3. 9M 2011 Results
Liquid assets
€m
Dec. 31, 2010 Sept. 30, 2011
Government bonds 10 9
Corporate bonds 157 360
Liquidity 96.0
258 365
Hedge funds 84 77
Other (stocks, investment funds) 44 74
Total liquid assets 553 885 (1)
Liquid assets at September 30, 2011
(1) It includes € 564.2m referring to the “Lodo Mondadori” ruling received on July 26 2011. This amount, in accordance
with international accounting standards (IAS 37), is defined as “contingent asset” and has had no effect, nor will, on the
income statement of the group up to the highest level of justice. The same amount is also included in the line “other
debt” in order to neutralize any effect in the exposure of the “net financial position”
3
4. 9M 2011 Results
Composition of gross financial debt
€m
Dec. 31, 2010 Sept. 30, 2011
CIR International 2003/2011 (1) 157.2 --
CIR S.p.A. 2004/2024 268.1 279.8
Other debt 96.0
3.7 566.7 (2)
Gross financial debt 429.0 846.5
(1) On January 10,2011 the maturing bond for a remaining amount, including interest, of €157.4 m was repaid. As of
today the only bond still outstanding is the one issued by CIR SpA maturing on December 16, 2024 for a principal
amount of €300m
(2) It includes € 564.2m referring to the “Lodo Mondadori” ruling received on July 26 2011. This amount, in accordance
with international accounting standards (IAS 37), is defined as “contingent asset” and has had no effect, nor will, on the
income statement of the group up to the highest level of justice. The same amount is also included in the line “total liquid
assets” in order to neutralize any effect in the exposure of the “net financial position”
4
5. 9M 2011 Results
Net financial surplus at “holding system” level
At the end of September 2011 net cash amounted to €38.7 m, down from € 123.6m
at December 31, 2010
The net cash includes hedge funds investments (formerly Medinvest) which at
September 30 2011 stood at € 76.7 m (performance YTD Sept. 2011: - 6.4%)
Net financial surplus at Sept. 30, 2011 Evolution of net financial surplus
5
6. 9M 2011 Results
Consolidated net financial position
€m
Dec. 31, 2010 Sept. 30, 2011
CIR & financial holdings 123.6 38.7
Sorgenia Group (1,738.4) (1,699.3)
Espresso Group 96.0
(135.0) (112.4)
Sogefi Group (164.9) (325.3)
KOS Group (189.3) (155.3)
Other subsidiaries (62.8) (54.5)
Consolidated net financial indebtedness (2,166.8) (2,346.8)
Total shareholders’ equity 2,522.9 2,518.9
Consolidated net invested capital 4,689.7 4,827.0
6
7. 9M 2011 Results
Consolidated income statement
€m
9M 2010 9M 2011
Sorgenia Group 29.5 6.9
Espresso Group 266.9
20.0 22.9
Sogefi Group 7.7 10.9
KOS Group 2.6 4.8
Other subsidiaries (1.0) (7.0)
Total operating subsidiaries 58.8 38.5
Other financial companies (1.7) (0.2)
Total contribution from subsidiaries 57.1 38.3
Cir + Cir International result (3.4) (23.3)
Net income 53.7 15.0
7
8. 9M 2011 Results
Corporate structure
Operating subsidiaries
Financial
Revenues 2010 € 2.7 Bio Revenues 2010 € 887m Revenues 2010 € 925m Revenues 2010 € 325m
investments
EBITDA € 151 m EBITDA € 107 m EBITDA € 87m EBITDA € 42m
UTILITIES MEDIA AUTOMOTIVE COMPONENTS HEALTHCARE Venture capital funds
Renewables Newspaper Publishing Filters Residential nursing homes Private equity funds
Thermal Magazine Publishing Suspensions Rehabilitation Distressed debt purchasing
Gas Radio Hospitals Start-ups
Energy saving Television
E&P Internet
8
9. 9M 2011 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 Solar Wind Sorgenia E&P 50%
(Parent Company)
100% Fin Gas (70% LNG Med
100% 100% 50% Sorgenia International BV
Gas Terminal)
Sorgenia Next Sorgenia Solar Sorgenia France Venture Capital in
100% 26.76% Clean Technologies
Hydro
Thermoelectric generation Sorgenia Vento Saponis Investments 100%
100% 100% 75% ZOO Sorgenia USA LLC (69,47%
Sorgenia Minervino Noventi Ventures II LP)
Sorgenia Idro
Sorgenia Power
100% Energy Saving
Sorgenia Romania
100% 70%
Sorgenia Puglia Sorgenia Menowatt
Biomass
78% Energia Italiana (50% Tirreno Power)
100%
Sorgenia Bioenergy
9
10. 9M 2011 Results
Sorgenia – power generating plants in Italy and in France
Cotes de Champagne
Widehem Argonne/Epense Turano - Bertonico
Leffincourt
Bouillancourt-en-Séry Pontey
Voie Sacrée
La Salle
Pont
St.Martin
Bernay Plainchamp
Saint Martin
Saint Crepin
Vado Fossato di Vico
Ligure Nucleo
di Genova San Martino
in Pensilis
