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