Download - 1 h 2012 results
1H 2012 Results
30 July 2012
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Consolidated financial structure
1H2012 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 115.5
€ m
Education
113.3
28.7 26.7
Shareholders’ equity - Group 31 Dec. 2011 30 June 2012
Sogefi Espresso Sorgenia
312.7
557.8
312.1 111.8
582.9 Sorgenia 577.5 538.8
20.8 Other subsidiaries 18.0 (1)
NPLs 64.2 63.4
Fixed assets 126.8 126.5 Private equity and minority investments 91.5 105.6
(3)
Other assets/liabilities
Net cash
(19.8)
10.8
(26,4)
25.6 Consolidated shareholders’ equity 1,437.7 1,417.6
(2)
Net financial surplus at 30 June 2012 Evolution of net financial surplus
Net financial surplus at “holding system” level
1H2012 Results
Increase of net cash is mainly due to the positive adjustment to the fair value of the securities portfolio
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(1) (2)
(1) € 25.2m Dividends received, €18.6m dividends paid
(2) Including +€ 4.2m 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 June 2012
1H2012 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
874.7
84.3
31.5
31 Dec. 2011
30 June 2012
Liquidity
Corporate bonds
Government bonds
406.7
5.9
379.5
373.1
6.3
331.3
Total liquid assets (1)
31 Dec. 2011
30 June 2012
Lodo
CIR S.p.A. 2004/2024
564.2
268.3
564.2
276.1
837.5 849.1 Gross financial debt (1)
Other debt 5.0 8.8
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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 June 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
1H2012 Results
(1) Legal interests would have to be paid back by CIR on top of the principal amount of €564m, in case of unfavourable third level court ruling
(1)
Cir & financial holdings 10.8 25.6
Consolidated net financial indebtedness (2,335.1) (2,551.5)
Consolidated net invested capital 4,814.1 4,978.5
Total shareholders’ equity 2,479.0 2,427.0
Consolidated net financial position
1H2012 Results
(299.8) Sogefi Group (307.6)
€ m
96.0
(165.1) (151.7)
31 Dec. 2011 30 June 2012
Espresso Group
Sorgenia Group (1,730.5) (1,936.7)
(147.1) (110.2)
KOS Group
Other subsidiaries (40.3) (34.0)
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Total subsidiaries (2, 345.9) (2,577.1)
Consolidated income statement
1H2012 Results
KOS Group
€ m
8.8
1H2011 1H2012
Sogefi Group
Espresso
Sorgenia Group
266.9
0.1
Espresso Group
3.3
17.3
2.3
9.4
(28.2)
11.8
Total major subsidiaries 29.5 (4.7)
Other subsidiaries (3.0) (2.6)
Cir & financial holdings
Total contribution from subsidiaries
(7.1)
26.5
8.0
(7.3)
Net income 19.4 0.7
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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
1H2012 Results
Sorgenia – operating structure
1H2012 Results
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MANAGEMENT 1.9%
35.0% 65.0% SORGENIA HOLDING
80.0% 16.9%
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 OTHERS 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% Wind
S. Gregorio Magno
Castelnuovo di
Conza
S. Martino in Pensilis
Bonefro
Caggiano Campagna
75% Minervino
Wind Italy
100% Sorgenia Bioenergy
Biomass
Solar
100% Sorgenia Solar
Sorgenia SpA (Parent Company)
100% Sorgenia Next
Marketing & Sales
ENERGY SUPPLY
Sorgenia Green
Wind France
50% Sorgenia France
Production
Wind Romania
100% Sorgenia Romania
100% Sorgenia Trading
Trading
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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
Wind France (50%) 76.5 82.7
Wind Italy 81 112
Hydroelectric (Tirreno Power 50%) 33 33
Sorgenia Solar (photovoltaic) 10 10
Sorgenia Bioenergy (biomass) 1 1
37.2 Total output (MW) 5,046.5 5,083.7
1H2012 Results
6.2
31
Sorgenia – 1H results
1H2012 Results
(1)Figures adjusted by excluding the fair value measurement of hedging contracts
€ m
1H 2011 1H 2012
Revenues 1,043.1 1,119.3
EBITDA (adjusted) 77.7 33.6 (1)
96.0 Net result (adjusted) (54.3) 0.5 (1)
EBITDA 76.3 32.2
Net result 0.3 (54.1)
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Sorgenia’s EBITDA decline in the first half of 2012 is mainly due to: decreasing income from electricity production due to the slowdown of electricity demand (-2.8%) and lower margins because of high gas costs in Italy decreasing income from electricity distribution due to increased competition and lower than expected switch rate of residential customers to the open market lower income from renewables due to divestment of non-core assets and deconsolidation of Wind France in 2011, which resulted in lower debt
1H net result was affected by writedowns of €13m on exploration activities. Proceeds from the announced sale of the Orlando exploration field are not included 2Q results are lower than 1Q due to seasonality effect Increase in NFP vs. 4Q 2011 is mainly due to the completion of the CCGT investment plan Sorgenia has already taken a number of actions to counter the recession and the difficulties in the market: renegotiation of gas sourcing contracts, reduction of operating costs, potential disposal of non-strategic assets
