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IRCE

Investor Presentation Mar 24, 2021

4035_ip_2021-03-24_d416552b-55ec-44ce-b213-d0a15912d8a3.pdf

Investor Presentation

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FY 2020 Financial Results Presentation

IRCE Group – Contents

Company Profile

•Highlights•The Businesses •Production Plants

Financial Results

  • •Copper and Aluminium Price Trend
  • •Profit and Loss Statement
  • •Balance Sheet
  • •Business Performance
  • •Market Performance

IRCE Group – Highlights

IRCE is a leading European Group operating in the industries of magnet wires and cables

I
R
C
E
To
da
y
U.
m
F
Y
2
0
2
0
F
Y
2
0
1
9
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be
f e
loy
m
r o
mp
ee
s
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0
8
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1
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Eu
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r
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3
1
1.
9
E
B
I
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A
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A
d
j
*
Eu
M
r
Eu
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r
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0.
8
1
2.
2
7.
8
9.
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E
B
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*
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r
Eu
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r
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4
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2
R
E
S
U
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f
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he
io
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o
p
er
Eu
M
r
2.
7
1.
9

(*) Including gains/losses on copper and energy derivatives transactions

History

1
9
4
7
I
R
C
E
be
i
ts
t
iv
i
ty
in
Im
la
(
I
ta
ly
)
i
t
h
t
he
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ion
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t w
ire
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he
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l
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l
ian
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k
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ha
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ou
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on
c
c
ng
e
1
9
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8
f
Sm
(
)
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is
i
t
ion
i
t
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d
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j
B
V
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he
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t
he
lan
ds
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o
aa
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en
r
2
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0
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Ac
is
i
ion
f
F
D
S
im
L
d
(
U
K
)
t
t
q
u
o
s
2
0
0
1
T
he
Gr
l
is
d
he
S
Ma
ke
Se
te
t
ta
t
t
ou
p
wa
s
on
r
r
g
m
en
  • 2007 Construction of Brazil Plant
  • 2007 Acquisition of Stable Magnet Wire P. Ltd (India)
  • 2010 Acquisition of ISODRA GmbH (Germany)
  • 2015 New sales office in Poland
  • 2018 Established the Company in China

  • Magnet wires

  • Energy cables

Magnet Wires

Magnet wires, also known as winding wires or enamelled wires, have multiple applications such as electric motors, generators, transformers, compressors, inductors, relays, solenoid valves, etc. The wire is insulated through the application of many layers of enamels by means of highly sophisticated processes and machines, which demand high levels of investments and large scale of productions.

Energy Cables

Cables produced by the Group encompass the complete range of Low Voltage and Medium Voltage building and industrial cables, and power cords with plugs. Cables can be insulated with PVC, rubber, polyethylene, etc.. They are used for the construction of electricity plants in residential and industrial buildings and for the wiring and cabling of electrical appliances. The principal final industry sectors are the construction industry, housing and industrial applications, and consumer durables industries (domestic appliances and other electrical appliances).

>Magnet Wires

>Market share

In the Magnet Wire business IRCE manufactures and sales the complete range of products, and is mainly engaged in the segments of the fine and medium wires. It mainly operates in Europe, where it is third by size.

>Magnet Wires

> Major customers by sectors

White Goods

Embraco (Nidec Group) BSHSecopCemeElica Spa A.R.S. Elettromeccanica Cebi Group Domel D.O.O.

Automotive

Denso Manufacturing Robert Bosch Mahle Group G. Cartier Technologies Hanon Systems Buehler motor GmbH Spal Automotive Srl Bontaz

Electromechanical/ElectronicsSiemens

Schneider Electric EBM-Papst Mulfingen PanasonicFinderTE Connectivity Wuerth

>Energy Cables

The group produces the full range of low and medium voltage cables and cords with plugs.

