Board of Directors approves results as of September 30 2015

CIR GROUP: RESULTS HIGHER IN THE FIRST NINE MONTHS Revenues at € 1.9 bln (+7.1%); EBITDA € 174.4 mln (+13%); net income € 39.6 mln (€ 5.4 mln in 2014)Significant increase in the net income of the three main industrial subsidiaries Espresso, Sogefi and KOS.Their contribution to the group result was a positive € 25 million (€ 4.4 mln in 2014)Contribution of parent company and non-industrial subsidiaries also higher(€ 14.6 million versus € 1 million in 2014)Net financial position of the parent company positive at 30/9 for € 360.2 million Milan, October 30 2015 - The Board of Directors of CIR-Compagnie Industriali Riunite S.p.A., which met today under the chairmanship of Rodolfo De Benedetti, has approved the Interim Financial Report of the group as of September 30 2015 as presented by Chief Executive Officer Monica Mondardini.

The CIR group operates mainly in three sectors: media (Gruppo Editoriale L'Espresso), automotive components (Sogefi) and healthcare (KOS).Consolidated results The revenues of the CIRgroup in the first nine months of 2015 came to 1,897.4 million and were up by7.1% from € 1,771.2 million in the same period of the previous year. The increase was driven by Sogefi and KOS, which achieved growth of 11.5% and 12.6% respectively. The gross operating margin (EBITDA) came in at € 174.4 million (9.2% of revenues), posting a rise of13% from the figure of€ 154.4 million in the first nine months of 2014 (8.7% of revenues). The operating result (EBIT) came to € 96.7 million (5.1% of revenues), up by 15.9% from € 83.4 million last year (4.7% of revenues). This performance was due mainly to the results obtained by Sogefi and KOS; Espresso reported a margin in line with that of the first nine months of 2014.
The net income of the group came in at € 39.6 million, up from € 5.4 million in the first nine months of 2014. The contribution of the industrial subsidiaries to the net result of the CIR group was € 25 million, compared to € 4.4 million in the first nine months of 2014. Espresso, Sogefi andKOS reported significant growth in their earnings.
Espresso reported net income of € 24.6 million (€ 4.6 million in the first nine months of 2014) thanks to having maintained its operating result despite the still difficult situation in the sector, and thanks also to the reduction in financial and tax expense and to the capital gain on the sale of the television channel Deejay TV. Sogefi achieved net income of € 7.4 million compared to a loss of € 5.8 million in the first nine months of 2014. The change was due to the growth in revenues, to a slight improvement in profitability and to lower financial expense. Lastly, KOS reported net income of € 13.3 million, up from € 10.1 million in the same period of 2014 following the action taken in the last two years to develop the business. The contribution of the parent company of the group, CIR S.p.A., and the non-industrial subsidiaries was a positive € 14.6 million, up from € 1 million in the first nine months of 2014. Financial expense decreased thanks to the buyback of the bond in October 2014 and the proceeds of financial management improved. The consolidated net financial debt figurewas € 202.9 million at September 30 2015, down from € 209.5 million at June 30. The increase of € 90.1 million compared to the figure at December 31 2014 (€ 112.8 million) was mainly due to the acquisitions made by KOS, the higher working capital of Sogefi and the shares bought back by CIR in the period. The Espresso group reported an improvement in its net financial position, which was partly due to the sale of the television channel Deejay TV. The net financial position of the parent company of the group was a positive € 360.2 million (€ 370.8 million at June 30). The reduction from € 379.5 million at the end of 2014 was due mainly to the disbursements made for purchases of own shares in the first nine months of the year (€ 40.3 million), partly offset by the positive cash flows from financial management. The equity of the group stood at 1,106.0 million at September 30 2015 versus € 1,104.5 million at December 31 2014. The change was caused by the addition of the earnings for the period offset by the decrease for the purchases of own shares by the group in the first nine months of the year.
At September 30 2015 the CIR group had 14,108 employees (13,846 at December 31 2014). Results of the industrial subsidiaries of the CIR groupMedia: EspressoGruppo Editoriale L'Espresso is one of the most important Italian publishing companies. It operates in all sectors of communication: newspapers and magazines, radio, internet, television and advertising. The group, which is 56.4% owned by CIR, is listed on the Stock Exchange. The revenues of Espresso in the first nine months of 2015 came to € 439.6 million (-5.6% from € 465.8 million in 2014, as a consequence of the crisis that is still affecting the whole sector). Circulation revenues, totalling € 166 million, declined by 5.6% compared to 2014, in a market that is continuing to record a significant fall in the circulation of daily newspapers (-9.4%). Advertising revenues (€ 245 million) posted a decline of 4.4% with contrasting trends: radio and the internet showed positive dynamics while the printed press reflected the still negative trend of the market. Costs went down by 6.6%, which was more than the fall in revenues. EBITDA came to € 40.9 million versus € 41.8 million in the first nine months of 2014. During the year the sale of the television channel DeejayTV to Discovery Italia was completed, giving rise to a capital gain of € 9.5 million. Net income was € 24.6 million, up from € 4.6 million in the first nine months of 2014; even excluding the capital gain realized on Deejay TV, earnings were significantly higher, coming in at € 15.1 million thanks to the fact that the results of the core business held up well despite the still critical environment, to the reorganization of the television businesses, and to the lower financial and tax expense. Net financial debt stood at € 8.1 million at September 30 2015 (€ 34.2 million at the end of 2014). For further information on the results of Espresso, see the press release published by the company on October 21 (

http://goo.gl/1mw49Q).

