2. 1H2012 Results
Consolidated financial structure
€m
Shareholders’ equity - Group 31 Dec. 2011 30 June 2012
Sorgenia 557.8
577.5 582.9
538.8
Espresso 312.7 312.1
Sogefi 113.3 111.8
KOS 111.2 115.5
Other subsidiaries (1) 20.8 18.0
Education 28.7 26.7
Fixed assets 126.8 (3) 126.5
Private equity and minority investments 91.5 105.6
NPLs (2) 64.2 63.4
Other assets/liabilities (19.8) (26,4)
Net cash 10.8 25.6
Consolidated shareholders’ equity 1,437.7 1,417.6
(1) Cir Ventures, Food Concepts
(2) including Junior Notes Zeus, Jupiter
(3) of which Espresso goodwill € 102,8m, real estate € 17,5m
2
3. 1H2012 Results
Net financial surplus at “holding system” level
Increase of net cash is mainly due to the positive adjustment to the fair value of
the securities portfolio
Net financial surplus at 30 June 2012 Evolution of net financial surplus
(1) (4)
(2) (3)
(1) € 25.2m Dividends received, €18.6m dividends paid
(2) Including +€ 4.2m of divestments
(3) Fair value of securities + securities income, trading
(4) Operating costs, extraordinary costs, taxes, etc.
3
4. 1H2012 Results
Composition of liquid assets and gross financial debt
€m
31 Dec. 30 June 31 Dec. 30 June
2011 2012 2011 2012
Government bonds 5.9 6.3 CIR S.p.A. 2004/2024 268.3 276.1
Corporate bonds 406.7 379.5
Lodo 564.2 564.2
Liquidity 96.0
331.3 373.1
Hedge funds 79.0 84.3 Other debt 5.0 8.8
Other (stocks, equity funds) 25.4 31.5
Total liquid assets (1) 848.3 874.7 Gross financial debt (1) 837.5 849.1
Liquid assets at 30 June 2012
(1) Including € 564.2m referring to the “Lodo Mondadori” cash receipt
4
5. 1H2012 Results
Lodo Mondadori
On July 9 2011 the Milan Court of Appeal sentenced Fininvest to pay
compensation for damages in relation to the “Lodo Mondadori” case
On July 26 2011 CIR received from Fininvest € 564.2 million, inclusive of
legal costs and interests
This income, in accordance with international accounting standards (IAS 37),
has been neutralized until the third and final court ruling
As of June 30 2012 financial income of Lodo Mondadori related assets has
been substantially in line with legal interest costs being provisioned for (1)
On May 14 2012 the Cassazione High Court rejected a petition filed by
Fininvest, who claimed that the judges of the Court of Appeal had wrongly
applied laws in their sentence
(1) Legal interests would have to be paid back by CIR on top of the principal amount of €564m, in case of unfavourable
third level court ruling
5
6. 1H2012 Results
Consolidated net financial position
€m
31 Dec. 2011 30 June 2012
Sorgenia Group (1,730.5) (1,936.7)
Espresso Group 96.0
(110.2) (147.1)
Sogefi Group (299.8) (307.6)
KOS Group (165.1) (151.7)
Other subsidiaries (40.3) (34.0)
Total subsidiaries (2, 345.9) (2,577.1)
Cir & financial holdings 10.8 25.6
Consolidated net financial indebtedness (2,335.1) (2,551.5)
Total shareholders’ equity 2,479.0 2,427.0
Consolidated net invested capital 4,814.1 4,978.5
6
7. 1H2012 Results
Consolidated income statement
€m
1H2011 1H2012
Sorgenia Group 0.1 (28.2)
Espresso Group 266.9
17.3 11.8
Sogefi Group 8.8 9.4
KOS Group 3.3 2.3
Total major subsidiaries 29.5 (4.7)
Other subsidiaries (1) (3.0) (2.6)
Total contribution from subsidiaries 26.5 (7.3)
Cir & financial holdings (7.1) 8.0
Net income 19.4 0.7
(1) Jupiter/Zeus, Food Concept, Cir Ventures
7
8. 1H2012 Results
Corporate structure
Operating subsidiaries
Non-core investments
Revenues 2011 € 2.1 Bio Revenues 2011 € 890m Revenues 2011 € 1.2 Bio Revenues 2011 € 350m
EBITDA € 192 m EBITDA € 157 m EBITDA € 108 m EBITDA € 52m
ENERGY MEDIA AUTOMOTIVE COMPONENTS HEALTHCARE Venture capital funds
Thermal National Press Engine systems Residential nursing homes Private equity funds
Renewables Local Newspapers Suspensions Rehabilitation Other investments
E&P Internet Hospitals
Radio & Television
Advertising
8
9. 1H2012 Results
Sorgenia – operating structure
65.0% SORGENIA 35.0%
HOLDING
80.0%
16.9%
1.9%
MANAGEMENT 1.2%
ENERGY SUPPLY RENEWABLES E&P OTHERS
Marketing & Sales Sorgenia Green E&P LNG Terminal
Sorgenia SpA (Parent Company) Solar Wind Italy Sorgenia E&P 50%
Fin Gas (70% LNG Med
100% Sorgenia Next 100% 100% Gas Terminal)
Sorgenia Solar
100%
Trading Wind Venture Capital in
S. Gregorio Magno Clean Technologies
100% Sorgenia Trading Wind France Castelnuovo di
Conza 100%
