IRCE

Investor Presentation • Sep 26, 2018

1 st Half 2018 Financial Results Presentation

st Half 2018, ISMO 2018 - Milan 27th September 2018 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

st 1 Half 2018, ISMO 2018 -	Milan 27th	September 2018
IRCE Group –	Highlights
IRCE is a leading European	Group	operating in the	industries of magnet	wires and cables
IRCE Today	1	st H 2018	FY 2017	U.m.
Number of employees		730	725	Nr
TURNOVER		192.5	357.1	Eur M
EBITDA		10.4	18.4	Eur M
EBIT		6.5	10.0	Eur M
NET RESULT		5.0	4.7	Eur M
		History
	1947				IRCE began its activity in Imola (Italy) with the production of magnet wires
	1961				The company started the production of PVC insulated low voltage cables
	1996			The Group was listed on the Italian Stock Exchange

History

IRCE Today	1	st H 2018	FY 2017	U.m.
Number of employees		730	725	Nr
		History
	1947			IRCE began its activity in Imola (Italy) with the production of magnet wires
	1961			The company started the production of PVC insulated low voltage cables
	1996			The Group was listed on the Italian Stock Exchange
	1998			Acquisition of Smit Draad Nijmegen BV (The Netherlands)
	2001		Acquisition of FD Sims Ltd (UK)
	2001			The Group was listed on the Star Market Segment
	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
Irce Spa Via Lasie, 12/A - 40026 Imola BO –	Italy www.irce.it				3

IRCE Group works in two business areas:

• Magnet wires

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

Via Lasie, 12/A - 40026 Imola BO – Italy www.irce.it 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 BSH Nidec Corporation Ceme Elica Spa A.R.S. Elettromeccanica Cebi Group Domel D.O.O. Denso Manufacturing Robert Bosch Mahle Group G. Cartier Technologies Magna Group Buehler motor GmbH

Automotive

Via Lasie, 12/A - 40026 Imola BO – Italy www.irce.it

Electromechanical/Electronics Siemens Schneider Electric EBM-Papst Mulfingen Cummins Generator Technologies Panasonic Finder Tyco Electronics Spal Automotive Srl

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:

Sonepar

Distributors of electrical material Com-Cavi Spa Tkd Kabel Gmbh Industrial sector (white goods) Whirlpool Group Electrolux Group Unionalpha Spa (Indesit Group supplier) Bata Srl (Indesit Group supplier) Selectra Srl Dieter Eifler Gmbh Bitron SpA

st 1 Half 2018, ISMO 2018 -
	Milan 27th September 2018
IRCE Group –	Production Plants
1. Imola Plant	3. Umbertide Plant 2. Guglionesi Plant	4. Miradolo Plant
5. The Netherlands Plant	6. United Kingdom Plant 7. Brazil Plant	9. Germany Plant
1. IRCE SpA – Headquarters Imola – Italy	Copper and Aluminium Round Magnet Wire and LV Energy Cables	Covered Area: 46,000 Sqm Employees: 250
2. IRCE SpA Guglionesi - Italy	LV/MV Energy Cables	Covered Area: 24,000 Sqm Employees: 80
3. IRCE SpA Umbertide - Italy	Copper and Aluminium Round Magnet Wire	Covered Area: 19,400 Sqm Employees: 45
4. IRCE SpA Miradolo – Italy	Power Cords with Plugs	Covered Area: 5,500 Sqm Employees: 35
5. Smit Draad Nijmegen BV Nijmegen – The Netherlands	Copper Rectangular Magnet Wire Continuously Transposed Cable (CTC)	Covered Area: 9,800 Sqm Employees: 105
6. FD Sims Ltd Blackburn – UK	Copper and Aluminium Round and Rectangular Magnet Wire	Covered Area: 7,000 Sqm Employees: 45
7. IRCE Ltda Joinville - Brazil	Copper and Aluminium Round and Rectangular Magnet Wire Continuously Transposed Cable (CTC)	Covered Area: 21,500 Sqm Employees: 90
8. Stable Magnet Wire P. Ltd. Cochin – India	Copper Round Magnet Wire	Employees: 28
	Copper Round Magnet Wire	Employees: 14

st Half 2018, ISMO 2018 - Milan 27th September 2018 IRCE Group – Contents

• •Highlights

• •The Businesses

• •Production Plants Financial Results •Copper and Aluminium Price Trend •Profit and Loss Statement •Balance Sheet •Business Performance •Market Performance

