Cir Group FY 2015 results presentation

1. 1
Marzo 2014
FY 2015 Results
March 2016

2. 2
FY 2015 at a glance

3. 3
Operating structure
Note: The percentages of control are updated as of 31 December and are calculated net of treasury shares
€605 m €1.5 Bio €439 m
All Media sectors from
dailies and periodicals
to radio, Internet, and
advertising
Global automotive
components supplier
(filters, air &cooling and
suspensions)
Nursing homes,
rehabilitation and
hospital management
 Private equity
Revenues
2015
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)
Non-core investments
56.5% 57.6% 51.3%
Total € 2.5 Bio

4. 4
• Founded in 1976 by Carlo De Benedetti; controlled (45.8%) by COFIDE-Gruppo
De Benedetti
• Long term investment strategy, with focus on controlling stakes
• Balanced portfolio of assets, 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

5. 5
• Consolidated net income: € 42 million (vs. a net loss of € 23.4 million in
2014). Contribution of industrial businesses (Espresso, Sogefi and KOS) is
€ 20.4 million, vs. € 13.2 million in 2014
• Consolidated net financial position of the CIR Group at December 31, 2015:
- € 121.7 million (vs. - €112.8 million at December 31, 2014), including:
- A net financial surplus at holding level of €417.9 million (increasing vs.
€379.5 million at December 31, 2014 thanks to SEG sale and private
equity redemptions
- A net debt of consolidated subsidiaries of - €539.6 million (increasing
vs. - €492.3 at December 31, 2014 due mainly to new investments and
KOS acquisitions)
2015 consolidated financial highlights

6. 6
Consolidated income statement
Group net result (23.4) 42.0
€ m
Income taxes (28.6) (20.9)
(42.3)Financial expense/income (3.2)
80.6
2014 2015
EBIT
EBITDA 196.8 218.2
80.0
Revenues 2,392.6 2,544.4
Assets held for sale (18.3) 9.4
1) Net of third party interests (equal to €23.3 million in 2015 and €14.8 million in 2014)
(1)

7. 7
Consolidated income statement by business sector
€ m
6.3KOS Group 10.1
2.1Sogefi Group
Espresso Group 4.8 9.6
0.7
(2) Including Treasury and non core investments
Net result (23.4) 42.0
(1) Pro-rata share of subsidiaries’ net income
CIR holding level (1.2) 10.6
(2)
13.2Total industrial companies 20.4(1)
Non-recurring income (35.4) 11.0
(3) Including NPL write down and early redemption charges of CIR 2024 Notes in 2014 and SEG sale and Espresso
goodwill write down in 2015
(3)
2014 2015

8. 8
Consolidated balance sheet – main group assets
€ m
Group equity in consolidated balance sheet 31 Dec. 2014 31 Dec. 2015
129.5KOS 137.2
95.1Sogefi
Espresso 347.9 332.2
100.4
Fixed assets 18.1 17.0
572.5Total industrial companies 569.8
Non performing Loans 49.3 43.0
Private equity 67.7 59.2
Other investments 33.9 11.4
(1)
(1) Book value decreasing due to cash reimbursements to CIR
(2) Treasury shares as of 31 Dec. 2015: 108,4m, equal to 13.7% of share capital
(1)
Shareholder’s equity per share (net of treasury shares)
Net cash 379.5
1.61
417.9
1,104.5 1,103.0Total CIR Group shareholders’ equity
532.0Total CIR holding level 533.2
Shareholder’s equity per share 1.38
(2)
1.49
1.39

9. 9
Consolidated net financial position
€ m
31 Dec. 2014 31 Dec. 2015
(157.0)KOS Group (210.0)
(304.3)
CIR holding level 379.5 417.9
Sogefi Group
Espresso Group (34.2) (10.7)
(322.3)
(492.3)Total subsidiaries (539.6)
Consolidated net financial indebtedness (112.8) (121.7)
3.2Other subsidiaries 3.4
Total shareholders’ equity 1,573.2 1,590.3
Consolidated net invested capital 1,686.0 1,712.0
(1) Including third party interests
(1)

