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Marzo 2014
FY2013 Results
June 2014
2
Corporate structure
Non-core
investments
Revenues
2013 €2.3Bio €712m €1.3Bio €373 m
53.0% 56.0% 58.0% 51.3%
Businesses
Generation,
marketing and
supply to final
customers in both
electricity and
natural gas sectors
All Media sectors
from dailies and
periodicals to radio,
Internet, television,
and advertising
Global automotive
components
supplier (filters,
engine air and
cooling systems
and suspensions)
Nursing homes,
rehabilitation and
hospital
management
Education
Private equity
NPL
Competitive
position
A leading energy
player in the
corporate segment
Leader in circulation of Italian dailies
N.1 news magazine
N.1 Italian information website
Top private radio group
Leader in its core
businesses (filters
and suspensions)
in Europe and
South America
--
Leader in Italian
long term care
(nursing homes and
rehabilitation)
Total € 4.8 Bio
(1) The percentage is calculated net of treasury shares
(1) (1)
At 31 December 2013
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• Founded in 1976 by Carlo De Benedetti; controlled (45.9%) by COFIDE-Gruppo
De Benedetti
• Long term investment strategy, with focus on controlling stakes
• Balanced portfolio of businesses, with leading positions in their respective
businesses
• Active role in governance and in strategic decision making of portfolio
companies
• No leverage and significant liquidity available at holding company level
• Commitment to low cost structure
CIR Group profile
4
• Consolidated net loss: €269.2 million vs. a net loss of € 30.4 million of
2012.
This result includes the negative effect of Sorgenia’s write-downs of
- € 491.0 million and the positive impact of Lodo Mondadori of € 344.2
million. Excluding these effects, the result would be a loss of €32.6
million
• Consolidated net debt down to €1,845.3 (vs. € 2,504.4 at December
2012). The improvement is mainly due to Lodo Mondadori cash in, but
also to the reduction of the operating subsidiaries’ net debt by approx.
€154 million
• Net financial surplus at holding level is € 538.0 million
2013 Consolidated financial highlights
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Consolidated income statement
€ m
CIR holding level 5.0 247.6
Net income (30.4) (269.2)
(1) Including financial holdings and other subsidiaries (NPL, Cir Ventures, Education and other minor investments)
(1)
6.2 KOS Group 6.1
16.5
2012 2013
Sogefi Group
Espresso Group 12.2 2.1
12.2
(35.4) Total operating companies (516.8)
Sorgenia Group (70.3) (537.2)
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Consolidated balance sheet – main group assets
119.6 KOS 124.1
€ m
Fixed assets
107.3
19.3 18.8
Group equity in consolidated balance sheet 31 Dec. 2012 31 Dec. 2013
Sogefi
Espresso
Sorgenia
413.2
557.8
344.5
99.7
582.9 Sorgenia 503.7 0.1
1,143.8 Total operating companies 568.4
NPLs 63.8 76.9
Private equity 78.4 63.9
Other investments 56.1 39.1
(2)
Other assets/liabilities
Net cash
(31.3)
33.2
(174.1)
538.0
(5)
(1)
(1) Book value of Sorgenia decreased due to goodwill impairment
(3) 31/12/12 restated as per the amendment of IAS 19 – employee benefits
Consolidated shareholders’ equity 1,363.3 1,131.0
(2) 31/12/13 goodwill reduced to € 30.9 m after write-down of € 71.8m
(5) Non Performing Loans portfolios acquired
(3)
(3)
(4) Including Cir Ventures, Education and other minor investments
(4)
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Consolidated net financial position
(163.4) KOS Group (155.7)
€ m
(295.8)
CIR holding level 33.2 538.0
31 Dec. 2012 31 Dec. 2013
Sogefi Group
Espresso Group (108.1) (73.5)
(304.6)
(2,537.6) Total subsidiaries (2,383.3)
Consolidated net financial indebtedness (2,504.4) (1,845.3)
Note: All subsidiaries NFP includes derivatives contracts fair value
(16.3) Other subsidiaries 5.6
Sorgenia Group (1,954.0) (1,855.1)
Total shareholders’ equity 2,315.2 1,602.3
Consolidated net invested capital 4,819.4 3,447.6
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• Increase of net cash at holding system level is mainly due to Lodo Mondadori
cash in and to financial income related to the portfolio of liquid assets
Net financial position at “holding system” level
Net financial position at 31 December 2013 Evolution of net financial position
(1)
(1) Fair value of securities + securities income, trading
(2) Operating costs, extraordinary costs, taxes, etc.
