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CONSOLIDATED KEY FIGURES                                                             5

THE COMPANY AND ITS ENVIRONMENT                                                      6

The Company                                                                          7
Share price and net asset value                                                      8

PORTFOLIO                                                                           10

Public equity                                                                       11
Private equity                                                                      12

FINANCIAL REPORT                                                                    14

FINANCIAL INFORMATION                                                               22

Consolidated financial statements for the period ended 30 June 2011                 23



The consolidated financial statements presented in this reported are non-audited.
                                                                                              5




Consolidated key figures

                 In EUR                                30.06.2011         30.06.2010


Per share data   Estimated value                           87.49               76.29
                 Market price                              62.01               48.00
                 Dividend paid                               3.50               1.50
                 Diluted net book result                     3.83               3.29
                 Diluted comprehensive result              (1.51)               2.31


                 In EUR million                        30.06.2011         30.06.2010


Earnings         Book result                                 17.5               15.1
                 Variation of revaluation reserve on
                                                           (24.4)               (4.5)
                 available-for-sale financial assets
                 Comprehensive result                       (6.9)               10.6


Balance sheet    Equity                                    398.8               349.0
                 Total assets                              402.9               361.7


                 In EUR million                        30.06.2011    %    30.06.2010     %


Investments      Listed investments                        177.7     45        163.4     48
                 Direct private equity investments           76.9    20         82.7     25
                 Private equity funds                        34.1     9         41.1     12
                 Loans and other receivables                 13.3     3          9.3      3


                 Total non-current investments             302.0    77         296.5    88


                 Trading assets                              22.4     6         21.1      6
                 Derivative financial instruments             0.8     –            –
                 Cash at banks                               65.1    17         20.6      6


                 Total investments                         390.3    100        338.2    100


                                                       30.06.2011         30.06.2010


Shares           Total shares issued                    4,773,321          4,773,321
                 Shares held by the company              214,603            198,751
The Company
and its environment
The Company and iTs environmenT                                                                                                         7




         The Company


         BIP Investment Partners S.A. (BIP) is an investment company founded in April 2000 under the
         name BGL Investment Partners S.A. at the joint initiative of Banque Générale du Luxembourg,
         now BGL BNP Paribas S.A., and a group of private investors in Luxembourg, later joined by
         La Luxembourgeoise S.A. BIP aims to create value for its shareholders over the medium term
         through investments in listed and unlisted companies with significant growth potential in
         Luxembourg and neighbouring countries.

         BIP invests in two asset categories: listed and unlisted companies. The Board of Directors
         regularly reviews weightings and limits for these types of assets.




         INVESTMENTS IN LISTED COMPANIES                                  PRIVATE EqUITY

         BIP invests in high-capitalisation listed companies that         BIP aims for a leading place in Luxembourg and its region
         are based in Luxembourg and neighbouring countries du            for private equity investments including leveraged buyouts,
         Luxembourg These investments, which yield attractive             management buyouts, development capital and later-stage
         returns for a level of risk close to the market average, pro-    venture capital.
         vide a sound base for the portfolio, generating a reliable
         flow of earnings.                                                As an active shareholder, BIP promotes entrepreneurship
                                                                          and provides support for the continuing development of the
         BIP also uses its research capabilities and familiarity with     companies it invests in.
         businesses and markets to identify small and medium-sized
         listed companies, a category often neglected by institutional    Leveraging management expertise, it aims to add value, in
         investors, with potential for attractive gains. In most cases,   particular by favouring synergies among these companies.
         these companies are based in Luxembourg and neighbour-
                                                                          BIP has bought shares in private-equity and venture-capital
         ing countries.
                                                                          funds investing in companies based in Luxembourg and
         In addition to its geographical profile, BIP uses in-depth       neighbouring countries or focusing on technology centres
         knowledge of specific economic sectors to acquire interests      and high-growth business sectors.
         in companies in these areas of competence.
8                                                                                                                                                                                                                                                                                          The Company and iTs environmenT




    Share price on the
    Luxembourg Stock Exchange

    BIP is listed on the Luxembourg stock exchange and is a component of the LuxX index. BIP’s share price and its estimated
    fair value per share have seen the following evolution since inception:

    130                                                                                                                                                                                                                                                                                    BIP estimated fair value
                                                                                                                                                                                                                                                                                           BIP share price
    120

    110

    100

     90

     80

     70

     60

     50

     40

     30

     20
       06 / 2000
                   12 / 2000
                               06 / 2001
                                           12 / 2001
                                                       06 / 2002
                                                                   12 / 2002
                                                                               06 / 2003
                                                                                           12 / 2003
                                                                                                       06 / 2004
                                                                                                                   12 / 2004
                                                                                                                               06 / 2005
                                                                                                                                           12 / 2005
                                                                                                                                                       06 / 2006
                                                                                                                                                                   12 / 2006
                                                                                                                                                                               06 / 2007
                                                                                                                                                                                           12 / 2007
                                                                                                                                                                                                       06 / 2008
                                                                                                                                                                                                                   12 / 2008
                                                                                                                                                                                                                               06 / 2009
                                                                                                                                                                                                                                           12 / 2009
                                                                                                                                                                                                                                                       06 / 2010
                                                                                                                                                                                                                                                                   12 / 2010
                                                                                                                                                                                                                                                                               06 / 2011




    INDICES

    Performance as measured by main references:

                                                                                                                   30.06.2011                                           31.12.2010                                                         Change


     Euro Stoxx 50                                                                                                                   2,849                                                 2,793                                                  + 2%
     S&P 500                                                                                                                         1,321                                                 1,258                                                  + 5%
     LuxX                                                                                                                            1,407                                                 1,542                                                       - 9%
     BIP – share price                                                                                                               62.01                                                 57.40                                                  + 8%
     BIP – estimated fair value                                                                                                      87.49                                                 92.66                                                       - 6%




    LIqUIDITY

                                                                                                                                                               6 months 2011 6 months 2010


     Total number of shares traded
                                                                                                                                                                                      54,552                                               76,187
     on the stock exchange
Portfolio
porTfolio                                                                                                                                      11




            Listed
            investments

             Société                                                        Fair Value    Number of      Share price    Share price   Change
                                                                          30.06.2011        shares at   30.06.2011     31.12.2010
                                                                            in million   30.06.2011
                                                                                  EUR


             RTL Group                                                           60.2       890,000          67.60          76.70      -12%
             Royal Dutch Shell                                                   17.1       700,000          24.48          24.73       -1%
             Vale (ADR to the preferred shares;
                                                                                 13.0       650,000          28.96          30.05       -4%
             share price in USD)
             Nanogate                                                            10.6       502,900          21.13          15.59     +35%
             Fresenius                                                           10.1       140,000          71.98          62.75     +15%
             Dialog Semiconductor PLC (1)                                        10.0       800,000          12.56          17.03      -26%
             Aixtron                                                              9.4       400,000          23.53          27.61      -15%
             Bekaert NV (1)                                                       8.9       170,000          52.50          85.90      -39%
             SES                                                                  8.7       450,000          19.36          17.82       +9%
             BHP Billiton (share price in GBP)                                    8.1       300,000          24.52          25.51       -4%
             Xstrata PLC (share price in GBP)                                     5.6       370,000          13.72          15.05       -9%
             Melexis NV (1)                                                       5.5       434,188          12.59          13.46       -6%
             ArcelorMittal (2)                                                    3.8       160,000          24.00          26.93      -11%
             Ageas                                                                2.8     1,493,000            1.87           1.71      +9%
             Evertz Technologies (share price in CAD)                             2.0       216,100          13.15          17.39      -24%

            (1) New investments made in 2011
            (2) Share price per 31.12.2010 adjusted for Aperam spin-off



            Listed investments are recognised under “Available-for-sale financial assets” on the balance sheet. This item also includes
            listed investments not shown above and representing a total amount of EUR 1,790,000 on the basis of market prices at
            30 June 2011.

            The portfolio of listed securities also includes investments shown under “Financial assets held for trading” on the balance
            sheet. They represent an amount of EUR 22,407,010 on the basis of market prices at 30 June 2011.
12                                                                                                                                                                         porTfolio




     Private Equity

     DIRECT INVESTMENTS

     The table below lists only major investments.

     Company                                                                Invested      Percentage                Last    Shareholders’                  Net result at
                                                                              amount            held           financial     equity at last               last financial
                                                                             (in EUR                           year-end financial year-end                     year-end
                                                                             million)                                          (in million)                 (in million)
     Cargolux Airlines International S.A. (2)
     Luxembourg Airport, L-2990 Luxembourg                                      38.1         11.54%           12/2010                 $ 504.9                   $ 59.8
     www.cargolux.com
     NordSüd Holding GmbH                                                       12.0         49.00%           12/2010                      -€2                  - € 5.8
     Holunderstr. 11, D - 33378 Rheda-Wiedenbrück
     NordSüd Speditionsgesellschaft mbH
     (via Nord Süd Holding)                                                                  49.00%           12/2009                     € 4.4                     €0
     Holunderstr. 11, D - 33378 Rheda-Wiedenbrück
     www.nordsued.de

     Kentaro AG                                                                                    0%
     Säntisstrasse 2A, CH-9500 Wil                                                9.5    mezzanine            12/2010                   € 31.5                   € 3.2
     www.kentarogroup.com                                                                     loan
     XDC S.A.
     36, rue de Mulhouse, B-4020 Liège                                            6.7        13.70%           12/2010                     € 8.4                 - € 2.9
     www.xdcinema.com
     Telecom Luxembourg, S.A.
     89F, Pafebruch, L - 8308 Capellen                                            6.0        34.87%           12/2010                     € 0.9                 - € 1.2
     www.luxtelecom.lu
     EuroDNS SA
     2 rue Léon Laval, L - 3372 Leudelange                                        6.4        20.00%           12/2010                     € 0.7                  € 0.4
     www.eurodns.com
                                                                                                         incorporated on
     KeyDrive S.A.                                                                                         01/12/2010
     1, rue des Coquelicots, L - 1356 Luxembourg                                  6.1        26.04%         first year-end
                                                                                                                                               –                      –
     www.key-systems.net                                                                                   30/06/2011
     21Net Ltd
     The Elms Courtyard, Bromsberrow, Ledbury,                                    5.8        25.10%           12/2009                   - £ 0.9                 - £ 3.5
     Herefordshire, HR8 1RZ, United Kingdom
     www.21net.com
     Assisteo Europe S.A.
     117, route d’Arlon, L-8009 Strassen                                          3.8        20.45%           12/2010                   € 12.8                  - € 1.8
     www.assisteo.com
     Technolia International S.A.
     67, rue de Bettembourg, L - 5811 Fentange                                    2.6        47.86%           12/2010                     € 0.7                 - € 0.2
     www.technolia.fr
     DI S.A. (anc. Domain Invest S.A.)
     18-20, rue Michel Rodange, L - 2430 Luxembourg                               2.5          9.55%          12/2010                   € 15.7                  - € 1.8
     www.domaininvest.lu
     Escaux (HILDROB NV)
     18A, Avenue Lavoisier, B - 1300 Wavre                                        2.2        20.44%           12/2010                     € 2.5                     €0
     www.escaux.com
     IP CASTING S.A.
     1, rue de Bonnevoie, L-1260 Luxembourg                                       2.0        37.32%           12/2010                 - € 0.06                - € 0.09
     www.intellicast.lu
     Enzymotec Ltd
     Sagee 2000 Industrial Park, Migdal HaEmeq 23106 Israel                       1.9          3.91%          12/2010                   $ 22.9                  - $ 1.9
     www.enzymotec.com
     IEE Holding 1 S.A. (1)                                                       0.8          6.47%          12/2010                   € 63.3                - € 0.06
     Zone Industrielle, L-6468 Echternach
     IEE S.A (via IEE Holding 1 S.A.)
     Zone Industrielle, L-6468 Echternach                                                      6.47%          12/2010                   € 58.3                   € 3.1
     www.iee.lu
     (1) Net invested amount after the group’s restructuring in 2009. (2) Investment sold in June 2011; sale will be settled in the 2nd half-year 2011.

     Direct private equity investments are shown in the balance sheet under “Financial assets at fair value through profit or loss”.
     This item also includes other investments not shown above representing a total amount of EUR 1,526,690 (fair value at
     30 June 2011).
porTfolio                                                                                                                                13




            INVESTMENTS IN PRIVATE EqUITY FUNDS (indirect investments)

             At 30 June 2011                                      Net invested            Initial      Percentage     Percentage of
                                                                   amount (in       commitment             paid-in        fund held
                                                                  EUR million)       (in million)


             Hamilton Lane Co-Investment Fund                               6.3           $ 10.0              90%              6.1%
             Apax France VII                                                5.4            € 7.5              91%              1.5%
             Lynx Capital Ventures                                          5.8            € 6.1              96%            14.8%
             Mangrove II                                                    3.6            € 5.0              95%              4.2%
             Field                                                          3.3            € 5.0              65%            14.3%
             Denkaria B.V. (BMI)                                            2.9            $ 3.5            100%             25.4%
             Life Sciences Partners III                                     2.7            € 7.5              94%              6.8%
             Mangrove I                                                     2.2            € 5.0            100%               9.7%
             Life Sciences Partners IV                                      2.9           € 10.0              29%            11.4%
             Mangrove III                                                   2.0            € 3.5              56%              1.9%
             Pinova                                                         1.2            € 5.0              25%              4.3%
             Saarländische Wagnisfinanzierungsgesellschaft                  1.0            € 1.0            100%             10.1%
             Coller International Partners IV                               0.5            $ 5.0              86%              0.2%
             Robertsau Investissement                                       0.3            € 5.0            100%             11.2%

            Investments in private equity funds are shown in the balance sheet under “Financial assets at fair value through profit or
            loss”.
Management report
manaGemenT reporT                                                                                                                             15




         Meeting on 15 July 2011, the Board of Directors of BIP Investment Partners S.A. (hereafter “the Company” or “BIP”)
         adopted financial statements for the six months to 30 June 2011.