Cable customers are divided into two main sectors:

Distributors of electrical material

Com-Cavi Spa SoneparTkd Kabel Gmbh

Industrial sector (white goods)

Whirlpool Group Electrolux Group Unionalpha Spa (Indesit Group supplier) Batav Srl (Indesit Group supplier) Selectra Srl Bitron SpA

IRCE Group – Production Plants

1.
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la
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lan
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o
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IRCE Group – Contents

Company Profile

  • •Highlights
  • •The Businesses
  • •Production Plants

Financial Results

  • •Copper and Aluminium Price Trend
  • •Profit and Loss Statement
  • •Balance Sheet
  • •Business Performance
  • •Market Performance

IRCE Group – Copper and Aluminium price trend

IRCE Group – Profit and Loss Statement

Eu
i
l
l
ion
ro
m
F
Y
2
0
2
0
% T
urn
F
Y
2
0
1
9
% T
urn
ha
%
c
ng
e
F
Y
2
0
1
8
% T
urn
F
Y
2
0
1
7
% T
urn
Ho
llow
tu
wi
rno
ver
res
51.
8
56.
4
-8.
2%
60.
3
63.
7
Ho
llow
tu
ble
rno
ver
ca
s
16.
5
14.
0
9%
17.
17.
2
16.
0
To
tal
ho
llo
w t
urn
ov
er
68.
3
70.
4
-3.
0%
77.
5
79.
7
TU
RN
OV
ER
(c
r in
clu
de
d)
op
pe
295
.3
10
0.
0
%
31
1.9
100
0
%
-5.
3%
355
.4
10
0 .
0
%
357
.1
100
0%
Oth
inc
er
om
e
0.8 0.3
%
1.0 0.3
%
-20
.0%
1.0 0.3
%
0.7 0.2
%
TO
TA
L R
EV
EN
UE
S
296
.1
%
10
0.
3
312
.9
%
100
3
-5.4
%
356
.4
%
10
0 .
3
357
.8
2%
100
Co
st o
f m
ate
ria
l in
clu
din
ha
e i
toc
k
g c
ng
n s
(
)
23
1.8
78.
5%
-
(
.1)
246
78.
9%
-
8%
-5.
(
.1)
279
78.
5%
-
(
.8)
273
76.
7%
-
Pe
el
sts
rso
nn
co
(
28
.5)
9.7
%
-
(
30.
2)
9.7
%
-
-5.
6%
(
32.
4)
9.1%
-
(
31.
8)
8.9
%
-
Oth
nd
rvi
ts a
er
cos
se
ce
s
(
25
.0)
8.5
%
-
(
28.
8)
9.2
%
-
-13
.2%
(
29.
9)
8.4
%
-
(
33.
8)
9.5
%
-
EB
ITD
A
10.
8
%
3.
7
7.8 %
2 .
5
38.
5%
15.
0
%
4 .
2
18.
4
2%
5 .
De
cia
tio
d p
isio
pre
ns
an
rov
ns
(
)
7.6
2.6
%
-
(
)
7.4
2.4
%
-
%
2.7
(
)
7.5
2.1%
-
(
)
8.4
2.4
%
-
EB
IT
3.2 1.
1%
0.4 0 .
1%
700
.0%
7.5 2 .
1%
10.
0
2 .
8%
Co
d e
de
riv
ati
pp
er
an
ne
rgy
ve
s
1.4 0.5
%
1.8 0.6
%
-22
.2%
2.5 0.7
%
(
1.9
)
0.5
%
-
Ne
t fi
nci
al
ch
na
arg
es
(
0.3
)
0.1%
-
0.5 0.2
%
0.2 0.1% 0.1 0.0
%
RE
SU
LT
BE
FO
RE
TA
XE
S (
EB
T)
4.3 1.
5
%
2.7 0 .
9
%
59.
3%
10.
2
2 .
9
%
8.2 2 .
3%
Ta
xe
s
(
1.6
)
0.5
%
-
(
0.7
)
0.2
%
-
-12
8.6
%
(
4.3
)
1.2%
-
(
3.6
)
1.0%
-
R
E
S
U
T
l
l
ing
in
L
tro
te
ts
no
n-
co
n
re
s
2.7 0.
9
%
2.0 0 .
6
%
35.
0%
5.9 1.7
%
4.6 1.
3%
Mi
riti
no
es
(
)
0.0
0.0
%
(
)
0.1
0.0
%
- 0.0 0.0
%
0.1 0.0
%
R
E
S
U
T
O
F
T
H
E
P
E
R
I
O
D
L
2.
7
0.
9
%
1.
9
0 .
6
%
4
0.
%
5
9
5.
1.7
%
4.
7
1.
3%
EB
ITD
A
10.
8
3.
%
7
7.8 2 .
%
5
38.
5%
15.
0
4 .
2
%
18.
4
2%
5 .
Co
de
riv
ati
pp
er
ve
s
1.4 0.5
%
1.8 0.6
%
2.5 0.7
%
(
1.9
)
0.5
%
-
EB
ITD
A A
dju
ste
d (
*)
12.
2
4 .
1%
9.6 3 .
1%
27.
1%
17.
5
4 .
9
%
16.
5
4 .
6%
De
cia
tio
nd
isio
pre
n a
pr
ov
ns
(
)
7.6
2.6
%
-
(
)
7.4
2.4
%
-
(
)
7.5
2.1%
-
(
)
8.4
2.4
%
-
EB
IT
Ad
jus
ted
(
*)
4.6 1.
6
%
2.2 0 .
7
%
109
.1%
10.
0
2 .
8
%
8.1 2 .
3%

