Groupe Bruxelles Lambert : Half-yearly report as of June 30, 2020

July 30, 2020 at 01:35 pm EDT

Building leading companies through long-term engaged and responsible ownership

Groupe Bruxelles Lambert

July 30, 2020

Privileged information - Regulated information

Half-yearly report as of June 30, 2020

2 GBL Half-yearly report as of June 30, 2020

Groupe Bruxelles Lambert ("GBL") is an established investment holding company, with over sixty years of stock exchange listing, a net asset value of EUR 18 billion and a market capitalization of EUR 12 billion as of end of June 2020.

GBL is a leading investor in Europe, focused on long-term and sustainable value creation and relying on a stable and supportive family shareholder base.

GBL strives to maintain a diversified high-quality portfolio composed of global companies, leaders in their sector, in which it can contribute to value creation by being an engaged professional investor.

GBL seeks to provide attractive returns to its shareholders through a combination of a sustainable dividend and growth in its net asset value.

GBL is listed on Euronext Brussels

(Ticker: GBLB BB; ISIN code: BE0003797140) and is part of the BEL20 index.

3 GBL Half-yearly report as of June 30, 2020

Half-yearly report as of June 30, 2020

Message from Ian Gallienne, CEO of GBL
Key financial data
Highlights

8 Organisation chart and net asset value

8 Organisation chart as of June 30, 2020

Net asset value
Portfolio's reconciliation with the IFRS consolidated financial statements
Risk management

12 Economic presentation of the consolidated result and the financial situation

12 Economic presentation of the consolidated result

15 Economic presentation of the financial position

17 Half-yearly IFRS financial statements

Consolidated income statement
Consolidated statement of comprehensive income
Consolidated balance sheet
Consolidated statement of changes in shareholders' equity
Consolidated statement of cash flows
Notes

22 Accounting policies

22 Estimates and judgements

22 Presentation of the consolidated financial statements

Statutory Auditor's report
Glossary

40 For further information

Key information for shareholders

Financial calendar

November 4, 2020: Results as of September 30, 2020
March 2021: Annual Results 2020
April 27, 2021: Ordinary General Meeting 2021
Early May 2021: First quarter 2021 results
End July 2021: Half-year 2021 results

Note: the above-mentioned dates depend on the agenda of the Board of Directors meetings and are thus subject to change.

Investor relations

Additional information can be found on our website (www.gbl.be), among which:

Historical information on GBL
Annual and half-yearly reports as well as press releases in relation to quarterly results
Net asset value on a weekly basis
Our press releases
Our investments

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

Investor relations: Sophie Gallaire sgallaire@gbl.be

Tel.: +32 2 289 17 70

4 GBL Half-yearly report as of June 30, 2020

Message from Ian Gallienne,

CEO of GBL

During the first half of the year, the Covid-19 virus has spread worldwide and drastic lockdown measures, adopted to contain the pandemic, have led to the sharpest peace-time contraction for the world economy since the Great Depression of the 1930s.

Central banks reacted swiftly with a massive deployment of liquidity. Governments and fiscal authorities have engaged in a variety of liquidity measures, tax deferrals and various other support mechanisms. These strong policy interventions - monetary as well as fiscal - have helped markets continue to function. After the initial sell-off as a reaction to the rapid spread of the pandemic and the announcement of national lockdowns, financial markets have rebounded. After reaching a bottom at the end of March, markets have regained part of their losses. However the economic damage is serious.

In response to this unprecedented health, economic and financial crisis, GBL has strived to demonstrate responsibility, creativity and foresight in its decisions.

Our financial situation at end of June 2020 is solid. In spite of the pandemic's impact on the financial markets and consequently on our portfolio, our Loan To Value ratio is low at 6.9%. In this period of heightened uncertainty, given the strength of both our balance sheet and liquidity profile, we decided to maintain in full and paid in May 2020 our FY19 dividend of EUR 3.15 per share (i.e. an increase by 2.6% in comparison to the prior year) or EUR 508 million. At June 30, 2020, our liquidity profile is strong at EUR 2.7 billion.

In this volatile and recessionary environment, this financial flexibility remains crucial to support, if necessary, our portfolio companies and to continue deploying our investment strategy and executing our share buyback program.

During the first half and especially during the second quarter of the year where we took advantage of the market correction, we have invested in a disciplined manner EUR 331 million in undisclosed assets displaying strong long-term fundamentals. Over the first half of the year, we have also continued to develop our alternative asset platform, Sienna Capital, by making new commitments for a global amount of EUR 475 million and investing EUR 215 million.

Meanwhile, the combined impacts of the financial markets' instability and the exchange offer launched by our controlling shareholder on March 11, 2020 have led to the widening of our discount from 26.0% on February 21, 2020 (i.e. before the initial sell-off of the financial markets in reaction to the Covid-19 outbreak) to 33.4% as of July 24, 2020, in comparison with 24.0% on average over the last 5 years. Considering this discount widening as unjustified, we have opportunistically accelerated the execution of our share buyback, especially during the second quarter for an amount of EUR 126 million representing 50% of our second authorized treasury share buyback program. With (i) the success of the exchange offer and (ii) a delisting of Pargesa expected before year-end, we anticipate the collateral technical impacts weighing on our discount to disappear progressively. As of today, the positive outcome of the exchange offer has already led to mechanical increase in our free float, from 50.0% before the offer's launch to 70.2% at the date of the offer's second settlement on July 6, 2020, and is expected to impact favorably GBL's trading liquidity.

All our portfolio companies, although impacted by the global economic recession, have shown adaptability and resilience. This is supported by their position as sector leaders, their critical size and the pre-crisis robustness of their balance sheets. Their respective governance bodies, in which GBL is represented and engaged, continue to play their role and keep focussing on several priority areas of action:

First and foremost, like GBL, all our portfolio companies have taken measures to ensure the health and safety of their employees. Given the unprecedented magnitude of this humanitarian crisis calling for the responsibility of all, they have participated in the collective outburst of solidarity, by donating equipment or by making financial donations throughout the world.

In a prudent and proactive manner, they have all ensured the solidity of their balance sheet and the reinforcement of their liquidity profile. Against the backdrop of a global macro-economic slowdown, most of these companies had continued to deleverage their balance sheets throughout 2019. This prudent and responsible management was fully justified by the economic context in 2019 and all the more so in light of the crisis we are currently going through.
Finally, they continue their strict monitoring of the operational effects of the stop and go economy and have implemented action plans aimed at mitigating the crisis' impact on their business, results and liquidity. We are convinced that these initiatives will enable our portfolio companies to strengthen their competitive positioning after this crisis.

In those troubled times, we have maintained the focus on sustainability

in a world undergoing an irreversible trend in terms of ESG with continued decarbonizing of the global economy. In support to our ambitions, we have nominated François Perrin as Head of ESG. He will bring 25 years of experience in this field, enabling us to strengthen the dialogue with our portfolio companies and support our ambitions in terms of sustainable development going forward.

Our financial performance at end of June 2020 has been impacted by the difficult environment. The cash earnings are down by 12.8% to EUR 390 million due to dividends having been suspended partially or in full by several of our portfolio companies, partially compensated by the increase in the contributions from SGS and Sienna Capital. The consolidated net result at end of June 2020 decreased by 5.1% to EUR 385 million.

Revision of dividend policy and outlook

In this context, we aim at improving investors' visibility. Comforted by

the strength of both our balance sheet and liquidity profile, but conscious that our cash earnings for the full year 2020 ("FY20") will be decreasing in comparison to 2019, we foresee to pay in 2021 a FY20 dividend of EUR 2.50 per share (1).

In the medium term, uncertainty will remain with regards to the shape and pace of the macro-economic recovery as the outlook almost completely depends on whether and how the Covid-19 pandemic is brought under control globally. In order to ensure future dividends being distributed with appropriate earnings and cash covers while still providing an attractive dividend yield to our shareholders (2), we will, as from FY21 onwards, set our ordinary dividend pay-out ratio between 75% and 100% of our cash earnings.

GBL's new dividend policy will generate additional financial means supporting the acceleration of net asset value growth initiated in the past years.

Our commitment towards investors remains unchanged. We seek to deliver an attractive total shareholder return outperforming our reference index over the long term, through the combination of intrinsic value growth and a sustainable dividend. Despite the market correction, weighing negatively on our discount, we have nonetheless continued to outperform the Stoxx Europe 50 by 175bps, delivering an annualized total shareholder return of 8.8% since 2012.

The after-effects of the economic crisis - the damage done to the economy as well as the build-up of public debt - will pose considerable challenges in the foreseeable future. In these circumstances, our flexibility as well as liquidity will be of the utmost importance.

In those difficult times, I want to express my gratitude and appreciation to all my colleagues at GBL as well as the talented and dedicated managers at our underlying portfolio companies. Their agility as well as discipline have been crucial in these past months. GBL will keep applying that same agility and discipline to achieve its core objective of sustainable value creation over the long term.

Ian Gallienne

CEO

Subject to the approval of GBL's General Shareholders' Meeting
Indicative dividend yield of 3.3% based on a FY20 dividend of EUR 2.50 per share and GBL's stock price of EUR 74.68 as of June 30, 2020

5 GBL Half-yearly report as of June 30, 2020

Key financial data (1)

Net asset value of		Liquidity profile of	Loan to Value ratio of	Cash earnings of

EUR 17.5		EUR 2.7	6.9%	EUR 390
billion		billion	million
	end of June 2020
end of June 2020		end of June 2020	end of June 2020

The Board of Directors, held on July 30, 2020, approved GBL's IFRS consolidated financial statements for the first half of 2020. These financial

statements, produced in accordance with IAS 34 - Interim financial reporting, underwent a limited audit by the Auditor Deloitte.

In EUR million	End of June	End of June	End of March	End of December
(Group's share)	2020	2019		2020	2019
Consolidated net result	385	405		15	705
Cash earnings	390	447		161	595

Net asset value	17,540	18,701		15,875	20,349
Market capitalisation	12,050	13,922		11,556	15,161
Discount	31.3%	25.6%		27.2%	25.5%

Net investments / (divestments)	1,070	(1,029)(2)	565	(543)	(2)
Net cash / (Net debt)	(1,257)	(448)		(448)	(768)
Loan To Value	6.9%	2.4%		2.8%	3.7%

Key figures

Net asset value									Net result (group's share)
In EUR million										In EUR million
June 30, 2020							17,540	20,349		June 30, 2020		385

2019										June 30, 2019			405

2018					16,193	18,888		June 30, 2018			384

2017									June 30, 2017				474

2016						16,992			June 30, 2016 - 888

0	5	10	15	20		25	- 1,000 - 800 - 600 - 400 - 200	0	200 400 600 800

Cash earnings	Gross dividend per share
In EUR million	In EUR

June 30, 2020						390
							447
June 30, 2019

June 30, 2018					363
					359
June 30, 2017
				350
June 30, 2016
0	100	200	300	400	500

Year of payment

2020							3.15

2019						3.07

2018					3.00

2017				2.93

2016			2.86		4

0	1	2	3

Alternative performance indicators are defined in the glossary available on GBL's website: http://www.gbl.be/en/glossary
Including the forward sales of Total shares which have matured in January 2020

6 GBL Half-yearly report as of June 30, 2020

Highlights

Covid-19

GBL's response

Crisis management
Solid financial position
Close portfolio monitoring
Solidarity measures

Responses from our portfolio companies

Priority given to protecting employees
Particular attention given to the strength of the balance sheet and the liquidity profile
Operational monitoring
Action plans aimed at limiting the crisis' impacts while enabling to strengthen the post-crisis competitive positioning
Solidarity measures

TSR outperformance

8.8% annualized TSR
Outperformance by 175 bps of the reference index over the 2012-20 period (1)

Financial robustness

EUR 2.7		Strong liquidity

billion		profile
6.9%		LTV ratio

	under control

Portfolio resilience

Sector leaders with an international footprint
Conservative net leverage and access to debt markets

Capital allocation

Asset rotation

Finalisation of the exit from the energy sector initiated in 2013

• Disposal of 0.6% of the capital of Total through prepaid forward sales prepaid in May 2019 and which have matured in January 2020 for a total amount of EUR 771 million

• Capital gain of EUR 411 million(2)

EUR 331 million deployed during the first half-year into undisclosed assets

Participation for an amount of EUR 374 million to a private placement of SGS shares
Increase of ownership from 16.75% of SGS's capital at year-end 2019 to 18.93%

Net asset value reaching EUR 1.9 billion as of June 30, 2020, i.e. 11% of GBL's net asset value
New commitments for a total amount of
EUR 475 million
Investments for a total amounf of
EUR 215 million

For more information please refer to the Sienna Capital section

Share buyback

• Second share buyback program authorized up to EUR 250 million and 66% executed as of June 30, 2020

FY19 dividend maintained

FY19 gross dividend per share of EUR 3.15 maintained in full in spite of the Covid-19 crisis environment, reflecting GBL's strong balance sheet and liquidity profile

Annualized Total Shareholder Return (TSR) with reinvested dividends calculated as from December 31, 2011 until June 30, 2020
Not impacting GBL's consolidated net result, in accordance with IFRS 9

7 GBL Half-yearly report as of June 30, 2020

Simplification of the ownership structure

Exchange offer launched by Parjointco Switzerland S.A. and declared successful on June 9, 2020
De facto control retained by the Desmarais and Frère family groups (through their controlling vehicle Parjointco N.V.) as a result of the double voting right adopted at 85.7% (1) at GBL's Extraordinary General Shareholders' Meeting in April 2020
Increase in the free float expected to impact favorably GBL's trading liquidity

Recruitment of François Perrin as Head of ESG

Started his ESG career in advisory and corporate positions with KPMG in 1995 and Suez in 1999
Pioneered since 2004 sustainable and responsible investment solutions for Lombard Odier,
BNP Paribas Fortis, BNP Paribas Investment Partners Asia and East Capital
Graduated from ENS Cachan, holds a PhD in Finance on Sustainable and Responsible Investment
25 years of experience in ESG integration to further support our ambitions regarding sustainability

Revision of the dividend policy & Outlook

Given the strength of both our balance sheet and liquidity profile and taking into account dividends already received in the first half of FY20 from our portfolio companies, GBL foresees to pay in 2021 a FY20 dividend of EUR 2.50 per share. The dividend is subject as usual to the approval of GBL's General Shareholders' Meeting.
We anticipate a decrease in our cash earnings in FY20 vs. their level in FY19, on the back of lower dividends from a number of companies in our portfolio as a consequence of (i) lower earnings, (ii) legal limitations or governmental recommendations and
1. liquidity management and cash preservation. A significant level of uncertainty remains in relation to the unprecedented Covid-19 crisis, notably with regards to the shape and pace of the macro-economic recovery.
As from FY21 onwards, GBL will set its ordinary dividend pay out ratio between 75% and 100% of its cash earnings, with the possibility to consider exceptional dividends in the future when and if deemed appropriate. On that basis, we will continue to deliver an attractive dividend yield to our shareholders while providing additional financial means supporting (i) the acceleration of net asset value growth initiated in the past years, (ii) our portfolio companies if needed and (iii) the execution of our share buyback program.
Our commitment towards investors remains to deliver an attractive total shareholder return outperforming our reference index over the long term, through a combination of (i) appreciation of our net asset value and (ii) a sustainable dividend.

