M&C : Press Release - Approved the interim financial report at 30 June 2016

M&C (Translation from the Italian original which remains the definitive version) PRESS RELEASE 2016 interim financial report Substantial break-even for M&C Investee Treofan continues to see strongly improved results

The board of directors of M&C S.p.A. approves the interim financial report at 30 June 2016 in its today's meeting.

Results

The company made a loss for the six months of €0.1 million compared to a loss of €0.3 million for the corresponding period of 2015 being the sum of:

1. income of €1.3 million (income of €1.4 million for the corresponding period of 2015);

2. losses on investments and securities of €1.6 million (losses of €0.8 million for the corresponding period of 2015);

3. operating expenses of €0.8 million (€0.9 million for the corresponding period of 2015);

4. deferred tax assets of €1.0 million, in the limit of deferred tax liabilities.

On the other hand, the company's comprehensive income for the period amounts to €2.6 million compared to expense of €0.8 million for the corresponding period of 2015, thanks to the rise in value of the IDeA fund units after the sale of the investment in Italchimici S.p.A..

At 30 June 2016, M&C has a net financial position of €19.0 million (31 December 2015: €17.1 million), equal to

€0.05 per outstanding share, and equity of €81.5 million (31 December 2015: €79.0 million), equal to €0.20 per outstanding share.

The improvement in the company's net financial position is due to the receivable of €3.5 million from the IDeA EESS fund manager for reimbursement of principal, the fair value losses on securities in portfolio of €1.3 million and the use of cash flows from operations of €0.3 million. The investment in the IDeA EESS fund is not liquid enough to be recognised as part of the net financial position and, therefore, is excluded. This is generally true of all closed-end private equity funds.

The Treofan investment

Treofan Group saw ongoing improvement in its profitability during the period, continuing the trend seen since the start of 2015.

Normalised gross operating profit increased to €24.0 million from €18.6 million for the corresponding period of 2015 (+29%), equal to 11.0% of turnover compared to 8.5%. This improvement was recorded by both group divisions. Normalised gross operating profit of the European division came to €10.1 million (+28% on €7.9 million for the first six months of 2015) while the US division's normalised gross operating profit amounts to

€USD15.8 million (+33% on USD11.9 million for the first six months of 2015). The profit for the period also improved considerable to €3.9 million compared to €1.9 million for the corresponding period of 2015 despite the

M&CM&C S.p.A. capitale sociale euro 80.000.000,00 i.v.

sede operativa: Via Ciovassino 1/A - 20121 Milano - Tel. [phone] - Fax [phone] sede legale: Via Valeggio 41- 10129 Torino - C.F. e Registro Imprese di Torino n. 09187080016 Società soggetta all'attività di direzione e coordinamento di PER S.p.A.

slight contraction in turnover (0.2%) to €218.5 million compared to €219.9 million for the first six months of 2015.

Equity remained substantially the same at €100.6 million at 30 June 2016. Net financial debt, excluding the shareholder loan of €35.0 million, amounts to €54.0 million at period end compared to €56.0 million at 31 December 2015.

The project to sell Treofan Group continued during the period with the receipt of expressions of interest from some financial and industrial investors, certain of which commenced the subsequent due diligence phase.

Highlights of the condensed interim individual financial statements at 30 June 2016

The condensed interim individual financial statements, in which the Treofan investment is measured using the equity method, show a profit for the period of €1.6 million (profit of €797 thousand for the corresponding period of 2015) and equity of €77.2 million (€74.7 million at 31 December 2015).

Outlook

While awaiting finalisation of the sale of its investment in Treofan, M&C will continue to focus on the activities required for the sales process and optimising Treofan's results. It will also continue to carefully manage its liquidity to put together a balanced portfolio in terms of its risk/return ratio, including the partnership with the IDeA EESS fund, as per the agreements with IDeA Sgr. The risks and uncertainties characterising the company's operations will not damage its financial position and solidity despite the difficult market situation.

* * *

The financial statements schedules of M&C S.p.A. and those of the condensed interim individual financial statements at 30 June 2016, prepared pursuant to IFRS, are attached hereto. The attached statement of financial position and income statement include figures which the independent auditors have not yet finished reviewing.

The 2016 interim financial report of M&C will be made available to the market, pursuant to article 154-ter.2 of Legislative decree no. 58/98, once the independent auditors have finished their review.

Milan, 27 July 2016

M&C S.p.A.

Investor Relations

Marco Viberti Tel. [phone] [e-mail]

www.mecinv.com

Community - Consulenza nella comunicazione Tel. [phone]

Auro Palomba - Marco Rubino - Mob. [phone]

M&C S.p.A.
Interim financial statements at 30 June 2016
STATEMENT OF FINANCIAL POSITION
(Euro)
ASSETS			30.06.2016	31.12.2015
Non-current assets
Property, plant and equipment			3,138	4,004
Intangible assets			102	204
Equity investments			37,726,638	37,726,638
Other non-current assets			1,043,612	1,043,612
Loans and receivables			15,630,145	14,622,947
Total non-current assets			54,403,635	53,397,405
Current assets
Loans and receivables			649,551	655,870
Current tax assets			542,583	589,131
Other current assets			624,757	754,291
Current loan assets			3,488,100	-
Current financial assets			15,117,532	16,563,969
Cash and cash equivalents			7,481,270	7,718,690
Total current assets			27,903,793	26,281,951
Total assets			82,307,428	79,679,356
LIABILITIES AND EQUITY			30.06.2016	31.12.2015
Equity
Share capital			80,000,000	80,000,000
Treasury shares			(50,032,057)	(50,032,057)
Reserves		48,306,246	47,574,795
Valuation reserves			3,328,832	684,292
Profit (loss) for the period/year			(59,468)	731,451
Total equity			81,543,553	78,958,481
Liabilities
Non-current liabilities
Employee benefits			58,517	56,678
Deferred tax liabilities			253,217	264,044
Total non-current liabilities			311,734	320,722
Current liabilities
Trade payables			194,198	125,197
Other current liabilities			257,943	274,956
Total current liabilities			452,141	400,153
Total liabilities			763,875	720,875
Total liabilities and equity			82,307,428	79,679,356

M&C S.p.A.
Interim financial statements at 30 June 2016
INCOME STATEMENT
(Euro)		First half 2016	First half 2015
Revenue from sales and services		-	23,333
Other revenue		83,230	83,912
Personnel expense		(452,886)	(533,516)
Amortisation, depreciation and impairment losses		(1,577)	(1,671)
Other operating expenses		(350,967)	(375,591)
Operating loss		(722,200)	(803,533)
Financial income		1,081,584	684,934
Financial expense		(705)	(1,050)
Net financial income		1,080,879	683,884
Gains on equity investments and securities		193,200	649,392
Losses on equity investments and securities		(1,575,468)	(764,496)
Net losses on equity investments and securities		(1,382,268)	(115,104)
Pre-tax loss		(1,023,589)	(234,753)
Current and deferred taxes		964,121	(16,887)
Loss from continuing operations		(59,468)	(251,640)
Loss for the period		(59,468)	(251,640)
Loss per share (*)		(0.0001)	(0.0006)
Diluted loss per share (*)		(0.0001)	(0.0006)

(*) Calculated using outstanding shares without considering treasury shares.