CIR GROUP FY 2014 Results

1. 1
Marzo 2014
FY 2014 Results
March 2015

2. 2
Corporate structure
(1) The percentage is calculated net of treasury shares
Non-core
investments
53.1%56.0% 57.7% 51.3%
€644m €1.35Bio €392 m
Generation,
marketing and
supply to final
customers in both
electricity and
natural gas
sectors
All Media sectors
from dailies and
periodicals to
radio, Internet, and
advertising
Global automotive
components
supplier (filters,
engine air and
cooling systems
and suspensions)
Nursing homes,
rehabilitation and
hospital
management
 Education
 Private equity
 NPL
Revenues
2014
Businesses
Competitive
position
 Leader in circulation
of Italian dailies
 N.1 news magazine
 N.1 Italian
information website
 Third Italian radio
network
Leader in its core
businesses (filters
and suspensions)
in Europe and
South America
--
Leader in Italian
long term care
(nursing homes and
rehabilitation)
Total € 2.4 Bio
(1) (1)
At 31 December 2014
(2)
(2) Assets held for sale

3. 3
• 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. 4
• On July 23, 2014 CIR, Sorgenia Holding and VERBUND AG signed an agreement
with creditors for the restructuring of Sorgenia’s debt. At the same time, Sorgenia
signed a standstill agreement with the lending banks.
Such agreement includes a capital increase of ~€400 million, which will be entirely
subscribed by the banks, through the conversion of their loans into Sorgenia’s
capital. A further debt conversion is envisaged, through the subscription by the
banks of a ~€200 million mandatory convertible loan.
• The current shareholders will not take part to the capital increase and will bear no
further charges; it is agreed however that they will receive an earn‐out equal to
10% of any distribution or sale proceeds, in excess of the capital subscribed by
the lending banks capitalized at a rate of 10% p.a.
• The debt restructuring process followed the “182 bis” court procedure, which was
concluded on February 25, 2015, when the Court of Milan approved the debt
restructuring plan
• Over the coming weeks, after the approval of Sorgenia’s 2014 annual report by
the shareholders meeting, the formal steps to transfer control of the company to
the lending banks will be completed. Thereafter, CIR will no longer hold shares in
Sorgenia
Sorgenia – Debt restructuring plan approved by the Court

5. 5
• Following the Sorgenia debt restructuring agreement, pursuant to IFRS 5, CIR
changed the consolidation methodology of the Sorgenia group.
• According to the above principle, Sorgenia is not consolidated in the CIR
Group accounts on a line by line basis anymore: all assets and liabilities are
shown instead as a single line item called “Assets / Liabilities held for sale”, in
the balance sheet as well as in the income statement
Sorgenia - Change in consolidation principles

6. 6
• Consolidated 2014 net income: - € 23.4 million (vs. -€ 269.2 million in 2013),
entirely due to non-recurring items totalling € 35.4 million (€ 14.6 million
related to the early redemption charges of CIR 2024 Notes, and € 20.8
million of non-performing loans write-down).
Excluding extraordinary items, 2014 result would have been +€ 12 million
• Consolidated net financial position of the CIR Group at December 31, 2014:
- €112.8 million (vs. - €1.845,3 at 31 December 2013), including:
- A net financial surplus at holding level of €379.5 million
- A net debt of consolidated subsidiaries (excluding Sorgenia) of - €492.3
million (vs. - €528.1 at 31 December 2013)
FY 2014 consolidated financial highlights

7. 7
Consolidated income statement
€ m
Group Net income (269.2) (23.4)
(31.9)Interest expense (42.3)
17.1
2013 2014
EBIT
EBITDA 189.0 196.8
80.6
Revenues 2,403.4 2,392.6
(183.5)Income taxes (28.6)
(1,054.1)Loss on assets held for sale (18,3)
(1) Reclassified by deconsolidating Sorgenia
(2) Including CIR bond early redemption charges
(3) Including NPL write down
(1)
491.3Lodo Mondadori non-recurring income
9.7Net Income including third party interests (761.1)
--
(8.6)
(3)
(2)

8. 8
Consolidated net income by business sector
€ m
2013 2014
6.1KOS Group 6.3
12.2Sogefi Group
Espresso Group 2.1 4.8
2.1
(1)
Non-recurring income (236.6) (35.4)
Net result (269.2) (23.4)
(1) Pro-rata share of subsidiaries’ net income
(25.8)Total operating companies 13.1
(2) Including Sorgenia write-downs and Lodo Mondadori cash in 2103; NPL write down and early redemption charges of
CIR 2024 Notes in 2014
(46.2)Sorgenia Group (before write-downs) (0.1)
(2)
Cir Group holdings (6.8) (1.1)

