1

Marzo 2014

1Q 2014 Results

July 2014

2

Corporate structure

Non-core

investments

53.1% 56.0% 57.5% 51.3%

Revenues

2013 €2.3Bio €712m €1.3Bio €373 m

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

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 € 4.8 Bio

(1) The percentage is calculated net of treasury shares

(1) (1)

At 31 March 2014

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

• Consolidated net loss: €2.6 million vs. a net income of € 6.4 million of

1Q 2013.

The result was mainly due to the lower result of the parent company

and to the loss posted by Sogefi as a result of extraordinary

restructuring charges

• The net financial position of the CIR Group was €1,943.1 vs. €

1.845,3 at 31 December 2013. It includes :

- Net financial surplus at holding level for €506.6 million

- Net debt of consolidated subsidiaries for €2,449.7 million vs.

€2,383.3 at 31 December 2013. The increase was caused by the

growth of the debt of Sorgenia and Sogefi

1Q 2014 consolidated financial highlights

5

Consolidated income statement

€ m

CIR holding level 4.5 (1.4)

Net result 6,4 (2,6)

(1) Including NPL, Cir Ventures, Education and other minor investments

(1)

1.3 KOS Group 1.3

4.1

1Q 2013 1Q 2014

Sogefi Group

Espresso Group 1.1 1.1

(3.6)

1.9 Total operating companies (1.2)

Sorgenia Group (4.6) --

6

Consolidated balance sheet – main group assets

124.1 KOS 125.4

€ m

Fixed assets

99.7

18.8 18.6

Group equity in consolidated balance sheet 31 Dec. 2013 31 Mar. 2014

Sogefi

Espresso

Sorgenia

344.5

557.8

346.5

94.4

582.9 Sorgenia 0.1 0.1

568.4 Total operating companies 566.4

NPLs 76.9 74.6

Private equity 63.9 66.7

Other investments 39.1 40.1

Other assets/liabilities

Net cash

(174.1)

538.0

(141.2)

506.6

(2)

(3) Including provisions for legal expenses and taxes concerning Lodo Mondadori cash in

Consolidated shareholders’ equity 1,131.0 1,131.8

(2) Non Performing Loans portfolios acquired

(1) Including Cir Ventures, Education and other minor investments

(1)

(3)

7

Consolidated net financial position

(155.7) KOS Group (154.9)

€ m

(304.6)

CIR holding level 538.0 506.6

31 Dec. 2013 31 Mar. 2014

Sogefi Group

Espresso Group (73.5) (58.2)

(322.5)

(2,383.3) Total subsidiaries (2,449.7)

Consolidated net financial indebtedness (1,845.3) (1,943.1)

Note: All subsidiaries NFP includes derivatives contracts fair value

5.6 Other subsidiaries 2.9

Sorgenia Group (1,855.1) (1,917.0)

Total shareholders’ equity 1,602.3 1,604.6

Consolidated net invested capital 3,447.6 3,547.7

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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 March 2014 Evolution of net financial position

(1)

(1) Fair value of securities + securities income, trading

(2) Operating costs, extraordinary costs, taxes, legal costs

related to Lodo Mondadori, etc.

(2)

9

Composition of liquid assets and gross financial debt

€ m

Hedge funds

Other (stocks, equity funds)

797.1

96.0

87.6

27.8

769.9

84.8

25.9

31 Dec.

2013

31 Mar.

2014

Liquidity

Corporate bonds

Government bonds

83.8

15.3

68.3

575.3

15.6

582.6

Total liquid assets

31 Dec.

2013

31 Mar.

2014

CIR S.p.A. 2004/2024 257.7 261.4

259.1 263.3 Gross financial debt

Other debt 1.4 1.9

Liquid assets at 31 March 2014

Government Bonds 2%

10

2013 Subsidiaries’ financial and operational highlights

Key strategic objectives 1Q 2014 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 (-14.6%) vs. the total market (-15.7%)

Radio network advertising (+6,3%)