         Steep rise in the result from ordinary activities before tax to EUR 24.4 million
         Global result depressed by market trends

         BIP first-half results for 2011 are shown in the table below:

          EUR million                                                                            1st H 2011                  1st H 2010


          Result from ordinary activities, before tax                                                    24.4                       13.1
          Deferred taxes on income                                                                      (6.9)                         2.0

          Net book result for the half-year                                                              17.5                       15.1


          Gross variation in the revaluation reserve on available-for-sale
                                                                                                       (28.0)                       (3.1)
          financial assets
          Deferred taxes on variation in the revaluation reserve                                          3.6                       (1.4)
          Net variation in the revaluation reserve on available-for-sale
          financial assets                                                                             (24.4)                       (4.5)

          Total comprehensive result for the half-year, net of tax                                      (6.9)                       10.6




         BIP’s book result from ordinary activities before tax for the       Deferred taxes on the variation in the revaluation reserve
         first six months of 2011 was EUR 24.4 million, up 86% from          (credit of EUR 3.6 million) reflect deferred taxation on
         the corresponding period of 2010 (EUR 13.1 million).                unrealised capital gains and losses in the listed portfolio.
                                                                             Unrealised capital losses generate a deferred tax asset;
         The charge for deferred taxes on income of EUR 6.9 million          unrealised capital gains may generate deferred tax liabilities
         reflects the partial release of deferred tax assets, pursuant       if such a capital gain would become taxable on realisation.
         to the decrease of the estimated future taxable profits that
         can be used against tax loss carryforwards.                         The total comprehensive result for the half-year, net
                                                                             of tax, is a negative EUR 6.9 million, compared with a
         The revaluation reserve on available-for-sale financial             EUR 10.6 million profit for the same period of 2010.
         assets records unrealised capital gains and losses on
         listed investments. Its gross decline of EUR 28.0 million           Shareholders’ equity totals EUR 398.8 million, down
         reflects both the impact of the slump on stock markets from         EUR 24.4 million from 31 December 2010 (31 December
         31 December 2010 to 30 June 2011 on BIP’s portfolio of              2010: EUR 423.2 million), with dividend payments in an
         listed investments, and the transfer of capital gains realised      amount of EUR 16 million having been paid and treasury
         in the first half of 2011 to the result from ordinary activities.   shares having been purchased for EUR 0.7 million.
16                                                                                                                      manaGemenT reporT




     Estimated value of BIP share: EUR 87.49                        Market price of BIP shares up 8.03%,
     on 30 June 2011, down 5.6%                                     discount reduced to 29%
     after dividend
                                                                    At 30 June 2011, the market price of BIP shares stood at
     BIP’s estimated value per share declined EUR 5.17 in the       EUR 62.01, showing a rise of 8.03% from the beginning
     first six months of 2011 to stand at EUR 87.49 on 30 June      of the year. The market price thus represented a 29% dis-
     2011, a dividend of EUR 3.50 per share having been paid        count on the estimated value per share compared with 38%
     on 28 March 2011.                                              at the beginning of the year.

     The estimated value per share is based on a fair-value
     assessment of portfolio investments as determined in
     accordance with valuation guidelines used by BIP for the       BUSINESS AND HIGHLIGHTS OF
     preparation of its accounts under International Financial      THE YEAR
     Reporting Standards (IFRS). Value adjustments cover both
     listed investments, valued at market price at the end of the
     period, and private equity investments recognized at fair      Financial assets at fair value through
     value, which is generally assessed on the basis of multiples   profit or loss (private equity)
     for comparable listed companies.
                                                                    Sale of Cargolux
     Historical estimated fair value per share at 30 June 2011:
                                                                    On 9 June 2011, Cargolux Airlines International S.A.
                                                                    shareholders signed an agreement to sell a 35% interest
                           Estimated        LuxX    EuroStoxx50     to Qatar Airways Q.C.S.C. Under the terms of this agree-
                            value per      index          index
                                                                    ment, BIP committed to sell its entire holding in Cargolux
                                share
                                                                    for USD 36.69 per share, representing a total USD 42.35
                                                                    million. The transaction generated a total capital gain of
                                                                    USD 2.9 million for BIP. But due to an unfavourable trend
      Six months              - 5.6%     - 8.8%         + 2.0%
                                                                    in the EUR/USD exchange rate since the initial investment,
      One year              + 14.7%      + 1.7%       + 10.7%       this USD-denominated capital gain represents a EUR 8.9
                                                                    million capital loss (based on exchange rates at 30 June
      Three years             - 22.0    - 29.3%        - 15.0%
                                                                    2011). The final result in EUR will depend on the exchange
      Five years              - 8.0%    - 22.9%        - 21.9%      rate in effect on the day the sales price is effectively paid
                                                                    and received. Based on its USD value, the investment in
      Since listing of
      BIP on 6 June         + 16.6%      - 7.8%        - 46.5%      Cargolux taken as a whole and including all dividends
      2000                                                          received throughout the entire investment period generated
                                                                    an annual internal rate of return of 3.5%.
     Dividends totalling EUR 18.40 per share have been paid out     While the value of our investment in this company suf-
     since the establishment of the Company.                        fered from the economic crisis, our financial support at a
                                                                    key stage in consolidating its share capital at year-end 2009
                                                                    ultimately proved fruitful and generated an annual return of
                                                                    over 25% on capital invested that year.

                                                                    The closing of the transaction is now contingent on formal
                                                                    approval by antitrust authorities and is expected to take
                                                                    place in the second half of the year.
manaGemenT reporT                                                                                                                             17




         Other developments in private equity                               Available-for-sale financial assets
         Driven by BIP, which now owns 26% of the new entity, Key-          (listed portfolio)
         Systems GmbH and NameDrive S.A. shareholders agreed
         to merge their activities into a common holding company,           Markets ended the first half of the year on a dull note: the
         KeyDrive S.A., making it a European leader in internet             EuroStoxx 50 was up 1.8%, the S&P 500 was up 5.0%,
         domain-name services. The transaction led to a revaluation         and main emerging markets were down. Main factors driv-
         of BIP’s investment. KeyDrive S.A. plans to pursue sector          ing erratic market trends over the period were slower eco-
         consolidation, a strategy confirmed on 30 June when it             nomic growth in the US, mounting inflationary pressures
         acquired a controlling stake in a major German competitor.         in emerging markets, monetary policy decisions (primar-
                                                                            ily by Chinese authorities), turbulence in the euro zone,
         Assisteo Europe has run up against fall-out from sweeping          and market fears over deficits run up by countries on the
         changes in the regulatory context governing “home living           periphery of Europe.
         services” in France, as well as budget pressures on the
         public authorities that finance the sector. Together these         Against this backdrop, BIP began scaling back its portfolio
         factors will lead to a marked deterioration in profitability at    of listed companies. Sales of available-for-sale financial
         companies such as Assisteo France, a provider of home              assets came to EUR 61 million compared with investments
         services for the aged and chronically ill in France that is also   of EUR 47 million. Financial assets held for trading, totalling
         Assisteo Europe’s main asset. As a result, the investment’s        EUR 22 million at June 30, included positions that are
         value was downgraded significantly on 30 June, and we are          inversely linked to the EuroStoxx 50 index for EUR 14
         examining several scenarios for its future.                        million. The Company also acquired put options on the S&P
                                                                            500 index for a notional of EUR 25 million.
         Several investment projects were pursued during the first
         half of the year. But in addition to factors specific to each      Listed portfolio management performance was -3% in the
         transaction, our final decisions stemmed mainly from the           first half. The strongest showings came from Nanogate,
         fact that proposed valuations did not meet our selection           +35%; Kabel Deutschland, +22% (with our entire holding
         criteria. We remain cautious in the face of highly volatile        sold in June); Fresenius, +15%; and SES, +9%. Poor perfor-
         financial markets in a context where many fast-growing             mances came from Aixtron, -15%, RTL, -12%, and invest-
         companies still find it difficult to obtain credit.                ments in the metals and mining sector.

         Investments in private equity funds                                New investments
         In the first half of 2011, the management team pursued             New investments included Dialog Semiconductor (EUR
         its strategy of withdrawing from private equity funds, as          11 million), Bekaert (EUR 10 million), Xstrata (EUR
         decided in 2009. BIP thus took advantage of an upbeat              6 million) and Melexis (EUR 5 million).
         secondary market to sell its interests in two Israeli ven-
                                                                            Dialog Semiconductor develops and supplies sensor inte-
         ture capital funds (Vertex III and Millennium Material
                                                                            grated circuit solutions for power management in wire-
         Technologies Fund II) in March, followed by two US funds
                                                                            less phones, smart phones and tablet PCs. Annual
         (Carlyle Venture Partners II and Carlyle US Growth Fund III)
                                                                            growth in sales is over 30%, a trend expected to continue.
         in June. Further disposals are planned for the second half
                                                                            This UK-based company is listed on the German stock
         of 2011.
                                                                            exchange.
         The net book value of our other investment fund lines
         has risen. Distributions received over the period came to
         EUR 1.8 million, and a total of EUR 1.9 million in funds
         were called up.
18                                                                                                                        manaGemenT reporT




     Bekaert is the global market leader in steel cord products     Media, telecommunications and
     used for tyre reinforcement. It has a strong presence in       technology-related investments
     emerging markets, where it operates manufacturing plants
                                                                    Listed investments in this sector represent 24% of BIP’s net
     and makes about half its total sales, including 38% in Asia
                                                                    assets.
     Pacific alone. Bekaert also leads the market for sawing wire
     used to produce solar panels, with market share of over        The main investment is RTL, which saw an 11.7% fall in
     50% and high operating margins.                                share price linked to payment of a high EUR 5 dividend,
                                                                    setting return at 7.4% at 30 June. RTL published quar-
     Switzerland’s Xstrata is one of the world’s largest mining
                                                                    terly results slightly below high expectations. The company
     groups, operating mines in 19 countries around the globe. It
                                                                    nonetheless managed to boost advertising revenues in the
     focuses primarily on copper, thermal coal and coking coal.
                                                                    Netherlands and in France, and also raised its audience
     Demand for all three is expected to remain very strong in
                                                                    share in several key countries. RTL’s main markets remain
     the next few years – and in any case will outpace supply,
                                                                    Germany, France and the Netherlands, plus the world
     which should keep prices high.
                                                                    market for media content. As a result, it has very little expo-
     Melexis is a Belgian company producing semi-conductors         sure to slowing economies in Europe’s peripheral countries.
     and sensors, primarily for the automotive industry. These      It also has a large cash surplus that allows it to maintain a
     products contribute to increased energy-efficiency and         high dividend.
     more eco-friendly cars. Specialists project annual growth of
                                                                    Aixtron, specialized in equipment to produce LEDs (light-
     around 13% in this market.
                                                                    emitting diodes), saw its share price fall 14.8% despite
                                                                    record results in 2010 and prospects of steady growth in
     Divestments
                                                                    2011. The fall was triggered by financial markets’ worries
     BIP has totally divested its holdings in EVS Broadcast         over a possible slowdown of investment in LED equipment
     Equipment (2011 capital gain: EUR 7.9 million), Munich         in China, the company’s main market. Aixtron’s medium-
     Re (capital gain: EUR 1.5 million), Companhia Siderurgica      term prospects remain very promising.
     Nacional (capital loss: EUR 1.6 million) and Kabel
     Deutschland (capital gain: EUR 4.2 million). It also scaled    SES published good first-quarter results and its share
     back positions in Evertz Technologies, ArcelorMittal, SES      price is up 8.6%. Visibility for future growth is high, with
     and Vale in the first six months of the year.                  the satellite industry only marginally exposed to short-term
                                                                    economic cycles. BIP has reduced its investment in SES
     BIP’s first investment in EVS came in February 2002, when      from 625,000 shares at year-end 2010 to 450,000 at
     the company was a small business with a market capitali-       30 June 2011.
     zation of around EUR 60 million. At the time, the company
     specialized in digital technology and video and audio serv-    Investment in metals and mining
     ers including a live slow-motion replay system widely used
                                                                    Listed investments in metals and mining represent 10% of
     in mobile sports broadcasting. Since then, ongoing devel-
                                                                    BIP’s net assets.
     opment of its products followed by moves into TV studio
     equipment have raised its market capitalization ten-fold.      Sector companies have lagged the market, following fears of
     Over the years, BIP has realized capital gains totalling       an economic downturn in China. In Europe, the Stoxx 600
     EUR 34 million on this investment, corresponding to an         commodity index fell 10% in the first half of the year. BIP’s
     annual internal rate of return of 50%. After accompanying      main investments in the sector are Vale, down 3.7%, BHP
     EVS in its dynamic development phase, BIP now sees its         Billiton, down 3.9% and ArcelorMittal, down 10.9%.
     mission as completed and opted to exit this sound company
     in the first half of 2011.                                     BIP is confident in future price trends for certain resources.
                                                                    Maintaining its focus on the sector, it has thus invested in
                                                                    Xstrata and Bekaert during the half-year under review.
manaGemenT reporT                                                                                                                         19




         Other developments in the listed portfolio                       Consolidated statement of financial
         BIP’s other main listed investments are Nanogate, Royal          position
         Dutch Shell and Fresenius.
                                                                          The Company’s balance sheet totals EUR 403 million at
         On 8 June 2011, Nanogate finalized its acquisition of Dutch      30 June 2011 (31.12.2010: EUR 428 million). The main
         company Eurogard NV in a deal that will raise sales and          item on the liabilities and shareholders’ equity side is
         improve operating profitability. On 7 July 2011, Nanogate        shareholders’ equity in an amount of EUR 399 million
         announced an EUR 8 million public offering in which BIP          (31.12.2010: EUR 423 million). At 30 June 2011, the
         will take part, purchasing shares in proportion to its current   Company had no financial debt (31.12.2010: EUR 3 million)
         interest of 26%. Funds raised will be used to refinance the      and a bank credit line totalling EUR 25 million, undrawn at
         company’s latest acquisition and will enable it to consider      that date.
         other opportunities as they arise.
                                                                          The Company continues to buy back own shares within
         With oil prices up steeply, financial results at Royal Dutch     the framework of the programme initiated in 2003. In the
         Shell are expected to rise sharply from previous years,          first half, 11,582 shares were purchased for a total of EUR
         which means the company could scale back its financial           0.7 million, and the Company held 214,603 treasury shares
         debt significantly. In June 2011, it made its first delivery     at 30 June 2011.
         of gas-to-liquid products in a major project in Qatar. Over
         the first half of the year, BIP raised its investment in Royal   Non-current assets are available-for-sale financial assets
         Dutch Shell to EUR 15 million.                                   consisting of the bulk of investments in listed companies
                                                                          for an amount of EUR 178 million (31.12.2010: EUR 205
         Fresenius, a German healthcare company that leads the            million), and financial assets at fair value through profit
         world in dialysis services and products, saw its share price     or loss in an amount of EUR 111 million (31.12.2010:
         rise 14.7% in the first six months of the year. Projections      EUR 114 million), made up of direct investment in private
         issued on publication of the company’s 2010 annual results       equity (EUR 77 million) and interests in private equity funds
         (net earnings: EUR 620 million) called for net profit to reach   (EUR 34 million). Other non-current assets comprise loans
         over EUR 1 billion in 2014.                                      to companies in which BIP has invested totalling EUR
                                                                          13 million (31.12.2010: EUR 8 million), and deferred
                                                                          tax assets totalling EUR 11 million (31.12.2010: EUR
         CONSOLIDATED FINANCIAL                                           14 million), representing tax loss carryforwards that can be
                                                                          used in subsequent periods.
         STATEMENTS AT 30 JUNE 2011
                                                                          Current assets include financial assets held for trading in
         In accordance with the Regulation of the European                an amount of EUR 22 million (31.12.2010: EUR 20 million).
         Parliament and Council of 19 July 2002, BIP publishes            These are mainly short-term holdings of listed shares.
         consolidated accounts on the basis of IFRS (International        A total of EUR 65 million (31.12.2010: EUR 66 million) is
         Financial Reporting Standards). Those presented at 30            on deposit with banks, and includes sight deposits in an
         June 2011 are the consolidated accounts, comprising the          amount of EUR 22 million and short-term bank deposits in
         accounts of BIP and its subsidiary BIP Venture Partners          an amount of EUR 43 million.
         S.A., SICAR. These accounts are prepared in accord-
         ance with IAS 34 on interim financial reporting and are not
         audited.

