1H 2013 Results

29 July 2013

2

Corporate structure

1H 2013 Results

Non-core investments

Revenues

2012 €2.6Bio €813m €1.3Bio €355 m

52.9% 55.9% 58.3% 51.3%

Businesses

Generation, marketing and supply to residential and business clients 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

Venture capital

Private equity

NPL

Competitive

position

Fourth power generator in Italy; second supplier to Italian businesses after incumbent

Leader in circulation of Italian dailies N.1 news magazine N.1 Italian

information website Top private radio

group

Leader in its core businesses (filters and suspensions) in Europe and South America

n.a.

--

Leader in Italian long term care (nursing homes and rehabilitation)

Total € 5.1 Bio

3

CIR group profile

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

1H 2013 Results

4

1H 2013 Consolidated financial highlights

Consolidated net result before write-downs: -€ 2.5 m; net loss after write-downs -€164.9m (vs. +€0.7m of 1H 2012):

Contribution from main operating subsidiaries, net of write-downs: €6.3 million Net loss is entirely due to Sorgenia write-downs

Consolidated net debt down to €2,370.1 (-€ 134 million vs. December 2012), mainly due to improvement of working capital and to disposals made by Sorgenia Increase of net financial surplus to € 47.7 million at holding level

1H 2013 Results

1H 2013 Results

5

1H 2013 Subsidiaries’ financial and operational highlights

Key strategic objectives 1H 2013 Highlights

Deleveraging Recovering profit margins Generation assets optimisation

Expansion of digital platforms, leveraging on leadership in traditional media

Further efficiency improvement

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

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 overall advertising revenues (-16.5%), less than the total

market (-17.2%) Increasing advertising on the internet (+3.4%), better than the market Net debt down 22m vs. 4Q 2012 thanks to operating cash flow

Espresso

Sogefi

KOS

Non-core investements

Positive performance of Education business

Continuing growth of revenues (+4.4%) and EBITDA (+9.6%) thanks to acquisitions, organic growth and efficiency improvement

Double digit growth of revenues in non-European markets, especially in North America (+18.4%) and Asia (+34%); stable at consolidated level (+2,2% at constant exchange rates) despite a contraction in Europe

Increase in profitability: EBITDA/sales 11.1% in 2Q13 (vs. 10.0% in 2Q12)

Improvements in operating results thanks to marketing and sales activity,

efficiency improvement and power generation margin recovery

Net debt down 125m vs. 4Q 2012 thanks to divestitures and working capital improvement

6

Consolidated balance sheet – main group assets

1H 2013 Results

119.6 KOS 120.6

€ m

Fixed assets

107.3

19.3 19.0

Group equity in consolidated balance sheet 31 Dec. 2012 30 June 2013

Sogefi

Espresso

Sorgenia

413.2

557.8

414.9

102.8

582.9 Sorgenia 503.7 343.9

1,143.8 Total operating companies 982.2

NPLs 63.8 65.0

Private equity 78.4 77.7

Other investments 56.1 49.7

(2)

Other assets/liabilities

Net cash

(31.3)

33.2

(29.5)

47.7

(5)

(1)

(1) Book value of Sorgenia decreased due to goodwill impairment

(3) 31/12/12 restated as per the amendment of IAS 19 – employee benefits

Consolidated shareholders’ equity 1,363.3 1,211.8

(2) Of which goodwill € 102.8m

(5) Including Junior Notes Zeus

(3)

(3)

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

(4)

Consolidated income statement

1H 2013 Results

7

KOS Group

€ m

9.4

1H 2012 1H 2013

Sogefi Group

Espresso

Sorgenia Group

266.9

(28.2)

Espresso Group

2.3

11.8

3.1

9.4

(170.7)

2.1

Total operating subsidiaries (4.7) (156.1)

CIR holding level 5.4 (8.8)

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

1H 2013 excl. write-down

(8.3)

6.3

Net income 0.7 (164.9) (2.5)

(1)

Consolidated net financial position

1H 2013 Results

8

CIR holding level 33.2 47.7

Consolidated net financial indebtedness (2,504.4) (2,370.1)

Consolidated net invested capital 4,819.6 4,367.3

Total shareholders’ equity 2,315.2 1,997.2

(295.8) Sogefi Group (341.1)

