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Letter to our Stakeholders

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

2016 was an interesting year for our group, both for the positive economic results obtained and for the long-term development initiatives undertaken during the year.

The group reported consolidated revenues that were up by 3% to over € 2.6 billion and a gross operating margin that was 19% higher at € 260 million. Net income came to € 33.8 million versus € 42 million in the previous year, which included € 11 million of non-recurring gains. The contribution of the three industrial subsidiaries in the media, automotive components and healthcare sectors was greater, which demonstrated the effectiveness of CIR’s focus on its main equity investments and strengthening its coordination and control activities. The parent company and the non-industrial subsidiaries contributed a positive net result of € 8.7 million, which was less than that of the previous year because of the above-mentioned non-recurring gains.

The results obtained enabled the company for the second year running to distribute of a dividend, equal to € 0.038 per share. In our view this is the just reward for shareholders after a satisfactory year but it 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 the group, naturally goes beyond the results of a single year. CIR has traditionally been a long-term investor. For us creating value means taking initiatives, adopting ways of conduct and, in general, a way of doing business that enables the company to operate successfully in its various markets and obtain results that are sustainable over time.

Through the CIR Sustainability Report, which is now in its second edition, our aim is to explain the activity of our group and its impact on the internal and external community that we are involved in, and also to continue to reflect on our points of strength and on the areas where we could do more.

Our group, which employs over 14 thousand people worldwide, operates mainly in sectors that are very different one from the other. Each of them has a significant impact on the community in cultural, social and environmental terms.

GEDI Gruppo Editoriale, born of the merger of Espresso and ITEDI and established in April 2017, is one of the main Italian multimedia publishing groups and, through its media, it is committed to offering quality news, culture, opinion and entertainment while respecting the principles of freedom, independence and respect for the individual, in the awareness that it has a great responsibility for the formation of the ethical and moral values of its audience.

KOS, one of the largest social healthcare providers in Italy, has an important social role in assisting the public sector in long-term care and its aim has always been to combine the typical objectives of a private company with a quality service that focuses on people, meaning patients and their families, and employees.

Lastly, Sogefi is a global car components company, which is characterized both by its international industrial presence which makes it an important interlocutor for employees, suppliers, customers, cultures and local communities, and by its ongoing research to create products and technologies that are able to contribute to sustainable mobility by reducing the weight and emissions of vehicles.

The preparation of the CIR Group Sustainability Report is for us a further step forward in the process of opening our company up towards all of you, our Stakeholders. The first edition published last year was an important stage in the history of our company: the positive feedback that we received was a stimulus for us to continue to improve.

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

Rodolfo De BenedettiMonica Mondardini
ChairmanChief Executive Officer

Source: Sustainability Report 2016