(1) In comparison to a 2/3rd majority required for the adoption

8 GBL Half-yearly report as of June 30, 2020

Organisation chart and net asset value

Organisation chart as of June 30, 2020

of share capital (% of voting rights)

4.65%

(4.34%)




										19.98%	23.00%


6.84%	18.93%		7.49%	18.02%	7.57%	54.59%	64.01%	8.51%
(6.84%)	(18.93%)	(12.45%)	(18.02%)	(7.57%)	(67.55%)	(64.01%)	(8.51%)	(19.98%)	(23.00%)
												Sienna Capital
									Listed investments and private assets

Net asset value

As of June 30, 2020, GBL's net asset value totalled EUR 17.5 billion (EUR 108.70 per share) compared with EUR 20.3 billion (EUR 126.11 per share) as of end of 2019, down by 13.8% (- EUR 17.41 per share). Relative to the share price of EUR 74.68 (- 20.5% over the first half of the year), the discount as of end of June 2020 was 31.3%, increasing compared with the end of 2019.

			June 30, 2020				December 31, 2019
	Holding	Share price			Holding	Share price	In EUR million
	% in capital	In EUR (1)	In EUR million		% in capital	In EUR (1)
			16,323.5
Listed investments and private assets						18,841.6
adidas	6.84	233.60	3,203.7		6.80	289.80	3,951.3
SGS	18.93	2,173.50	3,112.4	16.75	2,442.42	3,094.5
Pernod Ricard	7.49	140.05	2,786.0	7.49	159.40	3,170.9
Umicore	18.02	41.91	1,860.5	17.99	43.36	1,922.3
LafargeHolcim	7.57	38.97	1,818.2	7.57	49.47	2,308.2
Imerys	54.59	30.34	1,408.0	53.99	37.68	1,617.2
Webhelp	64.01		863.5	64.72		866.7
GEA	8.51	28.15	432.3	8.51	29.48	452.7
Ontex	19.98	13.03	214.4	19.98	18.75	308.5
Parques Reunidos	23.00		183.9	23.00		235.3
Total	0.01	33.98	9.1	0.62	49.20	797.6	(2)
Others			431.4				116.4
Sienna Capital			1,913.0				1,785.0
Portfolio			18,236.5				20,626.6
Treasury shares			559.9				490.4
Gross debt			(2,821.0)				(2,601.7)
Cash and cash equivalents			1,564.2				1,834.1
Net asset value (global)			17,539.7				20,349.4
Net asset value (in EUR per share) (3)			108.70				126.11
Share price (in EUR per share)			74.68				93.96
Discount (in %)			31.3%				25.5%

As of July 24, 2020, net asset value per share stood at EUR 112.59 down by 10.7% compared with its level at the beginning of the year, reflecting a discount of 33.4% on the share price on that date (EUR 75.00).

(1) Share price converted in EUR for SGS and LafargeHolcim based on the ECB fixing of 1.0854 CHF/EUR as of December 31, 2019, and of 1.0651 CHF/EUR as of June 30, 2020

The ownership percentage as well as the stake value of the investment do not take into account yet the forward sales of Total shares which have matured in January 2020. The fair value of these contracts is included under the line "Cash and cash equivalents".
Based on 161,358,287 shares

9 GBL Half-yearly report as of June 30, 2020

Portfolio's reconciliation with the IFRS consolidated financial statements

In EUR million	June 30, 2020	December 31, 2019
Portfolio value as presented in:
Net asset value	18,236.5	20,626.6
Segment information (Holding) - pages 24 and 25	13,979.9	16,268.4
Participations in associates	110.9	144.8
Other equity investments	13,869.0	16,123.7
Reconciliation items	4,256.6	4,358.2
Value of Sienna Capital, consolidated in the Sienna Capital segment	1,913.0	1,785.0
Fair value of Imerys, consolidated using the full consolidation method in IFRS	1,408.0	1,617.2
Fair value of Webhelp, consolidated using the full consolidation method in IFRS	863.5	866.7
Valuation difference of Piolin II/Parques Reunidos between net asset value (fair value) and IFRS (equity method)	73.0	90.5
Reclassification of ENGIE shares, included in gross cash in 2016 and shown under other equity investments	(0.9)	(1.3)

10 GBL Half-yearly report as of June 30, 2020

Risk management

A specific review to identify the risks to which GBL is confronted and their ranking was carried out as of June 30, 2020 in order to measure the possible consequences of the health and economic crisis related to Covid-19.

No additional risk was identified. GBL should continue to face the same risks in the second half of 2020. Their assessments, as presented in GBL's 2019 Annual Report, remain applicable.

Moreover, the level of control of these risks (Control activities) appears sufficient and does not require the implementation of additional measures.

This table categorises the main risks related to GBL's activities and the various factors and measures mitigating their potential negative impact. A chapter included in the 2019 Annual Report (see pages 80 to 87 and 195 to 196) deals in detail with the risks, their management and the control activities put in place by the company.

Main risks

Exogenous

Risks associated with shifts in external factors such as economic, political or legislative change

Strategy

Risks resulting from the definition, implementation and continuation of the group's guidelines and strategic developments

Cash and cash equivalents, financial instruments and financing

Risks associated with the management of cash and cash equivalents, financial instruments and financing

Operations

Risks resulting from inadequacies or failures in internal procedures, staff management or systems in place. Risk of non-compliance with quality standards, contractual and legal provisions and ethical norms

Risk factors	Mitigants

• Changes in financial markets, notably with	• Geographic and sector diversification of the
	regards to the volatility of share price and		portfolio with differentiated cyclical exposure
	interest and foreign exchange rates	• Ongoing legislative monitoring
• Changes in macroeconomic variables	• Systematic monitoring and analysis of macro
	(growth rates, monetary policy, inﬂation,		economic scenarii, markets and investment thesis
	commodity prices, etc.)
• Regulatory or budgetary policy changes
	involving, for example, tax reform or new
	legal obligations
• Specific developments affecting certain
	geographic areas (Eurozone, emerging
	countries, etc.)

• Differing visions or understanding of the	• Formal decision-making process involving all
	assessment of strategic priorities and		governance bodies and the management
	inherent risks	• Ongoing monitoring of key performance indicators
• Validity of the parameters underlying		and regular updates of assumptions and forecasts
	investment thesis	•	Periodic portfolio review at different
• Geographic or sector concentration		hierarchical levels
	of investments	•	Portfolio diversification

• Access to liquidity	• Rigorous and systematic analysis of considered
•	Debt leverage and maturity profile		transactions
•	Quality of counterparties	•	Definition of trading limits
• Relevance of forecasts or expectations	• Diversification of investment types and
•	Interest rate exposure		counterparties
• Developments in financial markets	• Strict counterparty selection process
•	Volatility of derivative instruments	•	Monitoring of the liquidity profile and limitation of
			net indebtedness
		• Formal delegations of authority with the aim
			to achieve appropriate segregation of duties
		• Systematic reconciliation of cash data and
			the accounting

•	Complexity of the regulatory environment	•	Internal procedures and control activities regularly
• Adequacy of systems and procedures		reviewed
•	Exposure to fraud and litigation	•	Implementation of delegations of authority to
• Retention and development of employees'		ensure an appropriate segregation of duties
	skills	• Maintenance of and investments in IT systems
		•	Hiring, retention and training of qualified staff
		• Internal Code of Conduct and Corporate
			Governance Charter

11 GBL Half-yearly report as of June 30, 2020

Risk mapping

				4
		11
				14
	17	15	2

		1	13	12

8		6	19	5

	10
		16

Risk related to strategy implementation
Portfolio risk
ESG risk (1)
Stock market risk
Change risk
Counterparty risk
Treasury risk
Liquidity risk
Interest rate risk
Risk related to derivative financial instruments
Eurozone risk
Legal risk
Tax risk in the current legal and regulatory environment

Tax risk related to legal and regulatory changes
Risk related to financial reporting
Risk of delegation of authority
Risk of non-compliance with professional practices and ethics standards
Risk related to IT infrastructure
Risk related to information access management (IT and non IT)
Risk related to human resources

	7	Very high

scale	20	High
18

9	Medium
Impact
	Low

Probability of occurence

Risk mapping provides indicative information, which may change at any time, particularly depending on market conditions. GBL makes no declarations or warranty and takes no undertaking as to the relevance, accuracy or completeness of the information that it contains.

The ESG risk has been isolated since 2017 and is not subject to an individual assessment in terms of impact scale and probability of occurrence, remaining assessed through other identified risks.

Specific risks related to the participations

GBL indirectly faces specific risks related to	adidas: www.adidas-group.com
the participations, which are identified and	GEA: www.gea.com
addressed by the companies themselves within	Imerys: www.imerys.com
the framework of their own internal control.	LafargeHolcim: www.lafargeholcim.com
The analysis conducted by these companies in	Ontex: www.ontexglobal.com
terms of risk identification and internal control is	Parques Reunidos: www.parquesreunidos.com
described in the reference documents available	Pernod Ricard: www.pernod-ricard.com
on their website.	Sienna Capital: www.sienna-capital.com
	SGS: www.sgs.com
	Umicore: www.umicore.com
	Webhelp: www.webhelp.com

12 GBL Half-yearly report as of June 30, 2020

Economic presentation of the consolidated result and the financial situation

Economic presentation of the consolidated result

In EUR million					June 30, 2020	June 30, 2019
				Operating
			Mark to market	companies	Eliminations,
			(associates or	capital gains,
Group's share		Cash earnings	and other	consolidated) and	impairment and
non-cash items	Sienna Capital	reversals	Consolidated	Consolidated
Profit (loss) of associates and consolidated operating companies		-	-	13.2	-	13.2	47.1
Net dividends from investments	347.7	(9.1)	-	(89.2)	249.4	349.9
Interest income (expenses)	38.3	(0.1)	(48.6)	-	(10.4)	(2.3)
Other financial income (expenses)	20.1	47.1	135.3	(19.3)	183.2	40.0
Other operating income (expenses)	(16.6)	1.2	(30.1)	-	(45.5)	(29.2)
Gains (losses) from disposals, impairments and reversal on						(0.1)
non-current assets	-	-	(5.1)	-	(5.1)
Taxes		(0.1)	-	(0.1)	-	(0.2)	(0.1)
IFRS consolidated net result (6 months 2020)		389.6	39.1	64.6	(108.6)	384.7
IFRS consolidated net result (6 months 2019)		446.6	(7.0)	74.0	(108.3)		405.3

The consolidated net result, group's share, as of June 30, 2020, stands at EUR 385 million, compared with EUR 405 million as of June 30, 2019.

This result is primarily driven by:

the net dividends from investments for EUR 249 million;
the change in fair value of the debts on Webhelp's minority shareholders for EUR 107 million;
the change in fair value of Sienna Capital's funds, not consolidated or accounted for under the equity method, for EUR 23 million;
the contributions of associates or consolidated operating companies for EUR 13 million.

Cash earnings

(EUR 390 million compared with EUR 447 million)

In EUR million	June 30, 2020	June 30, 2019
Net dividends from investments	347.7	445.9
Interest income (expenses)	38.3	0.1
Sienna Capital interests	48.6	2.7
Other interest income (expenses)	(10.3)	(2.5)
Other financial income (expenses)	20.1	21.2
Other operating income (expenses)	(16.6)	(20.6)
Gains (losses) from disposals, impairments and		-
reversal on non-current assets	-
Taxes	(0.1)	(0.0)
Total	389.6	446.6

Net dividends from investments

Net dividends from investments in the first half of 2020 decreased compared with 2019, notably due to the absence of dividends received from adidas, Umicore and Ontex in the context of the sanitary crisis.

In EUR million	June 30, 2020	June 30, 2019

SGS	107.8	87.2
Imerys	89.2	92.1
LafargeHolcim	88.4	110.7
Pernod Ricard	23.5	23.5
Total	9.4	17.6
GEA	6.5	13.1
adidas	-	42.8
Umicore	-	17.7
Ontex	-	6.7
Parques Reunidos	-	4.2
Reimbursements of withholding taxes	21.9	25.8
Other	1.1	4.4

Total	347.7	445.9

SGS paid an annual dividend of CHF 80.00 per share (CHF 78.00 per share in 2019), representing EUR 108 million in 2020.

