IRCE

Earnings Release • Sep 22, 2020

1ST Half 2020 Financial Results Presentation

IRCE Group – Contents

Company Profile

•Highlights •The Businesses •Production Plants

Financial Results

• •CopperandAluminiumPrice Trend
• •ProfitandLoss Statement
• •BalanceSheet
• •BusinessPerformance
• •Market Performance

IRCE Group – Highlights

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

I R C E To da y	U. m	st 1 H 2 0 2 0	st 1 H 2 0 1 9	F Y 2 0 1 9
Nu be f e loy m r o mp ee s	Nr	7 0 0	7 1 0	7 1 0
T U R N O V E R	Eu M r	1 3 6. 7	1 7 0. 5	3 1 1. 9
E B I T D A	Eu M r	2. 6	5. 5	7. 8
E B I T D A A d j *	Eu M r	2. 9	6. 6	9. 6
E B I T	Eu M r	( ) 1. 0	1. 9	0. 4
E B I T A d j *	Eu M r	( 0. 7 )	3. 0	2. 2
S f R E U L T t he io d o p er	Eu M r	( ) 0. 4	2. 6	1. 9

(*) Including gains/losses on copper derivatives transactions

History

1 9 4 7	C ( ) f I R E b i t t i i t i I l I t l i t h t h d t i t i e g a n s a c n m o a a e p r o c o n o m a g n e r e s v y y w u w
1 9 6 1	T h d h d i f P V C i l d l l b l t t t t t t e c o m p a n y s a r e e p r o u c o n o n s u a e o w v o a g e c a e s
1 9 9 6	T h G l i d h I l i S k E h t t t t e r o u p w a s s e o n e a a n o c x c a n g e
1 9 9 8	A i i i f S i D d N i j B V ( T h N h l d ) t t t c q u s o n o m r a a m e g e n e e e r a n s
2 0 0 1	f S ( ) A i i t i F D i L t d U K c q s o n o m s u
2 0 0 1	G S S T h l i t d t h t M k t t e r o u p w a s s e o n e a r a r e e g m e n
2 0 0 7	C f t t i B i l P l t o n s r u c o n o r a z a n
2 0 0 7	f S ( ) A i i t i t b l M t W i P. L t d I d i c q u s o n o a e a g n e r e n a
2 0 1 0	A i i i f I S O D R A G b H ( G ) t c q u s o n o m e r m a n y
2 0 1 5	N l f f i i P l d e w s a e s o c e n o a n
2 0 1 8	E b l i h d h C i C h i t t s a s e e o m p a n y n n a

IRCE Group works in two business areas:

•Magnet wires

•Energy cables

Sales breakdown by business areas

Sales breakdown by geographical area

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

WhiteGoods

Embraco (Nidec Group) BSH Secop Ceme Elica 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/Electronics

Siemens Schneider Electric EBM-Papst Mulfingen Panasonic Finder TE Connectivity Wuerth

IRCE Group – The Businesses >EnergyCables

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

Cable customers are divided into two main sectors:

Distributorsofelectrical material

Com-Cavi Spa Sonepar Tkd Kabel Gmbh

Industrialsector(whitegoods)

