PRESS RELEASE

Board of Directors approves results as of September 30 2017

COFIDE GROUP: REVENUES AT € 2,056.6 MLN (+5.6%), EBITDA AT € 215.5 MLN (+12.6%) NET RESULT BEFORE GEDI EXTRAORDINARY TAX CHARGE: € 23.8 MLN (€ 24.2 MLN AT 30/9/2016) Financial highlights for 9M 2017

(in millions of €)

9M 2016

9M 2017

Δ%

Revenues

1,946.7

2,056.6

+5.6%

EBITDA

191.4

215.5

+12.6%

Net result

Net financial debt

24.2

31/12

166.9

-14.9

30/9

162.8

Milan, October 27 2017 - The Board of Directors of COFIDE-Gruppo De Benedetti S.p.A., which met today in Milan under the chairmanship of Rodolfo De Benedetti, has approved the Interim Financial Report as of September 30 2017.

COFIDE is the controlling shareholder of CIR-Compagnie Industriali Riunite S.p.A., the company at the head of an industrial group active mainly in the media sector (GEDI Gruppo Editoriale), in automotive components (Sogefi) and healthcare (KOS). The COFIDE group also has financial investments in Jargonnant, the private equity fund specializing in real estate assets in Germany and Eastern Europe, and in Three Hills Decalia, the investment fund that supports the growth of small and medium European enterprises.

Consolidated results and results of the parent company

The revenues of the COFIDE group in the first nine months of 2017 totalled € 2,056.6 million, up by 5.6% from € 1,946.7 million in the same period of 2016. The increase reflects the performance of the revenues of the CIR group, driven by the positive evolution of all the subsidiaries.

EBITDA came to € 215.5 million (10.5% of revenues), up by 12.6% from € 191.4 million (9.8% of revenues) in the first nine months of 2016. The figure benefited from the higher EBITDA of the CIR group.

In the first nine months of 2017 the COFIDE group reported a negative net result of € 14.9 million compared to net income of € 24.2 million in the same period of the previous year. The result consisted of the loss of the parent company COFIDE S.p.A. of € 0.6 million (versus earnings of € 3.8 million in the first nine months of 2016, because of lower gains from trading securities) and the negative contribution of € 14.3 million by the subsidiary CIR (compared to a positive contribution of € 20.4 million in 2016). CIR reported a consolidated loss of € 26 million resulting from the significant extraordinary tax charge incurred by its subsidiary GEDI for the settlement of a dispute pending in the Court of Cassation for events going back to 1991. Excluding the effects of this charge, the net result of the COFIDE group in the first nine months of 2017 would have been € 23.8 million.

The consolidated net debt of the COFIDE group totalled € 162.8 million at September 30 2017 compared to €

166.9 million at December 31 2016 and € 192.5 million at June 30 2017.

The net financial debt of COFIDE S.p.A. came to € 30.8 million at September 30 2017 (€ 23.3 million at December 31 2016). The increase was mainly due to the buyback of own shares for € 9.6 million offset by the receipt of dividends, net of those paid out, of € 3.9 million.

Total consolidated equity stood at € 1,443.4 million at September 30 2017, down from € 1,506.9 million at

December 31 2016.

The consolidated equity of the group amounted to € 506.5 million at September 30 2017 versus € 563.4 million at December 31 2016. The change was essentially due to the loss for the period, to the dilution resulting from the merger of the ITEDI Group into GEDI, the distribution of dividends and the buyback of own shares.

The value of the investment in the Jargonnant fund was € 4.3 million at September 30 2017, down from € 6.3 million at the end of 2016 after distributions and capital repayments. The COFIDE group also has an investment in the Three Hills Decalia fund, specializing in small and medium enterprises in Europe: the value of the investment at September 30 2017 was € 7.3 million, up from € 5.6 million at the end of 2016.

At September 30 2017 the COFIDE group had 15,596 employees (14,329 at December 31 2016).

Outlook for 2017

Excluding the tax charge incurred by GEDI, for the whole year the COFIDE group expects to confirm the positive results obtained in the first nine months, unless there are any extraordinary events that cannot yet be foreseen.

***

For further information on the results of the subsidiary CIR, see the press release issued by the company earlier today (goo.gl/Uhf5Mc).

***

The executive responsible for the preparation of the company's financial statements, Giuseppe Gianoglio, hereby declares, in compliance with the terms of paragraph 2 Article 154 bis of the Finance Consolidation Act (TUF), that the figures contained in this press release correspond to the results documented in the company's accounts and general ledger.

Contacts:

CIR Group Communication Department

Mariella Speciale Tel.: +39 02 722701

  1. ail: infostampa@cirgroup.it www.cofide.it

    ***

    ***

    Alternative performance indicators

    Below the meaning and content are given of the "alternative performance indicators", not envisaged by IFRS accounting standards but used in this press release to provide a better evaluation of the economic and financial performance of the COFIDE group.

    • EBITDA (gross operating margin): an indicator of operating performance calculated by adding "amortization, depreciation and write- downs" to the EBIT figure (earnings before financial items and taxes);

    • Consolidated net financial debt: an indicator of the financial structure of the group; it is the algebraic sum of financial receivables, securities, available-for-sale financial assets and cash and cash equivalents in current assets, of bonds and other borrowings in non- current liabilities, and of bank overdrafts, bonds and other borrowings in current liabilities.

Attached are key figures from the consolidated statement of financial position and income statement.

It should be noted that these statements have not been subject to audit by the firm of auditors.