Imerys proposed, at its General Meeting on May 4, 2020, a dividend in relation to the fiscal year 2019 of EUR 1.72 per share (EUR 2.15 per share in 2019), with an option for a payment, in part or in full, in new shares.

GBL chose a payment in shares, corresponding to a total contribution to cash earnings of EUR 89 million.

LafargeHolcim distributed a dividend of CHF 2.00 per share for the fiscal year 2019 (CHF 2.00 per share the previous year), contributing EUR 88 million as of June 30, 2020.

Pernod Ricard declared an interim dividend of EUR 1.18 per share in the second quarter of 2020 (identical to the previous year), corresponding to a total amount of EUR 23 million.

Total distributed, during the semester, the second and third quarterly interim dividends, as well as the balance of the 2019 dividend, i.e. EUR 0.66, EUR 0.68 and EUR 0.68 per share respectively. Total's contribution to the results as of June 30, 2020 thus amounts to EUR 9 million.

13 GBL Half-yearly report as of June 30, 2020

GEA paid in the second quarter of 2020 a dividend of EUR 0.42 per share (EUR 0.85 in 2019), representing EUR 6 million.

The reimbursements of withholding taxes include, in 2020, the reimbursements by the French tax authorities of withholding taxes which had been applied to ENGIE and Total dividends received between 2016 and 2018 (EUR 22 million). In 2019, this heading included the reimbursements notified by the French tax authorities of withholding taxes which had been applied to ENGIE dividends received between 2013 and 2015 (EUR 26 million).

Interest income (expenses) (EUR 38 million) mainly include (i) the interest income from Sienna Capital (EUR 49 million compared with EUR 3 million in 2019), (ii) the default interest on the withholding taxes reimbursed by the French tax authorities on Total and ENGIE dividends (EUR 2 million compared with EUR 5 million in 2019), (iii) the interest expenses related to the institutional bonds issued in 2017 and 2018 (EUR - 8 million, in line with 2019) and (iv) interests on cash and cash equivalents (EUR - 3 million compared with EUR 1 million in 2019).

Other financial income (expenses) (EUR 20 million) mainly comprise (i) the dividend collected on treasury shares for EUR 19 million (EUR 11 million in 2019), (ii) yield enhancement income of EUR 4 million (EUR 7 million in 2019) and (iii) realized exchange gains for EUR 1 million

(EUR 6 million in 2019).

Other operating income (expenses) amount to EUR - 17 million as of end of June 2020 and have decreased compared with 2019.

Mark to market and other non-cash items

(EUR 39 million compared with EUR - 7 million)

In EUR million	June 30, 2020	June 30, 2019
Net dividends from investments	(9.1)	0.3
Interest income (expenses)	(0.1)	-
Other financial income (expenses)	47.1	(8.5)
Other operating income (expenses)	1.2	1.2
Gains (losses) from disposals, impairments and		-
reversal on non-current assets	-
Total	39.1	(7.0)

Net dividends from investments correspond mainly to the reversal of the second interim dividend to be received from Total provisioned under this heading in 2019 and collected beginning of 2020.

Other financial income (expenses) notably include:

the mark to market of the derivative component associated to the exchangeable bonds into LafargeHolcim shares (EUR 41 million compared with EUR 0 million in 2019).
This non-monetary gain includes the change in the value of the call options on underlying securities implicitly embedded in the exchangeable bonds into LafargeHolcim shares issued in September 2019, primarily attributable to the change in LafargeHolcim's stock price since the issuance of these bonds. The result as of June 30, 2020 illustrates the accounting asymmetry and volatility of periodic results, which will persist throughout the lifetime of the exchangeable bonds;
the mark to market of the trading portfolio, derivative instruments and money market funds (EUR 7 million compared with EUR - 13 million in 2019);
unrealized exchange differences (EUR 0 million compared with EUR 5 million in the prior year).

Operating companies (associates or consolidated) and Sienna Capital

(EUR 65 million compared with EUR 74 million)

In EUR million	June 30, 2020		June 30, 2019
Profit (loss) of associates and consolidated
operating companies	13.2	47.1
Interest income (expenses)	(48.6)	(2.4)
Other financial income (expenses)	135.3	39.3
Sienna Capital	22.6	39.3
Webhelp	112.6	-
Other operating income (expenses)	(30.1)	(9.8)
Sienna Capital	(21.6)	(9.8)
Webhelp	(5.4)	-
Sapiens	(3.1)	-
Gains (losses) on disposals, impairments and		(0.1)
reversals on non-current assets	(5.1)
Taxes	(0.1)	(0.0)

Total	64.6		74.0

Net profit (loss) of associates and consolidated operating companies amounts to EUR 13 million compared with EUR 47 million in 2019:

In EUR million	June 30, 2020		June 30, 2019

Imerys	31.0	51.9
Webhelp	10.5	-
Piolin II/Parques Reunidos	(34.0)	(13.3)
Sienna Capital	5.8	8.5
ECP I, II & IV	8.9	(5.5)
Mérieux Participations 2	0.9	0.1
Backed	(0.8)	3.7
Operating subsidiaries of ECP III	(3.3)	(6.2)
Kartesia	-	16.4
Pollen	-		-
Total	13.2		47.1

Imerys

(EUR 31 million compared with EUR 52 million)

Net current income decreases by 54.1% to EUR 73 million as of June 30, 2020 (EUR 159 million as of June 30, 2019). The current operating income amounts to EUR 132 million (EUR 245 million as of June 30, 2019). The net result, group's share, amounts to EUR 57 million as of June 30, 2020 (EUR 96 million as of June 30, 2019).

Imerys contributes EUR 31 million to GBL's result in 2020 (EUR 52 million in 2019), reflecting the variation in the net income, group's share, and the 54.75% consolidation rate for Imerys in 2020 (54.16% in 2019).

The press release relating to Imerys' results for the first half of 2020 is available at www.imerys.com.

Webhelp

(EUR 10 million)

Net current income amounts to EUR 56 million as of June 30, 2020. The current operating income amounts to EUR 77 million. The net result, group's share, amounts to EUR 17 million as of June 30, 2020.

Webhelp's contribution to GBL's result amounts to EUR 10 million, taking into account a 61.86% consolidation rate.

14 GBL Half-yearly report as of June 30, 2020

Piolin II/Parques Reunidos

(EUR - 34 million compared with EUR - 13 million)

As of June 30, 2020, Piolin II/Parques Reunidos' contribution amounts to EUR - 34 million, based on a EUR - 147 million loss and considering a 23.10% consolidation rate.

As of June 30, 2019, the contribution of Parques Reunidos amounted to EUR - 13 million, based on a EUR - 63 million loss for the period from January 1, 2019 to March 31, 2019 taking into account a 21.19% consolidation rate, the results as of June 30, 2019 having been released by Parques Reunidos after GBL's publication date.

Sienna Capital

(EUR 6 million compared with EUR 8 million)

Sienna Capital's contribution to GBL's results as of June 30, 2020 amounts to EUR 6 million and notably includes (i) the result, group's share, of ECP IV (EUR 9 million in 2020 compared with EUR - 5 million in 2019), (ii) the contribution of Mérieux Participations 2 (EUR 1 million

in 2020 compared with EUR 0 million in 2019), (iii) the contributions of Backed (EUR - 1 million in 2020 compared with EUR 4 million in 2019) and (iv) the results of the operating subsidiaries of ECP III (EUR - 3 million in 2020 compared with EUR - 6 million in 2019).

In 2019, Sienna Capital's contribution also included the group's share in the results of the Kartesia funds (EUR 16 million), which are classified, since the end of 2019, as "Other equity investments".

Other financial income (expenses) include:

the change in fair value of Sienna Capital's funds, not consolidated or not accounted for under the equity method, in accordance with IFRS 9, for a total amount of EUR 23 million (EUR 39 million in 2019), of which mainly Marcho Partners (EUR 83 million), Ergon opseo Long Term Value Fund (EUR 4 million), E.C.P. (Polaris) S.C.A. (EUR 2 million), Sagard funds (EUR - 4 million), Matador (EUR - 7 million),
Kartesia funds (EUR - 20 million) and Primestone (EUR - 35 million);
the changes in fair value and the effect of discounting of the debts on Webhelp's minority shareholders (founders) for EUR 113 million.

Other operating income (expenses) notably include, in addition to general expenses relating to Sienna Capital's activity

(EUR - 22 million), the changes in fair value, as well as the impact of discounting and vesting, of the debts accounted for as part of Webhelp's employee incentive plan (EUR - 5 million).

Eliminations, capital gains, impairments and reversals

(EUR - 109 million compared with EUR - 108 million)

In EUR million	June 30, 2020		June 30, 2019
Elimination of dividends		(96.4)
(Imerys, Parques Reunidos)	(89.2)
Other financial income (expenses)		(12.0)
(GBL, other)	(19.3)

Total	(108.6)		(108.3)

Net dividends from operating investments (associates

or consolidated companies) are eliminated and are related as of June 30, 2020 and 2019, to Imerys (EUR - 89 million compared with EUR - 92 million the prior year).

This heading also included, in 2019, the elimination of the dividend from Parques Reunidos (EUR - 4 million).

The other financial income (expenses) include the elimination of the dividend on treasury shares amounting to EUR - 19 million (EUR - 11 million in 2019).

15 GBL Half-yearly report as of June 30, 2020

Economic presentation of the financial position

As of June 30, 2020, GBL presents a net debt position of EUR 1,257 million.

It is characterised by:

gross cash excluding treasury shares of EUR 1,564 million (EUR 1,834 million at year-end 2019); and
gross debt of EUR 2,821 million (EUR 2,602 million at year-end 2019).

The weighted average maturity of the gross debt is 2.5 years as of June 30, 2020, compared with 3.0 years at year-end 2019.

As of June 30, 2020, committed credit lines total EUR 2,150 million, and have been partially drawn down for an amount of EUR 1,000 million; they mature in 2024 and 2025.

This position does not include the company's commitments in respect of (i) Sienna Capital, which total EUR 737 million at the end of June 2020 (EUR 466 million as of December 31, 2019) and (ii) the debt towards Webhelp's minority shareholders which is valued EUR 376 million at the end of June 2020 (EUR 475 million as of December 31, 2019).

Finally, the 7,502,599 treasury shares represent 4.6% of the issued capital and are valued at EUR 560 million, compared with 3.2% and EUR 490 million respectively as of December 31, 2019.

EUR million	Gross cash	Gross debt	Net debt

Position as of December 31, 2019	1,834.1	(2,601.7)	(767.7)

Cash earnings	389.6	-	389.6
Dividend distribution	(508.3)	-	(508.3)
Investments:	(1,170.4)	-	(1,170.4)
SGS	(373.6)	-	(373.6)
Sienna Capital	(214.7)	-	(214.7)
GBL	(160.6)	-	(160.6)
Imerys	(73.7)	-	(73.7)
adidas	(13.9)	-	(13.9)
Umicore	(2.5)	-	(2.5)
Other	(331.4)	-	(331.4)
Divestments:	100.6	771.3	871.9
Total	-	771.3	771.3
Sienna Capital	84.4	-	84.4
Other	16.2	-	16.2
Drawdowns under the credit lines	1,000.0	(1,000.0)	-
Bank financing	(9.5)	9.5	-
Other	(71.9)	-	(71.9)

Position as of June 30, 2020	1,564.2	(2,821.0)	(1,256.8)

Gross cash

As of June 30, 2020, gross cash excluding treasury shares stands at EUR 1,564 million (EUR 1,834 million as of December 31, 2019). The following table presents its components in correlation with GBL's consolidated financial statements:

In EUR million		June 30, 2020	December 31, 2019
Gross cash as presented in:
Net asset value	1,564.2	1,834.1
Segment information (Holding) - pages 24 and 25	1,568.8	1,816.4
- Trading financial assets	744.3	1,400.1
- Cash and cash equivalents	271.3	416.2
- Other current assets	588.9	75.4
- Trade payables	(4.9)	(2.9)
- Tax liabilities	(3.4)	(6.6)
- Other current liabilities	(27.4)	(65.8)
Reconciliation items		(4.6)	17.7
Reclassification of ENGIE shares previously taken into account in the net asset value and included since 2016 in gross cash	0.9	1.3
Valuation difference of the derivative associated to the LafargeHolcim exchangeable bonds	(7.5)	(7.5)
Valuation difference of the derivative associated to the sales of Total shares and related prepayment	-	31.6
Other	2.0	(7.7)

16 GBL Half-yearly report as of June 30, 2020

Gross debt

As of June 30, 2020, the gross debt of EUR 2,821 million (EUR 2,602 million as of December 31, 2019) breaks down as follows:

In EUR million		June 30, 2020	December 31, 2019
Drawdowns under the credit lines	1,000.0	-
Institutional bonds	1,000.0	1,000.0
Exchangeable bonds LafargeHolcim	750.0	750.0
Debt related to the forward sales of Total shares	-	771.3
Other		71.0	80.5
Gross debt		2,821.0	2,601.7

The following table presents the components of the gross debt in correlation with the IFRS consolidated financial statements:

In EUR million		June 30, 2020	December 31, 2019
Gross debt, included in the segment information (Holding) - pages 24 and 25:		2,824.2	2,568.6
Non-current financial liabilities		1,824.2	1,828.8
Current financial liabilities	1,000.0	739.8
Reconciliation items		(3.2)	33.2
IFRS 9 impact on the debt related to the forward sales to Total shares		-	31.6
Impact of the recognition of financial liabilities at amortised cost in IFRS	11.1	12.6
Financial liabilities recognized in accordance with the IFRS 16 standard	(14.4)	(11.0)

Net debt

As of June 30, 2020, GBL presents a net debt position of EUR 1,257 million. The net debt presents the following Loan To Value ratio:

In EUR million		June 30, 2020	December 31, 2019
Net debt (excluding treasury shares)	1,256.8	767.7
Market value of the portfolio	18,236.5	20,626.6
Loan To Value	6.9%	3.7%

Treasury shares

Treasury shares, valued at their historic value, are recorded as a deduction from shareholders' equity in IFRS. The treasury shares (EUR 560 million as of June 30, 2020, and EUR 490 million as of December 31, 2019) are valued by applying the following valuation principles set out in the glossary in pages 38 and 39.