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

IRCEGroup–ProductionPlants

1. Im la P lan t o	3. Um be t i de P lan t 2. Gu l io i P lan t r g ne s	4. M ira do lo P lan t
5. T he Ne t he lan ds P lan t r	6. Un i te d K in do P lan t 7. Br i l P lan t g m az	9. Ge P lan t rm an y
1. I R C E Sp A He dq ter a ua r s – Im la I ta ly o –	Co d A lum in ium Ro d Ma t W ire p p er an un g ne d L V En Ca b les an erg y	Co d Ar 4 6, 0 0 0 Sq ve re ea : m Em loy 2 4 0 p ee s:
2. I R C E Sp A Gu l ion i I ta ly g es -	L V / M V En Ca b les erg y	Co d Ar 2 4, 0 0 0 Sq ve re ea : m 8 0 Em loy p ee s:
3. I R C E Sp A Um be t i de I ta ly r -	Co d A lum in ium Ro d Ma t W ire p p er an un g ne	Co d Ar 1 9, 4 0 0 Sq ve re ea : m Em loy 4 5 p ee s:
4. I R C E Sp A M ira do lo I ly ta –	Po Co ds i h P lug t we r r w s	Co d Ar 0 0 Sq 5, 5 ve re ea : m Em loy 3 0 p ee s:
5. Sm i t Dr d N i j B V aa me g en N i j T he Ne t he lan ds me g en r –	Co Re tan lar Ma t W ire p p er c g g ne u Co t inu ly Tr d Ca b le ( C T C ) n ou s an sp os e	Co d Ar 9, 8 0 0 Sq ve re ea m : Em loy 8 5 p ee s:
6. F D S im L d t s B lac k bu U K rn –	Co d A lum in ium Ro d d Re lar Ma W ire tan t p p er an un an c g u g ne	Co d Ar 7, 0 0 0 Sq ve re ea : m Em loy 4 0 p ee s:
C 7. I R E L t da Jo inv i l le Br i l az -	Co d A lum in ium Ro d d Re tan lar Ma t W ire p p er an un an c g g ne u Co t inu ly Tr d Ca b le ( C T C ) n ou s an sp os e	Co Sq d Ar 2 1, 5 0 0 ve re ea m : Em loy 1 0 5 p ee s:
8. S ta b le Ma t W ire P. L t d. g ne Co h in In d ia c –	Co Ro d Ma t W ire p p er un g ne	Em loy 2 6 p ee s:
S O Gm 9. I D R A b H -G K ier sp e erm an y	Co Ro d Ma t W ire p p er un g ne	Em loy 1 5 p ee s:

IRCE Group – Contents

Company Profile

• •Highlights
• •TheBusinesses
• •Production Plants

Financial Results

• •CopperandAluminiumPrice Trend
• •ProfitandLoss Statement
• •BalanceSheet
• •BusinessPerformance
• •Market Performance

IRCE Group –Copper and Aluminium price trend

IRCE Group –Profit and Loss Statement

Eu i l l ion ro m	st 1 H 2 0 2 0	% T urn	st 1 H 2 0 1 9	% T urn	ha % c ng e	F Y 2 0 1 9	% T urn	F Y 2 0 1 8	% T urn	F Y 2 0 1 7	% T urn
Ho llow tur ires nov er w	24. 6		31. 4		-21 .7%	56. 4		60. 3		63. 7
Ho llow tur abl nov er c es	6.3		7.5		-16 .0%	14. 0		17. 2		16. 0
Tot al h oll tu ow rno ver	30. 9		38. 9		-20 .6%	70. 4		77. 5		79. 7
TU RN OV ER (c r in clu de d) op pe	136 .7	10 0 .0%	170 .5	10 0 .0%	-19 .8%	311 .9	100 .0 %	355 .4	10 0.0 %	357 .1	100 .0 %
Oth inc er om e	0.6	0.4%	0.5	0.3%	20. 0%	1.0	0.3%	1.0	0.3%	0.7	0.2%
TO TA L R EV EN UE S	137 .3	10 0 .4%	171 .0	10 0 .3%	-19 .7%	312 .9	100 .3 %	356 .4	10 0.3 %	357 .8	100 .2 %
Co st o f m ate ria l in clu din ha in sto ck g c nge	( 108 .7)	79.5 % -	( 134 .1)	78.7 % -	-18 .9%	( 246 .1)	78.9 % -	( 279 .1)	78.5 % -	( 273 .8)	76.7 % -
Pe l co sts rso nne	( 14. 3)	10.5 % -	( 15. 8)	9.3% -	-9.5 %	( 30. 2)	9.7% -	( 32. 4)	9.1% -	( 31. 8)	8.9% -
Oth ts a nd vic er cos ser es	( 7) 11.	8.6% -	( 6) 15.	9.1% -	.0% -25	( 8) 28.	9.2% -	( 9) 29.	8.4% -	( 8) 33.	9.5% -
EB ITD A	2.6	1.9 %	5.5	3 .2%	-52 .7%	7.8	2 .5 %	15. 0	4.2 %	18. 4	5 .2 %
De cia tio d p isio pre ns an rov ns	( 3.6 )	2.6% -	( 3.6 )	2.1% -	0.0 %	( 7.4 )	2.4% -	( 7.5 )	2.1% -	( 8.4 )	2.4% -
EB IT	( 1.0 )	0 .7% -	1.9	1.1%	-15 2.6 %	0.4	0.1 %	7.5	2 .1%	10. 0	2 .8 %
Co r d eri ive vat ppe s	0.3	0.2%	1.1	0.6%	-72 .7%	1.8	0.6%	2.5	0.7%	( 1.9 )	0.5% -
Ne t fi nci al cha na rge s	0.4	0.3%	0.3	0.2%		0.5	0.2%	0.2	0.1%	0.1	0.0%
RE SU LT BE FO RE TA XE S ( EB T)	( 0.3 )	0 .2% -	3.3	1.9 %	-10 9.1 %	2.7	0 .9 %	10. 2	2.9 %	8.2	2 .3 %
Ta xe s	( 0.1 )	0.1% -	( 0.7 )	0.4% -	85. 7%	( 0.7 )	0.2% -	( 4.3 )	1.2% -	( 3.6 )	1.0% -
S R E U L T n tro l l ing in te ts on -co n res	( 0.4 )	0 .3% -	2.6	1.5 %	-11 5.4 %	2.0	0 .6 %	5.9	1.7 %	4.6	1.3 %
Min ori tie s	0.0	0.0%	0.0	0.0%	-	( 0.1 )	0.0%	0.0	0.0%	0.1	0.0%
R E S U L T O F T H E P E R I O D	( 0. 4 )	0 .3% -	2. 6	1.5 %	-1 1 4. 2 %	1. 9	0 .6 %	5. 9	1.7 %	4. 7	1.3 %