(2)
9
Composition of liquid assets and gross financial debt
€ m
Hedge funds
Other (stocks, equity funds)
867.1
96.0
84.2
25.6
797.1
87.6
27.8
31 Dec.
2012
31 Dec.
2013
Liquidity
Corporate bonds
Government bonds
282.9
6.7
83.8
582.6
15.3
467.7
Total liquid assets
31 Dec.
2012
31 Dec.
2013
CIR S.p.A. 2004/2024 268.5 257.7
833.9 259.1 Gross financial debt
Other debt 565.4 1.4 (1)
Liquid assets at 31 December 2013
(1) Including Lodo Mondadori provision of €564.2 m
Government Bonds 2%
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2013 Subsidiaries’ financial and operational highlights
Key strategic objectives 2013 Highlights
Debt restructuring
Exit of non core businesses
Cost Reduction
Expansion of digital platforms, leveraging on
leadership in traditional media
Further efficiency improvement
Selective growth in emerging industry sectors, with
international focus (eg. Education)
Further consolidation in Italian nursing and
rehabilitation
Geographical expansion (India)
Global footprint, growth in Emerging Markets
Product innovation
Further efficiency improvement and restructuring of
manufacturing footprint
Sorgenia
Decreasing but still positive net results in a challenging market
La Repubblica still the top daily newspaper for newsstand sales and readership
Decrease of press advertising revenues (-19.5%) vs. the total market (-21.2%)
Internet advertising (+0.9%) vs. -1.8% of the market
Net debt down €34.6 m vs. 4Q 2012
Espresso
Sogefi
KOS
Non-core
investments
Positive performance of Education business
Continuing growth of revenues (+4.8%) and EBITDA (+5.1%) thanks to
ongoing organic and external growth, as well as efficiency improvement
Double digit growth of revenues in non-European markets, especially in
North America (+24.5%) and Asia (+27.1%); slightly up at consolidated
level (+5.5% at constant exchange rates)
Negative effect of exchange rates and restructuring charges
Ongoing weakness of top line and margins in core businesses
Net loss of €783.4m vs. a loss of € 196.8m in 2012 due mainly to write-
downs
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Sorgenia - overview
Production capacity
€ m Key financials
2013 Performance and outlook
• Results were strongly penalized by assets write-downs, mainly
International E&P activities, renewables, CGGT power plants,
receivables and Tirreno Power
• At the end of 2013, Sorgenia started a financial restructuring
process, asking the lending banks for a moratorium and
standstill in order to guarantee business continuity. At the same
time the company presented a new business plan which
envisages a refocusing on the four combined-cycle plants and
on the corporate market as well as the reduction of operating
costs and the divestiture of non-strategic assets
2012
Revenues 2,497.5
Net result (196.8)
EBITDA 57.1
2013
2,326.0
(783.4)
(226.0)
Operating structure
MANAGEMENT 0.3%
35.0% 65.0% SORGENIA HOLDING
81.3% 17.2%
1.2%
Gas and Supply
Sorgenia SpA
(Parent Company)
Sorgenia Power
100%
Sorgenia E&P
100%
Sorgenia Puglia
100%
Sorgenia Green
100%
Tirreno Power
39%
Fin Gas
50%
(70% LNG Med
Gas Terminal)
Sales and
Marketing Generation
Sorgenia Menowatt
70%
Combined-cycle natural gas
Combined-cycle natural gas
(pro-rata Tirreno Power) * Conventional thermal power plant
(pro-rata Tirreno Power) *
Wind power – Italy
Wind power – France*
Hydroelectric energy
(pro-rata Tirreno Power) *
Photovoltaic energy
Biomass
3,170
1,200
490
112
81
37.5
8
1
Plants MW
Installed capacity 5,099
2013 (pro forma)
123.4
(1)
(1) Before write-downs
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Espresso - overview
2013 Revenues breakdown
NATIONAL PRESS
DIGITAL
ADVERTISING
National daily newspaper
18 Regional newspapers throughout Italy
Group network websites
Three national radio stations
Deejay TV
LOCAL
NEWSPAPERS
RADIO AND TV
Collection of advertising
€ m
2012 2013
Revenues 812.7 711.6
Net income 21.8 3.7
EBITDA 102.4 63.5
Key financials
Operating structure
2013 Performance and outlook
• Circulation revenues at €248.0m (-5.8% vs 2012) decreased
less than the market (-10.1%); advertising revenues at €403.0m
(-15.4%)
• Internet advertising is stable (-0.9% vs. -1.8% of the market)
• Costs further reduced by 11.2% (excluding digital and DTT
activities, whose costs increased due to ongoing development)
• Visibility for 2014 is still limited as the results heavily depend on
the performance of the advertising market
• On April 9 2014 a contract was signed between Espresso and
Telecom Italia for the integration of TV network activities. This
transaction gives rise to the largest independent TV network
