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 revenue | 1,991.8 | 1,936 |
| Results of financial management (2) | 13.8 | 18 |
| Profit (loss) from discontinued operations (3) | -30.9 | -294.7 |
| Total Economic Value generated directly | 1,974.7 | 1,659.3 |
| Remuneration of suppliers | 1,352.7 | 1,293.9 |
| Remuneration of personnel | 529.5 | 556.6 |
| Remuneration of lenders | 42.2 | 52.4 |
| Remuneration of third parties | 12.9 | -196.9 |
| Remuneration of Public Administration | 32.7 | 23.1 |
| Total Economic Value distributed | 1,970.2 | 1,729.1 |
| Profit (loss) attributable to the owners of the parent | 4.5 | -69.8 |
| Total Economic Value retained | 4.5 | -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.