17	GBL Half-yearly report as of June 30, 2020
	Half-yearly IFRS financial statements

Consolidated income statement

In EUR million	Notes	June 30, 2020	June 30, 2019
Share of profit (loss) of associates	3		(24.9)	1.4
Net dividends from investments	4		249.4	349.9
Other operating income (expenses) from investing activities	5		(37.3)	(29.4)
Gains (losses) on disposals, impairments and reversals on non-current assets from investing activities			(5.8)	(0.1)
Financial income (expenses) from investing activities	6		60.2	37.7
Profit (loss) before tax from investing activities			241.6	359.4
Turnover	7		2,883.5	2,594.1
Raw materials and consumables			(770.4)	(896.4)
Employee expenses			(1,036.5)	(604.6)
Depreciation/amortisation of property, plant, equipment and intangible assets			(245.1)	(198.5)
Other operating income (expenses) from operating activities	5		(664.1)	(729.4)
Gains (losses) on disposals, impairments and reversals on non-current assets from operating activities			(1.1)	8.7
Financial income (expenses) from operating activities	6		42.2	(40.6)
Profit (loss) before tax from consolidated operating activities			208.5	133.3

Income taxes			(31.8)	(51.8)

Consolidated profit (loss) for the period			418.4	441.0
Attributable to owners of the Company			384.7	405.3
Attributable to non-controlling interests			33.7	35.7

Consolidated earnings per share for the period	10
Basic			2.47	2.56
Diluted			2.47	2.56

18 GBL Half-yearly report as of June 30, 2020

Consolidated statement of comprehensive income

In EUR million	June 30, 2020	June 30, 2019

Consolidated profit (loss) for the period		418.4	441.0
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss
Actuarial gains (losses)	18.0	(30.9)
Other equity investments	(2,218.7)	2,194.3
Total items that will not be reclassified to profit or loss, after tax	(2,200.7)	2,163.4
Items that may be reclassified subsequently to profit or loss
Currency translation adjustments for consolidated companies	(161.4)	22.2
Cash flow hedges	5.5	5.8
Share in the other items of the comprehensive income of associates	0.1	0.9
Total items that may be reclassified to profit or loss, after tax	(155.8)	28.9

Other comprehensive income (loss) after tax		(2,356.4)	2,192.3

Comprehensive income (loss)	(1,938.1)	2,633.2
Attributable to the group	(1,901.1)	2,600.9
Attributable to non-controlling interests	(36.9)	32.4

19 GBL Half-yearly report as of June 30, 2020

Consolidated balance sheet

In EUR million	Notes	June 30, 2020	December 31, 2019

Non-current assets		24,011.1	26,259.6
Intangible assets		622.8	627.4
Goodwill	9	4,614.7	4,619.1
Property, plant and equipment		2,677.9	2,787.6
Investments		15,804.1	17,962.1
Investments in associates	3	466.5	445.7
Other equity investments	4	15,337.5	17,516.4
Other non-current assets		118.9	108.8
Deferred tax assets		172.8	154.7

Current assets		5,022.0	4,883.9
Inventories		810.1	846.1
Trade receivables		912.3	959.3
Trading financial assets		754.4	1,415.9
Cash and cash equivalents	8	1,621.7	1,221.3
Other current assets		923.4	441.4

Total assets		29,033.1	31,143.5


Shareholders' equity		18,728.2	21,339.4

Share capital		653.1	653.1
Share premium		3,815.8	3,815.8
Reserves		12,743.5	15,289.3
Non-controlling interests		1,515.8	1,581.2

Non-current liabilities		6,882.2	6,986.7
Financial liabilities	8	5,462.0	5,372.2
Provisions		415.3	453.6
Pensions and post-employment benefits		363.0	400.1
Other non-current liabilities		453.3	557.2
Deferred tax liabilities		188.6	203.6

Current liabilities		3,422.7	2,817.4
Financial liabilities	8	2,003.1	1,315.6
Trade payables		637.6	667.1
Provisions		35.8	29.6
Tax liabilities		92.4	95.8
Other current liabilities		653.9	709.2

Total shareholders' equity and liabilities		29,033.1	31,143.5

20 GBL Half-yearly report as of June 30, 2020

Consolidated statement of changes in shareholders' equity

							Share

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

As of December 31, 2018	653.1	3,815.8	4,471.8	(137.7)	(192.9)	7,307.3	15,917.3	1,709.8	17,627.1
Consolidated profit (loss) for the year	-	-	-	-	-	405.3	405.3	35.7	441.0
Reclassification following disposals	-	-	(333.2)	-	-	333.2	-	-	-
Other comprehensive income (loss)	-	-	2,194.3	-	12.4	(11.1)	2,195.6	(3.3)	2,192.3
Total comprehensive income	-	-	1,861.2	-	12.4	727.3	2,600.9	32.4	2,633.2
(loss)

Dividends	-	-	-	-	-	(484.4)	(484.4)	(78.3)	(562.8)
Treasury share transactions	-	-	-	(169.1)	-	(6.3)	(175.4)	-	(175.4)
Other movements	-	-	-	-	-	(5.0)	(5.0)	(9.3)	(14.3)

As of June 30, 2019	653.1	3,815.8	6,333.2	(306.8)	(180.5)	7,538.6	17,853.4	1,654.6	19,507.9

Consolidated profit (loss) for the year	-	-	-	-	-	299.4	299.4	28.5	327.9
Reclassification following disposals	-	-	(100.3)	-	-	100.3	-	-	-
Other comprehensive income (loss)	-	-	1,681.5	-	4.9	(25.5)	1,660.9	(7.5)	1,653.4

Total comprehensive income	-	-	1,581.2	-	4.9	374.3	1,960.3	21.0	1,981.3
(loss)
Dividends	-	-	-	-	-	-	-	(31.9)	(31.9)
Treasury share transactions	-	-	-	(46.0)	-	(0.1)	(46.1)	-	(46.1)
Changes in group structure	-	-	-	-	-	(2.6)	(2.6)	(57.4)	(60.0)
Other movements	-	-	-	-	-	(6.8)	(6.8)	(5.0)	(11.8)

As of December 31, 2019	653.1	3,815.8	7,914.4	(352.8)	(175.7)	7,903.4	19,758.2	1,581.2	21,339.4

Consolidated profit (loss) for the year	-	-	-	-	-	384.7	384.7	33.7	418.4
Reclassification following disposals	-	-	(384.6)	-	-	384.6	-	-	-
Other comprehensive income (loss)	-	-	(2,218.7)	-	(87.9)	20.8	(2,285.8)	(70.6)	(2,356.4)

Total comprehensive income	-	-	(2,603.3)	-	(87.9)	790.1	(1,901.1)	(36.9)	(1,938.1)
(loss)

Dividends	-	-	-	-	-	(488.9)	(488.9)	(62.5)	(551.5)
Treasury share transactions	-	-	-	(162.7)	-	0.7	(162.0)	-	(162.0)
Changes in group structure	-	-	-	-	-	(7.4)	(7.4)	(3.1)	(10.5)
Other movements	-	-	-	-	-	13.6	13.6	37.1	50.7

As of June 30, 2020	653.1	3,815.8	5,311.1	(515.5)	(263.6)	8,211.5	17,212.3	1,515.8	18,728.2

Shareholders' equity was impacted during the first half of 2020 mainly by:

the distribution by GBL on May 7, 2020 of a gross dividend of EUR 3.15 per share (EUR 3.07 in 2019), representing EUR 489 million, dividends related to the treasury shares held by GBL being deducted;
the evolution in the fair value of the portfolio of other equity investments whose changes in fair value are recognised in equity (detailed in Note 4.3);
the share buybacks; and
the consolidated result for the period.

21 GBL Half-yearly report as of June 30, 2020

Consolidated statement of cash flows

The consolidated statement of cash flows takes into account the cash flows from continued and discontinued operations.

In EUR million	Notes	June 30, 2020	June 30, 2019

Net cash from (used in) operating activities		583.5	329.7
Consolidated profit (loss) for the year		418.4	441.0
Adjustments for non-cash items:
Income taxes (continued and discontinued activities)		31.8	51.8
Interest income (expenses)		73.5	37.4
Share of profit (loss) of associates	3	27.0	(4.8)
Dividends from investments in non-consolidated companies	4	(249.4)	(349.9)
Net depreciation and amortisation expenses		245.4	198.7
Gains (losses) on disposals, impairment and reversals on non-current assets		(24.2)	(14.0)
Other non-cash income items		(148.4)	(29.7)
Interest received		17.9	7.5
Interest paid		(73.7)	(50.1)
Dividends received from investments in non-consolidated companies		235.1	198.4
Dividends received from investments in associates		0.4	7.0
Income taxes paid		(43.2)	(64.5)
Changes in working capital		33.4	(80.7)
Changes in other receivables and payables		39.6	(18.4)

Net cash from (used in) investing activities		(163.0)	(228.9)
Acquisitions of:
Investments in associates		(58.7)	(22.9)
Other equity investments		(874.8)	(49.8)
Subsidiaries, net of cash acquired		(44.6)	(28.1)
Property, plant and equipment and intangible assets		(194.1)	(165.9)
Other financial assets (1)		(523.1)	(504.6)
Disposals/divestments of:
Investments in associates		8.5	28.4
Other equity investments		850.8	498.9
Subsidiaries, net of cash paid		7.7	1.2
Property, plant and equipment and intangible assets		4.6	10.4
Other financial assets (2)		660.7	3.5

Net cash from (used in) financing activities		6.4	7.0
Capital increase/(decrease) from non-controlling interests		32.8	2.1
Dividends paid by the parent company to its shareholders		(488.9)	(484.4)
Dividends paid by the subsidiaries to non-controlling interests		(62.5)	(78.3)
Proceeds from financial liabilities		1,373.8	824.1
Repayments of financial liabilities		(696.5)	(90.4)
Net change in treasury shares		(162.0)	(175.4)
Other		9.7	9.3

Effect of exchange rate fluctuations on funds held		(26.5)	3.1

Net increase (decrease) in cash and cash equivalents		400.4	110.9
Cash and cash equivalents at the beginning of the year	8	1,221.3	1,013.6
Cash and cash equivalents at the end of the year	8	1,621.7	1,124.5

(1)	Includes in the first half of 2020, the acquisition of state bonds for EUR 495 million.
(2)	Change primarily linked to the evolution of money market funds (EUR 659 million as of June 30, 2020).

22 GBL Half-yearly report as of June 30, 2020

Notes

Accounting policies

Principes généraux et normes applicables

The condensed consolidated financial statements have been prepared in accordance with the IFRS (International Financial Reporting Standards) as adopted by the European Union. The consolidated financial statements as of June 30, 2020 are in conformity with IAS 34 - Interim financial reporting and have been approved on July 30, 2020.

Mandatory changes in accounting policies

The accounting and calculation methods used in the interim financial statements are identical to those used in the annual financial statements for 2019, apart from the application by the group of new standards or interpretations which have become mandatory since January 1, 2020. They did not have any material impact on GBL's consolidated financial statements.

Texts in force after the reporting date

The group did not anticipate the standards and interpretations applicable after January 1, 2020.

Seasonnality

Revenues received as dividends are generally higher during the first half of the year than during the second half.

Estimates and judgements

In terms of judgement, GBL analysed the accounting treatment to be applied to the investment in Ontex, Umicore and SGS and particularly the classification in (i) investments in associates (IAS 28 - Interests in Associates and Joint Ventures), with the recognition of GBL's share in the profit or loss and shareholders' equity of Ontex, Umicore and SGS, respectively, or (ii) in other equity investments (IFRS 9 - Financial Instruments), with the recognition of the investment at its fair value and the recognition of the dividend through profit or loss.

In accordance with IAS 28, it is assumed that a group does not exercise significant influence if the percentage holding is less than 20.00%, unless it can be clearly demonstrated. According to this standard, significant influence is usually demonstrated in the case of (i) representation on the Board of Directors, (ii) participation in policy-making processes,

material transactions between the investor and the company owned,
the interchange of managerial personnel or (v) the supply of critical technical information.

As of June 30, 2020, these three investments are held respectively at 19.98%, 18.02% and 18.93% (19.98%, 17.99% and 16.75% respectively as of December 31, 2019). The representation on the Board of Directors of those companies is not sufficient to demonstrate the existence of significant influence. Moreover, representation on the Boards of Directors is limited to the mandates of the Directors and does not come from a contractual or legal right but from a resolution at General Shareholders' Meeting. Taking these different factors into account, GBL has entered into the accounting treatment of its investments in Ontex, Umicore and SGS as other equity investments as of June 30, 2020.

For other estimates and judgements, please refer to the 2019 Annual Report. These remain relevant throughout the first half of 2020 in the context of the health and economic crisis caused by the Covid-19 pandemic. In this context, GBL has paid particular attention to the estimates and judgments. In particular, the events triggering an impairment test constitute judgments of the group. They mainly include significant changes in the business, interest rates, technology, obsolescence, return on assets and the value of market capitalization falling below consolidated equity for listed companies. An adverse change to one of these factors will trigger an immediate impairment test, conducted either on a CGU or an individual asset. GBL and some of its holdings having observed, during the first half of 2020, an unfavorable evolution of some of these indicators in the context of the economic and health crisis caused by the Covid-19 pandemic, an impairment test was carried out on June 30, 2020 on the cash-generating units (CGUs) concerned (see note 9).

