9m 2012 Results

9M 2012 Results

October 2012

2

Consolidated financial structure

9M2012 Results

(3) of which Espresso goodwill € 102,8m, real estate € 17,5m

(1) Cir Ventures, Food Concepts (2) including Junior Notes Zeus, Jupiter

111.2 KOS 117.3

€ m

Education

113.3

28.7 26.4

Shareholders’ equity - Group 31 Dec. 2011 30 Sept. 2012

Sogefi Espresso Sorgenia

312.7

557.8

315.8 113.6

582.9 Sorgenia 577.5 544.3

20.8 Other subsidiaries 11.1 (1)

NPLs 64.2 62.7

Fixed assets 126.8 126.3 Private equity and minority investments 91.5 105.8

(3)

Other assets/liabilities

Net cash

(19.8)

10.8

(27,3)

20.3 Consolidated shareholders’ equity 1,437.7 1,416.3

(2)

Net financial position at 30 September 2012 Evolution of net financial position

Net financial position at “holding system” level

9M2012 Results

Increase of net cash at holding system level is mainly due to financial income related to the portfolio of liquid assets

3

(1)

(2)

(1) € 25.2m Dividends received, €18.6m dividends paid

(2) Including +€ 5.6m of divestments

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

(4) Operating costs, extraordinary costs, taxes, etc.

(3) (4)

Composition of liquid assets and gross financial debt

Liquid assets at 30 September 2012

9M2012 Results

4

(1) Including € 564.2m referring to the “Lodo Mondadori” cash receipt

€ m

Hedge funds

Other (stocks, equity funds)

848.3

96.0

79.0

25.4

865.3

81.1

25.1

31 Dec. 2011

30 Sept. 2012

Liquidity

Corporate bonds

Government bonds

406.7

5.9

364.5

387.8

6.6

331.3

Total liquid assets (1)

31 Dec. 2011

30 Sept. 2012

Lodo

CIR S.p.A. 2004/2024

564.2

268.3

564.2

280.1

837.5 845.0 Gross financial debt (1)

Other debt 5.0 0.7

5

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 September 30 2012 financial income of Lodo Mondadori related assets has been substantially in line with legal interest costs being provisioned for 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

9M2012 Results

(1)

Cir & financial holdings 10.8 20.3

Consolidated net financial indebtedness (2,335.1) (2,593.6)

Consolidated net invested capital 4,814.1 5,018.4

Total shareholders’ equity 2,479.0 2,424.8

Consolidated net financial position

9M2012 Results

(299.8) Sogefi Group (325.2)

€ m

96.0

(165.1) (152.8)

31 Dec. 2011 30 Sept. 2012

Espresso Group

Sorgenia Group (1,730.5) (2,013.5)

(105.1) (110.2)

KOS Group

Other subsidiaries (40.3) (17.3)

6

Total subsidiaries (2, 345.9) (2,613.9)

Consolidated income statement

9M2012 Results

KOS Group

€ m

10.9

9M2011 9M2012

Sogefi Group

Espresso

Sorgenia Group

266.9

6.9

Espresso Group

4.8

22.9

4.1

13.1

(40.8)

14.7

Total major subsidiaries 45.5 (8.9)

Other subsidiaries (7.2) (4.5)

Cir & financial holdings

Total contribution from subsidiaries

(23.3)

38.3

3.4

(13.4)

Net income 15.0 (10.0)

7

(1)

(1) Jupiter/Zeus, Food Concept, Cir Ventures

8

Corporate structure

Operating subsidiaries

Revenues 2011 € 1.2 Bio

EBITDA € 108 m

Revenues 2011 € 890m

EBITDA € 157 m

Revenues 2011 € 350m

EBITDA € 52m

Revenues 2011 € 2.1 Bio

EBITDA € 192 m

Non-core investments

AUTOMOTIVE COMPONENTS

Engine systems

Suspensions

MEDIA

National Press

Local Newspapers

Internet

Radio & Television

Advertising

HEALTHCARE

Hospitals

Rehabilitation

Residential nursing homes

ENERGY

Thermal

Renewables

E&P

Venture capital funds

Private equity funds

Other investments

9M2012 Results

Sorgenia – operating structure

9M2012 Results

9

MANAGEMENT 0.3%

35.0% 65.0% SORGENIA HOLDING

81.3% 17.2%

1.2%

100% Sorgenia USA LLC (69,47%

Noventi Ventures II LP)

Sorgenia E&P

100%

50% Fin Gas (70% LNG Med

Gas Terminal)

E&P OTHER ACTIVITIES RENEWABLES

78% Energia Italiana

(50% Tirreno Power)

