2011 Results
March 2012
2
Consolidated financial structure
2011 results
Private equity 80.6 87.8
100.3 KOS 111.2
€ m
CIR & financial holdings Fixed assets 127.7 130.4
Other subsidiaries
113.3
12.9 20.8
Shareholders’ equity - Group 31 Dec. 2010 31 Dec. 2011
Sogefi
Espresso
Sorgenia
296.4
557.8
312.7
113.7
582.9 Sorgenia 586.7 577.5
Swiss Education -- 28.1
(3)
59.1 Jupiter 64.2 (1)
Other assets/liabilities
Net cash
(13.6)
123.6
(19.1)
10.8
Consolidated shareholders’ equity 1,487.0 1,438.1
(3) of which Espresso goodwill € 102.8m, real estate € 17.8m
(2) Cir Ventures, Food Concepts
(1) including Junior Notes Zeus
(2)
Net financial surplus at 31 December 2011 Evolution of net financial surplus
Net financial surplus at “holding system” level
2011 results
Reduction of net cash is mainly due to investments and treasury purchases, financial loss, interest expenses and other costs
3
(1)
(2)
(1) Fair value of securities + securities income, trading
(2) Operating costs, extraordinary costs, taxes, etc.
Liquid assets
Liquid assets at 31 December 2011
2011 results
€ m
Hedge funds
Other (stocks, equity funds)
552.6
96.0
84.0
44.5
848.3
79.0
25.4
31 Dec. 2010 31 Dec. 2011
Liquidity
Corporate bonds
Government bonds
157.0
9.6
406.7
331.3
5.9
257.5
Total liquid assets
4
(1) Including € 564.2m referring to the “Lodo Mondadori” cash receipt
(1)
Composition of gross financial debt
2011 results
€ m
96.0
31 Dec. 2010 31 Dec. 2011
Other debt
CIR S.p.A. 2004/2024
CIR International 2003/2011
268.1
157.2
268.3
569.2
--
3.7
429.0 837.5 Gross financial debt
(1)
5
(1) Reimbursed on January 10 2011
6
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 December 31 2011 financial income of Lodo Mondadori related assets has been substantially in line with legal interest costs being provisioned for
2011 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 123.6 10.8
Consolidated net financial indebtedness (2,178.5) (2,335.1)
Consolidated net invested capital 4,701.4 4,814.8
Total shareholders’ equity 2,522.9 2,479.7
Consolidated net financial position
2011 results
(164.9) Sogefi Group (299.8)
€ m
96.0
(189.3) (165.1)
31 Dec. 2010 31 Dec. 2011
Espresso Group
Sorgenia Group (1,750.1) (1,730.5)
(110.2) (135.0)
KOS Group
Other subsidiaries (62.8) (40.3)
7
Total subsidiaries (2,302.1) (2,345.9)
Consolidated income statement
2011 results
KOS Group
€ m
10.8
2010 2011
Sogefi Group
Espresso
Sorgenia Group
266.9
26.0
Espresso Group
2.3
27.5
4.8
14.4
8.1
32.5
Total major subsidiaries 66.6 59.8
Other subsidiaries (3.3) (17.4)
Cir & financial holdings
Total contribution from subsidiaries
Non-recurrent components
(0.1)
63.3
(6.3)
Net income 56.9
(24.7)
42.4
(7.6)
10.1
8
(1)
(1) Jupiter/Zeus, Food Concept, Cir Ventures
9
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
2011 results
Sorgenia – operating structure
2011 results
10
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% Sorgenia International BV
26.76% Saponis Investments
ZOO
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
11
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 39%) 1,280 1,280
Wind France (50%) 76.5 82.7
Wind Italy 76 96
Hydroelectric (Tirreno Power 39%) 26 26
Sorgenia Solar (photovoltaic) 10 10
Sorgenia Bioenergy (biomass) 1 1
826 Total output (MW) 3,839 4,666
2011 results
6.2
20
12
Sorgenia – power generating plants in Italy and in France
2011 results
Wind
Solar
Hydro
Thermo
Biomass
In production/ commissioning Authorized/ under construction
Vado
Ligure Nucleo
di Genova
Torrevaldaliga Sud
Aprilia
San Gregorio Magno
Napoli Levante
Castelnuovo di Conza
Villacidro2
Villacidro1
Cagliari
Siracusa
Vibo Valentia
Minervino
Modugno
Termoli
Fossato di Vico
Turano - Bertonico
San Martino
in Pensilis
Voie Sacrée
Argonne/Epense
Cotes de Champagne
Widehem
Bernay
Saint Martin
Saint Crepin
Leffincourt
Plainchamp
Castiglione d’Orcia
Bouillancourt-en-Séry
2011 margins up thanks to the start-up of the new Lodi power plant
and the initiatives in renewable sources, which made it possible to
compensate for the challenging market environment