Presentation of the consolidated financial statements

The consolidated statement of comprehensive income separately presents:

Investing activities
Components of income resulting from investing activities, which includes the operations of GBL and of its subsidiaries whose main purpose is investment management. This includes Sienna Capital as well as the profit (loss) of operating associates (Piolin II/Parques Reunidos) and non-consolidated operating companies (adidas, Pernod Ricard, SGS, LafargeHolcim, Umicore, GEA, Ontex,…); and
Consolidated operating activities
Components of income from consolidated operating activities, i.e. from consolidated operating companies (Imerys, Sapiens/Webhelp as well as the sub-groups Keesing, Sausalitos, svt, Indo, Vanreusel, …).

23 GBL Half-yearly report as of June 30, 2020

1. Changes in group structure

In the first half of 2020, the group made some marginally significant acquisitions and disposals.

For the sake of consistency, the notes to the accounts are grouped by nature and not in the order of occurrence of the accounting headings in the balance sheet and the consolidated income statement. These groupings allow for the analysis of all influences on the financial statements of assets and liabilities of the same nature.

2. Segment information

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

In conformity with IFRS 8, the group has identified four segments:

Holding: comprising the parent company GBL and its subsidiaries. Its main activity is to manage investments as well as the non-consolidated operating companies and associates;
Imerys: consisting of the Imerys group, a French group listed on Euronext Paris, which holds leading positions in each of its two business lines: Performance Materials and High Temperature Materials & Solutions;
Sapiens/Webhelp: consisting of the Webhelp group, a non-quoted French group, specialized in customer experience and business process outsourcing as well as the investment vehicle Sapiens; and
Sienna Capital: includes, on the one hand, under investment activities, the companies Sienna Capital, ECP, ECP II, ECP IV, Sagard, Sagard II, Sagard 3, Sagard 4, PrimeStone, Backed 1 LP, Backed 1 Founder LP, Backed 2 LP, Backed 2 Founder LP, Backed Encore 1 LP, Backed Encore 1 Founder LP, BDT Capital Partners Fund II, Kartesia Credit Opportunities III and IV, KKR Sigma Co-Invest II, Mérieux Participations I and 2, Marcho Partners, Ergon opseo Long Term Value Fund, Matador Coinvestment, Pollen, E.C.P. (Polaris) S.C.A. and Carlyle International Energy Partners II and, on the other hand, under consolidated operating activities, the operating subsidiaries of ECP III (sub-groups Sausalitos, Keesing, svt, Vanreusel, Indo, etc.).

The results of a segment, its assets and its liabilities include all the items directly attributable to it. The accounting standards applied to these segments are the same as those described in the section entitled "Accounting Policies".

2.1. Segment information - Consolidated income statement for the period ended as of June 30, 2020 and June 30, 2019

Period ended as of June 30, 2020

In EUR million	Holding	Imerys	Sapiens/	Sienna
Webhelp	Capital	Total
Share of profit (loss) of associates	(34.0)	-	-	9.1	(24.9)
Net dividends from investments	249.4	-	-	(0.0)	249.4
Other operating income (expenses) from investing activities	(15.4)	-	-	(21.9)	(37.3)
Gains (losses) on disposals, impairments and reversals on non-current assets from investing activities	-	-	-	(5.8)	(5.8)
Financial income (expenses) from investing activities	86.2	-	-	(26.0)	60.2
Profit (loss) before tax from investing activities	286.2	-	-	(44.6)	241.6
Turnover	-	1,900.2	760.1	223.2	2,883.5
Raw materials and consumables	-	(650.5)	(13.9)	(106.0)	(770.4)
Employee expenses	-	(448.2)	(535.5)	(52.8)	(1,036.5)
Depreciation/amortisation of property, plant, equipment and intangible assets	-	(161.9)	(58.7)	(24.5)	(245.1)
Other operating income (expenses) from operating activities	-	(527.0)	(104.8)	(32.3)	(664.1)
Gains (losses) on disposals, impairments and reversals on non-current assets from operating activities	-	(1.1)	-	0.0	(1.1)
Financial income (expenses) from operating activities	-	(29.4)	81.8	(10.2)	42.2
Profit (loss) before tax from consolidated operating activities	-	82.2	129.0	(2.6)	208.5

Income taxes	(0.1)	(24.8)	(7.1)	0.2	(31.8)

Consolidated profit (loss) for the year	286.1	57.4	121.9	(47.0)	418.4
Attributable to the group	286.1	31.0	114.6	(47.0)	384.7

24 GBL Half-yearly report as of June 30, 2020

Period ended as of June 30, 2019

In EUR million	Holding	Imerys	Sienna
Capital	Total
Share of profit (loss) of associates	(13.3)	-	14.7	1.4
Net dividends from investments	349.9	-	-	349.9
Other operating income (expenses) from investing activities	(19.4)	-	(10.0)	(29.4)
Gains (losses) on disposals, impairments and reversals on non-current assets from investing activities	-	-	(0.1)	(0.1)
Financial income (expenses) from investing activities	0.9	-	36.8	37.7
Profit (loss) before tax from investing activities	318.0	-	41.5	359.4
Turnover	-	2,263.4	330.7	2,594.1
Raw materials and consumables	-	(784.6)	(111.8)	(896.4)
Employee expenses	-	(481.9)	(122.7)	(604.6)
Depreciation/amortisation of property, plant, equipment and intangible assets	-	(165.3)	(33.2)	(198.5)
Other operating income (expenses) from operating activities	-	(677.4)	(52.0)	(729.4)
Gains (losses) on disposals, impairments and reversals on non-current assets from operating activities	-	8.7	0.0	8.7
Financial income (expenses) from operating activities	-	(18.4)	(22.2)	(40.6)
Profit (loss) before tax from consolidated operating activities	-	144.5	(11.2)	133.3

Income taxes	(0.0)	(46.5)	(5.2)	(51.8)

Consolidated profit (loss) for the year	317.9	98.0	25.0	441.0
Attributable to the group	317.9	51.9	35.4	405.3

2.2. Segment information - Consolidated balance sheet as of June 30, 2020 and December 31, 2019

Period ended as of June 30, 2020

In EUR million	Holding	Imerys	Sapiens/	Sienna
Webhelp	Capital	Total


Non-current assets	13,998.4	5,004.8	2,574.4	2,433.6	24,011.1

Intangible assets	0.0	289.0	86.5	247.2	622.8
Goodwill	-	2,140.3	2,160.3	314.1	4,614.7
Property, plant and equipment	17.9	2,258.7	257.7	143.6	2,677.9
Investments	13,979.9	100.5	-	1,723.7	15,804.1
Investments in associates	110.9	99.6	-	256.0	466.5
Other equity investments	13,869.0	0.9	-	1,467.6	15,337.5
Other non-current assets	0.5	73.1	44.1	1.2	118.9
Deferred tax assets	-	143.2	25.8	3.8	172.8

Current assets	1,608.0	2,612.4	668.9	132.7	5,022.0

Inventories	-	778.4	1.5	30.2	810.1
Trade receivables	3.5	549.7	308.3	50.8	912.3
Trading financial assets	744.3	10.1	-	0.0	754.4
Cash and cash equivalents	271.3	1,063.9	250.6	35.9	1,621.7
Other current assets	588.9	210.3	108.5	15.7	923.4

Total assets	15,606.3	7,617.2	3,243.3	2,566.3	29,033.1


Non-current liabilities	1,835.1	2,763.3	1,809.4	474.5	6,882.2

Financial liabilities	1,824.2	1,869.3	1,374.4	394.1	5,462.0
Provisions	0.5	414.4	-	0.3	415.3
Pensions and post-employment benefits	10.0	337.6	8.3	7.1	363.0
Other non-current liabilities	0.3	38.2	414.3	0.6	453.3
Deferred tax liabilities	-	103.8	12.4	72.4	188.6

Current liabilities	1,035.8	1,799.0	484.7	103.2	3,422.7

Financial liabilities	1,000.0	897.9	77.6	27.6	2,003.1
Trade payables	4.9	500.7	97.5	34.4	637.6
Provisions	-	23.3	6.6	5.9	35.8
Tax liabilities	3.4	74.0	10.6	4.3	92.4
Other current liabilities	27.4	303.1	292.4	30.9	653.9

Total liabilities

2,870.8

4,562.3

2,294.1

577.7

10,304.9

25 GBL Half-yearly report as of June 30, 2020

Period ended as of December 31, 2019

In EUR million	Holding	Imerys	Sapiens/	Sienna
Webhelp	Capital	Total

Non-current assets	16,281.6	5,129.0	2,557.8	2,291.3	26,259.6
Intangible assets	0.0	281.8	92.6	253.0	627.4
Goodwill	-	2,153.1	2,165.0	301.0	4,619.1
Property, plant and equipment	12.7	2,380.2	251.7	143.0	2,787.6
Investments	16,268.4	105.3	-	1,588.4	17,962.1
Investments in associates	144.8	105.3	-	195.6	445.7
Other equity investments	16,123.7	-	-	1,392.8	17,516.4
Other non-current assets	0.5	88.0	17.7	2.6	108.8
Deferred tax assets	-	120.6	30.8	3.3	154.7

Current assets	1,891.9	2,345.7	509.3	137.0	4,883.9
Inventories	-	812.6	0.9	32.6	846.1
Trade receivables	0.1	623.9	276.9	58.3	959.3
Trading financial assets	1,400.1	9.4	-	6.4	1,415.9
Cash and cash equivalents	416.2	660.4	121.8	22.9	1,221.3
Other current assets	75.4	239.4	109.8	16.8	441.4

Total assets	18,173.4	7,474.7	3,067.1	2,428.3	31,143.5


Non-current liabilities	1,881.4	2,834.9	1,818.5	451.9	6,986.7
Financial liabilities	1,828.8	1,883.6	1,296.4	363.5	5,372.2
Provisions	0.5	446.0	0.4	6.7	453.6
Pensions and post-employment benefits	9.4	375.7	8.1	6.9	400.1
Other non-current liabilities	42.7	22.7	491.4	0.4	557.2
Deferred tax liabilities	-	106.9	22.2	74.5	203.6

Current liabilities	815.1	1,477.8	406.2	118.3	2,817.4
Financial liabilities	739.8	475.7	60.3	39.8	1,315.6
Trade payables	2.9	542.6	87.5	34.2	667.1
Provisions	-	21.0	7.5	1.1	29.6
Tax liabilities	6.6	83.2	1.0	5.0	95.8
Other current liabilities	65.8	355.3	249.9	38.1	709.2

Total liabilities	2,696.5	4,312.7	2,224.7	570.2	9,804.1

26 GBL Half-yearly report as of June 30, 2020

3. Associates

3.1. Share of profit (loss)

Dividends received from equity-accounted entities have been eliminated and replaced by GBL's share of their profit or loss.

Profit or loss of associates (GBL's share)

In EUR million	June 30, 2020	June 30, 2019
Piolin II / Parques Reunidos	(34.0)	(13.3)
ECP I, II & IV	8.9	(5.5)
Backed	(0.8)	3.7
Mérieux Participations 2	0.9	0.1
Kartesia	-	16.4
Share of profit or loss of associates - investing activities	(24.9)	1.4
I.P.E.	(0.6)	(0.4)
Other	(1.5)	3.8
Associates related to consolidated operating activities (shown under "Other operating income (expenses)")	(2.1)	3.4

Total	(27.0)	4.8

3.2. Value of investments under equity method

				Investing activities	Operating activities
	Piolin II /			Mérieux
In EUR million	Parques	ECP I, II & IV	Backed	Participations	Pollen	I.P.E.	Other
Reunidos	2


As of December 31, 2019	144.8	48.0	46.9	55.2	-	39.8	111.0

Investment/(Divestment)	-	19.2	14.9	(5.0)	3.0	-	-
Profit (loss) for the year	(34.0)	8.9	(0.8)	0.9	-	(0.6)	(1.5)
Distribution	-	-	-	-	-	-	(0.4)
Transfer from other equity investments	-	-	-	-	25.8	-	-
Other	0.1	0.0	0.1	0.0	-	(5.7)	(4.1)

As of June 30, 2020	110.9	76.2	61.1	51.1	28.8	33.5	105.0

The "Other" heading includes the associated companies of Imerys.

Total

445.7

32.1

(27.0)

(0.4)

25.8

(9.6)

466.5

SGS, LafargeHolcim, Pernod Ricard and other equity investments

Net dividends

In EUR million	June 30, 2020	June 30, 2019

SGS	107.8	87.2
LafargeHolcim	88.4	110.7
Pernod Ricard	23.5	23.5
GEA	6.5	13.1
Total	0.3	17.9
Umicore	-	17.7
adidas	-	42.8
Ontex	-	6.7
Reimbursements of withholding taxes	21.9	25.8
Other	1.1	4.4

Total	249.4	349.9

In 2020, GBL recorded EUR 249 million in dividends (EUR 350 million in 2019).

This evolution mainly stems from to the absence of dividends from adidas, Umicore and Ontex in the context of the Covid-19 crisis and the decline in dividend from LafargeHolcim resulting from the sales of shares during the fourth quarter of 2019 and the absence of the capture of the discount offered on dividend received in shares in 2019. This effect is however partially offset by the increase in dividend from SGS due to the strengthening of the position in 2020, to currency effects and to the increase in the unit dividend. In addition, as in the previous year, net dividends include reimbursements from the French tax authorities of withholding taxes that had been applied to Total and ENGIE dividends received for EUR 22 million (EUR 26 million as of June 30, 2019).