LNG Terminal E&P

Venture Capital in

Clean Technologies

100% Sorgenia Power

100% Sorgenia Puglia

Thermoelectric generation

70% Sorgenia Menowatt

Energy Saving

100% Vento

S. Gregorio Magno

Castelnuovo di

Conza

S. Martino in Pensilis

Bonefro

Caggiano

Campagna

S. Ricigliano

S. Castelvetere

75% Minervino

Wind Italy

100% Sorgenia Bioenergy

Biomass

Solar

100% Sorgenia Solar

Sorgenia SpA (Parent Company)

Marketing & Sales

ENERGY SUPPLY

Sorgenia Green

Wind France

50% Sorgenia France

Production

Wind Romania

100% Sorgenia Romania

100% Sorgenia Trading

Trading

100% Sorgenia Next

Solar

10

Sorgenia – production capacity

Sorgenia Power (Termoli CCGT)

In operation or in

commissioning In construction Total

770 770

Plants

Sorgenia Puglia (Modugno CCGT) 800 800

Sorgenia Power (Bertonico-Turano

Lodigiano CCGT)

Sorgenia Power (Aprilia CCGT) 800 800

800 800

Tirreno Power (pro-rata 50%) 1,675 1,675

Sorgenia France (50%) 76.5 82.7

Wind Italy 93 112

Hydroelectric (Tirreno Power 50%) 33 33

Sorgenia Solar (photovoltaic) 10 10

Sorgenia Bioenergy (biomass) 1 1

25.2 Total capacity (MW) 5,059 5,084

9M2012 Results

6.2

19

Sorgenia – 9M results

9M2012 Results

(1)Figures adjusted by excluding the fair value measurement of hedging contracts

€ m

9M 2011 9M 2012

Revenues 1,557.1 1,758.3

EBITDA (adjusted) 128.1 47.5 (1)

96.0 Net result (adjusted) (80.9) 18.0 (1)

EBITDA 125.7 49.6

Net result 13.5 (77.1)

11

Sorgenia’s EBITDA decline in the first nine months of 2012 is mainly due to: The contraction of thermoelectric generation margins, negatively impacted by a 2,7% decline of electricity demand and consequent overcapacity, competition of renewables at peak times, the high price of gas for power plants and higher congestion charges on the electricity grid in the Southern regions The decreasing contribution of Tirreno Power for the same reasons as those listed above The lower contribution of the renewable business due to changes in the consolidation perimeter The decline in natural gas sales volumes and margins

Net result was also impacted by the increase in amortization, higher financial expenses and an €13m write-down of exploration activities Sorgenia launched in recent months a series of turnaround actions , whose results are expected by end of 2012 and 2013, including gas supply contract renegotiation, cost reduction and divestment of non core assets

12

Espresso – operating structure

Market update: in the first eight months of 2012 the overall advertising market has recorded a 10.5% downturn market circulation is still declining both for dailies and magazines (estimated -7% for dailies)

9M2012 Results

LA

REPUBBLICA

LOCAL

NEWSPAPERS

MAGAZINES RADIO

STATIONS

TELEVISION

National daily newspaper

18 Regional newspapers throughout Italy

Espresso + 3 other publications

Three national radio stations

Deejay TV

DIGITAL

Kataweb,

la Repubblica.it

ADVERTISING

Manzoni

Espresso – 9M results

9M2012 Results

€ m

96.0

9M 2011 9M 2012

Net income

EBITDA

Revenues

112.0

653.7

82.8

26.4

594.0

41.4

13

Gruppo Espresso’s circulation revenues for 9 months 2012 (net of add-on products) were € 199.3m, down 3% vs. 9M 2011 Advertising revenues were €342.4m, showing a 10.1% decline. The performance of on-line advertising, up 14.3% (vs. +11% of the internet market) confirmed the continuing positive trend, despite the overall unfavourable context Total costs show a 5.2% reduction, mainly as a result of cost reduction measures implemented during 2011 Despite the general economic situation and the negative prospects for the advertising market in medium term, Gruppo Espresso confirms the outlook for a positive net result in 2012, although markedly down vs. 2011

14

Sogefi - operating structure

9M2012 Results

In Engine Systems, the acquisition of Systèmes Moteurs enabled Sogefi to achieve three important industrial objectives: the extension of its product lines into engine air and cooling systems; higher penetration in North America, China and India; a greater presence among German high end car manufacturers

ENGINE SYSTEMS

DIVISION

SUSPENSION COMPONENTS DIVISION

PRECISION SPRINGS TRUCKS CARS

In Suspensions Sogefi has patented a new type of coil spring made of fiberglass reinforced plastic (FRP) which weighs between 40 and 70% less than the traditional steel springs