         Subsidiary BIP Internet Holding GmbH was first consoli-
         dated in BIP’s accounts upon acquisition in 2009. It was
         sold off in June 2011 and is thus no longer included in the
         scope of consolidation at 30 June 2011.
20                                                                                                                             manaGemenT reporT




     Consolidated statement of                                         The amount recognized for value adjustments on financial
     comprehensive result                                              assets at fair value through profit or loss is the net balance of
                                                                       unrealised capital gains and losses on unlisted investments.
     In the first six months of 2011, the Company recorded             It includes in particular a EUR 5.7 million estimated gain on
     a result from ordinary activities before tax of EUR               Cargolux corresponding to the change in its carrying value
     24.4 million, showing a strong increase compared to the           at 31 December 2010 compared with the sales price agreed
     first half of 2010 (EUR 13.1 million). After consideration of     in June 2011, based on the EUR/USD exchange rate at 30
     the theoretical deferred tax charge of EUR 6.9 million (theo-     June 2011. The final amount of this gain is not yet known
     retical tax credit of EUR 2 million in the first half of 2010),   and will depend on shifts in exchange rates until the sale is
     the net book result for the year came to EUR 17.5 million         finalized; this cannot take place until all antitrust authorities
     compared to EUR 15.1 million in the same period of 2010.          have given it the green light. The Company has taken out
                                                                       hedge contracts to reduce the impact of exchange-rate fluc-
     The variation in the revaluation reserve on available-            tuations. Value adjustments also include a EUR 2.4 million
     for-sale financial assets is negative for a gross EUR             evaluation loss on the investment in Assisteo, hit by external
     28.0 million (1st half-year 2010: negative gross variation of     developments as well as an absence of profitability.
     EUR 3.1 million). This variation is corrected by the deferred
     positive tax impact of EUR 3.6 million (1st half-year 2010:       The net result on financial assets held for trading, rep-
     negative EUR 1.4 million) resulting in a net negative amount      resenting short-term market placements, was a loss of
     of variation of EUR 24.4 million (1st half-year 2010: negative    EUR 0.8 million (compared with a loss of EUR 1.8 million
     EUR 4.5 million).                                                 in the first half of 2010). This reflected, among other factors,
                                                                       unrealised losses at 30 June 2011 resulting from stock-
     The total comprehensive result for the period, net of tax, is     market declines.
     thus negative in an amount of EUR 6.9 million (1st half-year
     2010: positive in an amount of EUR 10.6 million).                 Other interest and similar income came to EUR 1.3 million
                                                                       (EUR 3 million in the first half of 2010), and was made up
     Dividends on available-for-sale financial assets totalled         of interest on loans to portfolio companies and interest on
     EUR 6.7 million, up from EUR 5.7 million in the first half of     cash at banks.
     2010. The bulk of this was from RTL.
                                                                       Value adjustments on loans came to EUR 0.3 million,
     The net result on disposal of available-for-sale financial        compared with EUR 0.2 million in the first half of 2010.
     assets, which is to say the net result on sales of listed
     investments, was EUR 14.8 million compared with EUR               Interest and similar expenses amounting to EUR 0.4 million
     8.2 million in the same period of 2010. The largest amounts       (EUR 0.5 million in the first half of 2010) include interest
     concerned the sales of EVS, Kabel Deutschland and                 and other bank charges, foreign exchange losses and evalu-
     Munich Re shares.                                                 ation losses on derivative financial instruments at 30 June
                                                                       2011.
     The net result on financial assets at fair value through profit
     or loss, consisting of unlisted investments, was a gain of        Operating management expenses came to EUR 1.7 million
     EUR 5.2 million compared with a gain of EUR 4.0 million           (EUR 1.6 million in the first half of 2010), equal to 0.87%
     in the same period of 2010. This amount includes divi-            p.a. of assets under management. This amount includes
     dends and other revenues totalling EUR 0.05 million (com-         EUR 0.8 million in other external costs and EUR 0.9 million
     pared with EUR 0.4 million in the same period of 2010), a         in staff costs.
     net loss of EUR 1.4 million on divestments (compared with
                                                                       Other taxes, representing an amount of EUR 0.4 million
     a net gain of EUR 0.021 million), and a net gain of EUR
                                                                       (EUR 0.4 million in the first half of 2010), include wealth tax
     6.5 million for value adjustments (compared with a gain of
                                                                       and withholding tax on dividends.
     EUR 3.6 million).
                                                                       The income tax charge of EUR 6.9 million (credit of EUR
     The net loss on sales of financial assets at fair value through
                                                                       2 million in first half of 2010) reflects a decline in the esti-
     profit or loss consists mainly of losses on sale of invest-
                                                                       mated tax loss carryforward usable in future years. The
     ments in private equity funds. The Company is continuing
                                                                       decline stems primarily from the reduction in latent taxable
     to wind down these investments.
                                                                       future capital gains on listed investments and the decrease
                                                                       of a latent tax deductible capital loss on a financial asset at
                                                                       fair value through profit or loss.
manaGemenT reporT                                                                                                                        21




         The revaluation reserve on available-for-sale financial          MANAGEMENT
         assets records unrealised capital gains and losses on listed
         investments. At 30 June 2011, it shows a gross decline of        Since 30 June 2011, BIP’s Managing Director François
         EUR 28.0 million. After a positive tax impact of EUR 3.6         Pauly has taken on new responsibilities in a different area.
         million, the net decrease is EUR 24.4 million (compared          As a result he has opted to relinquish, as from 31 August
         with a net decrease of EUR 4.5 million in the first half of      2011, the appointment he had previously accepted on an
         2010). The reduction in this reserve results from two fac-       interim basis. He will continue to serve as a member of
         tors: falling share prices for listed investments, and capital   BIP’s board of directors.
         gains realised in the first half of 2011. Latent capital gains
         recorded in this reserve at 31 December 2010 for shares          The appointment of a new general manager will be
         sold in the course of the first half of 2011 totalled EUR        announced in September, as the search for a qualified
         15.9 million. The revaluation reserve amounts to EUR             manager has now been completed.
         30.9 million at 30 June 2011 (31 December 2010:
         EUR 55.3 million)



         RECENT EVENTS AND PROSPECTS

         Following asset sales in the first half of 2011, the Company
         will have around EUR 100 million in financial resources at its
         disposal. This includes proceeds from the sale of Cargolux
         as well as from a sale on the secondary market of units in a
         private equity fund. Both were agreed in June and will settle
         in the second half of the year. These resources will enable
         the Company to seize new investment opportunities.

         At the end of the first half, Greece’s sovereign debt burden
         and related problems have taken a heavy toll on mar-
         kets. Fears that the crisis might spread to other periph-
         eral European countries, problems linked to US debt, and
         the risks of Chinese inflation have all combined to create
         a climate of uncertainty that is fueling serious volatility on
         financial markets. In response, and despite the fact that
         stock-markets may offer attractive valuations, BIP has
         adopted a prudent approach. Companies in its portfolio
         still offer sound fundamentals and are likely to outperform
         markets.

         BIP’s short-term results depend in large part on overall
         stock-market trends and on the operational performance of
         the companies in its portfolio. Most annual dividends were
         paid in the first half of the year, which means there will be
         no revenue from this source in the second half.
22                  The Company and iTs environmenT




     Consolidated
     unaudited
     interim
     accounts
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                            23



         Consolidated unaudited statement
         of comprehensive result for the
         period ended 30 June 2011

           In EUR                                                  Notes             From                  From            From
                                                                               01.01.2011            01.01.2010      01.01.2010
                                                                            to 30.06.2011         to 30.06.2010   to 31.12.2010


           Dividends and other income on
                                                                       5        6,715,306            5,742,474       6,978,508
           available-for-sale financial assets
           Net result on disposal of available-for-sale
                                                                      17       14,798,797            8,209,755      10,313,329
           financial assets
           Net result on financial assets at fair value through
                                                                       6        5,195,077            3,968,211      42,662,633
           profit or loss
           Net result on financial assets held for trading             7         (753,423)          (1,802,183)        619,900
           Other interest and similar income                           8        1,300,903            2,969,054       2,714,284
           Value adjustments on available-for-sale
                                                                      17                   –        (3.344,941)     (3,585,770)
           financial assets
           Value adjustments on loans                                 19         (288,000)           (227,524)      (2,870,747)
           Value adjustments on other receivables                     22                   –                  –        (41,177)
           Interest and similar expenses                              11         (408,307)           (476,892)      (3,404,698)
           Other external expenses                                     9         (844,050)           (677,826)      (1,607,458)
           Staff costs                                                10         (888,547)           (931,966)      (3,008,253)
           Other taxes                                                12         (403,911)           (390,659)       (862,313)
           Depreciation of property, plant and equipment              15          (10,169)             (13,189)        (23,422)
           Result from ordinary activities, before tax                         24,413,676           13,024,314      47,884,816
           Income tax                                                 12       (6,929,485)           2,034,216      11,520,064


           NET BOOK RESULT                                                     17,484,191           15,058,530      59,404,880


           Variation of the revaluation reserve on
                                                                      17     (27,976,422)           (3,102,350)     32,975,354
           available-for-sale financial assets
           Deferred taxes                                             12        3,582,060           (1,377,710)     (7,184,887)
          Other comprehensive income, net of tax                             (24,394,362)           (4,480,060)     25,790,467


           TOTAL COMPREHENSIVE RESULT, NET OF TAX                              (6,910,171)          10,578,470      85,195,347


           Basic book result per share                                13             3.832                3.29           12.98
           Diluted book result per share                              13             3.825                3.29           12.96
           Basic comprehensive result per share                       13            (1.515)               2.31           18.61
           Diluted comprehensive result per share                     13            (1.512)               2.31           18.58

         The accompanying notes form an integral part of the consolidated financial statements.
24                                                                                                           The Company and iTs environmenT
                                                                                                     ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     Consolidated unaudited statement of
     financial position as at 30 June 2011

     ASSETS

      In EUR                                                               Notes              30.06.2011          31.12.2010


      Non-current assets
      Property, plant and equipment                                         2,15                 37,880                48,049
      Available-for-sale financial assets                          2, 16, 17, 20         177,751,392            204,576,174
      Financial assets at fair value through profit or loss        2, 16, 18, 20         111,006,056            114,356,884
      Loans and receivables                                            2, 16, 19              13,299,383            7,822,501
      Deferred tax assets                                                   2, 12             10,663,864          14,011,289
                                                                                         312,758,575            340,814,897




      Current assets
      Financial assets held for trading                                2, 16, 20              22,407,010          19,505,382
      Other receivables                                                     2, 22              1,795,506            1,781,590
      Derivatives financials instruments                               2, 20, 21                835,129                        –
      Cash and cash equivalents                                               23              65,107,766          66,065,917
                                                                                              90,145,411          87,352,889


      Total assets                                                                       402,903,986            428,167,786




     The accompanying notes form an integral part of the consolidated financial statements.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                        25




         SHAREHOLDERS’ EqUITY AND LIABILITIES

           In EUR                                                              Notes           30.06.2011       31.12.2010


           Shareholders’ equity
           Issued share capital                                                   24         119,333,025       119,333,025
           Treasury shares                                                        25         (13,509,204)      (12,923,088)
           Reserves                                                               26         229,177,073       204,177,073
           Revaluation reserve on available-for-sale financial assets             27           30,879,603       55,273,965
           Undistributed income                                                                32,965,492       57,340,905
           Total shareholders’ equity                                                        398,845,989       423,201,880


           Non-current liabilities
           Bank debt                                                              28                       –     2,825,718
                                                                                                           –     2,825,718


           Current liabilities
           Derivatives financials instruments                              2, 20, 21                146,705               –
           Other liabilities                                                      29               3,911,292     2,140,188
                                                                                                   4,057,997     2,140,188


           Total shareholders’ equity and liabilities                                        402,903,986       428,167,786




         The accompanying notes form an integral part of the consolidated financial statements..
26                                                                                                            The Company and iTs environmenT
                                                                                                      ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     Consolidated unaudited statement
     of cash flows for the period ended
     30 June 2011

     In EUR                                                                                             From              From
                                                                                                  01.01.2011        01.01.2010
                                                                                               to 30.06.2011     to 30.06.2010


     Cash flows from operating activities
     Net book result                                                                             17,484,191         15,058,530
     Depreciation of property, plant and equipment                                                   10,169              13,189
     Value adjustments on loans and other debts                                                     288,000             227,524
     Value adjustments on available-for-sale financial assets                                              –         3,344,941
     Changes in fair value of financial assets at fair value through profit or loss              (6,523,504)        (3,535,671)
     Changes in fair value of financial assets held for trading                                   1,733,780          2,901,146
     Net gains on disposal of available-for-sale financial assets                              (14,798,797)         (8,209,755)
     Net losses (gains) on disposal of financial assets at fair value through profit or loss      1,374,427             (21,322)
     Changes in fair value of derivative financial instruments                                       56,564         (1,197,446)
     Deferred Taxes                                                                               6,929,485         (2,034,216)
     Other                                                                                          137,525             511,877
     Operating cash flow                                                                          6,691,840          7,058,797

     Changes in working capital
     (Acquisitions) net disposals of financial assets held for trading                           (5,249,409)      (18,268,259)
     (Acquisitions) net disposals of derivative financial instruments                             (744,989)                      –
     Other changes in working capital requirements                                                1,639,613         (2,027,961)
     CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES                                               2,337,055       (13,237,423)


     Cash flows from investing activities
     Investments in available-for-sale financial assets                                        (46,559,450)       (30,643,659)
     Investments in financial assets at fair value through profit or loss                        (4,712,585)      (11,311,639)
     New loans and receivables                                                                   (6,244,882)        (2,005,977)
     Proceeds from disposals of available-for-sale financial assets                              60,820,609         32,851,526
     Proceeds from disposals of financial assets at fair value through profit or loss            10,237,490          1,260,475
     Repayments of loans and receivables                                                            480,000                      –
     Decrease by withdrawal of former subsidiary from consolidation                               (624,615)                      –
     CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES                                              13,396,567         (9,849,274)


     Cash flows from financing activities
     Purchase of treasury shares                                                                  (723,643)           (905,847)
     Dividends paid                                                                            (15,968,130)         (6,884,897)
     CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES                                            (16,691,773)         (7,790,744)


     DECREASE IN CASH AND CASH EqUIVALENTS                                                        (958,151)       (30,877,441)


     Cash and cash equivalents at beginning of period                                            66,065,917         51,521,857
     Cash and cash equivalents at end of period                                                  65,107,766         20,644,416


     Additional information
     Taxes paid on income for the period                                                                   –                     –
     Interest paid                                                                                   28,281              81,698

     The accompanying notes form an integral part of the consolidated financial statements.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                             27


         Consolidated unaudited statement of
         changes in shareholders’ equity for
         the period ended 30 June 2011

                                                                                            Revaluation
                                                                      Reserves                                Undistributed income
                                                                                              reserve on
                                                                                           available-for-                                      Total
                                Issued share     Treasury    Legal                         sale financial    Retained        Net       shareholders’
          In EUR                     capital       shares   reserve       Other reserves           assets    earnings      income            equity


          at 1.1.2010          119,333,025 (12,120,914) 11,933,303 217,343,770              29,483,498         231,590 (20,510,669)    345,693,603
          Dividends and
          allocation of 2009                                              (25,100,000)                      (2,295,565)   20,510,669    (6,884,896)
          net income
          Changes in
          treasury shares                      (395,501)                                                                                 (395,501)
          and stock options
          Changes in other
          comprehensive                                                                     (4,480,060)                                 (4,480,060)
          result
          Total income
          and expenses
                                                                                                                                        (4,480,060)
          recognized
          directly in equity
          Net result                                                                                                      15,058,530    15,058,530

          Total                                                                                                                         10,578,470

          at 30.06.2010        119,333,025 (12,516,415) 11,933,303 192,243,770              25,003,438      (2,063,975)   15,058,530   348,991,676



          At 1.1.2011          119,333,025 (12,923,088) 11,933,303 192,243,770              55,273,965      (2,063,975)   59,404,880   423,201,880
          Dividends and
          allocation of 2010                                               25,000,000                       18,436,750 (59,404,880)    (15,968,130)
          net income
          Changes in
          treasury shares                      (586,116)                                                                                 (586,116)
          and stock options
          Withdrawal
          of former subsidi-
                                                                                                             (891,474)                   (891,474)
          ary from consoli-
          dation
          Changes in other
          comprehensive                                                                    (24,394,362)                                (24,394,362)
          result
          Total income
          and expenses
                                                                                                                                       (24,394,362)
          recognized
          directly in equity
          Net result                                                                                                      17,484,191    17,484,191

          Total                                                                                                                         (6,910,171)

          At 30.06.2011        119,333,025 (13,509,204) 11,933,303 217,243,770              30,879,603      15,481,301    17,484,191   398,845,989


         The accompanying notes form an integral part of the consolidated financial statements.
28                                                                                                              The Company and iTs environmenT
                                                                                                        ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     Notes to the consolidated
     unaudited financial

     NOTE 1 – GENERAL

     BIP Investment Partners S.A. (“the Company”) is a public limited company (société anonyme) incorporated as BGL
     Investment Partners S.A. on 17 April 2000 under the Luxembourg law of 10 August 1915 (as amended) on commercial
     companies (the “Law”). The Company is registered with the Luxembourg Trade Register under number B075324 and is
     listed on the Luxembourg stock exchange under ISIN code LU0110790085. Its registered office is located at 1, rue des
     Coquelicots, L-1356 Luxembourg.