27 GBL Half-yearly report as of June 30, 2020

4.2. Fair value and changes

The investments in listed companies are valued on the basis of the share price at the reporting date. Changes in the fair value of investments are recognised in the revaluation reserves (see note 4.3.).

Shares in "Funds", namely Sagard, Sagard II, Sagard 3, Sagard 4, PrimeStone, BDT Capital Partners II, Kartesia Credit Opportunities III and IV,

KKR Sigma Co-Invest II, Mérieux Participations I, Marcho Partners, Ergon opseo Long Term Value Fund, Matador Coinvestment, E.C.P. (Polaris) S.C.A. and Carlyle International Energy Partners II are revalued at their fair value, determined by the managers of the funds based on their investment portfolio. Changes in the fair value of investments are recognised in profit or loss (see note 6).

In EUR million			Disposals/	Change in
December 31, 2019	Acquisitions	Reimbursements	fair value	Other	June 30, 2020
Investments with changes in fair value through equity	16,123.7	721.4	(377.9)	(2,603.3)	5.2	13,869.0
adidas	3,951.3	13.9	-	(761.5)	-	3,203.7
SGS	3,094.5	373.6	-	(355.7)	-	3,112.4
Pernod Ricard	3,170.9	-	-	(408.4)	23.5	2,786.0
Umicore	1,922.3	2.5	-	(64.3)	-	1,860.5
LafargeHolcim	2,308.2	-	-	(490.0)	-	1,818.2
GEA	452.7	-	-	(20.4)	-	432.3
Ontex	308.5	-	-	(94.1)	-	214.4
Total	797.6	-	(361.2)	(409.0)	(18.3)	9.1
Other	117.7	331.4	(16.7)	(0.0)	-	432.4

Investments with changes in fair value through profit or loss	1,392.8	153.0	(57.5)	22.7	(42.5)	1,468.5
Funds	1,390.5	151.6	(57.5)	22.7	(42.5)	1,464.8
Other	2.3	1.4	-	-	-	3.7

Fair value	17,516.4	874.4	(435.4)	(2,580.6)	(37.4)	15,337.5
In EUR million			Disposals/	Change in

December 31, 2018	Acquisitions	Reimbursements	fair value	Other	December 31, 2019
Investments with changes in fair value through equity	13,329.1	25.8	(681.9)	3,442.4	8.2	16,123.7
adidas	2,862.7	-	(165.8)	1,254.4	-	3,951.3
Pernod Ricard	2,850.6	-	-	320.3	-	3,170.9
SGS	2,484.7	-	-	609.8	-	3,094.5
LafargeHolcim	2,050.9	-	(392.7)	650.0	-	2,308.2
Umicore	1,519.9	25.6	-	378.2	(1.5)	1,922.3
Total	748.5	0.1	-	39.3	9.6	797.6
GEA	345.5	-	-	107.2	-	452.7
Ontex	294.5	-	-	14.0	-	308.5
Other	171.8	-	(123.4)	69.3	-	117.7

Investments with changes in fair value through profit or loss	699.5	360.0	(16.1)	152.9	196.5	1,392.8
Funds	686.6	359.6	(7.4)	146.5	205.3	1,390.5
Other	12.9	0.4	(8.6)	6.4	(8.8)	2.3

Fair value	14,028.6	385.8	(698.0)	3,595.3	204.6	17,516.4

28 GBL Half-yearly report as of June 30, 2020

4.3. Revaluation reserves

These reserves include changes in the fair value of other equity investments with changes in the fair value recognised in equity.

In EUR million	adidas	Pernod	SGS	Lafarge-	Umicore	Total	GEA	Ontex	Other	Total
Ricard	Holcim

As of December 31, 2019	2,853.9	2,348.0	914.6	577.3	1,025.6	411.9	(94.5)	(145.9)	23.5	7,914.4

Change resulting from the change in fair value	(761.5)	(408.4)	(355.7)	(490.0)	(64.3)	(23.9)	(20.4)	(94.1)	(0.4)	(2,218.7)
Transfers to consolidated reserves in case of disposal	-	-	-	-	-	(385.1)	-	-	0.5	(384.6)


As of June 30, 2020	2,092.4	1,939.6	558.9	87.4	961.3	2.9	(114.9)	(240.0)	23.6	5,311.1

5. Other operating income (expenses)

In EUR million	June 30, 2020	June 30, 2019
Other operating expenses	0.5	0.4
Other operating income	(37.8)	(29.8)
Other operating income (expenses) - investing activities	(37.3)	(29.4)
Other operating income	30.3	39.3
Other operating expenses	(692.3)	(772.1)
Share of profit (loss) of associates belonging to consolidated operating activities	(2.1)	3.4
Other operating income (expenses) - operating activities	(664.1)	(729.4)

6. Financial income (expenses)

In EUR million		June 30, 2020	June 30, 2019
Interest income on cash and cash equivalents, non-current assets and other		(1.4)	1.0
Interest expenses on financial liabilities	(10.9)	(8.2)
Gains (losses) on trading securities and derivatives	51.0	(7.9)
Change in the fair value of other equity investments recognised at fair value through profit or loss	22.7	39.3
Other financial income	1.7	16.3
Other financial expenses		(3.0)	(2.7)
Financial income (expenses) - investing activities		60.2	37.7
Interest income on cash and cash equivalents and non-current assets		1.6	3.3
Interest expenses on financial liabilities	(64.6)	(33.5)
Gains (losses) on trading securities and derivatives	(4.4)	(2.4)
Other financial income	118.6	22.4
Other financial expenses		(9.0)	(30.3)
Financial income (expenses) - operating activities		42.2	(40.6)

Financial income (expenses) from investing activities totalled EUR 60 million (compared to EUR 38 million in 2019). They mainly consist of (i) the results from trading activities and derivative instruments (EUR 51 million in 2020 compared with EUR - 8 million in 2019), (ii) the changes in fair value of other equity investiments recognised at fair value in profit or loss for EUR 23 million (EUR 39 million in 2019), (iii) the default interest on the withholding taxes which had been unduly applied to ENGIE and Total dividends (EUR 2 million compared with EUR 5 million in 2019) and (iv) the interest charges on cash and cash equivalent as well as GBL's indebtness (notably bond issues) for EUR - 11 million (EUR - 8 million in 2019).

Financial income (expenses) from consolidated operating activities essentially result, on the one hand, from the changes in fair value of the debts on Webhelp's minority shareholders (founders) for a EUR 113 million profit (EUR 0 million in 2019) partially compensated, on the other hand, by interest expenses on Imerys', Sienna Capital's and Webhelp's debts amounting to EUR 65 million (EUR 34 million in 2019).

29 GBL Half-yearly report as of June 30, 2020

7. Turnover

The table below presents the split the of the revenue into sales of goods, services provided and other:

In EUR million	June 30, 2020		June 30, 2019

Sales of goods	1,879.5	2,217.0
Services provided	1,003.5	375.7
Other	0.6	1.3

Total	2,883.5	2,594.1

The split by cash generating unit is presented below:

In EUR million	June 30, 2020		June 30, 2019
Performance Materials (Imerys)	1,080.9		1,227.1
High Temperature Materials & Solutions (Imerys)	826.2	1,036.4
Holdings (Imerys)	(6.9)	(0.1)
Imerys	1,900.2	2,263.4
Sapiens/Webhelp	760.1	-
svt (Sienna Capital)	85.6	26.1
Keesing (Sienna Capital)	81.4	38.4
Vanreusel (Sienna Capital)	24.8	24.2
Indo (Sienna Capital)	16.7	23.5
Sausalitos (Sienna Capital)	14.6	74.8
Looping (Sienna Capital)	-	72.8
opseo (Sienna Capital)	-	70.8
Sienna Capital	223.1		330.7
Total	2,883.5		2,594.1

Cash and financial liabilities

Cash and cash equivalents

In EUR million	June 30, 2020		December 31, 2019

Treasury notes	20.0	20.1
Deposits (maturity < 3 months)	271.1	311.6
Current accounts	1,330.6	889.6

Total	1,621.7	1,221.3

As of June 30, 2020, cash was held in fixed-term deposits, treasury notes and current accounts with various financial institutions. The increase in cash and cash equivalents over the first half of the year stems primarily from an increase in Imerys' current accounts.

8.2. Financial liabilities

In EUR million	June 30, 2020		December 31, 2019

Non-current financial liabilities	5,462.0	5,372.2
Exchangeable bonds (GBL)	745.3	744.4
Institutional bonds (GBL)	993.6	992.9
Bonds (Imerys)	1,700.0	1,700.0
Bank borrowings (Webhelp)	1,282.8	1,210.0
Bank borrowings (Sienna Capital)	328.3	302.1
Lease liabilities	344.6	350.9
Other non-current financial liabilities	67.5	71.9

Current financial liabilities	2,003.1	1,315.6

Bank borrowings (GBL)	1,000.0	739.8
Bank borrowings (Imerys)	581.5	157.2
Bonds (Imerys)	226.5	223.7
Lease liabilities	120.0	122.8
Other current financial liabilities	75.1	72.1

30 GBL Half-yearly report as of June 30, 2020

Bonds exchangeable into LafargeHolcim shares (GBL)

On September 6, 2019, GBL has announced the completion of an offering by its fully-owned subsidiary Eliott Capital S.à r.l. (the "Issuer") of

EUR 750 million of bonds exchangeable into existing registered shares of LafargeHolcim Ltd ("LafargeHolcim") guaranteed by GBL. This issuance initially related to approximately 13.2 million LafargeHolcim shares representing approximately 2.1% of its share capital. The bonds had, at their issuance, a maturity of 3 years and 4 months (December 30, 2022) except in case of an early redemption and do not bear interest. The bonds have been issued at an issue price of 101.0% of their principal amount and will be redeemed at their principal amount at maturity, corresponding to an annual yield to maturity of - 0.3%.

The Issuer will have the option to redeem all, but not only some, of the bonds, at any time on or after September 11, 2021 at their principal amount, provided that the value of the underlying shares per bond attributable to EUR 100,000 in principal amount of bonds shall have exceeded EUR 130,000 on each of not less than 20 trading days in any period of 30 consecutive trading days. The Issuer will have a share redemption option to deliver underlying shares and, as the case may be, an additional amount in cash upon its redemption of the bonds, both on the maturity date and upon early redemption.

Bondholders may request the exchange of their bonds for exchange property (being initially only LafargeHolcim shares) at any time from October 22, 2019 until 35 Brussels business days before the maturity date, subject to the option of the Issuer to satisfy exchange rights in cash, exchange property or a combination thereof.

The bonds are admitted to trading on the Open Market (Freiverkher) of the Frankfurt Stock Exchange. The carrying amount of these bonds (excluding the option) is EUR 745 million as of June 30, 2020. The option is assessed at fair value on the reporting date (EUR 0 million as of June 30, 2020).

Bonds issued by GBL

On June 19, 2018, GBL placed a EUR 500 million institutional bond, with a 7-year maturity and a coupon of 1.875%. This issuance is intended to cover the group's general corporate purposes and to lengthen the weighted average maturity of the gross debt. The carrying amount of this debt is

EUR 496 million as of June 30, 2020.

During the first semester of 2017, GBL has issued an institutional bond of EUR 500 million, with a coupon of 1.375% and maturing on May 23, 2024. The carrying amount of this debt is EUR 498 million as of June 30, 2020.

Bonds (Imerys)

Imerys has issued listed and non-listed bonds. The bond issues as of June 30, 2020 are detailed below:

	Nominal value in	Nominal interest	Effective interest	Listed/Unlisted	Maturity	Fair value	Carrying amount
	currency	rate	rate
	In million					In EUR million	In EUR million

EUR	167.7	2.50%	2.60%	Listed	11-26-2020	167.7	167.7
EUR	56.0	2.50%	1.31%	Listed	11-26-2020	56.0	56.0
EUR	500.0	2.00%	2.13%	Listed	12-10-2024	513.9	505.6
EUR	300.0	0.88%	0.96%	Listed	03-31-2022	297.9	300.7
EUR	300.0	1.88%	1.92%	Listed	03-31-2028	293.6	301.4
EUR	600.0	1.50%	1.63%	Listed	01-15-2027	583.4	604.1

Total						1,912.5	1,935.5

The bond issues as of December 31, 2019 are detailed below:

	Nominal value in	Nominal interest	Effective interest	Listed/Unlisted	Maturity	Fair value	Carrying amount
	currency	rate	rate
	In million					In EUR million	In EUR million

EUR	167.6	2.50%	2.60%	Listed	11-26-2020	170.8	167.7
EUR	55.9	2.50%	1.31%	Listed	11-26-2020	57.0	56.0
EUR	500.0	2.00%	2.13%	Listed	12-10-2024	536.3	504.4
EUR	300.0	0.88%	0.96%	Listed	03-31-2022	305.7	303.0
EUR	300.0	1.88%	1.92%	Listed	03-31-2028	318.2	305.9
EUR	600.0	1.50%	1.63%	Listed	01-15-2027	624.1	616.3

Total						2,012.1	1,953.3

Bank debts (Webhelp)

Those bank debts coming from Webhelp mainly include the following bank loans contracted on November 19, 2019:

	Nominal value in	Nominal interest	Effective interest
	currency	rate	rate	Listed/Unlisted	Maturity	Fair value	Carrying amount
	In million					In EUR million	In EUR million

EUR	1,020.0	3.50%	3.91%	Unlisted	11-20-2026	1,020.0	999.6
GBP	125.0	5.49%	6.01%	Unlisted	11-20-2026	138.1	135.1
EUR	138.5	3.25%	2.20%	Unlisted	05-20-2026	138.5	134.3

Total						1,296.6	1,269.0

31 GBL Half-yearly report as of June 30, 2020

Bank loans (Sienna Capital)

This caption includes the different bank loans of the operational subsidiaries of ECP III.

