Sogefi Shareholders approve the 2008 financial statements

Milan, 23 April 2009 – The Ordinary and Extraordinary Shareholders’ Meeting of Sogefi SpA, chaired by Mr. Rodolfo De Benedetti, met today in Milan.
Approval of the 2008 financial statements 
The Ordinary Meeting approved the statutory financial statements and examined the consolidated group statements for FY 2008.
Sogefi  group’s  results  for  2008  were  significantly  impacted  by  the  profound  crisis  affecting  the  world automobile market, especially in the fourth quarter of the year. The sharp falloff in demand took its toll on group revenues and earnings. Consolidated revenues came to Euro 1,017.5 million, down 5.1% from Euro 1,071.8 million  in 2007. Consolidated EBITDA  fell  to Euro 104.9 million  from 134.6 million  in 2007, while consolidated EBIT came to 62.4 million (89.9 million in 2007). Net profits were Euro 28.5 million, compared with  the  previous  year’s  52.2 million. Net profits  for  the parent  Sogefi  SpA  grew  by 12.2%  to Euro  29.2 million compared with 26 million in 2007.
The Shareholders’ Meeting approved the Board of Directors’ proposal not to distribute dividends for 2008 in order to reinforce the balance sheet and allow the company greater resources to develop business in the current difficult climate for the automotive industry.
Renewed powers to buy back shares
The Meeting also renewed for a period of 18 months the Board’s powers to buy back a maximum 4,000,000 shares (including treasury shares already held) within a 10% price band above and below the quoted stock price at the close of trading immediately prior to each purchase. The principle motives behind this proposal is to enable investment in company shares at prices below their effective value based on the real size of the company’s assets and earnings potential, while at the same time lowering the average cost of capital for the
As  of  31 December 2008  the portfolio  contained  1,956,000 own  shares or 1.68%  of  capital.    This  figure remained unchanged at 31 March 2009.
Stock option plans
The  Shareholders’  Meeting  approved  a  2009  stock  options  plan  for  group  management  and  an extraordinary stock option plan  for managers still employed by the company and current beneficiaries of the  2007  and  2008  phantom  stock  options  plans;  this  will  replace  the  two  earlier  plans  at  the  same conditions. Details on the options awarded can be found in the prospectuses already in the public domain. 
Appointment of the Board of Statutory Auditors
The  Shareholders’ Meeting  appointed  the  Board  of  Statutory  Auditors  for  the  three  years  2009-2011, confirming Angelo Girelli  (Chairman), Riccardo Zingales and Giuseppe Leoni  (Acting Statutory Auditors)  in their positions. The auditors were selected from the only list presented by the majority shareholder CIR SpA.
The chairman and acting auditors do not hold shares  in  the company. The auditors’  resumés are available for viewing on the company web site
Board of Director’s Powers
The Extraordinary Shareholders’ Meeting voted  to  revoke and  renew,  for a period of 5 years,  the Board’s powers to raise capital by a maximum nominal amount of Euro 250 million by the  issue of shares, with or without share premium, including special categories; to raise capital by a maximum nominal amount of Euro 5.2 million,  by  issuing  a maximum  10,000,000  shares,  with  or without  share  premium  including  special categories, reserved for employees of the company and  its subsidiaries; to  issue,  in one or more tranches, bonds that may be converted into stock or carrying accessory rights to share ownership, up to the maximum amount permitted by law. 
The  Board  of  Directors,  exercising  the  powers  granted  to  it  by  the  Shareholders’ Meeting,  subsequently voted a capital increase for a total of 3,350,000 shares which will serve the ordinary and extraordinary 2009
stock option plans.

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