     The Company’s financial year runs from 1 January to 31 December.

     The Company’s objects are to acquire equity interests and investments, in any form whatsoever, in companies incorpo-
     rated in Luxembourg or elsewhere; to buy, sell, exchange, or otherwise transfer shares, bonds, debt certificates, commercial
     paper, derivatives and all other marketable securities or financial instruments; and to administer, develop and manage its
     portfolio. Its object is also to identify innovative companies and companies with significant economic potential based in the
     Grand Duchy of Luxembourg or elsewhere. It may enter into partnerships with these companies, or any other interested par-
     ties, for the purpose of providing expertise and advice in the areas of finance, administration, organisation and management.

     The Company may also provide loans or guarantees to other companies in which it holds direct or indirect investments or to
     companies in the same group, or assist such companies by other means.

     The Company may as well borrow, with or without guarantee or collateral (in any form whatsoever, including via the issue of
     convertible and non-convertible bond loans or any other type of debt instrument), on condition that the borrowings are used
     to further its corporate objects, or those of its subsidiaries, associates or affiliates. More generally, the Company may carry
     out any financial, commercial or industrial activities that are likely to further its corporate objects.

     BIP Venture Partners S.A., SICAR (the “SICAR”) is a public limited company (société anonyme) incorporated on 26 January
     2006 for an unlimited period in accordance with the law of 15 June 2004 concerning venture capital investment companies
     (the “SICAR Law”). At 30 June 2011 and 31 December 2010, the Company held all of the SICAR’s share capital.

     BIP Internet Holding GmbH (“BIH”) is a company incorporated on 15 December 2008 under the name of Drachenfelssee
     746 V V GmbH and acquired by the Company on 9 January 2009. It is a German limited liability company. At 30 June 2010
     and 31 December 2010, the SICAR held all of BIH’s share capital. In June 2011, in the frame of the structuring of a new
     group of companies, the SICAR sold all of its shares in BIH to KeyDrive S.A. On 30 June 2011, the SICAR thus holds no
     shares of BIH, and hence, BIH is not consolidated in the accounts of the Company. At that date, the SICAR owns 26.4% of
     KeyDrive S.A., shown in the balance sheet under “Financial assets at fair value through profit or loss”.

     The consolidated financial statements of BIP Investment Partners S.A. at 30 June 2011 were adopted by the Board of
     Directors on 15 July 2011.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                       29




         NOTE 2 – ACCOUNTING PRINCIPLES


         Basis of preparation

         The consolidated financial statements of BIP Investment Partners S.A. and its subsidiary, BIP Venture Partners S.A., SICAR
         (and of BIP Internet Holding GmbH, subsidiary of the Company on 30 June and 31 December 2010) (“the Group”), have
         been prepared in accordance with the historical cost principle, with the exception of available-for-sale financial assets, finan-
         cial assets at fair value through profit or loss, financial assets held for trading and derivative financial instruments, which
         have been measured at fair value. The consolidated financial statements are presented in Euros (EUR).

         The Group’s consolidated financial statements have been prepared under International Financial Reporting Standards
         (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and as adopted for use by the European
         Union. The half-year financial statements are prepared in accordance with IAS 34 on interim financial reporting.

         The Group’s consolidated financial statements were for the first time prepared under IFRS as at 31 December 2006. The
         adjustments resulting from the transition from Luxembourg GAAP to IFRS are recognised under equity in the opening IFRS
         balance sheet at 1 January 2005, in line with the rules on retrospective application set out in IFRS 1.

         The consolidated financial statements at 30 June 2011 comprise the financial statements of BIP Investment Partners S.A.
         and of its wholly-owned subsidiary the SICAR. On 30 June 2010 and 31 December 2010, they also comprised the financial
         statements of its subsidiary BIH. The financial statements of the subsidiaries are prepared under IFRS and cover the same
         reporting period as the Company, thereby ensuring consistent application of accounting policies.

         Intercompany transactions and balances, as well as the unrealised gains, losses, revenues and expenses included in the
         carrying value of assets related to internal Group transactions, are eliminated in full on consolidation.

         The subsidiaries are consolidated from the acquisition date, which corresponds to the date on which the Company acquired
         control, through to the date on which it relinquishes control.

         The Group has elected to use the exemption available to venture capital organisations under IAS 28 and does not apply the
         equity accounting method to investments in companies over which it has significant influence. IAS 28 requires such invest-
         ments to be measured at fair value through profit or loss by designating them upon initial recognition as financial assets at
         fair value through profit or loss.


         Scope of consolidation and main changes during the period

         The scope of consolidation comprises the following companies:

          Company                                             Holding                  Note
                                                   30.06.2011         31.12.2010


          BIP Investment Partners S.A.                         –                  –    Parent company
          BIP Venture Partners S.A., SICAR               100%                100%      Consolidated upon incorporation
                                                                                       on 26 January 2006.
          BIP Internet Holding GmbH                         0%               100%      Consolidated upon acquisition on 9 January
                                                                                       2009. Withdrawal from the scope of
                                                                                       consolidation on 28.06.2011, upon sale of the
                                                                                       shares in the company.

         At 30 June 2011 and 31 December 2010, the Company has exclusive control over the SICAR, which is fully consolidated
         within its financial statements. At 31 December 2010, the Company also had exclusive control over BIH.
30                                                                                                               The Company and iTs environmenT
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     Changes in accounting policies

     The accounting policies used to prepare the financial statements at 30 June 2011 are consistent with those used in the previous
     financial year except as follows:

     IAS 24 – Related party transactions
     The amendment to IAS 24 clarifies the definitions of a related party. The amendment had no major impact on the Group’s
     consolidated financial statements.

     IAS 32– Financial instruments: Presentation
     The amendment to IAS 32 alters the definition of a financial liability. The amendment had no major impact on the Group’s
     consolidated financial statements


     Improvements to IFRS

     In its annual review of the standards, the IAS has published in May 2010 amendments to the standards with a view to remov-
     ing inconsistencies and clarifying wording. The amendments were adopted by the European Union on 18 February 2011.

     These amendments, concerning the following standards and recommendations, did not have any impact on the accounting
     policies, financial position or performance of the Group:

     IFRS 3   Business combinations;
     IFRS 7   Financial instruments - Disclosures;
     IAS 1    Presentation of financial statements;
     IAS 27   Consolidated and separate financial statements;
     IAS 34   Interim financial statements;
     IFRIC 13 Customer loyalty programmes.
     Certain new standards, amendments or interpretations of standards whose application will become mandatory in the future
     have been issued, but have not been applied by the Group in anticipation:

     IFRS 9 Financial instruments
     This standard is the first step in the project of the IASB to replace IAS 39. This first part concerns the classification
     and evaluation of financial assets. It simplifies the recognition of these financial assets by requiring that these assets be
     measured either at amortised cost or at fair value, depending on certain criteria. This standard is effective for periods start-
     ing after 1 January 2013, but early application is possible. The Group analyses the impacts of this standard on its opera-
     tions and the date at which it plans the application. The adoption by the Group will depend, in particular, on the date of its
     adoption by the European Union.


     Significant judgments, estimates and assumptions

     Judgments
     In applying its accounting policies, the Group made the following assumptions with a material impact on the consolidated
     financial statements, in addition to those requiring a number of estimates:
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The Company UnaUdiTed inTerim aCCoUnTs                                                                                                          31




         Financial assets designated at fair value through profit or loss
         The Group has invested in unlisted securities and private equity funds. These assets are part of a group of financial assets
         that is managed and whose performance is evaluated on a fair value basis in accordance with a documented risk manage-
         ment strategy. Accordingly, these assets are presented at fair value through profit or loss in accordance with the Fair Value
         Option provided for under IAS 39.

         Depreciation of financial assets available for sale
         The Group has invested in listed securities shown under “Available-for-sale financial assets”. The Group is led to judge
         whether depreciations on a security are permanent or not, permanent depreciations being accounted for in the profit and
         loss account. In addition to qualitative criteria, the Board of Directors analyses quantitative factors to conclude on a significant
         or prolonged depreciation to be taken to profit and loss. On 30 June 2011, depreciations for an amount of EUR 4,558,884
         (31.12.2010: EUR 528,611) were considered temporary by the Board of Directors and thus not accounted for in the profit
         and loss account.

         Use of estimates and assumptions
         The preparation of financial statements requires the use of estimates regarding future conditions that affect the reported
         amounts of assets and liabilities, revenues and net income. Conditions and circumstances prevailing in the future may differ
         from those forecasts. Estimates are prepared using available information but inevitably involve a certain degree of judgment.

         Set out below are the main estimates made in respect of future events and other sources of uncertainty at the balance sheet
         date. Any changes in these estimates during the financial period may have a material impact on the reported amounts of
         assets and liabilities:

         Fair value of financial assets at fair value through profit or loss
         Financial assets designated at fair value through profit or loss upon initial recognition include direct private equity invest-
         ments, investments in private equity funds and certain hybrid instruments (subordinated loans with embedded derivatives).

         Direct private equity investments are recognised at fair value as determined by the Board of Directors. Fair value is the
         amount for which an asset could be exchanged or a liability settled between knowledgeable willing parties in an arm’s length
         transaction.

         When estimating the fair value of an investment, the Board of Directors uses valuation techniques that take account of the
         nature, conditions and circumstances of the investment, as well as its importance within the total investment portfolio. Its
         valuations are based on reasonable assumptions and estimates.

         At 30 June 2011 the fair value of direct investments in unlisted companies and in hybrid instruments amounts to
         EUR 76,901,280 (31.12.2010: EUR 73,372,466). Further details are provided in note 18 “Financial assets at fair value
         through profit or loss”.

         Investments in private equity funds are valued at the net asset value reported by the fund managers, based either on the
         fund’s own accounts or on non-accounting information such as market prices or other fair values of the investments of the
         funds. In principle the valuation is based on information provided by the fund manager used to prepare the fund’s own
         accounts for the quarter preceding the close of the Company’s consolidated financial statements. In exceptional circum-
         stances the Board of Directors may adjust such valuations when it has other information concerning the value of the fund
         due to its knowledge of the investments in question.

         At 30 June 2011, the value of investments in private equity funds amounts to EUR 34,104,776 (31.12.2010:
         EUR 40,840,164). Further details are provided in note 18 “Financial assets at fair value through profit or loss”.
32                                                                                                               The Company and iTs environmenT
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     Deferred tax assets
     Deferred tax assets are recognised in respect of tax loss carryforwards when it is likely that the Group will be able to offset
     such tax losses against future taxable profit. To calculate the amount of deferred tax assets to be recognised, the Board
     of Directors has to estimate the amount of taxable profit that will be available in future years based on its tax planning
     strategy. At 30 June 2011, the book value of recognised deferred tax assets amounts to EUR 20,400,045 (31.12.2010:
     EUR 26,142,852). Further details are provided in note 12.


     Summary of significant accounting policies

     Foreign currency translation
     The consolidated financial statements are presented in euros, which is the functional currency of both the Company and its
     subsidiaries. Transactions in foreign currencies are initially recorded in the functional currency at the exchange rate prevail-
     ing at the date of the transaction. At the balance sheet date, monetary assets and liabilities denominated in foreign curren-
     cies are translated into the functional currency at the closing rate. All exchange differences are recognised in profit or loss.
     Non-monetary items denominated in a foreign currency and measured at historical cost are translated using the exchange
     rate at the initial transaction dates. Non-monetary foreign currency items measured at fair value are translated using the
     exchange rates at the date on which the fair value was determined.

     Property, plant and equipment
     Property plant and equipment are stated at cost, excluding day-to-day servicing costs, less accumulated depreciation and
     impairment. They are depreciated on a straight-line basis over their useful lives.

     Property, plant and equipment are derecognised on disposal or when future economic benefits are no longer expected to be
     derived from their use or disposal. Any gains or losses arising from derecognition of property, plant and equipment (calculated
     as the difference between the net disposal proceeds and the carrying amount of the item) are taken to profit or loss in the
     period in which the asset is derecognised.

     Investments and other financial assets
     Financial assets included within the scope of IAS 39 are classified as either at fair value through profit or loss upon initial
     recognition, held-for-trading, available-for-sale, held-to-maturity investments or as loans and receivables. Upon initial
     recognition, financial assets are measured at their fair value, plus directly attributable transaction costs for investments not
     measured at fair value through profit or loss. The Group analyses whether any derivatives are embedded in the contracts
     and these are separated from the host contract if the contract as a whole is not accounted for at fair value through profit
     or loss, and if the economic characteristics and risks of the embedded derivative are not closely related to the economic
     characteristics and risks of the host contract.

     The Group classifies its financial assets upon initial recognition, and reviews this classification at each balance sheet date as
     and when appropriate.

     All “regular way” purchases and sales of financial assets are recognised at the trade date, which corresponds to the date
     on which the Group undertakes to purchase the asset. A “regular way” purchase or sale is a purchase or sale of a financial
     asset under a contract whose terms require delivery of the asset within the timeframe established generally by regulation or
     convention in the marketplace concerned.

     Financial assets at fair value through profit or loss
     Financial assets at fair value through profit or loss comprise both held-for-trading financial assets and financial assets
     designated upon initial recognition as at fair value through profit or loss.
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The Company UnaUdiTed inTerim aCCoUnTs                                                                                                          33




         Financial assets held for trading
         Financial assets are classified as held for trading if they are acquired principally for the purpose of selling them in the near
         term. Derivatives, including embedded derivatives recognised separately from the host contract, are also included in this
         category, with the exception of designated and effective hedging derivatives and financial guarantee contracts.