Castiglione d’Orcia Termoli
Torrevaldaliga Sud Minervino
Aprilia
Modugno
Wind
Solar Napoli Levante
Hydro Castelnuovo di Conza
Thermo Villacidro1 San Gregorio Magno
Biomass
Villacidro2
Cagliari
In production/ Vibo Valentia
commissioning
Authorized/ under
construction
Siracusa
10
11. 9M 2011 Results
Sorgenia – Installed capacity and capacity under construction
In operation and in Under
Plants construction 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 39%) 1,280 1,280
Sorgenia France (Wind France) 76.5 76.5
Wind Italy 76 76
Sorgenia Idro/Tirreno Power (hydroelectric) 33 33
Sorgenia Solar (photovoltaic) 5 5
Sorgenia Bioenergy (biomass) 1 1
Total output (MW) 3,842 801 4,642
Figures refer to the pro-quota capacity of Sorgenia Group
11
12. 9M 2010 results
Sorgenia 9M 2011 results
EBITDA for the 9 months 2011 increased by 18.7%. The start of
commercial operations at the Turano-Bertonico power plant and
activities in renewable sources made it possible to compensate for
the unfavourable market situation, characterized in particular by a
reduction in generation margins
EBITDA Net Income
(€ m)
(€ m)
12
13. 9M 2010 results
Sorgenia decrease of net debt as at September 30 2011
Net debt change was due to the sale of 19 MW of photovoltaic plants in
Italy and of 50% of the holding in Sorgenia France, which is now an
equal share joint-venture with the KKR fund. These factors, together
with the cash flows from ordinary operations, more than compensated
for the new investments in production capacity
Net Financial Indebtedness Total Shareholders’ Equity
13
14. 9M 2011 Results
Sorgenia Business Plan strategic guidelines
Further consolidating position as prime private operator in the Italian electricity market
Supply and through the following:
• Consolidation of current customer base and extension to the domestic market
Sale of • Maintaining a constant balance between energy produced and sold, with a gradual
reduction of imports
Electricity • Dual fuel offer of electricity and gas with products that are more and more integrated,
complete with solutions for improving energy efficiency
• Completion of combined cycle power plants under construction
Renewable • Further growth in the sector of renewables, with particular emphasis on building-
integrated photovoltaic solutions
Sources • Concentration of investments particularly in countries with a consolidated regulatory
system in support of renewable sources
• Commitment to increase generation with respect for the environment
Gas Sourcing
• Creation of a balanced portfolio of international investments, to diversify geological,
and E&P political and technological risk
• Participation in projects aimed at potentially rebalancing the European energy scene, such
as the search for non-conventional sources (such as shale gas in Poland)
14
Sorgenia Business Plan
28 February 2011
14
15. 9M 2011 Results
Sorgenia Business Plan – financial highlights
REVENUES EBITDA
(€ m)
746
4,785
3,889
423
*EBITDA excluding fair value contribution
NET DEBT NET INVESTED CAPITAL
(€ m)
Sorgenia Business Plan
15
28 February 2011
15
16. 9M 2011 Results
Espresso – operating structure
LA LOCAL MAGAZINES RADIO TELEVISION DIGITAL ADVERTISING
REPUBBLICA NEWSPAPERS
National daily 18 Regional Espresso + 3 3 national Deejay TV Kataweb, Manzoni
newspaper newspapers other radio stations la Repubblica.it
publications
In 9m 2011 Espresso main activities have recorded a positive performance with
an increase in revenues and financial performance
Advertising revenues equal to €380.7 m have increased by 3.1% with respect to
2010, the opposite of a declining market
The Group has been able to overcome the unfavourable trends of the sector by
improving its traditional products, developing the digital offering, enhancing the
concessionaire performance and going on with additional cost saving actions
16
17. 9M 2011 Results
Espresso – increasing results
9M Results
€m
9M 2010 9M 2011
Revenues 639.5 653.7
EBITDA 104.0 112.0
Net income 96.0
36.3 41.4
Net financial indebtedness (end of period) (136.9) (112.4)
17
18. 9M 2011 Results
Sogefi – operating structure
ENGINE SYSTEMS SUSPENSION
DIVISION COMPONENTS DIVISION
PRECISION
AUTO TRUCKS SPRINGS
In 9m 2011 the Sogefi group reported double digit increase of all its economic
indicators thanks to the growth of business in its main markets and to the