EB ITD A	2.6	% 1.9	5.5	.2% 3	-52 .7%	7.8	% 2 .5	15. 0	% 4.2	18. 4	% 5 .2
Co r d eri vat ive ppe s	0.3	0.2%	1.1	0.6%		1.8	0.6%	2.5	0.7%	( 1.9 )	0.5% -
EB ITD A A dju d ( *) ste	2.9	2.1 %	6.6	3 .9%	-56 .1%	9.6	3.1 %	17. 5	4.9 %	16. 5	4 .6 %
De cia tio nd vis ion pre n a pro s	( 3.6 )	2.6% -	( 3.6 )	2.1% -		( 7.4 )	2.4% -	( 7.5 )	2.1% -	( 8.4 )	2.4% -
EB IT A dju ste d ( *)	( 0.7 )	0 .5% -	3.0	1.8 %	-12 3.3 %	2.2	0 .7 %	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 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	% -0. 8	% 3. 2	% 1. 2	% 5. 3	% 4. 5

IRCE Group –Balance sheet

Eu i l l ion ro m	3 0 Ju 2 0 2 0 ne	%	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 ita l ca p	122 .5	76. 9%	132 .0	75. 9%	149 .8	78. 4%	147 .2	78. 9%
Fix ed Ass ets	46. 0	28. 9%	51. 9	29. 8%	52. 7	27. 6%	54. 9	29. 4%
Oth ets d l iab ilit ies er ass an	-9.2	-5.8 %	-10 .0	-5.8 %	-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 9. 3 5	100 .0%	1 3. 9 7	100 .0%	1 9 1. 0	100 .0%	1 8 6. 5	100 .0%
Sh ho lde rs' Equ ity are	120 .8	8% 75.	131 .5	6% 75.	131 .3	7% 68.	132 .4	0% 71.
Ne t F ina nci al De bt	38. 5	24. 2%	42. 4	24. 4%	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 5 9. 3	100 .0%	1 7 3. 9	100 .0%	1 9 1. 0	100 .0%	1 8 6. 5	100 .0%

C A P E X	0. 8	6. 1	6. 5	9 5.

IRCE Group –Business Performance

TURNOVER and HOLLOW TURNOVER

16.5 17.5 9.6 2.9 8.1 10.0 2.2 -0.7 -5.0 0.0 5.0 10.0 15.0 20.0 2017 2018 2019 1st H 2020 Euro million

EBITDA Adj EBIT Adj

EBITDA Adjusted and EBIT Adjusted

NET CAPITAL EMPLOYED and NET FINANCIAL DEBT

NET WORKING CAPITAL

IRCE Group –Market Performance