2012 Results

March 2012

2

Corporate structure

2012 Results

Non-core investments

Revenues

2012 €2.6Bio €812.7m €1.3Bio €355.4 m

52.9% 55.8% 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

Focus on growth through startups/build ups (eg. energy and healthcare)

No leverage and significant liquidity available at holding company level

Commitment to low cost structure

2012 Results

4

2012 Consolidated financial highlights

Consolidated net result (€-33.1 m) driven mainly by:

Sorgenia loss (-€70.3m) affected by write-downs and by decline in demand for electricity Positive financial management result at holding level (€45.2m income from financial assets vs. €31.5m financial expense and €9.6m gains on private equity investments)

Consolidated net debt (€2,504.4 vs. €2,335.1 at December 2011) driven by:

Increase of net financial surplus at holding level, due to positive performance of financial assets Increase of net debt in the operating companies, mainly due to investments at Sogefi and Sorgenia and increase of working capital at Sorgenia

2012 Results

(1) differs from pro-quota share of stand-alone Sorgenia’s net loss, as impairment tests are performed on different

perimeters (cash generating units) at CIR consolidated level vs Sorgenia level

(1)

2012 Results

5

2012 Subsidiaries’ financial and operational highlights

Key strategic objectives 2012 Highlights

Growth in residential gas and electricity markets Deleveraging 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, market consolidation

Product innovation

Further efficiency improvement

Sorgenia

la Repubblica is still the top daily newspaper in terms of newstand sales

and readership Digital products: over 66,000 subscribers Decrease in advertising revenues (-10.9%), although less than the total

market (-14.3%) Decreasing but still positive financial results

Espresso

Sogefi

KOS

Non-core investements

Positive performance of Education business and private equity portfolio

Growth of revenues (+1.6%) and EBITDA (+2.3%) thanks to ongoing consolidation and organic growth in the Italian market

Double digit growth in revenues (+13.9%) and earnings (+22%) thanks to expansion in non-European markets, especially in North America and Asia, and to the contribution of the businesses of newly acquired Systèmes Moteurs

Net result strongly affected by the impairment of assets (renewables, E&P,

thermoelectric and tax credits) by the decline in demand for electricity and by high cost of gas for power plants

Recovery signs in the fourth quarter of the year

6

Consolidated balance sheet - main group assets

2012 Results

(1) of which Espresso goodwill € 102,8m, real estate € 17,2m

(2) including Junior Notes Zeus, Jupiter

111.2 KOS 119.6

€ m

Education

113.3

28.7 27.1

Group equity in consolidated balance sheet 31 Dec. 2011 31 Dec. 2012

Sogefi

Espresso

Sorgenia

312.7

557.8

310.5

114.0

582.9 Sorgenia 577.5 502.5

20.8 Venture capital 10.4

NPLs 64.2 63.8

Fixed assets 126.8 126.2

Private equity and minority investments 91.5 97.0

(1)

Other assets/liabilities

Net cash

(19.8)

10.8

(31,3)

33.2

Consolidated shareholders’ equity 1,437.7 1,373.0

(2)

Consolidated income statement

2012 Results

KOS Group

€ m

14.0

2011 2012

Sogefi Group

Espresso

Sorgenia Group

266.9

8.1

Espresso Group

4.8

32.5

6.2

17.1

(70.3)

8.9

Total major subsidiaries 59.4 (38.1)

Other subsidiaries (17.4) (3.0)

Cir & financial holdings

Total contribution from subsidiaries

(32.3)

42.0

8.0

(41.1)

Net income 9.7 (33.1)

7

(1)

(1) NPL, Cir Ventures

Consolidated net financial position

2012 Results

8

Cir & financial holdings 10.8 33.2

Consolidated net financial indebtedness (2,335.1) (2,504.4)

Consolidated net invested capital 4,814.1 4,836.4

Total shareholders’ equity 2,479.0 2,332.0

(299.8) Sogefi Group (295.8)

€ m

96.0

(165.1) (163.4)

31 Dec. 2011 31 Dec. 2012

Espresso Group

Sorgenia Group (1,730.5) (1,954.0)

(108.1) (110.2)

KOS Group

Other subsidiaries (40.3) (16.3)

Total subsidiaries (2, 345.9) (2,537.6)

(1)

(1) Including derivatives contracts fair value

Net financial position at 31 December 2012 Evolution of net financial position

Net financial position at “holding system” level

2012 Results

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

9

(1)

(2)

(1) € 25.2m Dividends received, €18.6m dividends paid

(2) Including +€ 9.6m 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 31 December 2012

2012 Results

10

(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

867.1

84.2

25.6

31 Dec. 2011

31 Dec. 2012

Liquidity

Corporate bonds

Government bonds

406.7

5.9

282.9

467.7

6.7

331.3

Total liquid assets (1)