9. 9
Consolidated balance sheet – main group assets
€ m
Group equity in consolidated balance sheet 31 Dec. 2013 31 Dec. 2014
124.1KOS 129.5
99.7Sogefi
Espresso 344.5 347.9
95.1
(3) Including provisions for legal expenses and taxes related to Lodo Mondadori cash in
(2) Non Performing Loans portfolios
(1) Including Cir Ventures, Education and other minor investments
Fixed assets 18.8 18.1
568.3Total operating companies 572.5
NPLs 76.9 49.3
Private equity 63.9 67.7
Other investments 39.1 33.9
Other assets/liabilities
Net cash
(174.0)
538.0
(16.5)
379.5
(2)
(1)
(3)
1,131.0 1,104.5Consolidated shareholders’ equity

10. 10
Consolidated net financial position
€ m
31 Dec. 2013 31 Dec. 2014
(155.7)KOS Group (157.0)
(304.6)
CIR Group holdings 538.0 379.5
Sogefi Group
Espresso Group (73.5) (34.2)
(304.3)
(2,383.3)Total subsidiaries (492.3)
Consolidated net financial indebtedness (1,845.3) (112.8)
5.6Other subsidiaries 3.2
Total shareholders’ equity 1,602.3 1,573.2
Consolidated net invested capital 3,447.6 1,686.0
(1) Including third party interests
(1)
Sorgenia Group (1,855.1) --

11. 11
• On October 13, 2014 CIR S.p.A. announced the results of the tender offer on
its 5.75% 2024 Notes (€ 210.1million outstanding), as well as of the
subsequent bondholders’ meeting, that approved the proposal to modify the
terms and conditions, in order to provide for the early redemption of all
outstanding Notes:
• Notes tendered were 51% of outstanding
• Votes in favour of early redemption were 54.1%
• The bond was therefore redeemed in full on 16 October 2014, at a total cost
of € 237.1 million, of which € 10.1 million accrued interest and € 17.0 million
tender offer premia.
• Following the redemption of the 2024 Notes, Cir S.p.A. has no outstanding
financial debt
Early redemption of the CIR 2024 Notes

12. 12
• Decrease of net cash at holding system level is mainly due to taxes and expenses
related to Lodo Mondadori, and charges for early the redemption of the 2024 bond
Net financial position at “holding system” level
Net financial position at 31 Dec. 2014 Evolution of net financial position
(1)
(1) Fair value of securities + securities income, trading
(2) Operating costs, extraordinary costs, taxes, etc.
(2)

13. 13
Composition of liquid assets and gross financial debt
Liquid assets at 31 December 2014
€ m
Hedge funds
Other (stocks, equity funds)
797.1
96.0
87.6
27.8
382.1
95.1
30.1
31 Dec.
2013
31 Dec.
2014
Cash and time deposits
Corporate bonds
Government bonds
83.8
15.3
57.9
99.3
5.7
550.7
Total liquid assets
31 Dec.
2013
31 Dec.
2014
CIR S.p.A. 2004/2024 257.7 --
259.1 2.6Gross financial debt
Other debt 1.4 2.6
Fixed income funds 31.9 94.0

14. 14
2014 Subsidiaries’ financial and operational highlights
Key strategic objectives2014 Highlights
 Expansion of digital platforms, leveraging on
leadership in traditional media
 Further efficiency improvement
 Selective growth in emerging industry sectors, with
international focus
 Further consolidation in Italian nursing and
rehabilitation
 Geographical expansion (India)
 Global footprint, growth in non-European countries
 Product innovation
 Further efficiency improvement and restructuring of
manufacturing footprint
 Decrease of press advertising revenues (-10.0%), in line with market
 Still, in such challenging market, Espresso reported positive net results,
growing EBITDA and decreasing net debt, thanks to continuing efforts on
efficiency improvement
 La Repubblica is the top daily newspaper for newsstand sales and
readership
 Repubblica.it confirms its leadership among Italian news sites with 1.6
million unique users per day
 Net debt €34.2 m vs. €73.5m at the end of 2013
Espresso
Sogefi
KOS
Non-core
investments
 Positive performance of Education business
 Continuing growth of revenues (+4.7%) thanks to ongoing organic and
external growth
 Margins steady thanks to efficiency improvement
 Double digit growth of revenues in North America (+10.6%) and Asia
(+39.5%); continuing weakness in Latin American markets. Stable at
consolidated level (+4.7% at constant exchange rates)
 Negative effect of still declining South American market and
restructuring charges

