9m 2012 results
TRANSCRIPT
9M 2012 Results
October 2012
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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
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(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
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(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
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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)
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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)
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(1)
(1) Jupiter/Zeus, Food Concept, Cir Ventures
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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
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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
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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
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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)
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Non-core investments
9M2012 Results
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