PRESS RELEASE NO 11/2013


Geneva, 7 November 2013

Company organisation: Following the death on 8 October 2013 of Paul G. Desmarais, Chairman and Executive Director of the Company, the Board of Directors at its meeting today appointed Paul Desmarais Jr to succeed him as Chairman and Executive Director. At the same meeting, André Desmarais, a Director of the company since 1996, was appointed Vice-Chairman. Results as at 30 September 2013:

Economic operating income of CHF 187.9 million, compared with CHF 312.5 million at 30 September

2012. This decrease of CHF 124.6 million is due in particular, in an amount of CHF 95.8 million expressed as Pargesa's share, to the non-cash impact of the mark-to-market of derivative instruments at GBL and to the decrease in the contribution made by GDF Suez as a result of the disposal by GBL of just over half of its shareholding.

Net income of CHF 176.6 million compared with CHF 547.4 million at 30 September 2012, which benefited from capital gains of CHF 288 million, expressed as Pargesa's share, due to the disposal by GBL of its 10% investment in Arkema and 2.3% stake in the capital of Pernod Ricard.

1. Company organisation

At its meeting held today, the Board of Directors of Pargesa Holding SA first of all paid tribute to Paul G. Desmarais, who died on 8 October 2013 at the age of 86 years, and to his contribution to the development of the Group. On this occasion, Albert Frère spoke of his partner's remarkable achievements by his side for more than 30 years with the Company. Paul G. Desmarais and Albert Frère were appointed to the Board of Directors when Pargesa became a public company in 1981. Mr Desmarais was subsequently appointed Chairman and Executive Director in 1990.
The Board of Directors has appointed Paul Desmarais Jr to succeed him in the same positions. Appointed a Director in 1992, Paul Desmarais Jr has been Vice-Chairman of the Board since 2002 and an Executive Director since 2003. Furthermore the Board has appointed André Desmarais, a Director since 1996, as Vice-Chairman.
Pargesa Holding SA - 11, Grand-Rue - CH-1204 Geneva Tel : +41 22 817 77 77 - Fax : +41 22 817 77 70 info@pargesa.ch - www.pargesa.ch

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The Board of Directors of Pargesa Holding SA then approved the unaudited consolidated results for the third quarter of 2013.

2. Consolidated results for the third quarter of 2013 (unaudited) 2.1. Presentation of results in accordance with IFRS

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

3rd qtr. 3rd qtr. 9 months 9 months

CHF million 2013 2012 (1) 2013 2012 (1)

Operating income

Operating expenses

Other income and expenses

1'189.3 (1'060.1)

12.3

1'253.0 (1'135.4)

4.3

3'681.5 (3'322.0)

24.7

3'839.7 (3'442.4)

523.4

Operating income

Dividends and interest from long-term investments

Other financial income (expenses) Taxes

Income from associates

141.5

108.8 (107.6) (49.1)

81.8

121.9

180.7 (23.0) (34.6)

71.2

384.2

383.6 (282.9) (115.9)

104.6

920.7

439.6 (117.3) (101.1)

68.3

Consolidated net profit (including minorities)

Attributable to minority interests

Attributable to Pargesa shareholders (Group share)

175.4

108.5

66.9

316.2

175.7

140.5

473.6

297.0

176.6

1'210.2

662.8

547.4

Average number of shares in circulation (thousands) Basic earnings per share, (Group share) CHF

EUR/CHF average exchange rate

84'644

0.79

1.232

84'641

1.66

1.205

84'644

2.09

1.232

84'641

6.47

1.205

(1) The 2012 results have been restated to reflect the change in the IAS 19 standard concerning pension liabilities, which came into force on 1 January 2013

Operating income and expenses comprise principally the turnover and operating expenses of Imerys, whose accounts are 100% integrated into those of Pargesa.

Other income and expenses comprise the net capital gains and losses and impairment realised on Group shareholdings and operations.

The item dividends and interest from long-term investments comprises the net dividends received by the Group from its non-consolidated holdings, mainly those from GDF Suez, Suez Environnement, Total and Pernod Ricard.
The other financial income (expenses) and taxes items consolidate the figures for Pargesa, GBL and
Imerys.
The item 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. It includes in particular the Lafarge contribution.

Minority interests essentially relate to the share of results due to the minority shareholders of GBL and

Imerys, these two companies being 100% integrated into the Pargesa Group financial statements.