Consolidated Statement of Financial Position

(in thousands of euro)

ASSETS

30.09.2017

30.06.2017

31.12.2016

NON-CURRENT ASSETS

2,172,751

2,187,981

2,070,459

INTANGIBLE ASSETS

1,129,246

1,108,989

988,003

TANGIBLE ASSETS

672,957

682,224

671,159

INVESTMENT PROPERTY

19,624

19,767

20,144

INVESTMENTS IN COMPANIES CONSOLIDATED AT EQUITY

124,962

125,041

129,987

OTHER EQUITY INVESTMENTS

6,526

6,547

5,323

OTHER RECEIVABLES

58,821

78,465

79,099

SECURITIES

75,154

78,569

85,009

DEFERRED TAXES

85,461

88,379

91,735

CURRENT ASSETS

1,387,419

1,376,325

1,349,077

INVENTORIES

144,331

145,052

137,406

CONTRACTED WORK IN PROGRESS

40,311

43,034

40,947

TRADE RECEIVABLES

435,666

462,697

414,246

OTHER RECEIVABLES

111,351

108,587

92,863

FINANCIAL RECEIVABLES

11,892

19,211

30,183

SECURITIES

61,300

64,834

66,157

AVAILABLE-FOR-SALE FINANCIAL ASSETS

232,573

232,571

234,012

CASH AND CASH EQUIVALENTS

349,995

300,339

333,263

ASSETS HELD FOR DISPOSAL

25,747

3,418

3,418

TOTAL ASSETS

3,585,917

3,567,724

3,422,954

LIABILITIES AND EQUITY

30.06.2017

31.12.2016

EQUITY

1,443,434

1,579,196

1,506,896

ISSUED CAPITAL

359,605

359,605

359,605

less OWN SHARES

(8,082)

(6,170)

--

SHARE CAPITAL

351,523

353,435

359,605

RESERVES

72,222

73,227

95,041

RETAINED EARNINGS (LOSSES)

97,759

97,759

87,519

NET INCOME (LOSS) FOR THE YEAR

(14,948)

14,629

21,249

EQUITY OF THE GROUP

506,556

539,050

563,414

MINORITY SHAREHOLDERS' EQUITY

936,878

1,040,146

943,482

NON-CURRENT LIABILITIES

1,060,045

1,029,660

975,300

BONDS

265,837

266,201

283,742

OTHER BORROWINGS

397,493

345,013

311,815

OTHER PAYABLES

15,441

15,391

15,175

DEFERRED TAXES

179,715

180,744

149,833

PERSONNEL PROVISIONS

140,498

140,186

131,058

PROVISIONS FOR RISKS AND LOSSES

61,061

82,125

83,677

CURRENT LIABILITIES

1,077,475

958,868

940,758

BANK OVERDRAFTS

16,078

18,273

12,771

BONDS

20,258

19,979

20,980

OTHER BORROWINGS

118,862

159,980

201,179

TRADE PAYABLES

439,168

455,579

433,354

OTHER PAYABLES

404,138

215,694

199,697

PROVISIONS FOR RISKS AND LOSSES

78,971

89,363

72,777

LIABILITIES HELD FOR DISPOSAL

4,963

--

--

TOTAL LIABILITIES AND EQUITY

3,585,917

3,567,724

3,422,954

Consolidated Income Statement

(in thousands of euro)

1/1-30/9

1/1-30/9

3rd Quarter

3rd Quarter

2017

2016

2017

2016

SALES REVENUES

2,056,543

1,946,673

664,183

627,527

CHANGE IN INVENTORIES

72

5,910

(2,415)

4,585

COSTS FOR THE PURCHASE OF GOODS

(782,554)

(740,820)

(245,852)

(242,774)

COSTS FOR SERVICES

(488,902)

(452,980)

(162,421)

(144,992)

PERSONNEL COSTS

(538,189)

(529,560)

(175,372)

(165,573)

OTHER OPERATING INCOME

20,635

17,760

7,478

5,780

OTHER OPERATING COSTS

(52,138)

(55,596)

(17,677)

(17,406)

AMORTIZATION, DEPRECIATION & WRITEDOWNS

(94,671)

(87,337)

(29,485)

(28,561)

INCOME BEFORE FINANCIAL ITEMS

AND TAXES (EBIT)

120,796

104,050

38,439

38,586

FINANCIAL INCOME

7,677

9,375

2,424

3,440

FINANCIAL EXPENSE

(40,268)

(44,142)

(13,611)

(13,124)

DIVIDENDS

61

11,949

21

3,996

GAINS FROM TRADING SECURITIES

19,051

13,240

9,947

3,187

LOSSES FROM TRADING SECURITIES

(33)

(563)

--

(25)

ADJUSTMENT TO THE VALUE OF INVESTMENTS

CONSOLIDATED AT EQUITY

(743)

2,890

(79)

704

ADJUSTMENTS TO THE VALUE OF FINANCIAL ASSETS

320

3,466

(996)

2,033

INCOME BEFORE TAXES

106,861

100,265

36,145

38,797

INCOME TAXES

(189,315)

(35,675)

(164,592)

(18,473)

RESULT AFTER TAXES FROM OPERATING ACTIVITY

(82,454)

64,590

(128,447)

20,324

NET INCOME/(LOSS) FROM OPERATIONS HELD

FOR DISPOSAL

1,161

1,000

161

--

NET INCOME FOR THE PERIOD INCLUDING

MINORITY INTERESTS

(81,293)

65,590

(128,286)

20,324

- (NET INCOME) LOSS OF MINORITY

SHAREHOLDERS

66,345

(41,407)

98,709

(13,684)

- NET INCOME (LOSS) OF THE GROUP

(14,948)

24,183

(29,577)

6,640

COFIDE – Gruppo De Benedetti S.p.A. published this content on 27 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 October 2017 16:17:11 UTC.

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