Net debt €58.2 m vs. €73.5m of 4Q 2013

Espresso

Sogefi

KOS

Non-core

investments

Positive performance of Education business

Continuing growth of revenues (+3.7%) and EBITDA (+3.2%) 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 (+11.5%) and Asia (+27.7%); slightly up at consolidated

level (+9.1% 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 €14.6m vs. a loss of € 8.7m in 1Q2013

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Sorgenia - overview

Production capacity

€ m Key financials

1Q 2014 Performance and outlook

• 1Q 2014 revenues decreased by 25% mainly because

of the contraction of electricity production and strong

decrease of electricity demand

• 1Q 2013 EBITDA was characterized by the significant

but non-recurring contribution of certain dispatch

services which were not replicated in 1Q 2014

• The performance of 1Q 2104 EBITDA was nonetheless

substantially in line with forecasts in the budget and in

the business plan

1Q 2013

Revenues 637.4

Net result (8.7)

EBITDA 48.5

1Q 2014

475.5

(14.6)

23.9

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

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Espresso - overview

1Q 2014 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

1Q 2013 1Q 2014

Revenues 182.1 157.8

Net income 2.0 2.1

EBITDA 16.7 16.6

Key financials

Operating structure

1Q 2014 Performance and outlook

• Despite the continuing crisis in the publishing sector, 1Q results

were positive and in line with the previous year

• Circulation revenues at €57.9m (-7.1% vs 1Q2013) decreased

less than the market (-12 %); advertising revenues decreased

14.6% , less than the market (-15.7% February YTD), with a

return to growth for radio (+6.3%)

• 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 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 from TIMB and 2

from Rete A/Espresso)

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Sogefi - overview

Revenues 329.2 338.7

Net income 7.0 (6.3)

EBITDA 32.1 20.9

Key financials

ENGINE SYSTEMS

DIVISION

SUSPENSION COMPONENTS DIVISION

PRECISION SPRINGS TRUCKS CARS

€ m

1Q 2013 1Q 2014

• Sogefi’s 1Q results were affected by the negative effect of

exchange rates and the costs related to the acceleration of the

restructuring plan in Europe

• Consolidated revenues increased by 2.9% vs 2013, thanks to

the positive performance of the North American and Asian

markets, and despite the negative impact of exchange rates

• Consolidated EBITDA, net of restructuring costs (charges of

€11.3m in 1Q 2014 vs. €0.4m in 2013), was €31.8 m, in line

with 1Q 2013

• In order to refinance part of the existing bank debt, in May 2014

Sogefi issued a €100 m, 7-year convertible bond, with a

coupon of 2% and a conversion price of €5.3844 per share

1Q 2014 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

Asia others

14

KOS - overview

€ m 2011 2012

Revenues 92.1 95.5

Net income 2.6 2.5

EBITDA 12.6 13.0

Key financials

SHAREHOLDERS

HOSPITAL

MANAGEMENT RSA REHABILITATION

CIR (51.3%) ARDIAN (46.7%) Management and others (2.0%)

Operating structure

1Q 2013 1Q 2014

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

• 1Q 2014 revenues were up 3.7% from € 92.1 million in 2013,

thanks to business development in the three business units

• Increase in EBITDA was mainly due to new activities undertaken

in 2013. Net income is stable vs. 1Q 2013

• 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

1Q 2014 Performance and outlook

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• Education

- SEG (Swiss Education Group), a world leader in education for hospitality

management (hotels, restaurants, etc.) with over 5,000 students coming from

80 different countries. CIR has an interest in SEG of 19.5%. The book value of

the investment as at March 31, 2014 was €21.1 million

• Private equity

- Diversified portfolio of private equity funds and direct minority private equity

participations, that produced a double digit return over its life. The fair value at

March 31 2014 was € 66.7 million

• NPL

- At the end of March 2014 the net value of CIR investment in the non-

performing loan portfolios amounted to €74.6 million; no new investments in the

recent past

Non-core investments

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• 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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