2.2. Economic presentation of Pargesa's results

As a supplement to the accounts drawn up according to the format recommended by the IFRS standards, Pargesa continues to publish an economic presentation of its results, in order to provide continuous information over the long-term about the contribution of each of its major shareholdings to its results. Because the IFRS standards require different accounting treatments depending on the Group's percentage holding in each of its investments (full integration of Imerys, equity accounting of Lafarge and classification of the Group's other main shareholdings as financial instruments), this continuous view would be interrupted without this supplementary information.
Pargesa Holding SA - 11, Grand-Rue - CH-1204 Geneva Tel : +41 22 817 77 77 - Fax : +41 22 817 77 70 info@pargesa.ch - www.pargesa.ch

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The economic presentation shows, in terms of Group share, the operating contribution of the main shareholdings to the consolidated income of Pargesa together with the income from the operations of the holding companies (Pargesa and GBL). This analysis also draws a distinction between the operating and non-operating items in the income, the non-operating part being composed of net capital gains and losses in connection with disposals and any restructuring costs and impairment.
According to this approach, the economic results for the third quarter and first nine months of 2013 can be analysed as follows:

3rd qtr. 3rd qtr. 9 months 9 months Year

CHF m illion 2013 2012 (1) 2013 2012 (1) 2012 (1)

Ope rating contribution of the m ain s hare holdings

- Cons olidate d (Im e rys ) or e quity-accounte d (Lafarge ):

Imerys share of operating income

Laf arge share of operating income

- Non-cons olidate d

Total net dividend GDF Suez net dividend Suez Environnement net dividend Pernod Ricard net dividend

28.4

42.6

30.2

24.7

-

-

27.8

41.3

32.6

60.8

-

-

84.8

60.7

96.3

75.0

14.6

10.1

85.3 107.5

77.8 92.8

92.7 125.7

110.0 110.1

14.3 14.3

9.0 19.7

Ope rating contribution of the m ain s hare holdings

per share (CHF)

Operating contribution of other shareholdings

Operating income contributed by holding companies

125.9

1.48

(1.0) (54.6)

162.5

1.92

(2.8) (19.7)

341.5

4.03

(0.8) (152.8)

389.1 470.1

4.60 5.55

(1.7) (1.6) (74.9) (122.5)

Ope rating incom e

per share (CHF)

Non-operating income f rom consolidated or equity-accounted companies

Non-operating income contributed by holding companies

70.3

0.83

(4.4)

1.0

140.0

1.65

(2.3)

2.8

187.9

2.22

(20.8)

9.5

312.5 346.0

3.69 4.09

(42.9) (48.1)

277.8 107.3

Ne t incom e

per share (CHF)

Average numb er of shares in circulation (thousands) EUR/CHF average exchange rate

66.9

0.79

84'644

1.232

140.5

1.66

84'641

1.205

176.6

2.09

84'644

1.232

547.4 405.2

6.47 4.79

84'641 84'641

1.205 1.205

(1) The 2012 results have b een restated to reflect the change in the IAS 19 standard concerning pension liab ilities, which came

into force on 1 January 2013.

Consolidated or equity-accounted holdings: Imerys recorded a -2.5% decrease in its net operating income to EUR 233.5 million for the first nine months of 2013. Net income stood at EUR 199.5 million when account had been taken of non-recurrent items of EUR -34.0 million net of tax. The Pargesa share of Imerys' contribution to operating income, expressed in Swiss francs, was stable at CHF 84.8 million. Lafarge posted net earnings of EUR 388 million for the first 9 months of 2013. This figure mainly includes EUR -103 million of non-recurrent items, excluding the tax impact, related to restructuring charges. The Pargesa share of Lafarge's contribution to operating income, expressed in Swiss francs, was CHF 60.7 million, compared with CHF 77.8 million at 30 September 2012. Non-consolidated holdings:

The contributions from Total, GDF Suez, Suez Environnement and Pernod Ricard represent the
Pargesa share of the net dividends received by GBL from these companies.

Total, which paid an annual unit dividend of EUR 2.34 per share for the 2012 financial year, a 2.6% increase, paid the balance of the 2012 dividend in the second quarter of 2013, that is, EUR 0.59 per share, and paid a first quarterly interim dividend for 2013, also of EUR 0.59 per share, then announced in the third quarter a second quarterly interim dividend for 2013, of EUR 0.59 per share. In terms of Pargesa's share, Total's contribution thus represents CHF 96.3 million at 30 September 2013. A third interim dividend, also of EUR 0.59, will be booked in the fourth quarter of 2013 and should be paid in March 2014.

Pargesa Holding SA - 11, Grand-Rue - CH-1204 Geneva Tel : +41 22 817 77 77 - Fax : +41 22 817 77 70 info@pargesa.ch - www.pargesa.ch

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GDF Suez paid in the second quarter of 2013 its final dividend for 2012 of EUR 0.67 per share, which was identical to that of the previous financial year, and represents a contribution of CHF 50.3 million. Furthermore during the third quarter the company announced an interim dividend for 2013 of EUR 0.83 per share, representing a contribution of CHF 24.7 million, an amount lower than that recorded in the third quarter of 2012 as a result of the disposal by GBL, in the first half year, of just over half of its shareholding in GDF Suez. In terms of Pargesa's share, GDF Suez's contribution thus represents CHF 75.0 million at

30 September 2013.

Suez Environnement paid an unchanged annual dividend of EUR 0.65 per share in the second quarter of 2013, which represents a share of CHF 14.6 million for Pargesa. Pernod Ricard announced in the second quarter of 2013 an interim dividend of EUR 0.79 per share, up by 9.7%, which represents a share of CHF 10.1 million for Pargesa. The balance of the dividend for the financial year will amount to EUR 0.85 per share and will be booked in the fourth quarter of 2013.

