CIR (AO) | Buy | New buyback on 10% of the shares could bring 4% NAV accretion

Research evidence excerpt

CIR (AO) | Buy | New buyback on 10% of the shares could bring 4% NAV accretion

on Euronext Milan through an authorised intermediary and are intended to optimise the capital

structure, while also repurchasing the remaining 17.8m shares that were not acquired under the tender offer completed at the

end of May, which was priced at EUR 0.70 per share.

Based on a preliminary calculation and assuming that the operation is fully executed at the proposed conditions, we would

remove 93m shares and EUR70m net cash (out of an estimated EUR130-140m net cash position) from our NAV calculation.

This would imply a positive impact of c4%, from EUR1.13 to EUR1.17.

Table 1:NAV calculation

Valuation Fair value Per share % on % on

CIR S.p.A. method EURm (EUR) GAV NAV

Sogefi Average Mkt price, KECH TP 149 0.18 19% 16%

Listed assets 149 0.18 19% 16%

KOS DCF+Opco/Propco 600 0.73 75% 64%

Private equity funds Book Value 57 0.07 7% 6%

Other non-core investments Book Value 1 0.00 0% 0%

Real estate External appraisal 5 0.01 1% 1%

Other assets (liabilities) Book Value (13) (0.02) -2% -1%

Non-listed assets 649 0.78 81% 70%

Gross asset value (GAV) 798 0.96 100% 86%

Net cash 2025E (after KOS) 134 0.16 14%

Net asset value (NAV) 932 1.13 100%

NOSH, net of treasury shares 827

Holding company discount 30%

Fair value (EUR/sh) 0.80

Potential upside/(downside) 14.6%

Current market price (EUR) 0.695

(Discount)/premium on NAV -38.3%

Source: Kepler Cheuvreux

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