contribution of the Systèmes Moteurs businesses acquired in July
Set up of the new Engine Systems Division which includes the traditional activities
in filtration and the new product lines of Systèmes Moteurs
During the period the group continued successfully to transfer higher commodity
costs to selling prices
The positive results obtained by the group in the 9m 2011 should be confirmed for
full year 2011
18
19. 9M 2011 Results
Sogefi – in 9m 2011 strong growth in margins
9M Results
€m
9M 2010 9M 2011
Revenues 687.0 829.8
EBITDA 64.5 76.5
Net income 96.0
13.5 18.8
Net financial indebtedness (end of period) (182.6) (325.3)
19
20. 9M 2011 Results
KOS – operating structure
SHAREHOLDERS
CIR (53.6%)
AXA Private Equity (44.2%)
Management & others (2.2%)
HOSPITAL
REHABILITATION NURSING HOMES
MANAGEMENT
Hospital management 13 rehabilitation units 37 nursing homes operating
and high-tech services 9 sites of psychiatric 3,830 beds
in 18 hospitals rehabilitation
13 day hospitals
60 facilities
13 outpatient centres
5,600 beds (plus 900 beds under construction)
20
21. 9M 2011 Results
KOS: today
Established in 2002, KOS has become one of the main operators
in private healthcare in Italy
KOS is active in three business areas: nursing homes,
rehabilitation centres and hospital management
In 9m 2011 KOS achieved an improvement in its main economic
indicators compared to the same period of 2010, thanks to the
development of all the companies of the group and the
extension of its portfolio of activities
In June 2011 subscription of a share capital increase by the
shareholder AXA Private Equity, in line with the agreement
signed in December 2010
21
22. 9M 2011 Results
KOS: evolution of consolidated revenues
KOS group closed 2010 with a 19% increase in revenues compared to 2009
thanks to the development of all areas of the business and to the new
acquisitions made during the year
KOS now operates more than 5,600 beds (plus 900 under construction)
Revenues
Nursing homes 325
Rehabilitation 273 15%
246
Acute care
183 44%
101
55 41%
17
22
23. 9M 2011 Results
KOS – strong results
9M Results
€m
9M 2010 9M 2011
Revenues 239.0 261.9
EBITDA 30.4 39.7
Net result 96.0
4.0 8.9
Net financial indebtedness (end of period) (159.8) (155.3)
23
24. 9M 2011 Results
Financial investments
CIR Ventures is the venture capital fund of the group with investments in
companies operating in the sector of information and communications
technology and with high growth potential:
Ecrio -mobile software(USA)
Minerva Networks- networks (USA)
Neato Robotics- home convenience robots (USA)
Celltick- mobile marketing (Israel)
Private equity funds form a diversified portfolio of funds and minority
private equity holdings
Jupiter Finance is a financial company specializing in the servicing activity of
non-performing loans acquired through securitisation vehicles. As at
September 30 2011 the value of CIR investment was €63 m
24
25. 9M 2011 Results
New initiatives
During 3Q 2011 acquisition of 20% of SEG (Swiss Education Group), a world
leader in hospitality management training (hotels, restaurants, etc.) for
approximately € 27m
The SEG Group:
5 hospitality management schools and 1 language school in Switzerland
4,600 students from over 70 countries worldwide
Annual turnover of approximately €100 m
Food Concepts - the new start-up operating in the restaurant sector -
opened 2 new restaurants under the brand name LaBaracca in Dusseldorf
and Hamburg as additions to that opened in Munich in 2010
In 9m 2011 Food Concepts achieved revenues of €2.8 m and a negative net
result of €2.6m discounting start-up costs
25
26. 9M 2011 Results
Lodo Mondadori
On July 9 2011 the ruling of the Milan Court of Appeal sentences Fininvest
to pay compensation for damages caused by the corruption of a judge in
the “Lodo Mondadori” case
On July 26 2011 CIR received from Fininvest a total of approximately € 564.2
million, inclusive of legal costs and interests
This amount, in accordance with international accounting standards (IAS
37), has had no effect, nor will, on the income statement of the group up to
the highest level of justice
The higher available funding will not change the group’s financial
management strategy, based on prudent and discerning criteria, in a
particularly complex financial markets scenario
26
27. 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.