operator in Italy with 5 digital multiplexes (3 TIMB and 2 Rete A)
• 2014 key strategic guidelines are: leveraging of leadership
position in traditional products to spur growth on digital
platforms; cost reduction and realization of value out of TV
assets
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Sogefi - overview
Revenues 1,319.2 1,335.0
Net income 28.2 21.1
EBITDA 126.7 129.5
Key financials
ENGINE SYSTEMS
DIVISION
SUSPENSION COMPONENTS DIVISION
PRECISION SPRINGS TRUCKS CARS
€ m
2012 2013
• The global automobile production level in 2013 showed a
significant growth in the United States (+7.5%) and China
(+17%), a more moderate progress in Mercosur (+1.6%), all of
which offset the weakness of Europe (-1.7%)
• At constant exchange rates, revenues increased by 5.5% vs
2012; EBITDA before restructuring came to €147.3m (+6.1%)
• The impact of non-European countries on total revenues was
36% (+2% vs. 2012)
• In 2014 the car market is expected to grow at global level,
driven mainly by China, supported by North America, and by
further stabilization in Europe
2013 Performance and outlook
FORD
PSA
RENAULT/NISSAN
FIAT/IVECO/CHRYSLER
GM
DAIMLER
VOLKSWAGEN/AUDI
BMW DAF/PACCAR VOLVO
TOYOTA
Revenues breakdown (2013)
MAN
HONDA
CATERPILLAR
OTHERS
12.4%
12.4%
9.1% 10.7%
9.0%
7.6%
4.2%
2.6%
2.3%
2.2% 2.0% 1.7% 0.5% 0.4% 22.9%
64.4%
16.8%
Europe
Mercosur
NAFTA 14.0%
4.4% 0.4%
Increasing weight
of non-European
markets
Countries Customers
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KOS - overview
€ m 2011 2012
Revenues 355.4 372.5
Net income 12.1 11.8
EBITDA 53.4 56.1
Key financials
SHAREHOLDERS
HOSPITAL
MANAGEMENT RSA REHABILITATION
CIR (51.3%) ARDIAN (46.7%) Management and others (2.0%)
Operating structure
2012 2013
3.6
3.4
6.3
9.8
35.0
102.2 7.9 21.8
46.5
102.9
19.1
Revenues breakdown by region (2013)
4.6
• KOS revenues were up by 4.8% in 2013, thanks to the
development of the three business sectors, especially
rehabilitation and high-tech hospital services
• Increase in EBITDA was mainly due to development of activities
undertaken in 2012
• On May 30, 2014 Kos acquired 100% of Villa Azzurra, a private
neuropsychiatry hospital with 100 beds in Riolo Terme
(Ravenna)
• The company now has 70 care homes in the centre and north of
Italy with a total of 6,200 beds (+ about 500 under construction)
• Main objectives are to pursue market consolidation in core
businesses and to selectively internationalize its business
footprint, with a primary focus on India
2013 Performance and outlook
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• Education
- SEG (Swiss Education Group), a world leader in education for hospitality
management (hotels, restaurants, etc.) in which CIR has an interest of 19.5%,
reported growing revenues in 2013, with a strong increase of enrolments
coming from Asian countries and more recently from Latin America. The book
value of the investment as at December 31, 2013 was €20 million
- In March 2013 CIR acquired 100% of Southlands S.r.l., an international school
in Rome with ca. 500 pupils coming from 40 different nationalities and annual
revenues of ca. €6 million, for an investment of €6.5 million
• Private equity
- Diversified portfolio of private equity funds and direct minority private equity
participations. The fair value at December 31 2013 was € 63.9 million. The
portfolio produced a double digit return over its life; no significant new
investments in the recent past
• NPL
- At the end of December 2013 the net value of CIR investment in the non-
performing loan portfolios amounted to €76.9 million; no new investments in the
recent past
Non-core investments
16
• This document has been prepared by CIR for information purposes only and for use
in presentations of the Group’s results and strategies.
• For further details on CIR and its Group, reference should be made to publicly
available information, including the Annual Report, the Semi-Annual and Quarterly
Reports
• Statements contained in this document, particularly the ones regarding any CIR
Group possible or assumed future performance, are or may be forward looking
statements and in this respect they involve some risks and uncertainties
• Any reference to past performance of CIR Group shall not be taken as an indication
of future performance
• This document does not constitute an offer or invitation to purchase or subscribe for
any shares and no part of it shall form the basis of or be relied upon in connection
with any contract or commitment whatsoever
Disclaimer
17
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