GBL's shareholding in SGS, which it acquired on 10 June 2013, does not contribute to the 2013 results, as the dividend for 2012 was paid during March, prior to the acquisition.
The net operating contribution of other shareholdings includes the contribution of Ergon Capital
Partners I & II, Kartesia and Sagard III, owned by GBL.
The operating income contributed by holding companies, which is mainly the net sum of financial income and expenses, overheads and taxes, stands at CHF -152.8 million, compared with CHF -74.9 million at 30 September 2012. At 30 September 2013, this figure was affected in an amount of CHF -95.8 million, of which CHF -62.6 million relate to the 3rd quarter of 2013, representing Pargesa's share of GBL's
mark-to-market of derivative instruments attached to the bonds exchangeable for GDF Suez and Suez
Environnement shares, in compliance with accounting standards.
This non-cash charge of CHF -95.8 million reflects the counterpart of the value increase of the call options on Suez Environnement and GDF Suez shares implicitly embedded in the exchangeable bonds issued by GBL in 2012 and early 2013. In 2013, the change of value of these derivative instruments is due mainly to the increase in the stock market price of the shares underlying the bonds exchangeable for shares. Suez Environnement's share price has increased by +32% to EUR 12.0 since 1 January 2013, and GDF Suez's by +22% to EUR 18.6 since the issuance of the bonds in January 2013, at which date the reference share price was EUR 15.3. In accordance with IFRS, the change in value of such derivative instruments is recognized in the income statement, whereas at the same time the change in value of the corresponding Suez Environnement and GDF Suez shares held by GBL to cover these bonds is directly recognised as an equity component, without being recycled through the income statement (except in the case of an impairment or sale of such shares). This accounting asymmetry has inter alia two consequences:
it introduces a volatility of the periodic earnings, which will persist during the whole life of the bonds exchangeable for Suez Environnement and GDF Suez shares, which mature respectively in 2015 and
2017, unless they are redeemed before their maturity;
by disconnecting over time the recognition through the income statement of periodic value changes of the derivative instruments on the one hand, and the result recognized upon delivery of the underlying shares on the other hand, this accounting treatment blurs the true economic result which will have been achieved by GBL if, at maturity, the price of the underlying shares is at least equal to their exchange price.
Non-operating income: The non-operating income from consolidated or equity-accounted shareholdings comprises Pargesa's share of the non-operating income of Lafarge and Imerys at 30 September 2013. The net amount of non-operating income contributed by holding companies is CHF 9.5 million. This figure includes in particular the capital gain of CHF 50 million, expressed as Pargesa's share, recorded by GBL on the disposal of approximately 2.7% of the capital of GDF Suez, which offsets the impairment that had been recognised in the 1st quarter of 2013 by GBL on the whole of its investment in GDF Suez, for an amount of CHF -41.7 million expressed as Pargesa's share.
Pargesa Holding SA - 11, Grand-Rue - CH-1204 Geneva Tel : +41 22 817 77 77 - Fax : +41 22 817 77 70 info@pargesa.ch - www.pargesa.ch

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3. Adjusted net asset value

Pargesa's flow-through adjusted net asset value, which is calculated on the basis of the current market values and exchange rates for the listed shareholdings, and on the share of consolidated shareholders' equity and current exchange rates for the unlisted investments, was CHF 99.8 per share at 30 September 2013, and breaks down as follows:

Pargesa flow-through adjusted net asset value at 30 September 2013

% of % economic

Share price

Flow-through Weighting as

CHF million capital interest

in local currency

value % of total



Total 4.0% 2.0% EUR 42.9 2'466 29% Lafarge 21.0% 10.5% EUR 51.5 1'900 23% Imerys 56.6% 28.3% EUR 51.6 1'353 16% SGS 15.0% 7.5% CHF 2'159 1'267 15% Pernod Ricard 7.5% 3.8% EUR 91.8 1'117 13% GDF Suez (1) 2.4% 1.2% EUR 18.3 (2) 613 7% Suez Environnement (1) 7.2% 3.6% EUR 11.5 (2) 245 3% Other holdings 400 5% Total portfolio 9'361 111% GBL Treasury shares 241 3%

Net cash (debt) (1'151) (14%)

Adjusted net asset value 8'451 100%

per Pargesa share CHF 67.9 99.8


EUR/CHF exchange rate 1.224

(1) The percentages of capital stated for GDF Suez and Suez Environnement take into account shares held as treasury shares (0.1% of

GDF Suez and 0.3% of Suez Environnement respectively), and correspond to dividends received in the form of shares in 2011 and

2012.

(2) At 30 September 2013 the value of the shareholdings in GDF Suez and Suez Environnement was capped at the conversion price of the exchangeable bonds, that is, EUR 18.32 and EUR 11.45 respectively, which are lower than the stock market price on that date.

Pargesa's flow-through adjusted net asset value is published every week on the company's website. It stood at
CHF 103.40 per share on 31 October 2013.
Pargesa Holding SA - 11, Grand-Rue - CH-1204 Geneva Tel : +41 22 817 77 77 - Fax : +41 22 817 77 70 info@pargesa.ch - www.pargesa.ch

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