Compared to the previous year the difference in net income is
essentially due to an extraordinary tax credit item in 2010, related
to the investment in new production capacity
Sorgenia 2011 results
Net Income
(€ m)
EBITDA (€ m)
2011 results
13
14
Espresso - operating structure
2011 market scenario in Italy: advertising investments (-3.8%). In particular: TV (-6.1%), radio (-7.8%), publishing (-6.3%) and Internet (+12.3%) Circulation: dailies (-4.7%), weeklies (-3.6%), monthlies (-6%)
Espresso advertising revenues were €534.7m, up 1.2% vs. 2010. print media (-1.9%), radio (-6.8%), Internet (+14.4%)
Espresso circulation revenues were €326.9 (-2.2% vs. 2010)
2011 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 – 2011 results
2011 results
€ m
96.0
2010 2011
Net income
EBITDA
Revenues
147.2
885.0
157.0
58.6
890.1
50.1
15
In spite of the contraction of advertising investments and circulation, in 2011 the Espresso group has recorded a positive performance with an increase in revenues and operating margins Espresso is prepared to face a challenging 2012 thanks to a sound and profitable business model, a decreasing level of debt and the past and ongoing investments in products and efficiency
16
Sogefi - operating structure
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
2011 results
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
17
2011 results
43 PRODUCTION SITES 15 COUNTRIES 4 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
Sogefi – 2011 results
2011 results
18
In 2011 the European market reported a decline of 1.7% in car registrations. The South American, Chinese and Indian markets showed decreasing growth rates. Strong growth in North America
Sogefi sales were driven by the acquisition of Systèmes Moteurs and by the organic growth of the business
Engine Systems Division sales = €611.5m (+31.5%)
Suspension Components Division sales = €547.7m (+18.6%)
€ m
96.0
2010 2011
Net income
EBITDA
Revenues
86.7
924.7
108.3
24.7
1,158.4
18.8
2011 pro forma
1,335
123.1
(1) Including Systèmes Moteurs from January 1 2011
(1)
19
KOS - operating structure
SHAREHOLDERS
CIR (53.7%) AXA Private Equity (44.2%) Management and others (2.1%)
HOSPITAL
MANAGEMENT NURSING HOMES REHABILITATION
2011 results
KOS is active in three business areas:
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
20
2011 results
Italy 60 facilities in seven regions of North and Central Italy 5,700 beds under management and over 1,000 beds under construction 4,080 employees
India
joint venture for managing medical technology started in the second half of 2011
Nursing homes
Rehabilitation
Hospital management
KOS – 2011 results
2011 results
€ m
96.0
2010 2011
Net income
EBITDA
Revenues
42.1
325.4
52.2
8.9
349.6
4.0
21
2011 revenues (+ 7.4%), thanks to internal development and acquisitions carried out in 2010 EBITDA (+ 24%) including €3m of a real estate sale
Revenues
17%
43%
40%
17 55
101
183
246 273
325
Nursing homes
Rehabilitation
Hospital management
350
22
Non-core investments
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 and with high growth potential:
Ecrio -mobile software(USA) Minerva Networks- networks (USA) Neato Robotics- home convenience robots (USA) Celltick- mobile marketing (Israel)
Private equity Diversified portfolio of private equity funds and direct minority private equity participations
Other investments During 3Q 2011 acquisition of 20% of SEG (Swiss Education Group), a world leader in education for hospitality management (hotels, restaurants, etc.) with 4,600 students from over 70 countries worldwide and an annual turnover of approx. €100m Food Concepts - the new start-up operating in the restaurant sector in Germany. Under the brand name LaBaracca the company opened three Italian style restaurants in Munich, Dusseldorf and Hamburg NPL portfolios for a total value of € 64.2m are held by CIR and managed by third party servicers. CIR exited the business of NPL management in 4Q 2011 by selling the NPL management companies of the former Jupiter Finance Group
2011 results