10. 10
• Increase of net cash at CIR financial holdings is mainly due to divestitures of SEG
and private equity investments
Net financial position at “holding system” level
Evolution of net financial position as at 31 December 2015
(1)
(2) Fair value of securities + securities income, trading
(3) Operating costs, extraordinary costs, taxes, etc.
(2) (3)
(1) Of which SEG €64.0 million

11. 11
Composition of liquid assets and gross financial debt
Liquid assets at 31 December 2015
€ m
Hedge funds
Other (stocks, equity funds)
382.1
96.0
95.1
30.1
418.6
46.0
31 Dec.
2014
31 Dec.
2015
Cash and time deposits
Corporate bonds
Government bonds
57.9
5.7
58.7
50.0
4.2
99.3
Total liquid assets
31 Dec.
2014
31 Dec.
2015
2.6 0.7Gross financial debt
Other debt 2.6 0.7
Fixed income funds 94.0 252.7
7.0

12. 12
2015 Subsidiaries’ financial and operational highlights
Key strategic objectives2015 Highlights
 Expansion of digital platforms, leveraging on
leadership in traditional media
 Further efficiency improvement
 Further consolidation in Italian nursing homes and
rehabilitation markets
 Geographical expansion (focus on India)
 Completion of global footprint, through growth
focused on Asia and North America
 Further efficiency improvement
 Product innovation
 Decrease of press circulation (-6.4%) and total advertising revenues
(-4.2%), although at lower rates than the market; internet (+2.0%) and
radio (+5.7%) advertising showed positive dynamics.
 In such challenging market, Espresso reported positive net results and
stable EBITDA, thanks to the continuing focus on efficiency
improvement; net debt was also decreased (€10.7m vs. €34.2m at
4Q2014), thanks to a healthy operating cash flow and the divestiture of
TV assets.
 La Repubblica confirms its leadership in daily newspaper newsstand
sales and readership, while Repubblica.it is the leading news site in
terms of daily unique users
Espresso
Sogefi
KOS
 Realisation of existing assets
 Selective approach on new investments
Non-core
investments
 Sale of SEG with a capital gain of € 41.9 million
 Continuing growth of revenues (+11.9%) and EBITDA (+20.9%) thanks
to ongoing organic growth and acquisitions
 Revenues growth of 11.1% (+9.1% at constant exchange rates):
- Positive performance in Europe (+8.2%); double digit growth in North
America (+27.4%) and Asia (+34.4%);
- Single digit decrease in Latin America (-3.8%) despite significant market
slowdown (-20.5%)
 Improving EBITDA (+6%) and positive net result €1.1m (vs. €3.6m in
2014)

13. 13
Espresso - overview
2015 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
2014 2015
Revenues 643.5 605.1
Net income 8.5 17.0
EBITDA 59.8 47.5
Key financialsOperating structure
2015 Performance and outlook
• Circulation revenues at € 218.0 million, decreasing by 6.4%,
in a market down 8.7%. Total advertising revenues were
down 4.2%: radio and the internet grew respectively by 5.7%
and 2.0% while printed press decreased in line with the
market (-5.7%)
• EBITDA (excluding € 10.8m of reorganization charges) was
in line with the previous year
• Net result benefited from a one off effect related to new
regulation on deferred tax provision
• In January 2015 All Music, publisher of the television channel
DeejayTV, was sold to Discovery Italia
• As for the 2016 outlook, in the first two months of the year the
trend of Espresso advertising orders was slightly positive,
although this cannot be considered a consolidated trend yet

14. 14
• On 2 March 2016 CIR and Gruppo Editoriale L'Espresso signed a
memorandum of understanding with ITEDI (publisher of daily newspapers La
Stampa and Il Secolo XIX) and its shareholders (FCA and the Perrone
family), aimed at the merger by incorporation of ITEDI into Espresso
• This transaction would create the first Italian, and one of the main European
publishing groups in daily newspapers as well as digital news
• The completion of the merger, which is subject to authorization by the
competent authorities and by the shareholder’s meetings of Gruppo
Editoriale L'Espresso and ITEDI, is planned for the first quarter of 2017
Espresso – Memorandum of Understanding with ITEDI