€ m

96.0

(163.4) (173.6)

31 Dec. 2012 30 June 2013

Espresso Group

Sorgenia Group (1,954.0) (1,806.5)

(86.1) (108.1)

KOS Group

Other subsidiaries (16.3) (10.5)

Total subsidiaries (2,537.6) (2,417.8)

(1)

(1) Including derivatives contracts fair value

(2)

(2) Sogefi’s NFP increase due to dividend payment and working capital increase for expansion into non European markets

Net financial position at 30 June 2013 Evolution of net financial position

Net financial position at “holding system” level

1H 2013 Results

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

9

(1)

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

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

(2)

Composition of liquid assets and gross financial debt

Liquid assets at 30 June 2013

1H 2013 Results

10

€ m

Hedge funds

Other (stocks, equity funds)

867.1

96.0

84.2

25.6

891.0

90.2

28.6

31 Dec. 2012

30 June 2013

Liquidity

Corporate bonds

Government bonds

282.9

6.7

135.9

636.3

--

467.7

Total liquid assets

31 Dec. 2012

30 June 2013

Lodo Mondadori provision

CIR S.p.A. 2004/2024

564,2

268,5

564,2

276,3

833,9 843.3 Gross financial debt

Other debt 1,2 2,8

11

Sorgenia – overview

1H 2013 Results

Sorgenia Power (Termoli CCGT)

Plants

Sorgenia Puglia (Modugno CCGT)

Sorgenia Power (Lodi CCGT)

Sorgenia Power (Aprilia CCGT)

Tirreno Power (pro-rata 50%)

Sorgenia France (50%)

Wind Italy

Hydroelectric (Tirreno Power 50%)

Sorgenia Solar (photovoltaic)

Sorgenia Bioenergy (biomass)

Total capacity (MW)

Total

770

800

800

800

1,690

81

112

37.5

8

1

5,100

Production capacity

MANAGEMENT 0.3%

35.0% 65.0% SORGENIA HOLDING

81.3% 17.2%

1.2%

Sorgenia E&P 100%

50% Fin Gas (70% LNG Med Gas

Terminal)

E&P OTHERS RENEWABLES

LNG Terminal E&P

100% Sorgenia Power

100% Sorgenia Puglia

Thermal Power Generation

100% Vento

S. Gregorio Magno

Castelnuovo di Conza

S. Martino in Pensilis

Campagna Ricigliano

75% Minervino

Wind Italy

Solar 100%

Sorgenia Solar

THERMAL

Sorgenia Green Wind France

50% Sorgenia France

Production

Wind Romania 100%

Sorgenia Romania

Operating structure

€ m

1H2012 1H2013

Revenues 1,119.3 1,169.2

EBITDA before write-downs 32.2 103.2

Net result (54.1) (206.3)

Key financials

1H2013 Performance and outlook

Results from ordinary operations grew compared to the same period of 2012 thanks to the good performance of commercial activities and electricity generation and to the efficiency initiatives undertaken in the last quarters EBITDA before write-downs came in at € 103.2m, three times the result of the first half of last year and equal to the EBITDA before write-downs realized in the whole 2012 Net loss (€206.3m) was almost entirely due to the write-down of its indirect interest in Tirreno Power, of assets in renewable sources and in the E&P sector, and of certain tax receivables (total €190.5m). Actions undertaken by Sorgenia will be further pursued, with the objective of reducing debt and recovering profit margins:

Sale of non-strategic assets Cost reduction Renegotiation of gas contract

78% Energia Italiana (50% Tirreno Power)

EBITDA after write-downs 32.2 (27.8)

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Espresso – overview

1H 2013 Results

NATIONAL PRESS

LOCAL NEWSPAPERS

DIGITAL

ADVERTISING

National daily newspaper

18 Regional newspapers throughout Italy

Group network websites

Three national radio stations

Deejay TV

RADIO AND TV

Collection of advertising

€ m

1H2012 1H2013

Revenues 419.8 369.4

Net income 21.2 3.7

EBITDA 60.8 33.3

Key financials

1H2013 Revenues breakdown

Operating structure

1H2013 Performance and outlook

Circulation revenues at €144.4m (-7% vs 1H2012)in line with the market; advertising revenues at €209.6m (-16.5% vs -17.2% of the overall market) Advertising on the Internet performed well (+3.4% increase, vs. -0.3% of the market) Costs further reduced by 12.8% (excluding digital and DTT activities, whose costs increased due to ongoing development) Still uncertain outlook for 2013, due to ongoing recession heavily affecting advertising investments Key strategic guidelines remain: digital development, leveraging of leadership position in traditional products and cost reduction (new and sharper cost reduction actions lauched)