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Espresso – operating structure
Market update: in the first five months of 2012 the overall advertising market has recorded a 9.5% downturn market circulation figures (average February 2012) decreased by 5.3% for dailies, 6% for weeklies and 9.7% for monthlies
1H2012 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 – 1H results
1H2012 Results
€ m
96.0
1H 2011 1H 2012
Net income
EBITDA
Revenues
81.5
457.4
60.8
21.2
419.8
31.5
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The Gruppo Espresso circulation revenues for the first half 2012, net of revenues from add-on products, were € 127.1m, almost in line with the corresponding period of the previous year Advertising revenues have recorded a 8.5% decline which was less than the one experienced by the market. In contrast, digital advertising revenues have realized a very positive evolution, recording a 13.2% increase Cost reduction initiatives produced a total costs decrease of 4.2%, and are still ongoing The Company’s guidance for 2012 is for a still positive bottom line result, even if markedly declining with respect to year 2011 due to the general economic situation and the negative prospects for advertising market in medium term
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Sogefi - operating structure
1H2012 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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1H2012 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 – 1H results
1H2012 Results
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In the first half 2012 the slowdown in the automotive sector in certain important markets continued: -6.8% in new car registrations in Europe, slowing demand in Brazil and China, while North America, India, Russia and Japan continued to grow
Sogefi closed the first half of 2012 with an increase of 30.4% in revenues and 28.9% in EBITDA despite the difficult economic conditions, thanks to the consolidation of Systèmes Moteurs. At constant perimeter revenues and EBITDA would have slightly decreased.
A scenario of market and commodity price stability and continuing cost cutting actions shouId enable Sogefi to achieve economic results in the second half of the year in line with those obtained in the first half
€ m
96.0
1H 2011 1H 2012
Net income
EBITDA
Revenues
52.8
526.6
68.1
16.1
686.8
15.3
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KOS – operating structure
1H2012 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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1H2012 Results
Italy 62 facilities in seven regions of North and Central Italy Over 5,700 beds under management and more than 900 beds under construction 4,285 employees
India
Start-up activities are going on in India where the joint venture Clearmedi was formed in the second half of 2011. The company is controlled by KOS (51%) and by a local partner (49%) and is active in providing high tech diagnostic and medical equipment managed as outsourcing services for Indian hospitals
Nursing homes
Rehabilitation
Hospital management
KOS – 1H results
1H2012 Results
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In the first half 2012 revenues posted an increase of 1% thanks to the development of KOS’ three business areas
Decrease in EBITDA is mainly due to higher rental costs related to the sale of three real estate properties in the third quarter of last year, which however allowed to reduce net financial debt
€ m
96.0
1H 2011 1H 2012
Net income
EBITDA
Revenues
27.5
176.9
25.0
4.6
178.7
6.2
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 2012 was 14 million dollars
Private equity Diversified portfolio of private equity funds and direct minority private equity participations. The fair value at June 30 2012 was approximately € 105.6 million. Increase vs. 4Q 2011 figure 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 1H 2012 a strong level of enrolments with much of the demand coming from Asian countries and Brazil. In January 2012 the new Cesar Ritz centre (one of the group’s schools devoted to the culinary arts) started operating in Bouveret Food Concepts, formed in 2010, is active in the restaurant sector in Germany. Under the brand name LaBaracca the company has three Italian style restaurants in Munich, Dusseldorf and Hamburg 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 June 31 2012 the net value of CIR investment in the non-performing loan business amounted to €63.4 m
20
Non-core investments
1H2012 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