Sogefi global footprint

15

9M2012 Results

44 PRODUCTION SITES 16 COUNTRIES 5 CONTINENTS

1 CANADA

2 CHINA

1 USA

1 MEXICO

4 BRAZIL

2 ARGENTINA

3 SPAIN

1 NETHERLANDS

4 UK

13 FRANCE

3 ITALY

1 SLOVENIA

3 GERMANY

1 ROMANIA

3 INDIA

2nd largest suspension producer worldwide; leader in Europe and South America

3rd engine filtration systems producer in Europe; leader in South America

1 EGYPT

Sogefi – 9M results

9M2012 Results

16

In the first 9M of 2012 the slowdown in the automotive sector continued: -20.5% in new car registrations in Italy, - 13.8% in France, -11% in Spain and -1.8% in Germany. Slowing demand in Brazil, while North America continued to grow

Despite the challenging market environment, Sogefi closed the first 9 months of 2012 with an increase of 21.1% in revenues and 22.8% in EBITDA thanks to the growth in the North America market and to the contribution of newly acquired Systèmes Moteurs

In the last quarter of 2012 a further worsening of the automotive market in Europe is expected. A scenario of commodity price stability and continuing cost cutting actions should enable Sogefi to confirm the improvement in its end-of-year financial results compared to 2011

€ m

96.0

9M 2011 9M 2012

Net income

EBITDA

Revenues

79.9

829.8

98.1

22.4

1,005.1

18.8

17

KOS – operating structure

9M2012 Results

SHAREHOLDERS

CIR (51.3%) AXA Private Equity (46.7%) Management and others (2.0%)

HOSPITAL

MANAGEMENT RSA REHABILITATION

Nursing homes: KOS is the largest private Italian operator in nursing homes for non-self sufficient elderly, where it operates under the brand “Anni Azzurri”

Rehabilitation: KOS is the fourth private Italian operator in functional and psychiatric rehabilitation, where it operates under the brands “Santo Stefano” and “Redancia”

Hospital management: KOS provides advanced and hi-tech medical services (diagnostic imagining, nuclear medicine and radio therapy), under the “Medipass” brand. In this business area, the group also manages the “Fratelli Montecchi” Hospital in Suzzara (Mantua)

KOS: geographical presence

18

9M2012 Results

Italy 63 facilities in seven regions of North and Central Italy Over 5,800 beds under management and more than 1,000 beds under construction 4,292 employees

India

Start-up activities are ongoing in India, where the joint venture ClearMedi was started in the second half of 2011. The company, controlled by KOS (51%) and a local partner (49%), is active in providing high tech diagnostic and medical equipment managed in outsourcing for Indian hospitals

2011 KOS revenues by region

6.4

8.7

0.2

41.3

94.3 7.4

19.9

42.9

101.2

0.9 17.3

€ m

Growth of hospital beds

Nursing Homes

Rehab

Hospital Management

1108 +1.000 beds under construction, to be opened in the next 3 years

127

1,210 1,296

2,989 3,049 3,484 3,532

3,829 3,970

214 256

256

1,011

1,283 1,399

1,684 1,685

0

130 130

130

130

130 130

130 130

2003 2004 2005 2006 2007 2008 2009 2010 2011

4,897

4,190

3,375

1,682 1,554

127

5,643

5,061

5,785

+ 700 beds per year (av.) by means of selective acquisitions and green-fields development

Growth pipeline of over 1.000 beds

19

9M2012 Results

KOS – 9M results

9M2012 Results

20

In the first 9m 2012 revenues posted an increase of 1.3% thanks to the development of KOS’ three business areas

Decrease in EBITDA is mainly due to higher rental costs related to the sale and lease back of three real estate properties in the third quarter of last year, which however allowed to reduce net financial debt

€ m

96.0

9M 2011 9M 2012

Net income

EBITDA

Revenues

41.3

261.9

37.9

8.0

265.3

8.9

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 September 30 2012 was 14 million dollars

Private equity Diversified portfolio of private equity funds and direct minority private equity participations. The fair value at September 30 2012 was approximately € 105.8 million. Increase vs. 4Q 2011 figure (€87.8m) 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 9M 2012 a strong level of enrolments with much of the demand coming from Asian countries. In 2012 two new facilities devoted to the teaching of culinary arts started operating in Bouveret and Lucerna 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 September 30 2012 the net value of CIR investment in the non-performing loan business amounted to €62.7 m

21

Non-core investments

9M2012 Results

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