31 Dec. 2011

31 Dec. 2012

Lodo Mondadori provision

CIR S.p.A. 2004/2024

564.2

268.3

564.2

268.5

837.5 833.9 Gross financial debt (1)

Other debt 5.0 1.2

11

Sorgenia – overview

2012 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

1,675

82.7

112

33

10

1

5,084

Production capacity

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 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% Vento

S. Gregorio Magno

Castelnuovo di Conza

S. Martino in Pensilis

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

Operating structure

€ m

2011 2012

Revenues 2,120.3 2,572.3

EBITDA (after write-downs) 192.3 57.1

EBITDA (before write-downs) 192.2 101.4

Net result 15.6 (196.8)

Key financials

2012 Performance and outlook Sorgenia’s EBITDA (before write-downs) decline in 2012 is mainly due to:

The contraction of thermoelectric generation margins, competition of renewables at peak times, the high price of gas for power plants 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 high cost of gas coming from the Lybian contract

Net result includes €134.3m of write-downs of renewables (€64m) E&P (€16m) thermoelectric (€36.7m), tax credits (€9.4m) and other assets (€8.2m) Turnaround actions launched in recent months are continuing: divestments of non-core assets, cost reduction, gas supply contract renegotiation

12

Espresso – overview

2012 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

2011 2012

Revenues 890.1 812.7

Net income 60.6 21.8

EBITDA 159.8 102.4

Key financials

2012 Revenues breakdown

Operating structure

2012 Performance and outlook

Market update: In 2012 the overall advertising market has recorded a 14.3% downturn Market circulation has declined both for dailies and magazines (estimated – 8.7% for dailies)

Espresso circulation revenues for 2012 were € 261.5m, down 3.7% vs. 2011 (€271.4) Advertising revenues were €476.3m, showing a 10.9% decline. The performance of on-line advertising (+14%) confirmed the continuing positive trend, outperforming the market (+5.3%) Total costs show a 2.4% reduction Espresso is planning a set of further cost reduction actions and is further developing its digital platforms

13

Sogefi - overview

2012 Results

ENGINE SYSTEMS DIVISION

SUSPENSION COMPONENTS DIVISION

PRECISION SPRINGS TRUCKS CARS

€ m

2011 2012

Revenues 1,158.4 1,319.2

Net income 24.0 29.3

EBITDA 111.9 126.0

Key financials

PSA FORD

RENAULT/NISSAN

GM

DAIMLER

FIAT/IVECO/CHRYSLER VOLKSWAGEN/AUDI BMW VOLVO DAF/PACCAR

TOYOTA

2012 Revenues breakdown

MAN

CATERPILLAR

HONDA

OTHERS

12.9%

11.9%

9.5% 11.3%

7.3% 6.5%

4.9% 3.2% 2.3%

2.2% 2.0% 1.6%

0.7% 0.5%

23.2%

66.5% 17.5%

2012 Performance and outlook

2012 significant drop in car sales in Europe (-7.8%) was offset by the rise in production in other markets in which Sogefi is present: North America (+17.4%, China (+5.8%), India (+5.3%) and Brazil (+0.8%)

2012 double digit growth in revenues and earnings compared to 2011 thanks to expansion in non-European markets (North America and Asia) and to the contribution of Systèmes Moteurs and despite the car market crisis in Europe

During 2012 reorganization continued to cut structure costs as well as working capital

In 2013 Sogefi’s main targets will be to continue to grow in non-European markets, especially North America and Asia, and to further push efficiency increase and product innovation (eg. composite springs)

Europe

Mercosur NAFTA Asia RoW

11.4% 3.5% 1.1%

Customers Countries

Decreasing weight of

Europe

14

KOS – overview

2012 Results

€ m 2011 2012

Revenues 349.6 355.4

Net income 8.9 12.1

EBITDA 52.2 53.4

Key financials

64 facilities in North and Central Italy 5,950 beds under management and about 900 under construction Increased revenues, EBITDA and net income due to higher efficiency and the full contribution of the acquisitions made in the previous year Through the Indian subsidiary ClearMedi, start of new outsourcing contracts of diagnostic and medical equipment in India Main objectives are to pursue consolidation of existing activities and to selectively internationalize its business

2012 Performance and outlook

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

2012 Revenues breakdown by region

4.6

2.9

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 in 2012 a strong increase of enrolments and revenues 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

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 December 31 2012 was 13.4 million dollars

Private equity Diversified portfolio of private equity funds and direct minority private equity participations. The fair value at December 31 2012 was approximately € 97 million. The portfolio produced a double digit return over its life

NPL At the end of 2011 the NPL servicing business was sold, while CIR retained the ownership and collection of NPL portfolios acquired in the past. At December 31 2012 the net value of CIR investment in the non-performing loan business amounted to €63.8 million

15

Non-core investments

2012 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 December 31 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

2012 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