and profitability profile while creating value. This acquisition is entirely funded from Imerys' available resources.

   • « Incubator » portfolio:

     • Burberry announced in February 2017 that GBL had crossed upwards the 3.0% threshold of the voting rights of the company, and later, in July 2017, the 4.0% threshold. As at 30 September 2017, GBL held 4.0% of Burberry's share capital, worth EUR 352 million;

     • In March 2017, GBL participated in the capital increase realized by Ontex, with the objective to refinance the company following the acquisition of the « hygienic consumables » activity of Hypermarcas. Following this operation, GBL's ownership in Ontex remains unchanged at 19.98%. Furthermore, the general shareholders' meeting of Ontex of 24 May 2017 approved the election of a GBL representative on the board of directors. At 30 September 2017, the market value of the investment in Ontex amounted to EUR 474 million;

     • GBL announced on 12 April 2017 the acquisition of a 15.0% interest in the capital of Parques Reunidos Servicios Centrales, S.A. (« Parques »). Parques, whose shares are listed on the Madrid Stock Exchange, is a reference operator of leisure parks across Europe, North America and Asia. On 25 April 2017, Parques co-opted a GBL representative on its board of directors. At 30 September 2017, GBL held 15.2% of the share capital of the company, worth EUR 157 million;

     • GEA Group (« GEA ») announced on 3 August 2017 that GBL had crossed the 3.0% threshold of voting rights of the company. GEA is a worldwide leader in the supply of equipment and project management for a wide range of processing industries. Its technology focuses on components and production processes for various markets, notably in the Food & Beverage sectors. At 30 September 2017, GBL held 3.1% of the share capital of GEA, representing a market value of EUR 233 million.

   • Sienna Capital (GBL's « Financial Pillar »):

     • As already reported, Ergon Capital Partners III (ECP III) sold in March 2017 its majority stake in Golden Goose, an Italian designer of shoes, clothes and contemporary accessories. This transaction generated a consolidated gain of EUR 112 million for GBL, or CHF 63.4 million at the level of Pargesa;

       On 25 July 2017, ECP III sold its interest in ELITech, a manufacturer of specialty in-vitro diagnostics equipment and reagents. This transaction generated a gain of EUR 104 million for GBL (CHF 59.3 million at the level of Pargesa);

       In September 2017, ECP III acquired a majority stake in Keesing Media Group, the leading European publisher of games and puzzle magazines;

     • Also already reported was the acquisition by Sagard 3 in February 2017 of a majority stake in Ipackchem, a leading global manufacturer of « barrier » packaging whose products are mainly used in the transport and storage of aromas, fragrances and agrochemical products, for which permeability, contamination and evaporation constraints are critical;

       In September 2017, a group of investors announced they had entered into exclusive negotiations with Sagard and Alvest's management team, to acquire a significant stake in Alvest, the global leader in the production and distribution of airport ground support equipment. Sagard, as well as the managing team of Alvest would reinvest a significant amount in the capital of the company;

     • It is also reminded that at the end of 2016, Kartesia launched a new investment fund, in which Sienna Capital made a commitment for EUR 150 million. As of 30 September 2017, the new fund had received total commitments amounting to EUR 770 million, of which 34% were already invested;

     • During Q2 2017, Mérieux Participations II (MP II) acquired a minority shareholding in Xeris Phamaceuticals Inc., a biopharmaceutical company developing injectable therapeutics for multiple indications including diabetes. MP II has also acquired a minority stake in Ivantis Inc., a company dedicated to the development of new and innovative solutions for glaucoma;

     • On 29 September 2017, Sienna Capital, committed EUR 25 million in Backed 1 LP (« Backed »), a venture capital fund established in London and specialized in innovative digital solutions.

   At 30 September 2017, GBL's commitments under its Financial Pillar amounted to EUR 545 million (EUR 601 million at 31 December 2016).

2. Consolidated financial results at 30 September 2017 (unaudited)

   The Board of Directors of Pargesa Holding SA met today and reviewed the unaudited consolidated financial results for the nine-month period in 2017.

3. Presentation of results in accordance with IFRS

The simplified income statement in accordance with IFRS is as follows:

CHF millions	30 Sept. 2017	30 Sept. 2016
Operating income	4'038.5	3'791.6
Operating expenses	(3'587.7)	(3'393.3)
Other income and expenses	267.8	(1'069.8)
Operating profit (loss)	718.6	(671.5)
Dividends and interest from long-term investments	337.0	338.7
Other financial income and expenses	(101.0)	(22.9)
Taxes	(128.7)	(125.0)
Income from associates and joint ventures	25.5	22.3
Consolidated net profit (before non-controlling interests)	851.4	(458.4)
Attributable to non-controlling interests	(502.9)	144.8
Attributable to Pargesa shareholders (Group share)	348.5	(313.6)
Basic earnings per share attributable to Pargesa shareholders (CHF)	4.12	(3.70)
Average number of shares in circulation (thousands)	84'660	84'659
Average EUR/CHF exchange rate	1.095	1.094

Operating income and expenses are primarily the revenues and operating expenses of Imerys, whose accounts are fully consolidated. Other income and expenses include net capital gains and losses as well as impairments and reversals of previous impairments on Group shareholdings and operations. At 30 September 2017, this figure mainly comprised the gain realized on the sale by ECP III of its investments in Golden Goose and ELITech for a total amount of CHF 263.2 million. At 30 September 2016, this item included primarily the impairment charges recorded by GBL on its investments in LafargeHolcim and ENGIE for a net aggregate amount of CHF -1'882 million (of which, CHF -1'834 million were related to LafargeHolcim), as well as the gain recorded by GBL on the sale of 1.1% of Total's share capital (CHF 769 million including a historical foreign exchange gain of CHF 301 million).

The dividends and interest from long-term investments item comprises the net dividends recorded by the Group from its non-consolidated investments.

The other financial income and expenses and taxes items provide consolidated figures for Pargesa, GBL and Imerys. Other financial income and expenses includes the non-cash impact of GBL's derivative financial instruments being marked to market.

Income from associates and joint ventures represents the share of the consolidated net profit contributed by shareholdings accounted for in the Pargesa financial statements using the equity method. These shareholdings are primarily held within Sienna Capital's portfolio (« Financial Pillar ») or by Imerys.