(*) For a better comparison of the operating results, we have introduced the concepts of EBITDA and EBIT Adjusted, that are equal to the traditional definitions plus income or loss on copper and energy derivatives transactions.

O
C
(
/
Ca
)
%
R
E
E
B
I
T
A
d
j.
Ne
t
i
ta
l
Em
loy
d
p
p
e
2.
%
7
1.
2
%
3
%
5.
4.
%
5

IRCE Group – Balance sheet

Eu
i
l
l
ion
ro
m
3
1
De
be
2
0
2
0
ce
m
r
% 3
1
De
be
2
0
1
9
ce
m
r
% 3
1
De
be
2
0
1
8
ce
m
r
% 3
1
De
be
2
0
1
7
ce
m
r
%
Ne
t w
ork
ing
ital
ca
p
128
.9
79.
4%
130
.2
75.
0%
149
.8
78.
4%
147
.2
78.
9%
Fix
ed
Ass
ets
43.
5
26.
8%
51.
9
29.
9%
52.
7
27.
6%
54.
9
29.
4%
Oth
d l
iab
iliti
ets
er
ass
an
es
-10
.1
-6.2
%
-8.6 -5.0
%
-11
.5
-6.0
%
-15
.6
-8.4
%
N
E
T
C
A
P
I
T
A
L
E
M
P
L
O
Y
E
D
1
6
2.
3
100
.0%
1
3.
7
5
100
.0%
1
9
1.
0
100
.0%
1
8
6.
5
100
.0%
Sh
hol
de
rs'
Equ
ity
are
122
.6
75.
5%
131
.5
75.
8%
131
.3
68.
7%
132
.4
71.
0%
Ne
t F
ina
nci
al
De
bt
39.
7
24.
5%
42.
0
24.
2%
59.
7
31.
3%
54.
1
29.
0%
F
I
N
A
N
C
I
N
G
A
N
D
E
Q
U
I
T
Y
1
6
2.
3
100
.0%
1
7
3.
5
100
.0%
1
9
1.
0
100
.0%
1
8
6.
5
100
.0%
C
A
P
E
X
2.
2
6.
1
6.
5
5.
9

IRCE Group – Business Performance

NET CAPITAL EMPLOYED and NET FINANCIAL DEBT

TURNOVER and HOLLOW TURNOVER

EBITDA Adjusted and EBIT Adjusted

186.5191.0173.5162.354.1 59.7 42.0 39.70.050.0100.0150.0200.0250.02017 2018 2019 2020 Euro million Net Capi tal Empl oyed Net Financi al Debt

NET WORKING CAPITAL

IRCE Group – Market Performance

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