         When a contract includes one or more embedded derivatives, the hybrid contract taken as a whole may be designated as a
         financial asset through profit or loss, unless the embedded derivative does not cause the cash flows to vary in a significant
         way or it is clearly stated that the separation of the embedded derivative is prohibited.

         At 30 June 2011 and 31 December 2010, this category includes only listed securities.

         Financial assets designated at fair value through profit or loss upon initial recognition
         Financial assets may be designated at fair value through profit or loss upon initial recognition if one of the following criteria is
         met:

             ∙ the use of the fair value option eliminates or significantly reduces a measurement or recognition inconsistency
               (accounting mismatch) that would otherwise arise from measuring assets or liabilities and the related gains and losses
               on different bases;

             ∙ the assets belong to a group of financial assets that is managed and evaluated on a fair value basis in accordance with
               a documented risk management strategy;

             ∙ the financial asset contains an embedded derivative that must be accounted for separately.

         Financial assets designated at fair value through profit or loss upon initial recognition include direct private equity invest-
         ments, investments in private equity funds and in certain hybrid instruments (subordinated loans with embedded deriva-
         tives). Investments in companies that were originally unlisted but subsequently obtained a stock market listing continue to be
         classified as financial assets designated at fair value through profit or loss upon initial recognition.

         Direct private equity investments in unlisted securities are measured at fair value as determined by the Board of Directors.
         Fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable and willing
         parties in an arm’s length transaction.

         When estimating the fair value of an investment, the Board of Directors uses valuation techniques that take account of the
         nature, conditions and circumstances of the investment, as well as its importance within the total investment portfolio. Its
         valuations are based on reasonable assumptions and estimates.

         When a transaction takes place for a material amount in the shares of the investee company, thus setting a benchmark
         price under normal market conditions, this transaction is used as a basis for valuing the investment, without adjustment or
         discount.

         In other cases, the Board of Directors applies generally recognised valuation techniques, in particular the “International
         Private Equity and Venture Capital Valuation Guidelines” issued by the “International Private Equity Valuation Board (“IPEV”).
         These include multiples of earnings and cash flows for comparable listed companies – or multiples resulting from known
         transactions in the shares of other comparable companies – which are then applied to the investee’s earnings or cash flows,
         methods based on the investee’s net assets, the present value of future cash flows from the investee’s operations or the
         future cash flows expected from the investment. They may also include any other valuation technique used at the time of the
         initial investment. In order to give due consideration to the lack of liquidity of private equity investments, a discount, generally
         between 10 and 30%, is applied to the thus calculated enterprise value. Other factors may also be taken into account where
         necessary, such as the near-term prospects for selling the investee’s shares or for another significant transaction in these
         shares.
34                                                                                                                  The Company and iTs environmenT
                                                                                                            ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     Barring exceptional circumstances, investments in unlisted securities are generally reviewed at 30 June and 31 December
     each year.

     Investments in companies that were originally unlisted but subsequently obtained a stock market listing are measured at fair
     value. Fair value is determined using the same methods as for available-for-sale financial assets.

     Investments in private equity funds are valued at the net asset value reported by the fund managers, based either on the
     fund’s own accounts or on non-accounting information such as market prices or other fair values of the investments of the
     funds. In principle, the valuation is based on information provided by the fund manager used to prepare the fund’s own
     accounts for the quarter preceding the close of the Company’s consolidated financial statements.

     In exceptional circumstances, the Board of Directors may adjust such valuations when it has other information concerning
     the value of the fund due to its knowledge of the investments in question. In the case of investments made in funds over the
     12 months preceding the balance sheet date, unrealised capital losses attributable solely to administrative and management
     expenses are not taken into account during this period for these recently created funds..

     Available-for-sale financial assets
     Available-for-sale financial assets are non-derivative financial assets that are designated as available for sale or are not classi-
     fied in any of the preceding categories. After initial recognition, available-for sale financial assets are measured at fair value,
     with the related gains and losses due to changes in the fair value recognised directly in equity in a special reserve account.
     When the Group disposes of an available-for-sale financial asset, the cumulative gain or loss previously recognised in equity
     is transferred to profit or loss. Dividends received on these investments are recognised in profit or loss under “Dividends and
     other income on available-for-sale financial assets” as soon as the Group’s right to receive payment has been established.

     Available-for-sale financial assets include the Company’s investments in listed companies.

     Available-for-sale financial assets are measured at fair value. The fair value of available-for-sale financial assets which are
     actively traded on organised financial markets is based on the marketclose bid price for listed securities at the balance sheet
     date.

     Held-to-maturity investments
     Held-to-maturity investments are financial assets with fixed or determinable payments and fixed maturity that the Group has
     the positive intention and ability to hold to maturity. After initial recognition, held-to-maturity investments are measured at
     amortised cost. Amortised cost is the amount at which the financial asset is measured at initial recognition, minus any princi-
     pal repayments and reduction for impairment, and plus or minus the cumulative amortisation (calculated under the effective
     interest rate method) of the difference between that initial amount and the maturity amount.

     The calculation includes all fees and points paid or received between parties to the contract that are an integral part of the
     effective interest rate, plus transaction costs and any other premiums or discounts.

     Gains and losses are recognised in profit or loss when these investments are derecognised or impaired, using the amortised
     cost method.

     The Group had no financial assets classified as held-to-maturity investments at either 30 June 2011 or 31 December 2010.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                       35




         Loans and receivables
         Loans and receivables are financial assets with fixed or determinable payments that are not quoted in an active market. After
         initial recognition, loans and receivables are measured at amortised cost using the effective interest rate method, less any
         reduction for impairment. Amortised cost takes account of any initial premium or discount and includes the commissions
         that are an integral part of the effective interest rate, and transaction costs.

         Gains and losses are recognised in profit or loss when loans and receivables are derecognised or impaired, based on the
         amortised cost method.

         Impairment of financial assets
         At each balance sheet date, the Group assesses whether there is any objective evidence that a financial asset or group of
         financial assets is impaired.

         Available-for-sale financial assets
         Impairment losses are recognised in profit or loss if there are indications at the balance sheet date that the assets may be
         impaired. For listed investments, impairment is based on a series of indicators, including a significant or prolonged decline in
         market price. The amount of impairment is calculated based on the asset’s recoverable value.

         If an available-for-sale financial asset is impaired, an amount calculated as the difference between the acquisition cost (net of
         any principal repayment and amortisation) and current fair value, less any impairment loss on that financial asset previously
         recognised in profit or loss, is transferred from equity to profit or loss. Impairment losses recognised on equity instruments
         may not be reversed through profit or loss. Impairment losses taken on debt instruments may be reversed through profit
         or loss if the subsequent increase in fair value of the instrument can be related objectively to an event occurring after the
         impairment was recognised in profit or loss.

         The Group has defined objective criteria of duration and percentage of depreciation to establish impairment. A fall of 20%
         to 30% below acquisition price or a decrease in value over a period of 12 months implies a presumption of impairment. In
         this case, the Board of Directors evaluates such depreciations taking into account information about significant changes that
         have taken place in the technological, market, economic or legal environment in which the issuer operates. The Board of
         Directors reserves the right to apply lower or higher depreciation rates or durations taking into account the particular histori-
         cal volatilities of the concerned equity instrument. A depreciation of more than 30% or over a period of more than 18 months
         will always be considered as impairment.

         Assets recognised at amortised cost
         If there is objective evidence that held-to-maturity investments and loans and receivables carried at amortised cost are
         impaired, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the
         present value of estimated future cash flows, discounted at the original effective interest rate. The carrying amount of the
         asset is reduced by means of an allowance account, and the impairment loss is recognised in profit or loss.

         If in a subsequent period the amount of the impairment loss decreases and the decrease can be related objectively to an
         event occurring after the impairment was recognised, the previously recognised impairment loss shall be reversed. The
         amount of the reversal is recognised in profit or loss; however, the reversal may not result in a carrying amount for the finan-
         cial asset that exceeds what the amortised cost would have been had the impairment not been recognised.
36                                                                                                                  The Company and iTs environmenT
                                                                                                            ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     Derecognition of financial assets
     A financial asset (or a part of a financial asset or a part of a group of similar financial assets, if applicable) is derecognised
     when:

         ∙ the contractual rights to the cash flows from the financial asset have expired;

         ∙ the Group retains its contractual rights to receive cash flows from the financial asset, but assumes a contractual obliga-
           tion to pass on the cash flows to a third party without delay (“pass through arrangements”);

         ∙ the Group transfers its rights to receive cash flows from the financial asset and either transfers substantially all the risks
           and rewards of ownership of the financial asset, or neither transfers nor retains substantially all the risks and rewards of
           ownership of the financial asset, but transfers control of the financial asset.

     When the Group transfers its rights to receive cash flows from the financial asset but neither transfers nor retains substan-
     tially all the risks and rewards of ownership of the financial asset, nor transfers control of the financial asset, it continues to
     recognise the financial asset to the extent of its continuing involvement. When the entity’s continuing involvement takes the
     form of guaranteeing the transferred asset, the extent of the entity’s continuing involvement is measured at the lower of the
     original carrying value of the asset and the maximum amount that the entity could be required to repay.

     Financial liabilities
     Financial liabilities included within the scope of IAS 39 are classified as either at fair value through profit or loss upon initial
     recognition, loans and borrowings or derivative financial instruments initially designated as hedge instruments.

     The Group determines the classification of its financial liabilities upon initial recognition.

     Loans and borrowings
     Loans and borrowings are financial liabilities with fixed or determinable payments that are not quoted in an active market.
     After initial recognition, loans and borrowings are measured at amortised cost using the effective interest rate method,
     less any reduction for impairment. Amortised cost takes account of any initial premium or discount and includes the
     commissions that are an integral part of the effective interest rate, and transaction costs.

     Derecognition of financial liabilities
     A financial liability is derecognised when the obligation related to the liability is discharged or cancelled or expires.

     Treasury shares
     In the event that the Group purchases its own equity instruments (treasury shares), these are deducted from shareholders’
     equity. If it purchases, sells, issues or cancels its own equity instruments, no gain or loss is recognised in the profit and loss
     account.

     Since 1 January 2007, employees have been awarded stock options under the Company’s stock option plan.

     These transactions do not give rise to the issue of new shares as the Company systematically buys back the required number
     of shares on the stock market. When these options are awarded to the Group’s employees, the cost represented by the
     market value of the shares is recognised in staff costs in the consolidated profit and loss account.

     Cash and cash equivalents
     Cash and cash equivalents carried in the balance sheet include cash at bank and short-term deposits for an initial term
     of three months or less. For the purpose of drawing up the consolidated cash flow statement, cash and cash equivalents
     include cash and cash equivalents as defined above, less current bank overdraft facilities.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                      37




         Provisions
         The Group recognises a provision when it has a present obligation (legal or constructive) as a result of a past event, it is
         probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable
         estimate can be made of the amount of the obligation. The amount of the expense relating to the provision is recognised in
         the profit and loss account net of any reimbursement. Where the effect of the time value of money is material, the provisions
         are discounted using a pre-tax discount rate that reflects those risks specific to the liability. When discounting is used, the
         increase in the provision due to the passage of time is recognised as interest expense.

         Pensions and other post-employment benefits
         Premiums paid to the insurance company within the scope of a defined contribution supplementary pension plan for
         Company employees are recognised in the consolidated profit and loss account in the period to which they relate.

         Revenue recognition
         Revenues are recognised when it is probable that future economic benefits will flow to the Group and that these can be reli-
         ably estimated. Revenues are measured at the fair value of the consideration received. Specific criteria are used to determine
         whether revenues may be recognised.

         Interest income
         Interest income is recognised for the amount that has been accrued based on the effective interest rate method. The effec-
         tive interest rate is the rate that exactly discounts estimated future cash flows to the net carrying amount of the financial
         asset.

         Dividends
         Dividend income is recognised when the Group’s right to receive payment is established.

         Net result on financial assets at fair value through profit or loss
         Net result on financial assets at fair value through profit or loss includes dividends, results on disposals and changes in
         unrealised results on financial assets at fair value through profit or loss.

         Net result on financial assets held for trading
         Net result on financial assets held for trading includes dividends, results on disposals and changes in unrealised results on
         financial assets held for trading.

         Employee stock option plan
         The Company has set up an employee stock option plan which uses an equity-settled formula only. Options under the plan
         vest as soon as they have been granted.

         The cost of the stock options is measured at the fair value of the instruments awarded at the grant date. Fair value is
         determined using an appropriate valuation model. Further details are provided in note 10.

         The cost of the stock options is recognised in staff costs at the grant date, along with a matching entry to record the
         corresponding increase in shareholders’ equity.

         The dilutive effect on shares issued and outstanding is reflected in the diluted earnings per share calculation. Further details
         are provided in note 13.
38                                                                                                                  The Company and iTs environmenT
                                                                                                            ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     Taxes
     Current income tax
     Tax assets and liabilities due for current and prior financial years are estimated at the amount that the Group expects to
     recover from or settle with the taxation authorities. The tax rate and tax laws applied to determine these amounts are those
     that have been enacted or substantively enacted at the balance sheet date in Luxembourg.

     Taxes due on items recognised directly in equity are also recognised directly in equity and not in profit or loss.

     Deferred income tax
     Deferred taxes are calculated using the balance sheet liability method for all temporary differences existing between the tax
     bases and carrying value of assets and liabilities at the balance sheet date.

     Deferred tax liabilities are recognised in respect of all taxable temporary differences.

     Deferred tax assets are recognised in respect of all deductible temporary differences, tax loss carryforwards and unused tax
     credits to the extent that it is probable that taxable profit will be available against which the deductible temporary differences,
     tax loss carryforwards and unused tax credits can be utilised.

     The carrying value of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that future tax-
     able profit is no longer likely to be available against which part or all of the deferred tax asset can be utilised. Unrecognised
     deferred tax assets are assessed at each balance sheet date and recognised in the accounts whenever it is probable that
     taxable profit will be available against which they can be utilised.

     Deferred tax assets and liabilities are calculated at the tax rates that are expected to apply to the period when the asset is
     realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the
     balance sheet date.

     Deferred taxes relating to items recognised directly in equity are also recognised directly in equity and not in profit or loss.

     Deferred tax assets and liabilities are offset if there is a legally enforceable right to set off current tax assets against current
     tax liabilities, and if they relate to income taxes levied by the same taxation authority on the same entity.

     Derivative financial instruments and hedge accounting
     The Group uses derivatives such as forward currency contracts and options to hedge against fluctuations in foreign curren-
     cies and market prices. These derivatives are initially recognised at fair value upon inception of the contract and are subse-
     quently remeasured to fair value. They are recognised as assets when their fair value is positive and as liabilities when their
     fair value is negative.

     Any gains or losses arising from changes in fair value of derivatives that do not qualify as hedging instruments are recognised
     directly in profit or loss.

     The fair value of forward currency contracts is calculated based on current rates for contracts with similar maturities.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                          39




         For accounting purposes, hedges can be classified as one of three types:

             ∙ as fair value hedges when they hedge the exposure to changes in fair value of a recognised asset or liability, or a firm
               commitment (except for foreign currency risk);

             ∙ as cash flow hedges when they hedge the exposure to variability in cash flows that is attributable to a particular risk
               associated with a recognised asset or liability, a highly probable forecast transaction, or a foreign currency risk in
               relation to a firm commitment;

             ∙ as hedges of a net investment in a foreign operation.