st 1 Half 2018, ISMO 2018 -	Milan 27th September		2018
IRCE Group – Profit	and Loss		Statement
Euro million	st H 2018 1	1 % Turn.	st H 2017	% Turn.	change %	FY 2017	% Turn.	FY 2016	% Turn.	FY 2015	% Turn.
Hollow turnover wires	32.7		34.4		-4.9%	63.7		59.7		63.7
Hollow turnover cables	9.6		7.2		33.3%	16.0		15.2		17.1
Total hollow turnover	42.3		41.6		1.7%	79.7		74.9		80.8
TURNOVER (copper included)	192.5 100	.0 %	185.7 10	0. 0%	3.7%	357.1 18	5. 5%	295.8 15	9.3 %	349.9	99 .8%
Other income	0.4	0.2%	0.3	0.2%	33.3%	0.7	0.4%	0.8	0.4%	0.6	0.2%
TOTAL REVENUES	192.9 100	.2 %	186.0 10	0. 2%	3.7%	357.8 18	5. 9%	296.6 15	9.7 %	350.5 100	.0 %
Cost of material including change in stock	(150.7)	- 78.3%	(139.1)	- 74.9%	8.3%	(273.8)	- 142.2%	(226.7)	- 122.1%	(275.7)	- 78.6%
Personnel costs	(16.2)	- 8.4%	(16.6)	- 8.9%	-2.4%	(31.8)	- 16.5%	(30.8)	- 16.6%	(32.4)	- 9.2%
Other costs and services	(15.6)	- 8.1%	(18.4)	- 9.9%	-15.2%	(33.8)	- 17.6%	(32.2)	- 17.3%	(34.2)	- 9.8%
EBITDA	10.4	5 .4 %	11.9	6.4 %	-12.6%	18.4	9.6 %	6.9	3.7 %	8.2	2 .3 %
Depreciation and provisions	(3.9)	- 2.0%	(4.5)	- 2.4%	-13.3%	(8.4)	- 4.4%	(8.0)	- 4.3%	(7.5)	- 2.1%
EBIT Copper derivatives	6.5 1.5	3 .4 % 0.8%	7.4 0.2	4.0 % 0.1%	-12.2% 650.0%	10.0 (1.9)	5.2 % - 1.0%	(1.1) 1.7	- 0 .6 % 0.9%	0.7 3.0	0 .2 % 0.9%
Net financial charges	0.2	0.1%	0.4	0.2%	50.0%	0.1	0.1%	(0.2)	- 0.1%	1.7	0.5%
RESULT BEFORE TAXES (EBT)	8.2	4 .3 %	8.0	4.3 %	2.5%	8.2	4.3 %	0.4	0.2 %	5.4	1.5%
Taxes	(3.2)	- 1.7%	(2.8)	- 1.5%	14.3%	(3.6)	- 1.9%	(0.7)	- 0.4%	(2.4)	- 0.7%
NET RESULT non-controlling interests	5.0	2 .6 %	5.2	2.8 %	-3.8%	4.6	2.4 %	(0.3)	- 0 .2 %	3.0	0 .9 %
Minorities	0.0	0.0%	0.5	0.3%	-	0.1	0.1%	0.1	0.1%	0.0	0.0%
NET RESULT	5.0	2 .6 %	5.7	3.1%	-12.3%	4.7	2.4 %	(0.2)	- 0.1%	3.0	0 .9 %
EBITDA	10.4	5 .4 %	11.9	6.4 %	-12.6%	18.4	9.6 %	6.9	3.7 %	8.2	2 .3 %
Copper derivatives	1.5	0.8%	0.2	0.1%		(1.9)	- 1.0%	1.7	0.9%	3.0	0.9%
EBITDA Adjusted (*)	11.9	6 .2 %	12.1	6.5 %	-1.7%	16.5	8.6 %	8.6	4.6 %	11.2	3 .2 %
	(3.9)	- 2.0%	(4.5)	- 2.4%		(8.4)	- 4.4%	(8.0)	- 4.3%	(7.5)	- 2.1%
Depreciation and provisions

EBITDA	10.4	5.4%	11.9	6.4%	$-12.6%$	18.4	9.6%	6.9	3.7%	8.2	2.3%
Copper derivatives	l.5	0.8%	0.2	0.1%		(1.9)	$-1.0%$	.	0.9%	3.0	0.9%
EBITDA Adjusted (*)	11.9	6.2%	12.1	6.5%	$-1.7%$	16.5	8.6%	8.6	4.6%	11.2	3.2%
Depreciation and provisions	(3.9)	$-2.0%$	(4.5)	$-2.4%$		(8.4)	$-4.4%$	(8.0)	$-4.3%$	(7.5)	$-2.1%$
EBIT Adjusted (*)	8.0	4.2%	7.6	4.1%	5.3%	8.1	4.2%	0.6	0.3%	3.7	1.1%

st Half 2018, ISMO 2018 - Milan 27th September 2018 IRCE Group – Balance sheet

Euro million	30 June 2018	31 December 2017	31 December 2016	31 December 2015
	%	%	%	%
Working capital	164.8	147.2	121.4	130.2
	81.3%	78.9%	70.8%	73.6%
Fixed Assets	53.2	54.9	59.9	57.3
	26.3%	29.4%	34.9%	32.4%
Other assets and liabilities	-15.4	-15.6	-9.8	-10.5
	-7.6%	-8.4%	-5.7%	-5.9%
NET CAPITAL EMPLOYED	202.6	186.5	171.5	177.0
	100.0%	100.0%	100.0%	100.0%
Shareholders' Equity	130.2	132.4	135.1	130.8
	64.3%	71.0%	78.8%	73.9%
Net Financial Debt	72.4	54.1	36.4	46.2
	35.7%	29.0%	21.2%	26.1%
FINANCING AND EQUITY	202.6	186.5	171.5	177.0
	100.0%	100.0%	100.0%	100.0%
CAPEX	3.5	5.9	6.0	4.1
Irce Spa Via Lasie, 12/A - 40026 Imola BO –	Italy www.irce.it			13

CAPEX	.	41

TURNOVER and HOLLOW TURNOVER

192.5 42.3 11.2 8.6 16.5 11.9 3.7 0.6 8.1 8.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 2015 2016 2017 1°H 2018 Euro million

EBITDA Adjusted and EBIT Adjusted

WORKING CAPITAL

0.0

EBITDA Adj EBIT Adj

Irce Spa