13

Sogefi - overview

1H 2013 Results

ENGINE SYSTEMS DIVISION

SUSPENSION COMPONENTS DIVISION

PRECISION SPRINGS TRUCKS CARS

€ m

1H2012 1H2013

Revenues 686.8 681.7

Net income 15.4 16.1

EBITDA 68.5 71.2

Key financials

PSA FORD

RENAULT/NISSAN

GM

FIAT/IVECO/CHRYSLER

DAIMLER VOLKSWAGEN/AUDI BMW VOLVO DAF/PACCAR

TOYOTA

Revenues breakdown (1H 2013)

MAN

HONDA

CATERPILLAR

OTHERS

13.2%

12.5%

9.2% 10.8%

8.4% 7.3%

4.3% 2.5% 2.1%

2.1% 2.0% 1.8%

0.5% 0.5%

22.8%

65.0% 17.4%

1H2013 Performance and outlook

At constant exchange rates, revenues increased by 2.2% vs 1H 2012; EBITDA was up by 3.9% on 1H 2012. In the second quarter the increase was 15%

Continuing growth in North America (+18.4%), Asia (+34%) and Mercosur (+9.2%): share of total revenues from non-European countries increased to 35%

The car industry at global level is expected to show slight growth in 2013, with strong increase in Asia and more moderate progress in Latin America and North America

Sogefi expects to: continue to grow in non- European markets Continue efficiency enhancement also through a greater integration of the group

Europe

Mercosur NAFTA Asia RoW

13.1% 4.1% 0.4%

Customers Countries

Increasing weight of non-European

markets

14

KOS – overview

1H 2013 Results

€ m 2011 2012

Revenues 178.7 186.5

Net income 4.6 6.1

EBITDA 25.0 27.4

Key financials

KOS revenues were up by 4.4% in 1H 2013 thanks to the development of the three business sectors, especially nursing homes and high-tech hospital services Increase in EBITDA and net income was mainly due to development of activities undertaken in 2012 Start-up activities are continuing in India, where the ClearMedi Healthcare JV is active in outsourcing diagnostic and therapeutic technologies to Indian hospitals Main objectives are to pursue market consolidation in core businesses and to selectively internationalize its business footprint

SHAREHOLDERS

HOSPITAL MANAGEMENT

RSA REHABILITATION

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

Operating structure

6.2

8.7

0.2

37.1

96.8 7.5

21.4

44.5

102.2 2.3 18.7

Revenues breakdown by region (2012)

4.6

2.9

1H2012 1H2013

1H2013 Performance and outlook

Education

SEG (Swiss Education Group), a world leader in education for hospitality management (hotels, restaurants, etc.) in which CIR has an interest of 20%, reported growing revenues in 1H 2013, with a strong increase of enrolments coming from Asian countries and more recently from Latin America. In March 2013 CIR acquired 100% of the shares of Southlands S.r.l., an international school in Rome with around 500 pupils coming from 40 different nationalities and approx. €6 m of annual revenues, for an investment of €6.5m

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 June 30 2013 was €6.2 million

Private equity Diversified portfolio of private equity funds and direct minority private equity participations. The fair value at June 30 2013 was € 91.4 million decreasing due to redemptions. The portfolio produced a double digit return over its life

NPL At the end of June 2013 the net value of CIR investment in the non-performing loan business amounted to €65 million; all operating activities have been divested and outsourced

15

Non-core investments

1H 2013 Results

16

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 June 30 2013 financial income of Lodo Mondadori related assets has been substantially in line with legal interest costs being provisioned for

On June 27, 2013 the unique hearing of the parties was held before the Cassazione High Court. Final sentence by the Cassazione is expected

1H 2013 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