Thermoelectric generation 50% S. Martino in Pensilis Sorgenia USA LLC (69,47%
Sorgenia France Bonefro Noventi Ventures II LP)
100% Sorgenia Power Production Caggiano Campagna
100% Sorgenia Puglia 75%
Wind Romania
Minervino
Energy Saving 100%
Sorgenia Romania
70% Sorgenia Menowatt
Biomass
78% Energia Italiana (50% Tirreno Power) 100%
Sorgenia Bioenergy
9
10. 1H2012 Results
Sorgenia – production capacity
In operation or in In construction
Plants Total
commissioning
Sorgenia Power (Termoli CCGT) 770 770
Sorgenia Puglia (Modugno CCGT) 800 800
Sorgenia Power (Bertonico-Turano 800 800
Lodigiano CCGT)
Sorgenia Power (Aprilia CCGT) 800 800
Tirreno Power (pro-rata 50%) 1,675 1,675
Wind France (50%) 76.5 6.2 82.7
Wind Italy 81 31 112
Hydroelectric (Tirreno Power 50%) 33 33
Sorgenia Solar (photovoltaic) 10 10
Sorgenia Bioenergy (biomass) 1 1
Total output (MW) 5,046.5 37.2 5,083.7
10
11. 1H2012 Results
Sorgenia – 1H results
€m
1H 2011 1H 2012
Revenues 1,043.1 1,119.3
EBITDA 76.3 32.2
EBITDA (adjusted) (1) 77.7 33.6
Net result 0.3 (54.1)
Net result (adjusted) (1) 96.0
0.5 (54.3)
(1)Figures adjusted by excluding the fair value measurement of hedging contracts
Sorgenia’s EBITDA decline in the first half of 2012 is mainly due to:
decreasing income from electricity production due to the slowdown of electricity demand
(-2.8%) and lower margins because of high gas costs in Italy
decreasing income from electricity distribution due to increased competition and lower
than expected switch rate of residential customers to the open market
lower income from renewables due to divestment of non-core assets and deconsolidation
of Wind France in 2011, which resulted in lower debt
1H net result was affected by writedowns of €13m on exploration activities. Proceeds from
the announced sale of the Orlando exploration field are not included
2Q results are lower than 1Q due to seasonality effect
Increase in NFP vs. 4Q 2011 is mainly due to the completion of the CCGT investment plan
Sorgenia has already taken a number of actions to counter the recession and the difficulties
in the market: renegotiation of gas sourcing contracts, reduction of operating costs, potential
disposal of non-strategic assets
11
12. 1H2012 Results
Espresso – operating structure
LA LOCAL MAGAZINES RADIO TELEVISION DIGITAL ADVERTISING
REPUBBLICA NEWSPAPERS STATIONS
National daily 18 Regional Espresso + 3 Three national Deejay TV Kataweb, Manzoni
newspaper newspapers other radio stations la Repubblica.it
throughout Italy publications
Market update:
in the first five months of 2012 the overall advertising market has
recorded a 9.5% downturn
market circulation figures (average February 2012) decreased by 5.3%
for dailies, 6% for weeklies and 9.7% for monthlies
12
13. 1H2012 Results
Espresso – 1H results
€m
1H 2011 1H 2012
Revenues 457.4 419.8
EBITDA 81.5 60.8
Net income 96.0
31.5 21.2
The Gruppo Espresso circulation revenues for the first half 2012, net of
revenues from add-on products, were € 127.1m, almost in line with the
corresponding period of the previous year
Advertising revenues have recorded a 8.5% decline which was less than the
one experienced by the market. In contrast, digital advertising revenues have
realized a very positive evolution, recording a 13.2% increase
Cost reduction initiatives produced a total costs decrease of 4.2%, and are still
ongoing
The Company’s guidance for 2012 is for a still positive bottom line result, even
if markedly declining with respect to year 2011 due to the general economic
situation and the negative prospects for advertising market in medium term
13
14. 1H2012 Results
Sogefi - operating structure
ENGINE SYSTEMS SUSPENSION
DIVISION COMPONENTS DIVISION
PRECISION
CARS TRUCKS SPRINGS
In Engine Systems, the acquisition of In Suspensions Sogefi has patented a new
Systèmes Moteurs enabled Sogefi to type of coil spring made of fiberglass
achieve three important industrial reinforced plastic (FRP) which weighs
objectives: the extension of its product between 40 and 70% less than the
lines into engine air and cooling systems; traditional steel springs
higher penetration in North America, China
and India; a greater presence among
German high end car manufacturers
14
15. 1H2012 Results
Sogefi global footprint
1 NETHERLANDS
4 UK 3 GERMANY
1 CANADA
1 SLOVENIA
1 ROMANIA
13 FRANCE
1 USA 3 SPAIN