Bank debts (GBL)

In the first half of 2020, GBL has drawn a total amount of EUR 1,000 million on its credit lines.

In the first half of 2019, GBL had entered into prepaid forward sales contracts for 15.9 million Total shares, maturing in January 2020, and had collected EUR 771 million in cash. Following these transactions, and in accordance with IFRS 9, a debt valued at amortized cost had been recognized for an initial amount of EUR 742 million. As of December 31, 2019, the carrying amount of this debt was EUR 740 million and the value of the derivative attached to these transactions, recorded under other current liabilities, amounted to EUR 34 million.

Bank debts (Imerys)

Those bank debts coming from Imerys include as of June 30, 2020, EUR 570 million of short-term borrowings and EUR 11 million of bank overdrafts (EUR 150 million and EUR 7 million respectively as of December 31, 2019).

9. Goodwill

In EUR million

Gross carrying amount

As of January 1, 2020	4,696.7

Changes in group structure/Business combinations	33.7
Foreign currency translation adjustments	(36.0)
Subsequent value adjustments	(2.3)
Disposals	-

As of June 30, 2020	4,692.0

Cumulated impairment losses

As of January 1, 2020	(77.6)

Impairment losses	-
Foreign currency translation adjustments	0.4
Disposals	-

As of June 30, 2020	(77.2)

As of June 30, 2020, this caption is made up of EUR 2,160 million of goodwill from the Webhelp group, EUR 2,140 million of goodwill generated by Imerys' various business lines and EUR 314 million of goodwill on acquisitions by ECP III (EUR 2,165 million, EUR 2,153 million and EUR 301 million respectively as of December 31, 2019).

Definition of cash generating units (CGU)

GBL's management has retained the judgements made by Imerys and Sienna Capital in the definition of CGUs.

At Imerys, this constitutes a judgement when, at the level of the smallest possible grouping of assets, the following three criteria are met: a homogeneous production process for the mineral portfolio, transformation processes and applications; an active market with homogeneous macroeconomic characteristics; and a level of operating power in terms of continuation, restructuring or discontinuation of mining, industrial and/or business activity. When a CGU satisfies these three criteria, their respective cash flows are deemed to be independent. CGUs are formed directly from the analysis structure monitored each month by Imerys' executive management as part of its business reporting. All Imerys group's assets, including right-of-use assets net of lease liabilities, mining assets and goodwill, are allocated to a CGU. CGUs are grouped together to form the reporting segments at Imerys group level, namely: Performance Materials and High Temperature Materials & Solutions.

At Sienna Capital's level, the goodwill is allocated to each investment.

The goodwill generated on the Webhelp acquisition still being provisional, no allocation by CGU was made as of June 30, 2020. In the table below, the carrying amount and the goodwill impairment loss are presented by CGU:

In EUR million		June 30, 2020			December 31, 2019
		Cumulated			Cumulated
	Net carrying amount	impairment losses		Net carrying amount	impairment losses
Sapiens/Webhelp	2,160.3	-		2,165.0	-
Performance Materials (Imerys)	1,211.8	(2.1)	1,167.3	(2.1)
High Temperature Materials & Solutions (Imerys)	927.7	(75.1)	985.0	(75.6)
Holdings (Imerys)	0.8	-	0.8	-
Imerys	2,140.3	(77.2)	2,153.1	(77.6)
Keesing (Sienna Capital)	109.5	-	105.3	-
svt (Sienna Capital)	88.8	-	88.8	-
Vanreusel (Sienna Capital)	60.8	-	51.9	-
Indo (Sienna Capital)	40.5	-	40.5	-
Sausalitos (Sienna Capital)	14.5	-	14.5	-
Sienna Capital	314.1	-		301.0	-
Total	4,614.7	(77.2)		4,619.1	(77.6)

32 GBL Half-yearly report as of June 30, 2020

Impairment tests

GBL having observed during the first half of 2020 an adverse change in some of the impairment indicators in the context of the economic and health crisis of Covid-19, an impairment test was carried out as of June 30, 2020 on the CGUs in question.

The recoverable amount for a CGU or an individual asset is the highest of the fair value less the costs of sale or the value in use. In practice, fair value can only be reliably estimated for individual assets and therefore corresponds to recent transaction prices for sales of similar assets. The value in use is the most commonly used measurement basis for CGUs and individual assets.

For Imerys, this test did not require the recognition of any impairment in 2020 and 2019.

The cash flow forecasts used to estimate value in use are taken from 2020 full year forecasts and the 2021 2023 plan. These flows take into account the reduced level of business conducted due to the health and economic crisis caused by the Covid-19 pandemic. The key underlying assumption of these forecasts is the level of organic growth. To calculate the terminal growth rate, Imerys uses the Gordon and Shapiro perpetual growth model.

The discount rate used to calculate value in use is determined using the weighted average cost of capital of groups comparable to Imerys in the industrial minerals sector. This rate, set at 6.75% in 2020 (6.75% for 2019), is adjusted for a country-market risk premium, which depending on the CGU or individual assets tested ranged from 41 to + 145 basis points (41 to + 145 basis points in 2019). The average discount rate after income taxes amounted to 7.50% in 2020 (7.50% in 2019). The calculations net of income taxes are the same as those that would be performed with cash flows and rates before income taxes, as required by applicable standards.

For Sienna Capital, this test, computed on an annual basis, did not require the recognition of any impairment in 2020 and 2019.

The projected cash flows derive from the financial budgets made by managements of each respective investment, covering a period from three to five years. The prepared projections are extrapolated and cover a period of ten years. For the terminal value, Sienna Capital uses an average of the Gordon and Shapiro perpetual growth model and multiple valuation method.

The discount rate used to calculate the value in use is determined based on the weighted average cost of capital of groups comparable to each investment in their respective sector. This rate is adjusted by a country/market risk premium and a specific premium. The average discount rate after taxes was 10.29% in 2020 (10.00% in 2019).

For Webhelp, the extent of the economic uncertainties emanating from the Covid-19 pandemic has led despite the group's recent acquisition on November 19, 2019, to perform an impairment test of this subgroup.

The cash flow projections used are based on a weighting of 3 scenarios built on 5-year business plans then extrapolated to cover a 10-year period. For the terminal value, Webhelp uses the Gordon and Shapiro perpetual growth model.

The determination of the discount rate is based on a study of the cost of capital of groups comparable to Webhelp adjusted for a specific premium of 1% in line with the financial structure of the subgroup. The impairment test carried out on Webhelp does not show any loss in value on the assets tested as of June 30, 2020.

A summary of the main used assumptions is presented below.

Sensitivity tests were performed on both the discount rate and the perpetual growth rate.

In the following table, the weighted average discount and perpetual growth rates used in the computation of the value in use are presented by UGT:

		June 30, 2020			December 31, 2019
		Perpetual growth			Perpetual growth
	Discount rate	rate		Discount rate	rate
Performance Materials (Imerys)	7.67%	2.05%		7.67%	2.05%
High Temperature Materials & Solutions (Imerys)	7.25%	1.99%	7.25%	1.99%
Average rate (Imerys)	7.50%	2.02%		7.50%	2.02%
Average rate (Webhelp)	7.70%	2.00%		n.r.	n.r.
Average rate (Sienna Capital)	10.29%	1.17%		10.00%	1.17%

33 GBL Half-yearly report as of June 30, 2020

Sensitivity to a change in the projected cash flows and discount rates

Out of all of the assumptions used, changes in the projected cash flows, the discount rate and the perpetual growth rate have the largest impact on the financial statements. The following table shows the impairment losses per CGU that would be accounted for in case of adverse changes compared to the retained assumptions in the financial statements as of June 30, 2020. The various adverse changes applied to conduct these sensitivity tests were deemed to be reasonably possible by GBL in the context of the test: 5.00% decrease of cash flow forecasts (5.00% decrease as of December 31, 2019); 1.00% increase in discount rates (1.00% increase as of December 31, 2019); and a 1.00% decrease in perpetual growth rates (1.00% decrease as of December 31, 2019). These sensitivity tests identified that an adverse change in the discount rates could lead to the recognition of an impairment of EUR 28 million to the goodwill in the Refractory, Abrasives & Construction CGU of Imerys and of EUR 2 million to the goodwill of Sienna Capital's two operational cubsidiaries.

In EUR million	Adverse changes


Forecasted cash flows	(5%)
Impairment loss	-

Discount rates	+ 100 pb

Impairment loss	(30.2)

Perpetual growth rates	(100 pb)
Impairment loss	-

10. Earnings per share

10.1. Consolidated net result for the period (group's share)

In EUR million	June 30, 2020	June 30, 2019

Basic
Consolidated profit or loss for the period (including the discontinued operations)	384.7	405.3
Diluted
Consolidated profit or loss for the period (excluding the discontinued operations)	384.7	405.3
10.2. Number of shares
	June 30, 2020	June 30, 2019
Issued shares at beginning of year	161,358,287	161,358,287
Treasury shares at beginning of year	(5,238,989)	(2,642,982)
Weighted changes during the period	(637,654)	(707,037)
Weighted average number of shares used to determine basic earnings per share	155,481,644	158,008,268
Impact of financial instruments with a diluting effect:
Stock options	32,843	106,824
Weighted average number of shares used to determine diluted earnings per share	155,514,487	158,115,092

As of June 30, 2020, GBL held, directly and through its subsidiaries, 7,502,599 GBL shares, representing 4.6% of the issued capital.

10.3. Summary earnings per share

In EUR million		June 30, 2020	June 30, 2019
Basic		2.47	2.56
Diluted	2.47	2.56

34 GBL Half-yearly report as of June 30, 2020

11. Financial instruments

Fair value

To reflect the importance of inputs used when measuring at fair value, the group classifies these valuations according to a hierarchy composed of the following levels:

level 1: listed prices (non-adjusted) on active markets for identical assets or liabilities;
level 2: inputs, other than the listed prices included in level 1, that are observable for the asset or liability concerned, either directly (i.e. prices) or indirectly (i.e. derived from prices); and
level 3: inputs related to the asset or liability that are not based on observable market data (non-observable inputs).

Analysis of financial instruments by category - balance sheets

The tables below show a comparison of the book value and the fair value of the financial instruments as of June 30, 2020 and as of December 31, 2019, as well as the fair value hierarchy.

The category, according to IFRS 9, uses the following abbreviations:

FATOCI: Financial Assets measured at fair value through Other Comprehensive Income
FATPL: Financial Assets measured at fair value through Profit or Loss
FLTPL: Financial Liabilities measured at fair value through Profit or Loss
FAAC: Financial Assets measured at Amortised Cost
FLAC: Financial Liabilities measured at Amortised Cost
HeAc: Hedge Accounting

	Category			Hierarchy of
In EUR million	according to	Carrying amount	Fair value
IFRS 9	fair values


As of June 30, 2020

Financial assets

Non-current assets

Other equity investments
Equity investments measured at fair value and with changes	FATOCI	14,261.4	14,261.4	Level 1
recognised in equity
Equity investments measured at fair value and with changes	FATPL	1,076.1	1,076.1	Level 3
recognised in profit or loss
Other non-current assets
Derivative instruments - hedging	HeAc	1.6	1.6	Level 2
Other financial assets	FAAC	110.8	110.8	-

Current assets

Trade receivables	FAAC	912.3	912.3	-
Trading financial assets	FATPL	754.4	754.4	Level 1
Cash and cash equivalents	FAAC	1,621.7	1,621.7	-
Other current assets
Derivative instruments - hedging	HeAc	9.0	9.0	Level 2
Other financial assets	FAAC	577.5	577.5	-

Financial liabilities

Non-current liabilities

Financial liabilities	FLAC	5,462.0	5,451.6	-
Other non current liabilities
Derivative instruments - hedging	HeAc	8.7	8.7	Level 2
Derivative instruments - other	FLTPL	6.7	6.7	Level 2
Other non current liabilities	FLTPL	405.0	405.0	Level 3

Current liabilities

Financial liabilities
Other financial liabilities	FLAC	2,003.1	2,003.1	-
Trade payables	FLAC	637.6	637.6	-
Other current liabilities
Derivative instruments - hedging	HeAc	24.2	24.2	Level 2
Derivative instruments - other	FLTPL	22.8	22.8	Level 2
Other current liabilities	FLAC	22.7	22.7	-

During the 2020 financial year, two Sienna Capital funds were transferred from level 3 to level 1, and comparative figures as of December 31, 2019 have been restated.

35	GBL Half-yearly report as of June 30, 2020
		Category			Hierarchy of
	In EUR million	according to	Carrying amount	Fair value
	IFRS 9	fair values


	As of December 31, 2019
	Financial assets
	Non-current assets

	Other equity investments
	Equity investments measured at fair value and with changes	FATOCI	16,477.8	16,477.8	Level 1
	recognised in equity
	Equity investments measured at fair value and with changes	FATPL	1,038.7	1,038.7	Level 3
	recognised in profit or loss
	Other non-current assets
	Derivative instruments - hedging	HeAc	7.7	7.7	Level 2
	Other financial assets	FAAC	94.5	94.5	-

	Current assets

	Trade receivables	FAAC	959.3	959.3	-
	Trading financial assets	FATPL	1,415.9	1,415.9	Level 1
	Cash and cash equivalents	FAAC	1,221.3	1,221.3	-
	Other current assets
	Derivative instruments - hedging	HeAc	13.4	13.4	Level 2
	Derivative instruments - other	FATPL	1.0	1.0	Level 2
	Other financial assets	FAAC	73.6	73.6	-

	Financial liabilities

	Non-current liabilities

	Financial liabilities	FLAC	5,372.2	5,559.4	-
	Other non current liabilities
	Derivative instruments - hedging	HeAc	2.0	2.0	Level 2
	Derivative instruments - other	FLTPL	56.1	56.1	Level 2
	Other non current liabilities	FLTPL	474.6	474.6	Level 3

	Current liabilities

	Financial liabilities
	Other financial liabilities	FLAC	1,315.6	1,315.6	-
	Trade payables	FLAC	667.1	667.1	-
	Other current liabilities
	Derivative instruments - hedging	HeAc	43.9	43.9	Level 2
	Derivative instruments - other	FLTPL	25.2	25.2	Level 2
	Other current liabilities	FLAC	25.5	25.5	-

36 GBL Half-yearly report as of June 30, 2020

12. Events after the reporting period

As of the date of the Board approving the consolidated financial statements as of June 30, 2020, there are no subsequent events.

