Value creation

The creation of value has always been the CIR group’s chief goal. Our holding company is historically a long-term investor and does not limit itself to the results of single years. 

Generating value means adopting initiatives and behaviors that allow the group and its subsidiaries to work with success in their various markets, achieving results that are sustainable over time. This approach to entrepreneurship guides the strategies and operational management of KOS and Sogefi.

Economic value generated and distributed

The Economic Value prospectus is a reclassification of our Consolidated Income Statement and represents the wealth produced and distributed by the CIR group. In particular, the prospectus presents the economic performance of operations and the wealth distributed to subjects considered bearers of interest, therefore the group’s capacity to create value for its stakeholders. To determine the formation of Economic Value, we were inspired by the methodology prepared by the Gruppo di studio per il Bilancio Sociale (GBS).

Operating revenue comprises revenue from the products sold by the group in its various sectors of activity; together with other income, net of depreciation, amortisation, impairment and changes in inventories.

The results of financial management comprise income/expense from dividends, security trading, interest income on bank current and deposit accounts, and income/expense from equity-accounted investees.

The above elements comprise the Economic Value generated directly, which amounted to € 1,659.3 million in 2019.

The Economic Value distributed, comprises remuneration of suppliers, personnel, lenders, third parties, Public administration, amounted € 1,729,1 million in 2019.

Prospectus of Economic Value of the CIR group in 2019

(€ millions)

 2018 (1)2019
Operating revenue1,991.81,936
Results of financial management (2)13.818
Profit (loss) from discontinued operations (3)-30.9-294.7
Total Economic Value generated directly1,974.71,659.3
Remuneration of suppliers1,352.71,293.9
Remuneration of personnel 529.5556.6
Remuneration of lenders 42.252.4
Remuneration of third parties12.9-196.9
Remuneration of Public Administration 32.723.1
Total Economic Value distributed 1,970.2 1,729.1
Profit (loss) attributable to the owners of the parent4.5-69.8
Total Economic Value retained4.5-69.8

(1) Certain 2018 amounts, relating to the “assets held for sale”, have been reclassified to “profit (loss) from discontinued operations” following the application of IFRS 5 “non-current assets held for sale and discontinued operations”.

(2) This amount does not include financial charges that, for the sake of consistency, are presented in other captions.

(3) This amount reflects the adjustment to the group income statement deriving from the application of IFRS 5. The amount principally relates to the disposal to EXOR of the controlling interest held in the GEDI group.