Automotive components: Sogefi Sogefi is one of the main producers worldwide in the sectors of suspension, filtration, and air and cooling systems with 42 production plants in four continents. The company is controlled by CIR (57.6%) and is listed on the Stock Exchange .

Sogefi's revenues for the first nine months of 2015 came in at € 1,126.6 million, up by 11.5% from € 1,010.2 million in the same period of 2014 (+8.7% at the same exchange rates). The rise was due to the positive contribution of all the business units and all the geographical areas, especially Europe (+9.3%) and North America (+23.2%), with the sole exception of South America. EBITDA came to € 91.3 million, up by 13.1% compared to € 80.8 million in the first nine months of 2014, with a ratio to sales stable at 8.1%. In the first nine months of the year non-recurring expenses of € 16.8 million were posted (€ 17.9 million in the same period of 2014), of which € 11.8 million in the second quarter for an amount set aside to the product guarantee fund for Systèmes Moteurs and € 4 million for restructuring costs. In the first nine months Sogefi reported a positive net result of € 7.4 million (a loss of € 5.8 million in the same period of 2014) as an effect of the higher revenues, the better absorption of fixed costs and lower financial expense. Net financial debt stood at € 339.7 million at September 30 2015 (€ 304.3 million at December 31 2014). In October Sogefi put in place a new more streamlined and product-oriented internal organization, setting up three

Business Units

:

Suspension, Filtration, and Air&Cooling

. The central functions were reduced from seven to three:

Finance, Information Systems and Administration; Human Resources; Innovation and Product Marketing

. For further information on the results of Sogefi, see the press release published by the company on October 23 (

http://goo.gl/jZXlnx).

Healthcare: KOS KOS is one of the largest groups in Italy in the sector of healthcare and care homes (care homes, rehabilitation centres, oncology treatment, diagnostics and management of hospital facilities). The group manages 77 facilities in Italy, mainly in the centre and north, for a total of around 7,300 beds. Controlled by CIR (51.3%), KOS also has the private equity fund Ardian group as a shareholder.

In the first nine months of 2015 KOS reported revenues of € 326.3 million (+12.6% compared to € 289.7 million in the same period of 2014), thanks partly to the acquisitions made during the year and to the organic growth of the businesses. EBITDA came to € 53.4 million, up by 20.8% from € 44.2 million in the first nine months of 2014. Net income was € 13.3 million, up from € 10.1 million in 2014. Net financial debt stood at € 218.3 million at September 30 2015. The increase compared to the figure of € 157 million at December 31 2014 was due mainly to the disbursements for the acquisitions made in the period and to investments in the development of the businesses. In the area of oncology treatment and diagnostics, activities are continuing in India through the joint venture

ClearMedi Healthcare Ltd

and in the United Kingdom through the subsidiary

Medipass Healthcare Ltd

. In October 2015 the KOS group opened a new facility in Turin.

Non-core investments

The

non-core investments

of the group consist of private equity initiatives, non-strategic shareholdings and other investments for a total value at September 30 2015 of € 139.2 million (€ 150.9 million at December 31 2014). More specifically, the CIR group has a diversified portfolio of funds in the private equity sector (with a fair value at September 30 2015 of € 62.3 million, down by € 5.4 million compared to December 31 2014). Total distributions in the period amounted to € 20 million, generating a capital gain of € 11.4 million. As for non-strategic equity investments, the value of these at September 30 2015 was € 33.1 million. In particular, at the end of the period the group was holding an interest of around 17.4% in the company

Swiss Education Group (SEG)

, a world leader in managerial training in the hospitality sector: the value of the investment in the education sector was € 22.4 million. Lastly, the CIR group has a portfolio of non-performing loans, the value of which was € 43.8 million at September 30 2015.

Events following the end of the quarter and outlook for the full year 2015

On October 26 the CIR group reached an agreement with a group of investors involving the sale of the holding in

SEG

for the sum of € 64.1 million euro. The sale is expected to complete in the month of November. Once the deal is completed, it will give the CIR group a capital gain of € 42.1 million euro in the fourth quarter of 2015. The performance of the CIR group in the last quarter of the year will be also affected by the evolution of the Italian economic environment, the impact of which is significant particularly for the media sector, and by the performance of the main world car markets for the automotive components sector. For the whole year, the group should obtain a significantly positive net result after the loss in 2014, unless there are any events of an extraordinary nature that cannot be foreseen at present.

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