IRCE

Investor Presentation • Sep 20, 2017

1st Half Year 2017 Financial Results Presentation

IRCE Group –Contents

Company Profile

• •Highlights
• •The Businesses
• •Production Plants
• •Commercial Offices

Financial Results

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

IRCE Group –Highlights

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

C I R E T d o a y	st 1 H 2 0 1 7	st 1 H 2 0 1 6	U. m
Nu be f e loy m r o mp ee s	7 4 0. 0	7 3 3. 0	Nr
T U R N O V E R	1 8 5. 7	1 5 3. 8	Eu M r
E B I T D A	1 1. 9	6. 2	Eu M r
E B I T	5. 5	2. 3	Eu M r
N E T R E S U L T	3. 9	1. 2	Eu M r

History

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

IRCE Group works in two business areas:

• •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 ismainly engaged in the segments of the fine and medium wires. It mainly operates in Europe, where it isthird by size.

>Magnet Wires

^> Major customers by sectors

White Goods

Electromechanical/Electronics

Whirlpool / EmbracoBSHNidec motorSecopCemeElica SpaA.R.S. ElettromeccanicaGruppo Cebi

Automotive

Denso ManufacturingRobert BoschMahle Letrika D.O.O. G. Cartier TechnologiesMagna Electronics

SiemensSchneider ElectricEBM-Papst MulfingenCummins Generator TechnologiesTyco ElectronicsPanasonicFinder

IRCE Group – The Businesses >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 SpaSoneparTkd Kabel Gmbh

Industrial sector (white goods)

Whirlpool GroupElectrolux GroupUnionalpha Spa (Indesit Group supplier)Bata Srl (Indesit Group supplier)Selectra Srl Dieter Eifler Gmbh

IRCE Group –Production Plants

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

IRCE Group –Commercial Offices

---

• IRCE SpA Headquarters Imola (IT) IRCE SpA Sales Office Milan (IT) Isolveco Srl Padova (IT) Isomet AG Otelfingen (CH) DMG GmbH Florstadt (DE) IRCE Sl Polinya' (Barcellona) (E) ------- FD Sims Ltd Blackburn (UK) Smit Draad Nijmegen BV Nijmegen (NL) IRCE Ltda Joinville (BR) Stable Magnet Wire P. Ltd Cochin (IN) ISODRA GmbH Kierspe (DE) IRCE SP. ZO. O Legnica (PL) Agents and Distributors in the main countries