         At the inception of the hedge there is formal designation and documentation of the hedging relationship and the Group’s
         risk management objective and strategy for undertaking the hedge. That documentation includes identification of the
         hedging instrument, the hedged item(s) or transaction(s), the nature of the risk being hedged and how the entity will assess
         the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows
         attributable to the hedged risk. The Group expects the hedge to be highly effective in offsetting changes in fair value or cash
         flows attributable to the hedged risk. The hedge is assessed on an ongoing basis in order to demonstrate that it has been
         highly effective throughout the financial reporting periods for which the hedge was designated.

         Fair value and cash flow hedges
         Hedging instruments meeting the strict hedge accounting criteria are accounted for as follows:

         Changes in the fair value of a derivative that qualifies as a fair value hedge are recognised in profit or loss. Changes in the fair
         value of the item hedged that are attributable to the hedged risk adjust the carrying amount of the hedged item and are also
         recognised in profit or loss.

         The effective part of gains or losses on derivative financial instruments qualifying as cash flow hedges is recognised in
         equity, the ineffective part being recognised directly in profit or loss.

         At 30 June 2011 and 31 December 2010, the Company had neither fair value nor designated cash flow hedges.

         Financial guarantee contracts
         The Group from time to time acts as guarantor for companies in which it has invested. The Group has chosen to apply
         IFRS  4 – Insurance contracts to these financial guarantees. The contracts are thus disclosed as off-balance sheet com-
         mitments, except in cases of a likely utilization, which would lead the Group to recognize a provision. Further details are
         included in note 30.
40                                                                                                            The Company and iTs environmenT
                                                                                                      ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     NOTE 3 – SEGMENT REPORTING

     The Group’s activity is concentrated on one single segment, which is investments in listed and unlisted securities and in
     derivative financial instruments relating to these securities. All activities of the Group are related. As a consequence, all
     significant operational decisions are based on a single segment. The financial results of this segment are the results of the
     Group.

     The following tables show the Group’s income and financial assets per geographical location. The basis for attribution is the
     place of incorporation of the instrument’s counterparty.


     Income by geographic location

      6 months 2011                                      Luxembourg             Other EU         Rest of the                Total
      In EUR                                                                    countries             World


      Dividends and other income on                       4,979,487           1,107,192            628,627           6,715,306
      available-for-sale financial assets
      Net result on disposal of available-for-sale          387,871         15,177,738            (766,812)        14,798,797
      financial assets
      Net result on disposal of financial assets              46,000             (2,910)        (1,371,518)        (1,328,428)
      at fair value through profit or loss and other
      income
      Net result on financial assets held for                   (112)         (160,647)           (592,664)           (753,423)
      trading


      Total                                               5,413,246         16,121,373          (2,102,367)        19,432,252


      6 months 2010                                      Luxembourg             Other EU         Rest of the                Total
      In EUR                                                                    countries             World


      Dividends and other income on                       3,793,291           1,746,919            202,264           5,742,474
      available-for-sale financial assets
      Net result on disposal of available-for-sale        3,868,525           3,094,202          1,247,028           8,209,755
      financial assets
      Net result on disposal of financial assets            394,218              38,322                     –          432,540
      at fair value through profit or loss and other
      income
      Net result on financial assets held for                       –       (1,164,358)           (637,825)        (1,802,183)
      trading


      Total                                               8,056,034           3,715,085            811,467         12,582,586
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                   41




         Assets by geographic location

          30.06.2011                                         Luxembourg             Other EU         Rest of the               Total
          In EUR                                                                    countries             world


          Available-for-sale financial assets                72,712,950         90,034,276          15,004,166        177,751,392
          Financial assets at fair value through profit
                                                             43,730,033         49,727,233          17,548,790        111,006,056
          or loss
          Loans and receivables                               5,482,001           7,817,382                     –      13,299,383
          Financial assets held for trading                   1,541,730         19,855,843           1,009,437         22,407,010
          Cash and cash equivalents                          65,107,766                     –                   –      65,107,766
          Other assets                                       12,497,250             835,129                     –      13,332,379


          Total                                            201,071,730         168,269,863          33,562,393        402,903,986


          31.12.2010                                         Luxembourg             Other EU         Rest of the               Total
          In EUR                                                                    countries             world


          Available-for-sale financial assets               86,208,575          91,108,612          27,258,987        204,576,174
          Financial assets at fair value through profit
                                                            39,906,408          47,605,526          26,844,950        114,356,884
          or loss
          Loans and receivables                               5,770,001           2,052,500                     –        7,822,501
          Financial assets held for trading                             –       11,645,147           7,860,235         19,505,382
          Cash and cash equivalents                          66,065,917                     –                   –      66,065,917
          Other assets                                       15,840,928                     –                   –      15,840,928


          Total                                            213,791,829         152,411,785          61,964,172        428,167,786




         NOTE 4 – FINANCIAL RISK MANAGEMENT


         Introduction

         In the conduct of its investment activities, the Group and its assets are exposed to market risks, credit risks and liquidity
         risks. The Group has developed an investment and risk management policy adapted to its business. There were no material
         changes in the Group’s exposure to financial risks or in its risk management policy during the current period.
42                                                                                                               The Company and iTs environmenT
                                                                                                         ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     Risk management framework

     Although the Board of Directors has ultimate responsibility for risk management, other management bodies are also involved
     in managing and monitoring risks.

     Board of Directors
     The Board of Directors is responsible for developing a risk management approach and for validating the overall risk manage-
     ment strategy.

     Audit Committee
     The Audit Committee oversees the risk management process.

     Internal Audit
     Since 1 January 2007, an external firm of auditors has been tasked with internal audit engagements covering the risk man-
     agement process, the appropriateness of procedures within the Group and compliance with these procedures. The Internal
     Audit department discusses the findings with Group management and reports back to the Audit Committee.


     Market risk and investment policy

     Market risk is the risk of loss resulting from an adverse move of market parameters. The Group’s exposure to market risk
     is directly related to its investment activity and the composition of its investment portfolio. At 30 June 2011, over 50%
     (31.12.2010: 52%) of its net assets are composed of investments in listed companies. These investments are measured at
     their market price at the balance sheet date. For investments in unlisted securities, fair value is measured on the basis of
     earnings multiples for comparable listed companies. The price and timing of the sale of investments in unlisted companies
     may be partially influenced by market conditions, particularly in the case of a stock market listing.

     The Group strives to maintain a diversified portfolio by investing in different types of assets.

     It focuses a significant amount of its investing activity on listed companies – mostly large-caps listed on major stock
     exchanges able to generate stable revenue streams and dividends for the Group.

     In its direct private equity investment dealings the Group seeks to realise handsome capital gains upon exit. These invest-
     ments involve certain inherent risks such as the risk that the investments are not realisable in the short term or the uncer-
     tainty as to whether targets will be met.

     The Group’s investments in private equity funds are highly diversified.

     Investments by type, as a percentage of net assets:

                                                                                                   30.06.2011         31.12.2010


      Investments in listed companies                                                                   50.2%                52.9%
      Direct private equity investments                                                                 22.6%                19.2%
      Investments in private equity funds                                                                8.6%                 9.7%
      Other net assets                                                                                  18.6%                18.2%


      Total                                                                                             100%                  100%
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                        43




         On 30 June 2011, other net assets include cash and cash equivalents representing 16.3% of total net assets (31.12.2010:
         15.6%).

         The Group has also spread its investments over different economic sectors.

         The Group makes sure that no single investment accounts for more than 15% of its total net assets. This threshold may be
         exceeded in certain exceptional circumstances. This has been the case since 31 December 2010 for the investment in RTL
         Group shares, pursuant to a significant increase of the market price of the shares. The investment represents 15.1% of net
         assets at 30 June 2011 (31.12.2010: 16.1%).

         Percentage of net assets of the Group’s largest investments:

                                                                                                 30.06.2011              31.12.2010


          Total 5 largest investments                                                                   33.3%                  32.4%
          Total 10 largest investments                                                                  45.8%                  45.4%

         The Group uses derivative financial instruments such as equity options, mainly for the purpose of hedging its assets.
         At 30 June 2011, unrealized losses on these instruments amount to EUR 56,564. There were no open derivative contracts
         on 31 December 2010.

         Daily trading volumes in listed securities in which the Group has invested may in some cases be lower than the position held
         by the Group.

         Sensitivity of shareholders’ equity and earnings to equity market risk
         The value of the Group’s investments in listed securities fluctuates in line with movements in the major European stock
         markets (including Luxembourg) on which they are traded. The value of listed securities may even fluctuate more than move-
         ments in stock market indices due to the high degree of concentration in the portfolio and the significant volatility of certain
         securities.

         Changes in the value of available-for-sale financial assets have a direct impact on equity only, except when impairment is
         recognised directly in profit or loss.

         The value of private equity investments may fluctuate in line with stock market indices insofar as valuation multiples of com-
         parable listed companies are used to measure these investments. Fluctuations in the value of these investments impact both
         Group earnings and equity.

         At 30 June 2011, investments in securities listed on the Luxembourg stock exchange and included in this stock market index
         represent approximately 19% (31.12.2010: 20%) of the Company’s equity. Five-year historical data on monthly movements
         in the Luxembourg stock market index and in estimated fair value per share published monthly by the Company show a beta
         of 0.46 (31.12.2010: 0.48). Estimated fair value per share is equal to shareholders’ equity divided by the number of shares
         outstanding.

         The value of the Group’s investments varies with their market prices. A variation of 5% of the fair value of the Group’s
         available-for-sale financial assets and financial assets at fair value through profit or loss would impact shareholders’ equity by
         approximately 3.6% at 30 June 2011 (31 12 2010: 3.8%).
44                                                                                                            The Company and iTs environmenT
                                                                                                      ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     Foreign exchange risk

     The Group has limited exchange-rate exposure since most of its assets are denominated in Euros. At 30 June 2011, only
     about 19% of assets (31.12.2010: 23%) were exposed to exchange rate risk before taking into account the impact of hedging,
     and the threshold of 27% was not exceeded during 2011 or 2010. Exchange-rate exposure arises mainly in relation to the
     US dollar and Brazilian real. The Company may occasionally hedge all or part of its foreign currency assets against exchange
     rate risk. At 30 June 2011, the Group has foreign exchange options for a notional of USD 20,000,000 (31.12.2010: EUR 0).

                                                                             30.06.2011                    31.12.2010
      Currency                                                           Assets      Liabilities       Assets       Liabilities


      EUR                                                                  74%          100%             77%           100%
      USD                                                                  19%               –           17%                 –
      Other                                                                 7%               –            6%                 –


                                                                         100%           100%           100%            100%

     At 30 June 2011, a variation of 10% of the US dollar would impact shareholders’ equity directly by approximately 1.9%
     (31.12.2010: 1.8%), without considering the indirect impact of such variation on portfolio companies’ operations.


     Interest rate risk

     At 30 June 2011, the Group has limited interest rate exposure as it has no debt, respectively a very low level of debt as at
     31 December 2010, and as assets exposed to interest rate risk with terms of more than one year account for a small
     percentage of total assets.


     Liquidity risk and investment financing policy

     On 30 June 2011, the Group has no financial debt (31.12.2010: EUR 2,825,718). It holds significant cash balances that can
     vary over time.

     On 30 June 2011 and 31 December 2010, the Group has a confirmed credit line with a bank for a total amount of
     EUR 25,000,000. This line is at its free disposal, but the Group did not draw on it in 2011 or 2010. A security deposit
     account of the Group with the bank is pledged to serve as future security in case of a drawdown on the credit line.

     Direct private equity investments may be financed by debt disclosed on the investee’s balance sheet. Similarly, certain com-
     panies in the private equity investment portfolio may use debt to finance part of their business activities.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                 45




         Credit risk

         In the course of its business, the Group grants loans to private companies. At 30 June 2011, loans and receivables amounted
         to EUR 22,799,383 (31.12.2010: EUR 17,322,501) of which EUR 9,500,000 are disclosed in the balance sheet under
         “Financial assets at fair value through profit or loss”, representing only a small portion of the Group’s total assets.

         The Group also acts as guarantor for companies in which it has invested or pledges these companies’ shares to their credi-
         tors. The amounts of these commitments are detailed in note 30.

         In deciding whether to invest, the Group also takes account of such additional commitments. However, it never commits to
         becoming a company’s sole financial backer until the concerned company reaches breakeven.

         The Group minimises its exposure to counterparty risk by committing itself only to placement transactions with first-class,
         top-rated financial institutions and by spreading transactions among them.


         Capital management

         At 30 June 2011 and 31 December 2010, the Company’s share capital amounted to EUR 119,333,025. Shareholders’ equity
         is of EUR 398,845,989 on 30 June 2011 (31.12.2010: EUR 423,201,880). The Company is listed on the Luxembourg Stock
         Exchange and is a component of the LuxX index. By authorisation of the General Shareholders’ Meeting, the Board of
         Directors was allowed to issue new shares to increase the Company’s share capital up to an amount of EUR 1,000,000,000.
         This authorisation has expired on 2 June 2011 and the Board of Directors will propose a new authorisation at a future
         Shareholders’ Meeting.

         The Company buys back own shares, with a view to improving liquidity of the share on the stock exchange; attributing shares
         to the Group’s employees, managers and directors as remuneration; exchanging the shares as payment for acquisitions, and
         cancelling treasury shares by a decision of an Extraordinary General Shareholders’ meeting.

         The Company’s investment policy provides for financing of investments mainly by equity. Some investments may however be
         financed by external debt. The Company thus has a credit line with a Luxembourg bank for EUR 25,000,000, undrawn as at
         30 June 2011 and 31 December 2010.



         NOTE 5 – DIVIDENDS AND OTHER INCOME ON AVAILABLE-FOR-SALE FINANCIAL
                  ASSETS

         This heading comprises the following items:

          In EUR                                                                            6 months 2011         6 months 2010


          Dividends                                                                              6,715,306             5,738,733
          Other                                                                                            –                3,741


          Total                                                                                  6,715,306             5,742,474
46                                                                                                  The Company and iTs environmenT
                                                                                            ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     NOTE 6 – NET RESULT ON FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT
              OR LOSS

     This heading comprises the following items:

      In EUR                                                                      6 months 2011       6 months 2010


      Realised capital gains / (losses)                                             (1,374,427)                21,322
      Changes in unrealised capital gains and losses                                 6,523,504             3,535,671
      Other income                                                                      46,000               411,218


      Total                                                                          5,195,077             3,968,211




     NOTE 7 – NET RESULT ON FINANCIAL ASSETS HELD FOR TRADING

     This heading comprises the following items:

      In EUR                                                                      6 months 2011       6 months 2010


      Realised capital gains and losses and changes in unrealised capital gains
                                                                                      (956,267)          (1,984,052)
      and losses
      Other income                                                                     202,844               181,869


      Total                                                                           (753,423)          (1,802,183)




     NOTE 8 – OTHER INTEREST AND SIMILAR INCOME

     This heading comprises the following items:

      In EUR                                                                      6 months 2011       6 months 2010


      Interest on loans and receivables                                              1,155,331             1,072,782
      Interest on cash at bank                                                         145,572                 15,248
      Capital gains on hedging transactions not eligible for hedge accounting
                                                                                              –            1,411,996
      under IAS 39
      Foreign exchange gains                                                                  –              469,028


      Total                                                                          1,300,903             2,969,054
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                     47




         NOTE 9 – OTHER EXTERNAL EXPENSES

         Other external expenses include supplies, consulting services and other external services, as well as directors’ fees.



