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Letter to our Stakeholders

Rodolfo De Benedetti - Chairman, Monica Mondardini – CEO
Dear Stakeholders,

The year 2017 was an interesting one for our group, both for the positive economic results obtained and for the long-term development initiatives undertaken during the year.

The CIR group reported consolidated revenues that at € 2.8 billion were 6.7% higher than those of 2016 and a gross operating margin that was 12.2% higher at € 290.4 million. The net result was a loss of € 5.9 million, caused by the extraordinary tax charge incurred by GEDI to settle a tax dispute pending in the Court of Cassation since 1991. Excluding this charge, the net result would have been a positive € 59.6 million, a distinct improvement on the figure for 2016 (€ 33.8 million). The contribution of the three industrial subsidiaries in the media, automotive and healthcare sectors was also higher, evidence of the effectiveness of CIR’s strategy of concentrating on its main investments and strengthening its coordination and control activity. The parent company of the group reported a loss of € 49 million.

The results achieved enabled the company for the third year running to distribute a dividend of € 0.038 per share, unchanged from last year. This is, in our opinion, a just reward for Shareholders after a satisfactory year but is also a sign of confidence in the future prospects of the group.

The objective of creating value, which has always been the main mission of our company, is not just limited to the results of one year. CIR has traditionally been a long-term investor. Indeed, for us creating value means adopting initiatives, conduct and in general a way of doing business that enables the company to operate successfully in the markets in which it is present and to obtain results that are sustainable over time.

With the CIR Sustainability Report, now in its third edition, we would like to give an account of the activities of our group and its impact on the internal and external communities to which we are addressing this report but also to continue the reflection on our points of strength and on the areas where we could do more.

Our group, which employs over 15 thousand people worldwide, operates in sectors that are very different from each other. Each of them has a significant impact on the community in cultural, social and environmental terms.

GEDI Gruppo Editoriale is one of the top multimedia publishing groups in Italy and through its various media it is committed to providing quality news, culture, opinion and entertainment while respecting the principles of freedom, independence and respect for the individual, in the knowledge that it has a great responsibility for the formation of the ethical and moral values of its users.

KOS, as one of the most important social healthcare providers in Italy, has an important social role, working alongside the public sector in long-term treatments and has, since it was founded, aimed to combine the objectives typical of a private company with a quality service that is always focused on people, or rather the patients and their families and its employees.

Lastly, Sogefi is a global vehicle components company characterized both by its industrial presence at international level which makes it an important interlocutor of employees, suppliers, customers, the cultures and local areas of numerous countries, and by its ongoing research for products and technologies able to contribute to sustainable mobility by reducing vehicle weight and emissions.

The publication of the CIR group Sustainability Report is a further initiative that opens up our company to all of our Stakeholders. The first edition published two years ago was an important stage in the history of our company: the positive feedback that we have received is a stimulus to continue to improve.

We are convinced that the points for reflection contained in his document and, more in general, a constant and transparent dialogue with all of you, our Stakeholders, are essential factors for reaching our company’s objectives and particularly for creating value in the long term.

Rodolfo De BenedettiMonica Mondardini
ChairmanChief Executive Officer

Source: Sustainability Report 2017