15. 15
Sogefi - overview
Revenues 1,349.4 1,499.1
Net result 3.6 1.1
EBITDA 109.5 115.5
Key financials€ m
2014 2015
• 11.1% revenues growth (+9.1% at constant exchange
rates), due to higher volumes in all geographical areas, with
the exception of Latin America. Revenues grew by 8.2% in
Europe, by 27.4% in North America, by 34.4% in Asia; -
3.8% in South America despite significant market slowdown
(-20.5%)
• Net income was affected by higher financial expenses,
while the previous year result benefited from positive non-
recurring items
• During 2015 Sogefi paid around €20 million for quality
claims to car manufacturers
• For the rest of 2016 Sogefi expects to continue on positive
trends in North America, China and India. Lower growth is
expected in Europe, while in South America market
conditions remain difficult
• € 17m investment planned for a new plant in Mexico
9M 2015 Performance and outlook
FORD
FCA/CNH Industrial
RENAULT/NISSAN
PSA
DAIMLER
GM
VOLKSWAGEN/AUDI
BMW
TOYOTA
2015 Revenues breakdown
OTHERS (including
Aftermarket)
13.4%
12.0%
11.1%
11.7%
7.8%
7.8%
3.5%
2.9%
2.2%
27.6%
Europe
North America
South America
63.0%
17.6%
11.6%
7.4%
0.4%
Weight of non-
European
markets
37%
CountriesCustomers
Asia
Others
SUSPENSIONS FILTRATION AIR & COOLING

16. 16
KOS - overview
€ m
2011 2012
Revenues 392.4 439.2
Net income 12.3 19.8
EBITDA 60.4 73.0
Key financials
SHAREHOLDERS
HOSPITAL
MANAGEMENT
NURSING HOMES REHABILITATION
 CIR (51.3%)
 ARDIAN (46.7%)
 Management and others (2.0%)
Operating structure
2014 2015
5.1
3.2
3.6
11.7
39.2
141.0 8.2
24.0
58.4
107.7
18.5
Revenues breakdown by region (2015)
4.1
• Increase in revenues (+11.9%), thanks to relevant
acquisitions/green fields in the nursing home/rehabilitation
area (€42.2 million in 2014 and 2015)) and to organic
growth across all businesses lines
• Contribution to EBITDA increase from acquisitions and
greenfields is €10.1 million
• In 2015 4 nursing homes were acquired in the Milan area
and in October a new nursing home in Turin and a
psychiatric rehabilitation facility in the Marche region were
started
• The company now has 77 facilities, located mainly in the
centre and north of Italy with more than 7,300 beds
• Main objectives are to pursue market consolidation in core
businesses and to selectively expand internationally, with a
primary focus on India
9M 2015 Performance and outlook

17. 17
• On 16 March 2016 CIR and F2i (Italian Infrastructure Fund) reached an
agreement with Ardian to buy 46.7%(1) of KOS for an amount of € 292 million.
• F2i will buy a 37.3%(2) stake, investing € 240 million
• CIR will buy the remaining part, plus shares held by minority investors
and those deriving from the exercise of management stock options,
investing €85 million and raising its stake to 62.7%(2)
• The implied valuation for 100% of KOS equity is € 643 million(2)
• Additional international financial investors may take part to the deal, by
entering F2i’s investment vehicle with a minority interest
• The closing of the deal is expected to take place by the end of May, once the
approval of the Italian Competition and Markets Authority has been obtained
KOS – F2i and CIR to purchase 46.7% of KOS from Ardian
(1) Pre-dilution of management stock options
(2) Post-dilution of management stock options

18. 18
• Education
- In November 2015 CIR sold its 17.4% shareholding in SEG, for a total
consideration of € 64.1 million, a capital gain on investment of € 41,9
million, and an IRR of 30%
• Private equity
- Diversified portfolio of private equity funds and direct minority private
equity investments, with a fair value of € 59.2 million at 31 December
2015. The portfolio has reached its maturity/reimbursement phase, as
limited investments were added in the recent past
• NPL
- At the end of December 2015 the net value of CIR investment in the non-
performing loan portfolios amounted to €43 million.
- CIR no longer owns operating companies in this industry and is currently
in the process of collecting the existing receivables, with no further
investments
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