         NOTE 10 – STAFF COSTS

         This heading comprises the following items:

          In EUR                                                                               6 months 2011          6 months 2010


          Salaries and wages                                                                          642,593                530,258
          Social security                                                                              59,769                 48,054
          Supplementary pension plan and other insurance premiums                                      55,072                 64,974
          Employee stock option plan                                                                  131,113                288,680


          Total                                                                                       888,547                931,966


         Supplementary pension plan

         The Company has set up a supplementary pension plan for its employees. This defined contribution plan is managed by
         Fortis Luxembourg – Vie SA. The total cost to the Company consists of the premiums paid to the insurance company manag-
         ing the assets which are built up over time through paid-in premiums.


         Employee stock option plan

         In 2007, the Company has set up a stock option plan for certain employees for the period from 2007 to 2009. In February
         2010, the Board of Directors has set up a new stock option plan for the period from 2010 to 2012.

         Under the terms of these plans, grantees are entitled to subscribe to BIP shares at an exercise price calculated by reference
         to the average closing price for the shares over the first ten trading days of the month preceding the one in which the options
         are granted.

         In February 2011, the Board of Directors awarded 11,400 stock options at an exercise price of EUR 60.61 per BIP share
         (2010: 14,000 options at an exercise price of EUR 49,226). The total cost of the stock option plan for the Company
         amounted to EUR 197,904 (31.12.2009: EUR 288,680) and is shown under “Staff costs”. The counterparty to this charge is
         the position “Treasury shares” deducted from equity. In February 2011, the Company has bought back 13,500 options from
         a senior manager that has left the Company on 31 December 2010. These options were cancelled after the buy-back.
48                                                                                                           The Company and iTs environmenT
                                                                                                     ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     Details of the stock option plan are as follows:

      Number of stock options awarded at 30.06.2011                                                                     41,900
      Exercise price per share                                                                eUr   80.825   (attribution   2007)
                                                                                              eUr   98.270   (attribution   2008)
                                                                                              eUr   51.750   (attribution   2009)
                                                                                              eUr   49.226   (attribution   2010)
                                                                                              eUr   60.610   (attribution   2011)
      Exercise period                                                         march 2010 – march      2014   (attribution   2007)
                                                                          february 2011 – february    2015   (attribution   2008)
                                                                          february 2012 – february    2016   (attribution   2009)
                                                                          february 2013 – february    2017   (attribution   2010)
                                                                          february 2014 – february    2018   (attribution   2011)
      Share price at grant date                                                                eUr   85.75   (attribution   2007)
                                                                                               eUr   98.27   (attribution   2008)
                                                                                               eUr   45.50   (attribution   2009)
                                                                                               eUr   48.00   (attribution   2010)
                                                                                               eUr   62.10   (attribution   2011)
      Dividend yield                                                                                 3.00%   (attribution   2007)
                                                                                                     3.50%   (attribution   2008)
                                                                                                     3.50%   (attribution   2009)
                                                                                                     3.69%   (attribution   2010)
                                                                                                     5.64%   (attribution   2011)
      Historical volatility 100 days                                                             13.091%     (attribution   2007)
                                                                                                 28.870%     (attribution   2008)
                                                                                                 63.000%     (attribution   2009)
                                                                                                 53.122%     (attribution   2010)
                                                                                                 36.455%     (attribution   2011)
      Interest rate                                                                                 3.913%   (attribution   2007)
                                                                                                    3.773%   (attribution   2008)
                                                                                                    3.000%   (attribution   2009)
                                                                                                    3.041%   (attribution   2010)
                                                                                                    3.271%   (attribution   2011)

     The Black-Scholes model was used to calculate the fair value of the stock options using the parameters set out above.

     Movements in the number of options awarded over the period were as follows:

      Stock options at 1 January 2011                                                                                  44,000
      Stock options awarded during the period                                                                          11,400
      Stock options bought back and cancelled during the period                                                       (13,500)
      Stock options at end of the period                                                                               41,900
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                             49




         NOTE 11 – INTEREST AND SIMILAR EXPENSES

         This heading comprises:

          In EUR                                                                             6 months 2011         6 months 2010


          Interest                                                                                 28,281                81,698
          Bank charges                                                                             49,756                44,756
          Losses on derivative financial instruments                                                       –            350,438
          Losses on hedging transactions not eligible for hedge accounting
                                                                                                   56,564                      –
          under IAS 39
          Exchange loss                                                                           273,706                      –


          Total                                                                                   408,307               476,892




         NOTE 12 – TAXATION


         Income tax

         Income tax for the financial periods ended 30 June 2011 and 2010 can be broken down as follows:

          In EUR                                                                                 6 months 2011 6 months 2010


          Deferred tax                                                                             (6,929,485)        2,034,216


          Tax recorded in the consolidated profit and loss account                                 (6,629,485)        2,034,216


          Reconciliation of deferred taxes
          Income before tax                                                                        24,413,676        13,024,314
          Applicable tax rate                                                                         28.80%             28.59%
          Theoretical income tax, calculated on a fixed-percentage basis at the applicable         (7,031,139)       (3,723,651)
          tax rate
          Adjustments for:
              - tax-exempt revenues less non-deductible expenses                                    4,987,358         2,738,591
              - estimated unrecoverable tax loss                                                   (4,885,704)                 –
              - estimated recoverable tax loss                                                                 –      3,019,276
          Adjustments to income tax                                                                   101,654         5,757,867


          Deferred income tax                                                                      (6,929,485)        2,034,216
50                                                                                                              The Company and iTs environmenT
                                                                                                        ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     The Group is liable for all taxes applicable to fully taxable companies in Luxembourg. At 30 June 2011, the Group had
     recorded no current income tax liability for income taxes, except for the minimum annual lump sum amount of EUR 1,575,
     due to the utilisation of tax loss carryforwards and the application of the tax treatment exempting significant equity holdings
     from income tax, as provided for under Article 166 of the legislation governing Luxembourg income tax (LIR) and the Grand
     Ducal regulation dated 21 December 2001 (31.12.2010 : tax liability recorded related to the municipal business tax of the
     German subsidiary BIH).


     Tax assets and liabilities

      In EUR                                                                                 30.06.2011              31.12.2010


      Deferred tax assets                                                                    20,400,045              26,142,852
      Deferred tax liabilities                                                               (9,736,181)            (12,131,563)
      Net deferred tax assets                                                                10,663,864              14,011,289
      Current tax assets
          - Net provision for net worth tax                                                    (345,365)                (305,500)




     Deferred tax assets can be broken down as follows:

      2011                                               At           Through profit        Through equity                   At
      In EUR                                       1.1.2011                  or loss                                 30.06.2011


      Tax loss carryforwards                    26,142,852             (6,903,525)              1,160,718            20,400,045


      Deferred tax assets                       26,142,852             (6,903,525)              1,160,718            20,400,045


      2010                                               At           Through profit        Through equity                   At
      In EUR                                       1.1.2010                  or loss                                 31.12.2010


      Tax loss carryforwards                    14,343,703             11,646,909                 152,240            26,142,852


      Deferred tax assets                       14,343,703             11,646,909                 152,240            26,142,852

     Deferred tax assets are attributable to tax loss carryforwards which amount to approximately EUR 156 million at 30 June
     2011 (31.12.2010: EUR 163 million).

     At 30 June 2011, EUR 85 million (31.12.2010: 73 million) of tax loss carryforwards were not recorded given the uncertainty
     concerning future taxable profits.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                   51




         Deferred tax liabilities’ attribution can be broken down as follows:

          2011                                                            At        Through profit    Through equity             At
          In EUR                                                    1.1.2011               or loss                       30.06.2011


          Financial assets held for trading                          128,035                    –                  –        128,035
          Available-for-sale financial assets                    12,003,528                     –       (2,421,342)       9,582,186
          Derivative financial instruments                                      –         25,960                   –         25,960


          Deferred tax liabilities                               12,131,563               25,960        (2,421,342)       9,736,181


          2010                                                            At        Through profit    Through equity             At
          In EUR                                                    1.1.2010               or loss                       31.12.2010


          Financial assets held for trading                           72,449              55,586                   –        128,035
          Available-for-sale financial assets                      4,666,401                    –        7,337,127       12,003,528


          Deferred tax liabilities                                4,738,850               55,586         7,337,127       12,131,563


         Other taxes

         Net worth tax included in other taxes amounts to EUR 170,000 at 30 June 2011 (30.06.2010: EUR 142,915).


         NOTE 13 – BASIC AND DILUTED BOOK RESULT AND COMPREHENSIVE RESULT
                   PER SHARE
         The basic book result per share is calculated by dividing the book result attributable to the Company’s shareholders by the
         weighted average number of shares outstanding during the period.
         The diluted book result per share is calculated by dividing the book result attributable to the Company’s shareholders by the
         weighted average number of shares outstanding during the period plus the number of shares underlying exercisable options
         awarded by the employee stock option plan.
         The comprehensive result per share is calculated by dividing the comprehensive result attributable to the Company’s share-
         holders by the weighted average number of shares outstanding during the period.
         The diluted comprehensive result per share is calculated by dividing the comprehensive result attributable to the Company’s
         shareholders by the weighted average number of shares outstanding during the period plus the number of shares underlying
         exercisable options awarded by the employee stock option plan.
         The following table shows the information used to calculate basic and diluted earnings per share for all of the Group’s
         business activities:

          In EUR                                                                                6 months 2011          6 months 2010


          Net book result attributable to shareholders of the parent company                         17,484,191          15,058,530
          Net comprehensive result attributable to shareholders of the parent company                (6,910,171)         10,578,470
          Weighted average number of shares (excluding treasury shares) included in
                                                                                                      4,562,216           4,583,523
          the calculation of basic earnings per share
          Weighted average number of shares (excluding treasury shares) included in
                                                                                                      4,571,073           4,583,523
          the calculation of diluted earnings per share
52                                                                                                        The Company and iTs environmenT
                                                                                                  ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     NOTE 14 – DIVIDENDS PAID

      In EUR                                                                                    2011                   2010


      Approved and paid during the year:
      Final dividend for 2010: EUR 3.50 per share (2009: EUR 1.50)                       15,968,130              6,889,520




     NOTE 15 – PROPERTY, PLANT AND EqUIPMENT

     Changes in property, plant and equipment were as follows:

      In EUR                                                                             30.06.2011            31.12.2010


      Acquisition cost at the beginning of the period                                        668,781               668,781
      Additions during the period                                                                    –                      –
      Disposals during the period                                                                    –                      –


      Acquisition cost at the end of the period                                              668,781               668,781


      Accumulated depreciation and impairment at the beginning of the period               (620,732)              (597,310)
      Depreciation charge for the period                                                    (10,169)               (23,422)
      Depreciation on disposals during the period                                                    –                      –


      Accumulated depreciation and the end of the period                                   (630,901)              (620,732)


      Net carrying amount at the end of the period                                            37,880                 48,049

     Property, plant and equipment mostly comprise office equipment, fixtures and fittings, and have a useful life of between
     three and ten years.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                   53




         NOTE 16 – CLASSIFICATION OF FINANCIAL ASSETS

         Financial assets are classified as either available-for-sale, at fair value through profit or loss, loans and receivables and
         financial assets held for trading.

         They can be broken down as follows:

          Carrying amount in EUR                                                                 30.06.2011            31.12.2010


          Available-for-sale financial assets                                                  177,751,392            204,576,174
          Financial assets at fair value through profit or loss                                111,006,056            114,356,884
          Loans and receivables                                                                  13,299,383              7,822,501
          Financial assets held for trading                                                      22,407,010            19,505,382


          Total                                                                                324,463,841            346,260,941




         NOTE 17 – AVAILABLE-FOR-SALE FINANCIAL ASSETS

         Available-for-sale financial assets can be broken down as follows:

          Carrying amount in EUR                                                                 30.06.2011            31.12.2010


          Investments in listed companies                                                      177,751,392            204,576,174


          Total available-for-sale financial assets                                            177,751,392            204,576,174




         Movements within this category over the financial period were as follows:

          In EUR                                                                                 30.06.2011            31.12.2010


          At the beginning of the period                                                       204,576,174            161,650,519
          Acquisitions                                                                           46,559,450            58,957,477
          Increase by transfer from assets held for trading                                         614,002                        –
          Disposals                                                                            (46,021,812)           (45,421,406)
          Unrealised capital gains or losses                                                   (27,976,422)            32,975,354
          Impairment losses recognised against income                                                        –         (3,585,770)


          At the end of the period                                                             177,751,392            204,576,174
54                                                                                                               The Company and iTs environmenT
                                                                                                         ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     Other key figures related to available-for-sale financial assets were as follows:

      In EUR                                                                                  30.06.2011               31.12.2010


      Key figures related to disposals of the period
      Realised capital gains on disposals of the period                                       16,978,341               11,341,806
      Realised capital losses on disposals of the period                                      (2,179,544)              (1,028,477)
      Net realised capital gains on disposals of the period                                   14,798,797               10,313,329


      On disposals of the period: unrealised capital gains shown in “revaluation
      reserve on available-for-sale financial assets” at the end of the previous              15,897,653                8,361,865
      period


      Key figures related to impairments
      Impairment losses recognised during the period against income                                        –            3,585,770
      Total impairments at the end of the period                                              82,127,511               85,383,500
      Fair value of financial assets that have been impaired during the period or             86,111,960               96,092,625
      prior periods

     Impairment losses reflect the Board of Directors’ opinion that the fair value of the investments is likely to remain below their
     acquisition cost, significantly or for a prolonged period of time.



     NOTE 18 – FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

     Financial assets at fair value through profit or loss were as follows:

      In EUR                                                                                    30.06.2011             31.12.2010


      Direct private equity investments                                                        76,901,280              73,372,466
      Private equity funds                                                                     34,104,776              40,840,164
      Listed companies                                                                                      –              144,254


      Total financial assets at fair value through profit or loss                             111,006,056            114,356,884

     A subordinated loan of EUR 9,500,000 (31.12.2010: EUR 9,500,000) granted by the Company within its private equity
     investment activity is included in the financial assets at fair value through profit or loss. This loan matures in 2013. Maximum
     exposure to credit risk corresponds to its carrying value at 30 June 2011 and 31 December 2010. This exposure is not miti-
     gated through the utilisation of a credit derivative.

     At 31 December 2010, direct private equity investments included the investment in Cargolux for which there was no active
     market, and for which the fair value could not be reliably measured due to the impossibility to evaluate the probabilities of the
     range of reasonable fair value estimates. This investment was valued at EUR 23,497,686, which was its carrying value of the
     previous year end adjusted for the USD exchange rate variation. The Group has looked into available options for the invest-
     ment and has signed in June 2011 a sale agreement. At 30 June 2011, the investment is valued at EUR 29,186,130, which
     is the agreed sales price converted into EUR at the USD exchange of 30 June 2011. The sale is still subject to approval by
     national and international competition authorities.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                   55




         Movements within this category over the financial period were as follows:

          In EUR                                                                                  30.06.2011           31.12.2010


          At the beginning of the period                                                        114,356,884           112,381,997
          Acquisitions of the period                                                               4,712,585           18,546,635
          Increases by conversion of bonds during the period                                                 –             522,292
          Disposals of the period                                                               (11,611,917)          (19,568,203)
          Reduction through withdrawal from the scope of consolidation of a subsidiary            (2,975,000)                      –
          Unrealised capital gains or losses                                                       6,523,504             2,474,163


          At the end of the period                                                              111,006,056           114,356,884

         Net capital losses on disposals over the period amounted to EUR 1,374,427 (31.12.2010: net capital gains of
         EUR 38,909,878) and were recognised in “Net result on financial assets at fair value through profit or loss” (see note 6).