13. Certification of Responsible Persons

Ian Gallienne, CEO, and Xavier Likin, Chief Financial Officer, certify, in the name and on behalf of GBL, that to the best of their knowledge:

The condensed consolidated financial statements for the six months ended on June 30, 2020 have been prepared in accordance with IFRS and present a true and fair view of the assets, financial position and results of GBL and its consolidated companies (1);
The half-yearly report presents a true and fair view of the business developments, results and position of GBL and its consolidated companies;
The risks as presented in the section "Risk Management and Internal Control" of GBL's 2019 Annual Report, as well as their assessment, remain unchanged in the current economic and financial environment and therefore should remain applicable for the remaining months of 2020.

With regards to the terms related to financial data on the investments, mentioned from pages 24 to 59 of the 2019 Annual Report, please refer to the definitions provided by each company in its financial communication.

(1) "Consolidated companies" are GBL's subsidiaries within the meaning of Article 1:15 of the Code on companies and associations

37 GBL Half-yearly report as of June 30, 2020

Statutory Auditor's report

Deloitte.

Groupe Bruxelles Lambert SA

Groep Brussel Lambert NV I 30 June 2020

Report on the review of the consolidated interim financial information of Groupe Bruxelles Lambert SA/ Groep Brussel Lambert NV for the six-month period ended 30 June 2020

In the context of our appointment as the company's statutory auditor, we report to you on the consolidated interim financial information. This consolidated interim financial information comprises the consolidated balance sheet as at 30 June 2020, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the period of six months then ended, as well as selective notes 1 to 12.

Report on the consolidated interim financial information

We have reviewed the consolidated interim financial information of Groupe Bruxelles Lambert SA/ Groep

Brussel Lambert NV ("the company") and its subsidiaries (jointly "the group"), prepared in accordance with

International Accounting Standard (!AS) 34, "Interim Financial Reporting" as adopted by the European Union.

The consolidated balance sheet shows total assets of 29 033,1 million EUR and the consolidated income statement shows a consolidated profit (group share) for the period then ended of 384,7 million EUR.

The board of directors of the company is responsible for the preparation and fair presentation of the consolidated interim financial information in accordance with !AS 34, "Interim Financial Reporting" as adopted by the European Union. Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of review

We conducted our review of the consolidated interim financial information in accordance with International Standard on Review Engagements (ISRE) 2410, "Review of interim financial information performed by the independent auditor of the entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit performed in accordance with the International Standards on Auditing (ISA) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the consolidated interim financial information.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial information of Groupe Bruxelles Lambert SA/ Groep Brussel Lambert NV has not been prepared, in all material respects, in accordance with !AS 34, "Interim Financial Reporting" as adopted by the European Union.

Zaventem, 30 July 2020

The statutory auditor

DELOITTE Bedri(tsrevisoren/Reviseurs d'Entreprises CVBA/SCRL

Represented by Corine Magnin

Deloitte Bedrijfsrevisoren/Reviseurs d'Entreprises

Cooperatieve vennootschap met beperkte aansprakelijkheid/Societe cooperative a responsabilite limitee

Registered Office: Gateway building, Luchthaven Brussel Nationaal 1 J, B-1930 Zaventem

VAT BE 0429.053.863 - RPR Brussel/RPM Bruxelles - !BAN BE 17 2300 0465 6121 - BIC GEBABEBB

Member of Deloitte Touche Tohmatsu Limited

38 GBL Half-yearly report as of June 30, 2020

Glossary

With regards to the terms related to financial data on the investments, please refer to the definitions provided by each company in its financial communication.

The specific terminology used in the section on "Half-yearly IFRS financial statements" refers to the IFRS (International Financial Reporting Standards) rules as adopted by the European Union.

Cash and debt

Net cash or, where applicable, net debt, consists of gross cash (excluding treasury shares) and gross debt.

Gross debt includes all the financial liabilities of the Holding segment (convertible and exchangeable bonds, bonds and bank debt), valued at their nominal repayment value.

Gross cash includes the cash and cash equivalents of the Holding segment. It is valued at the book or market value (for certain cash equivalents).

The cash and debt indicators are presented for the Holding segment to reflect GBL's own financial structure and the financial resources available to implement its strategy.

Operating companies (associates or consolidated entities) and Sienna Capital

This column shows the results, group's share, from consolidated operating companies, i.e. controlled by the group. Control is presumed to exist when GBL has more than 50% of the voting rights, either directly or indirectly.
Also included are the results, group's share, from associated operating companies, namely operating companies in which the group has significant influence. Significant influence is presumed to exist if the group has more than 20% of the voting rights, either directly or indirectly. Associated operating companies are recorded in the consolidated financial statements using the equity method.
This column also includes the changes in fair value of the debts on Webhelp's minority shareholders.
This column also includes the results, group's share, from Sienna Capital, consisting of the various elements relating to its activity:
(i) the results, group's share, of associated or consolidated operating companies, (ii) interest income (expenses), (iii) other financial income (expenses), (iv) other operating income (expenses), (v) gains (losses) on disposal, impairments and reversals on non-current assets
and (vi) taxes.

Discount

The discount is defined as the percentage difference (expressed in relation to the net asset value) between the market capitalisation and the net asset value.

Economic analysis of the result

Cash earnings

Cash earnings primarily include dividends from portfolio companies and treasury shares, dividends and interests from Sienna Capital, net earnings from the yield enhancement activity and tax refunds, income from cash management, realized exchange differences, less general overheads, gross debt-related charges and taxes. All of these results relate to the Holding activity.
Cash earnings also are one of the components used in the calculation of the payout ratio.

Mark to market and other non-cash

The concept of mark to market is one of the foundations of the fair value method of valuation as defined in IFRS international accounting standards, the principle of which is to value assets and liabilities at their market value on the last day of the financial year.
Mark to market and other non-cash items in GBL's accounts reflect the changes in fair value of the financial instruments bought or issued (bonds, exchangeables or convertibles, trading assets, options, ...), the actuarial costs of financial liabilities valued at their amortised cost, unrealized exchange differences, various non-cash expenses, as well as the adjustment of certain cash earnings items in accordance with IFRS rules (dividends decided but not paid out during the financial year but after the date of approval of the financial statements, etc.). All these results relate to the Holding activity.

Eliminations, capital gains, impairments and reversals

The eliminations, capital gains, impairments and reversals mainly include the elimination of dividends received from own shares, as well those received from associated or consolidated operating companies as well as gains (losses) on disposals, capital gains, impairments and reversals on non-current assets and on discontinued activities. All these results relate to the Holding activity.

Dividend yield

The dividend yield is defined as the ratio between (i) the gross dividend detached (or the sum of the gross dividends detached) during the period (12 months) and (ii) the stock market price at the beginning of the period.

The dividend yield for year N is therefore the ratio between (i) the gross dividend (or the sum of the gross dividends) having its (their) Ex-Date in year N+1 and (ii) the closing price on the last trading day of year N.

The value of gross dividends not yet declared is estimated using Bloomberg's "BDVD" function. If this function is not available, the last gross dividend declared is used as an estimate.

Group's shareholding

In capital: the percentage interest held directly and indirectly, calculated on the basis of the number of shares in issue on the date of calculation.
In voting rights: the percentage held directly or indirectly, calculated on the basis of the number of voting rights existing on the date of calculation, including suspended voting rights.

Liquidity profile

The liquidity profile corresponds to the sum of gross cash and the undrawn amount of committed credit lines.

Loan To Value

The Loan To Value ratio is calculated on the basis of (i) GBL's net debt relative to (ii) the portfolio's value of GBL increased by, if applicable, the value of the treasury shares underlying the bonds convertible into GBL shares. The valuation methods applied to the portfolio and treasury shares are identical to those used for the net asset value.

39 GBL Half-yearly report as of June 30, 2020

Net asset value

The change in GBL's net asset value is, along with the change in its stock price, cash earnings and result, an important criterion for assessing the performance of the group.

The net asset value is a conventional reference obtained by adding gross cash and treasury shares to the fair value of the investment portfolio and deducting gross debt.

The following valuation principles are applied for the portfolio:

investments in listed companies and treasury shares are valued at the closing price. However, the value of shares underlying any commitments made by the group is capped at the conversion/ exercise price;
investments in unlisted companies are valued on a quarterly basis at their fair value in line with the recommendations of the International Private Equity and Venture Capital Valuation Guidelines (IPEV). Recent investments are valued at their acquisition cost, provided that these valuations are considered as the best estimates of fair value;
regarding the portfolio of Sienna Capital, the valuation corresponds to the sum of its investments, at fair value, as determined by fund managers, to which is added Sienna Capital's net cash or, where applicable, to which is deducted Sienna Capital's external net debt.

The number of GBL shares used to calculate the net asset value per share is the number of company shares outstanding on the valuation date. Some minor events may not have been taken into account in the value reported. The combined effect of these factors may not exceed 2% of the net asset value.

GBL's detailed net asset value is reported together with the results' publication on a quarterly basis.

The net asset value per share is published, on a general basis, every week on GBL's website (www.gbl.be).

Operating company

An operating company is defined as a company having a commercial or industrial activity, by opposition to an investing company ("holding").

Payment of dividend and ESES system

ESES, for Euroclear Settlement for Euronext-zone Securities, is the single platform for the stock market transactions of Euronext Brussels, Paris and Amsterdam and non-stock market transactions involving securities traded on these markets (OTC).

The theoretical distribution calendar for the dividend is as follows:

Ex-Date:date (at market opening) from which the underlying share is traded without its dividend or ex-entitlement;
Record Date (Ex-date + 1): date on which positions are recorded by the central depository (at market closing, after clearing) in order to determine which shareholders are entitled to dividends;
Payment Date: date of payment of the dividend in cash, at the earliest the day after the Record Date.

Given the time needed for settlement-delivery and ownership transfer relative to D + 2 (D being the transaction date), the last day on which the share is traded with entitlement to dividend distribution is the day before the Ex-Date.

Payout ratio

The payout or distribution of dividends ratio is calculated, for the financial year N, by dividing (i) the dividends paid in N+1 for the financial year N by (ii) the cash earnings for the financial year N.

Portfolio

The portfolio includes:

the other equity investments and investments in associates in the Holding segment;
Imerys;
Webhelp; and
Sienna Capital, that includes companies active in private equity, debt and specific thematic funds.

System Paying Agent

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

Total Shareholder Return or TSR (%)

The Total Shareholder Return or TSR is calculated on the basis of the change in the stock market price(s) over the period under consideration, taking into account the gross dividend(s) received during this period and reinvested in securities at the time of receipt. It is expressed on an annualised basis and corresponds to the calculation made by Bloomberg via its "TRA" function. It should be noted that the comparison of GBL's TSR with its benchmark index is based on identical periods in terms of trading days.

Velocity on float (%)

The velocity on float, expressed as a percentage, is an indicator of the stock market activity of a listed company, which corresponds to the ratio between the number of shares traded over a specified period of time on the stock exchange and the float on the last day of that period. The velocity on float is usually calculated per calendar year.

A listed company's float, or floating capital, corresponds to the part of the shares actually liable to be traded on the stock exchange. It can be expressed in value, but is more often expressed as a percentage of the market capitalisation.

Weighted average number of ordinary shares (basic calculation)

This corresponds to the number of outstanding ordinary shares at the start of the period, less treasury shares, adjusted by the number of ordinary shares reimbursed (capital reduction) or issued (capital increase), or sold or bought back during the period, multiplied by a time-based weighting factor.

Weighted average number of ordinary shares (diluted calculation)

It is obtained by adding potential dilutive shares to the weighted average number of ordinary shares (basic calculation). In this case, potential dilutive shares correspond to call options granted by the group.

Yield enhancement

The yield enhancement activity consists of executing derivatives instruments (primarily sales of options with short-term maturities on some assets in GBL's portfolio) and in operations on trading assets, aiming at generating an increased yield for GBL. The yield enhancement results are mainly made out of (i) premium of option sales, (ii) capital gains or losses with regards to operations on trading assets and (iii) dividends received in relation to trading assets.

40 GBL Half-yearly report as of June 30, 2020

For further information

Groupe Bruxelles Lambert Avenue Marnix 24

1000 Brussels Belgium RLE: Brussels

VAT: BE 0407 040 209

IBAN: BE07 3100 0655 5266

BIC: BBRUBEBB

Website: www.gbl.be

For more information about GBL:

Tel.: +32 2 289 17 17

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Groupe Bruxelles Lambert

Groupe Bruxelles Lambert Avenue Marnix 24

1000 Brusselswww.gbl.be Belgium

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GBL - Groupe Bruxelles Lambert SA published this content on 29 July 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 July 2020 17:35:03 UTC

Market Closed - Euronext Bruxelles Other stock markets 11:37:30 2024-04-24 am EDT			5-day change	1st Jan Change
69.95 ^EUR	-0.57%		+1.75%	-1.78%

Mar. 15	GBL : NAV falls behind, yet GBL delivers on its ambitions and rewards shareholders
Mar. 14	Groupe Bruxelles Lambert SA Reports Earnings Results for the Full Year Ended December 31, 2023	CI

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