3 ITALY 2 CHINA
1 MEXICO
1 EGYPT
3 INDIA
4 BRAZIL
2 ARGENTINA
44 PRODUCTION SITES 16 COUNTRIES 5 CONTINENTS
2nd largest suspension producer worldwide; leader in Europe and South
America
3rd engine filtration systems producer in Europe; leader in South America
15
16. 1H2012 Results
Sogefi – 1H results
€m
1H 2011 1H 2012
Revenues 526.6 686.8
EBITDA 52.8 68.1
Net income 15.3 96.0 16.1
In the first half 2012 the slowdown in the automotive sector in certain
important markets continued: -6.8% in new car registrations in Europe,
slowing demand in Brazil and China, while North America, India, Russia and
Japan continued to grow
Sogefi closed the first half of 2012 with an increase of 30.4% in revenues
and 28.9% in EBITDA despite the difficult economic conditions, thanks to the
consolidation of Systèmes Moteurs. At constant perimeter revenues and
EBITDA would have slightly decreased.
A scenario of market and commodity price stability and continuing cost
cutting actions shouId enable Sogefi to achieve economic results in the
second half of the year in line with those obtained in the first half
16
17. 1H2012 Results
KOS – operating structure
SHAREHOLDERS
CIR (51.3%)
AXA Private Equity (46.7%)
Management and others (2.0%)
HOSPITAL
RSA REHABILITATION MANAGEMENT
Nursing homes: KOS is the Rehabilitation: KOS is the Hospital management: KOS
largest private Italian fourth private Italian provides advanced and hi-tech
operator in nursing homes operator in functional and medical services (diagnostic
for non-self sufficient psychiatric rehabilitation, imagining, nuclear medicine
elderly, where it operates where it operates under the and radio therapy), under the
under the brand “Anni brands “Santo Stefano” and “Medipass” brand. In this
Azzurri” “Redancia” business area, the group also
manages the “Fratelli
Montecchi” Hospital in Suzzara
(Mantua)
17
18. 1H2012 Results
KOS: geographical presence
Italy
62 facilities in seven regions of North and Central
Italy
Over 5,700 beds under management and more
than 900 beds under construction
4,285 employees
India
Start-up activities are going on in India where the
joint venture Clearmedi was formed in the second
half of 2011. The company is controlled by KOS
(51%) and by a local partner (49%) and is active in
providing high tech diagnostic and medical
Nursing homes equipment managed as outsourcing services for
Rehabilitation Indian hospitals
Hospital management
18
19. 1H2012 Results
KOS – 1H results
€m
1H 2011 1H 2012
Revenues 176.9 178.7
EBITDA 27.5 25.0
Net income 6.2 96.0 4.6
In the first half 2012 revenues posted an increase of 1% thanks to the
development of KOS’ three business areas
Decrease in EBITDA is mainly due to higher rental costs related to the
sale of three real estate properties in the third quarter of last year,
which however allowed to reduce net financial debt
19
20. 1H2012 Results
Non-core investments
Venture capital
CIR Ventures is the venture capital fund of the group with investments in
companies operating in the sector of information and communications technology.
The total fair value of these investments at June 30 2012 was 14 million dollars
Private equity
Diversified portfolio of private equity funds and direct minority private equity
participations. The fair value at June 30 2012 was approximately € 105.6 million.
Increase vs. 4Q 2011 figure is largely due to positive fair value and some
investments
Other investments
SEG (Swiss Education Group), a world leader in education for hospitality
management (hotels, restaurants, etc.) in which CIR has an interest of 20%,
reported in 1H 2012 a strong level of enrolments with much of the demand coming
from Asian countries and Brazil. In January 2012 the new Cesar Ritz centre (one of
the group’s schools devoted to the culinary arts) started operating in Bouveret
Food Concepts, formed in 2010, is active in the restaurant sector in Germany. Under
the brand name LaBaracca the company has three Italian style restaurants in
Munich, Dusseldorf and Hamburg
At the end of 2011 the NPL servicing business was sold, while CIR retained the
ownership of the NPL portfolios acquired in the past. At June 31 2012 the net value
of CIR investment in the non-performing loan business amounted to €63.4 m
20
21. Disclaimer
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.