         The reduction through withdrawal from the scope of consolidation of BIH corresponds to the difference between the value of
         the global investment and the part financed by BIH shareholders’ equity, at the date of entry into the scope of consolidation
         in 2009. At 31 December 2009 and 2010, this external financing was shown in the consolidated shareholders’ equity and
         liabilities of the Group (see also note 1), which is no longer the case at 30 June 2011.



         NOTE 19 – LOANS AND RECEIVABLES

          In EUR                                     30.06.2011                                        31.12.2010
                                       Acquisition          Value        Carrying        Acquisition          Value         Carrying
                                              cost    adjustments        amount                 cost    adjustments         amount


          Due from investee
                                    18,208,130         4,908,747    13,299,383       12,443,248        (4,620,747)       7,822,501
          companies


          Total                     18,208,130         4,908,747    13,299,383       12,443,248        (4,620,747)       7,822,501

         At 30 June 2011 and 31 December 2010, loans and receivables have maturities of between 1 and 5 years. Value adjust-
         ments on loans and receivables recorded in the profit and loss account were EUR 288,000 at 30 June 2011 (31.12.2010:
         EUR 2,870,747) of which EUR 0 (2010: EUR 186,347) on irrecoverable receivables.

         In addition to loans and receivables disclosed under this heading, the Company has granted a subordinated loan which is
         recognised under “Financial assets at fair value through profit or loss” (note 18).
56                                                                                                                 The Company and iTs environmenT
                                                                                                           ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     NOTE 20 – FAIR VALUE HIERARCHY

     The Group applies a fair value hierarchy that reflects the importance of inputs used to establish the evaluation. This hierar-
     chy is the following:
     Level 1:     Quoted non-adjusted prices in active markets for identical assets or liabilities;
     Level 2:     Inputs other than quoted prices of level 1, that are observable for the asset or liability, either directly (as prices
                  from temporarily inactive markets) or indirectly (derived from prices);
     Level 3:     Inputs for the asset or liabilitiy that are not based on observable market data (unobservable inputs).

     The following table shows financial instruments recognised at fair value, per fair value hierarchy, at 30 June 2011 and 31
     December 2010:

      In EUR                                                 30.06.2011                Level 1             Level 2            Level 3


      Available-for-sale financial assets                   177,751,392         177,751,392                      –                   –
      Financial assets at fair value through profit
                                                            111,006,056                       –                  –     111,006,056
      or loss
      Financial assets held for trading                      22,407,010          22,407,010                      –                   –


      Total                                                 311,164,458         200,158,402                      –     111,006,056


      In EUR                                                 31.12.2010                Level 1             Level 2            Level 3


      Available-for-sale financial assets                   204,576,174         204,576,174                      –                   –
      Financial assets at fair value through profit
                                                            114,356,884              144,254                     –     114,212,630
      or loss
      Financial assets held for trading                      19,505,382          19,505,382                      –                   –


      Total                                                 338,438,440         224,225,810                      –     114,212,630

     Level 3 investments evaluations are mainly based on multiples of comparable companies, as well as on recent transactions
     in the instrument. The Group estimates that a variation of 5% in multiples of comparable companies falls within a reasonable
     alternative range. Such variation would have an impact of EUR 1,123,299 on the fair value of these investments at 30 June
     2011 (31.12.2010: EUR 1,429,422).

     The following table shows the reconciliation of all movements in the fair value of financial instruments categorised within level
     3 between the beginning and the end of the reporting period:

      In EUR                                                                                       30.06.2011            31.12.2010


      Value at the beginning of the period                                                        114,212,630            82,773,290
      Acquisitions                                                                                  4,712,585            19,068,927
      Disposals                                                                                   (11,467,663)         (16,574,905)
      Unrealised capital gains or losses                                                            6,523,504             2,490,191
      Reduction through withdrawal from the scope of consolidation of a subsidiary                 (2,975,000)                       –
      Transfers from level 2 to level 3                                                                      –           26,455,127


      Value at the end of the period                                                              111,006,056          114,212,630
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                  57




         At the end of 2009, two investments were evaluated on the basis of observable inputs, notably prices. These two invest-
         ments were thus transferred to level 2 in 2009. In 2010, they were again evaluated based on non observable inputs and
         were reclassified into level 3.


         NOTE 21 – DERIVATIVE FINANCIAL INSTRUMENTS
         At 30 June 2011, derivative financial instruments were as follows:

          In EUR                                                  Fair value       Evaluation           Maturity           Notional
                                                                               gains or losses                              amount


          Equity instruments
                                                                                                        sept 11-
          Share index options                                      572,194         (172,795)                          25,327,360
                                                                                                         Janv 12

          Currency instruments
          Purchased currency options                               262,935           262,935            sept 11       13,783,598
          Sold currency options                                  (146,705)         (146,705)            sept 11       13,783,598

         Options are used to hedge available-for-sale financial assets and currency exposure. Unrealised results on these options are
         recognised in profit or loss.

         At 31 December 2010, the Group had no open position in derivative financial instruments.


         NOTE 22 – OTHER RECEIVABLES
         Other receivables fall due in less than one year. On 30 June 2011, the Group had not recognised impairment losses on
         other receivables (31 December 2010: EUR 41,177). This heading includes receivables on securities transactions pending
         settlement.


         NOTE 23 – CASH AND CASH EqUIVALENTS

          In EUR                                                                                 30.06.2011           31.12.2010


          Demand deposits                                                                        22,351,046           66,065,917
          Short term deposits                                                                    42,756,720                       –


          Total                                                                                  65,107,766           66,065,917

         Cash at bank earns interest at variable rates indexed to the daily rates for bank demand deposit accounts. Short-term depos-
         its are for periods that vary between one day and three months. They earn interest at the corresponding short-term deposit
         interest rate. The fair value of cash and cash equivalents is EUR 65,107,766 (31.12.2010: EUR 66,065,917).


         NOTE 24 – ISSUED SHARE CAPITAL
         At 30 June 2011 and 31 December 2010, the Company’s share capital amounted to EUR 119,333,025, consisting of
         4,773,321 shares with no par value.

         For a five-year period beginning on the date of publication of the extraordinary general meeting held on 23 February 2006,
         the Board of Directors was authorised to issue new shares to increase the Company’s issued share capital up to an amount
         of EUR 1,000,000,000. This authorization has expired on 2 June 2011.
58                                                                                                               The Company and iTs environmenT
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     NOTE 25 – TREASURY SHARES

     At 30 June 2011, the Company owned 214,603 of its own shares (31.12.2010: 206,243).

     The Company’s activity in treasury shares can be analysed as follows:

                                                                                               30.06.2011             31.12.2010


      Number of treasury shares at the beginning of the period                                     206,243                184,810
      Acquisitions                                                                                  11,582                  25,935
      Disposals                                                                                     (3,222)                 (4,502)


      Number of treasury shares at the end of the period                                           214,603                206,243




     NOTE 26 – RESERVES

     This heading comprises the following:

      In EUR                                                                                   30.06.2011             31.12.2010


      Legal reserve                                                                            11,933,303             11,933,303
      Other reserves                                                                         161,506,069             161,506,069
      Free reserve                                                                             55,737,701             30,737,701


      Total                                                                                  229,177,073             204,177,073


     Legal reserve

     Luxembourg companies are required by law to transfer a minimum 5% of their annual net profits to the legal reserve until it
     reaches 10% of paid-up share capital. The transfer takes effect in the following financial year. The legal reserve was raised to
     the required amount at the General Shareholders’ Meeting of 9 May 2006. The legal reserve may not be distributed.


     Other reserves

     “Other reserves” replaces the former revaluation reserve and treasury share reserve carried in the financial statements
     prepared under Luxembourg GAAP. The revaluation reserve as established by the Extraordinary General Meeting of 13
     May 2003 for an amount of EUR 146,506,069 is not eligible under IFRS and has therefore been reclassified under “Other
     reserves”. Similarly, as IFRS does not provide for the recognition of a treasury share reserve (recognised under Luxembourg
     GAAP for an amount of EUR 15,000,000), this reserve was also transferred to “Other reserves”.

     Other reserves may not be distributed.


     Free reserve

     This reserve comprises income allocated to reserves by the General Shareholders’ Meeting.
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                         59




         NOTE 27 – REVALUATION RESERVE ON AVAILABLE-FOR-SALE FINANCIAL ASSETS

         This reserve covers unrealised gains and losses on available-for-sale financial assets net of deferred taxes, with the exception
         of impairment losses which are expensed directly to the profit and loss account.



         NOTE 28 – BANK DEBT

         The Group had taken out a bank loan for a specific private equity investment through its subsidiary BIH, in an amount of
         EUR 3,000,000 at a variable interest rate and maturing on 31 December 2017. The net balance including accrued interest
         was EUR 2,825,718 at 31 December 2010 and the effective interest rate was 2.136% at the same date. At 30 June 2011,
         pursuant to the sale of the subsidiary as further explained in note 1, the Group has no bank debt.

         The Group has a confirmed bank credit line for a total amount of EUR 25 million, undrawn at 30 June 2011 and 31
         December 2010. Further details are included in note 4 – Financial risk management.



         NOTE 29 – OTHER LIABILITIES

         This heading comprises items due in less than one year.



         NOTE 30 – OFF-BALANCE SHEET COMMITMENTS RECEIVED FROM AND GIVEN TO
                   THIRD PARTIES

         At 30 June 2011, securities classified under “Financial assets at fair value through profit or loss” carried in consolidated assets
         for a total amount of EUR 5,920,000 (31.12.2010: EUR 5,060,000) were pledged as security to banks of investee companies.

         At 30 June 2011, the Group has issued guarantees in favour of third parties for EUR 4,608,086 (31.12.2010:
         EUR 2,395,723). The Group has received the release from these guarantees at the beginning of the 2nd half-year 2011.
         The Group has also issued a guarantee of EUR 9,448,528 in favour of the acquirer of a financial asset (31.12.2010:
         EUR 9,448,528). This guarantee will mature on 31 May 2012. In addition, the Group remains subject to a clawback for a
         maximum amount of EUR 1,309,060, on distributions received previously from a private equity investment fund sold in the
         course of the first half-year 2011. This clawback will decrease gradually and expire on 31 December 2013.

         At 30 June 2011, uncalled commitments mainly to private equity funds classified in financial assets at fair value through
         profit or loss in relation to additional investments amounted to EUR 19,089,256 (31.12.2010: EUR 27,011,676).



         NOTE 31 – LITIGATION

         There are no outstanding litigations at 30 June 2011.
60                                                                                                         The Company and iTs environmenT
                                                                                                   ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     NOTE 32 – INFORMATION CONCERNING RELATED PARTIES


     Associated companies

     Related parties are associated companies over which the Group has significant influence, either because it holds between
     20% and 50% of the associate’s capital or by virtue of agreements entered into with some of the associate’s other
     shareholders. As allowed by IAS 28, these investments are not accounted for by the equity method in the Group’s accounts
     but shown under “Financial assets at fair value through profit or loss”.

     The Group’s transactions with associated companies at 30 June 2011 and 31 December 2010 can be summarised as
     follows:

      In EUR                                                                               30.06.2011           31.12.2010


      Financial assets at fair value through profit or loss                                24,671,309           27,682,500
      Loans and receivables                                                                12,839,382             7,562,500
      Other receivables                                                                       103,719               204,772
      Guarantees given                                                                      4,608,086               650,000




     Transactions in profit and loss account with associated companies are as follows:

      In EUR                                                                             6 months 2011       6 months 2010


      Net result on financial assets at fair value through profit or loss                  (2,184,976)          (1,516,400)
      Other interest and similar income                                                       479,216               331,978
ConsolidaTedand iTs environmenT
The Company UnaUdiTed inTerim aCCoUnTs                                                                                                      61




         Shareholders

         Compagnie Financière La Luxembourgeoise (formerly La Luxembourgeoise S.A.) holds 15.45% of the Company’s share
         capital on 30 June 2011 (31.12.2010: 15.45%). No material transactions took place in 2011 and 2010 between the Company
         and Compagnie Financière La Luxembourgeoise.

         BGL BNP Paribas S.A., which owned 10.01% of the Company’s share capital on 30 June 2011 (31.12.2010: 10.01%) acts
         as custodian for most of the Company’s assets, including all portfolios of investments in listed companies and its cash. The
         depository bank of the SICAR is BNP Paribas Securities Services S.A., belonging to the same group as BGL BNP Paribas
         S.A. In the course of its ongoing business activity, the Group frequently conducts transactions with BGL BNP Paribas S.A. or
         companies belonging to the same group. These transactions are carried out under the same commercial terms and condi-
         tions as those applied in transactions with unrelated parties.


         Board of Directors and corporate officers

         The eleven members of the Board of Directors are paid fixed directors’ fees depending on the number of meetings, within
         the framework of a total allocation determined by the general meeting of shareholders. This compensation is paid in the
         form of Company shares. The directors do not receive any bonus related to the results of the Company. Their remuneration
         is calculated at the end of the financial year and paid after the shareholders’ meeting that approves the annual accounts.
         Certain directors receive additional fees for consulting, representation and other services. The amount allocated by the
         general meeting of shareholders for directors’ fees in 2011 is EUR 350,000.

         The compensation of corporate officers is composed of an annual fixed remuneration, a contingent variable remuneration, a
         supplementary pension plan and other fringe benefits as usual in the Luxembourg financial services industry. The variable
         remuneration varies with the achievement of the Company’s medium and long term objectives, as well as with individual
         and collective performance. It includes a stock option plan on the Company’s shares, the plan presently in places maturing
         in 2012. The variable remuneration is calculated at the end of the financial year and paid in the first quarter of the following
         year.



         NOTE 33 – SUBSEqUENT EVENTS

         There were no significant subsequent events between 30 June 2011 and the date of the financial statements.
62                                                                                                              The Company and iTs environmenT
                                                                                                        ConsolidaTed UnaUdiTed inTerim aCCoUnTs




     RESPONSIBILITY STATEMENT

     Statement made by the persons responsible in accordance with article 3 (2) of the law of 11 January 2008 relating to the
     transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated
     market: We declare that these financial statements have been established in accordance with generally accepted account-
     ing principles and that, to the best of our knowledge, they give a fair view of the Company’s financial situation as at 30 June
     2011, of its financial performance and cash flows, as well as a description of the principal risks and uncertainties that the
     Company faces. To the best of our knowledge, we confirm that the management report includes a fair review of the situation,
     the results and the development of the Company.



     Luxembourg, 15 July 2011




     Alain Georges                               François Pauly                                 Viviane Graffé
     Chairman of                                 Managing Director                              Chief financial and
     the Board of Directors                                                                     administration officer
SOCIéTé ANONYME - SIèGE SOCIAL
n° 1, rue des Coquelicots
l-1356 luxembourg
T +352 26 00 26-1
f +352 26 00 26-50
info@bip.lu
www.bip.lu
rC luxembourg B 75324

				
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