15. 15
Espresso - overview
2014 Revenues breakdown
NATIONAL
PRESS
DIGITAL ADVERTISING
National daily
newspaper
18 Regional
newspapers
throughout Italy
Group
websites
Three national
radio stations
LOCAL
NEWSPAPERS
RADIO
Collection of
advertising
€ m
2013 2014
Revenues 689.1 643.5
Net income 3.7 8.5
EBITDA 55.1 59.8
Key financialsOperating structure
2014 Performance and outlook
• Despite the continuing decline of the publishing sector, net
results were positive and slightly better than the previous year
• Circulation revenues at €232.9m (-6.1% vs FY 2013) decreased
less than the market (-11.4%); total advertising revenues
decreased 7.6% to € 365.6m, with internet +4.9%, radio flat and
printed press -10.0%
• 1.6 million unique users per day on Repubblica.it, which
confirms its leadership position among Italian news sites
• On April 2, 2014 a €100m five year convertible bond was issued,
with a coupon of 2.625% and conversion price of €2.1523
• On June 30, 2014 the integration of Espresso’s network
operator Rete A with Telecom Italia Media’s was completed,
creating the main independent network operator in Italy
(Persidera)
• On January 30, 2015 the sale of All Music (Deejay TV) to
Discovery Italia was completed
• FY 2015 outlook: continuing downwards trends in
circulation and advertising, albeit at a lower rate of
decline vs. 2014

16. 16
Sogefi - overview
Revenues 1,335.0 1,349.4
Net income 21.1 3.6
EBITDA 129.5 109.5
Key financials
ENGINE SYSTEMS
DIVISION
SUSPENSION
COMPONENTS DIVISION
PRECISION
SPRINGSTRUCKSCARS
€ m
2013 2014
• Consolidated revenues slightly up vs. 2013 (+ 1.1%),
thanks to the positive performance of North America
(+10.6%) and Asia (+39.5%), and despite the sharp
decline reported in South America (-19.2%)
• 2014 EBITDA decreased by 15.5%. The fall was mainly
due to the slowdown of the South American market, the
negative impact of exchange rates and restructuring
costs
• Outlook: the global car market is expected to continue
growing in 2015. Sogefi expects to maintain positive
trends in North America, China and India, while in South
America a modest recovery from the low volumes
recorded in 2014 is expected.
2014 Performance and outlook
FORD
RENAULT/NISSAN
PSA
FCA/CNH Industrial
GM
DAIMLER
VOLKSWAGEN/AUDI
BMW
VOLVO
TOYOTA
DAF/Paccar
2014 Revenues breakdown
MAN
CATERPILLAR
HONDA
OTHERS
12.5%
12.3%
10.6%
11.4%
8.3%
7.4%
3.5%
2.9%
2.2%
2.1%
1.6%
1.3%
0.5%
0.5%
22.9%
64.6%
15.4%
Europe
NAFTA
Mercosur 13.5%
6.1%
0.4%
Weight of non-
European
markets is stable
35.4%
CountriesCustomers
Asia
others

17. 17
KOS - overview
€ m
2011 2012
Revenues 372.5 392.4
Net income 11.8 12.3
EBITDA 56.1 60,4
Key financials
SHAREHOLDERS
HOSPITAL
MANAGEMENT
NURSING HOMES REHABILITATION
 CIR (51.3%)
 ARDIAN (46.7%)
 Management and others (2.0%)
Operating structure
2013 2014
5.2
2.3
5.7
10.2
36.6
114.3 7.6
23.5
45.4
107.1
18.8
Revenues breakdown by region (2014)
4.5
• 2014 revenues were up 5.3% to € 392.4 million in FY 2014,
thanks to business development across all three business
units
• Increase in EBITDA was mainly due to greenfields undertaken
in 2013 and acquisitions completed in 2014
• During 2014 2 new nursing homes were completed, one
nursing home and 2 rehabilitation homes were acquired.
• Diagnostic and therapeutic technology activities are continuing
in India, through the ClearMedi Healthcare JV, as well as in
the UK
• The company now has 73 nursing homes in the centre and
north of Italy with a total of 6,820 beds, plus ca. 200 under
construction
• Main objectives are to pursue market consolidation in core
businesses and to selectively expand internationally, with a
primary focus on India
2014 Performance and outlook

18. 18
• Education
- SEG (Swiss Education Group), a world leader in education for hospitality
management (hotels, restaurants, etc.), with over 6,000 students coming from
110 different countries. CIR has an interest of 17.4% in SEG. The book value of
the investment at December 31, 2014 was €21.1 million
• Private equity
- Diversified portfolio of private equity funds and direct minority private equity
participations, that produced an annual double digit return over its life. The fair
value at December 31, 2014 was € 67.7 million
• NPL
- At the end of December 2014 the net value of CIR investment in the non-
performing loan portfolios amounted to €49.3 million, after a write down of €
20.8 million following the impairment test.
Non-core investments

19. 19
• 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

20. 20
www.cirgroup.com