IRCE Group –Contents

Company Profile

• •Highlights
• •The Businesses
• •Production Plants
• •Commercial Offices

Financial Results

• •Copper and Aluminium Price Trend
• •Profit and Loss Statement
• •Balance Sheet
• •Business 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 1 7	% T urn	st 1 H 2 0 1 6	% T urn	ha % c ng e	F Y 2 0 1 6	% T urn	F Y 2 0 1 5	% T urn
Ho llow wi tu rno ver res	34. 4		31. 3		9.9 %	59. 7		63. 7
Ho llow ble tu rno ver ca s	7.2		7.7		-6. 5%	15. 2		17. 1
To tal ho llo w t urn ov er	41. 6		39. 0		6.7 %	74. 9		80. 8
TU RN OV ER (c r in clu de d) op pe	185 .7	10 0 .0 %	153 .8	10 0 .0 %	20. 7%	295 .9	10 0 .0 %	349 .9	10 0 .0%
Oth inc er om e	0.3	0.2 %	0.5	0.3 %	-40 .0%	0.8	0.3 %	0.6	0.2 %
TO S TA L R EV EN UE	186 .0	10 0 .2 %	154 .3	10 0 .3 %	20. 5%	296 .7	10 0 .3 %	350 .5	10 0 .2%
Co f m ria l in clu din ha e i k st o ate toc g c ng n s	( 139 .1)	- 74 .9%	( 115 .8)	- 75 .3%	20 .1%	( 226 .7)	- 76 .6%	( 275 .7)	- 78 .8%
Pe el sts rso nn co	( 16. 6)	- 8.9 %	( 16. 2)	- 10 .5%	2.5 %	( 30 .8)	- 10 .4%	( 32 .4)	- 9.3 %
Oth d s ice sts er co an erv s	( 18. 4)	- 9.9 %	( 16. 1)	- 10 .5%	14. 3%	( 32 .0)	- 10 .8%	( 34 .2)	- 9.8 %
EB ITD A	11. 9	6 .4 %	6.2	4 .0 %	91. 3%	7.2	2.4 %	8.2	2 .3 %
De cia tio nd isio pre n a pr ov ns	( 6.4 )	- 3.4 %	( 3.9 )	- 2.5 %	64 .1%	( 7.9 )	- 2.7 %	( 7.5 )	- 2. 1%
EB IT	5.5	3 .0 %	2.3	1.5 %	137 .1%	( 0.7 )	- 0. 2 %	0.7	0 .2 %
Co de riv ati pp er ve s	0.2	0.1%	0.7	0.5 %	-71 .4%	1.7	0.6 %	3.0	0.9 %
Ne t fi ial ch na nc arg es	0.5	0.3 %	( 0.5 )	- 0.3 %	-20 0.0 %	( 0.2 )	- 0. 1%	1.7	0.5 %
RE SU LT BE FO RE TA XE S ( EB T)	6.2	3 .3 %	2.5	1.6 %	146 .0%	0.8	0.3 %	5.4	1.5 %
Ta xe s	( 2.8 )	- 1.5 %	( 1.3 )	- 0.8 %	115 .4%	( 0.7 )	- 0.2 %	( 2.4 )	- 0.7 %
N E T R E S U L T l l ing in tro te ts no n- co n re s	3.4	1.8 %	1.2	0 .8 %	178 .7%	0.1	0.0 %	3.0	0 .9 %
Mi riti no es	( ) 0.5	- 0.3 %	0.0	0.0 %	-	0.0	0.0 %	0.0	0.0 %
N E T R E S U L T	3. 9	2.1 %	2 1.	0 .8 %	2 9. 1 7 %	0. 1	0.0 %	3. 0	0 .9 %

EB ITD A	11. 9	6 .4 %	6.2	4 .0 %	91. 3%	7.2	2.4 %	8.2	2 .3 %
Co de riv ati pp er ve s	0.2	0.1%	0.7	0.5 %		1.7	0.6 %	3.0	0.9 %
EB ITD A A dju d ( *) ste	12. 1	6 .5 %	6.9	4 .5 %	9% 74.	8.9	3.0 %	2 11.	3 .2 %
De cia tio nd isio pre n a pr ov ns	( ) 6.4	- 3.4 %	( ) 3.9	- 2.5 %		( ) 7.9	- 2.7 %	( ) 7.5	- 2. 1%
EB IT Ad jus ted ( *)	5.7	3.1 %	3.0	2 .0 %	88. 7%	1.0	0.3 %	3.7	1.1%

(*) 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.

IRCE Group –Balance sheet

Eu i l l ion ro m	3 0 Ju 2 0 1 7 ne	%	3 1 De be 2 0 1 6 ce m r	%	3 0 Ju 2 0 1 6 ne	%	3 1 De be 2 0 1 5 ce m r	%
Wo rki ita l ng ca p	148 .4	78. 1%	123 .4	71.2 %	134 .5	74. 5%	130 .2	73. 6%
Fix ed As set s	56. 3	29. 6%	59. 9	34. 5%	59. 1	32. 7%	57 .3	32. 4%
Oth d l iab ilit ies ets er ass an	-14 .7	-7.7 %	-9. 9	-5.7 %	-13 .1	-7.3 %	-10 .5	-5.9 %
N E T C A P I T A L E M P L O Y E D	1 9 0. 0	100 .0%	1 7 3. 4	100 .0%	1 8 0. 5	100 .0%	1 7 7. 0	100 .0%
Ne t F ina ial De bt nc	54. 4	28. 6%	36. 2	20. 9%	44. 0	24. 4%	46 .2	26. 1%
Sh ho lde rs' Eq uit are y	135 .6	71.4 %	137 .2	79. 1%	136 .5	75. 6%	130 .8	73. 9%
F I N A N C I N G A N D E Q U I T Y	1 9 0. 0	100 .0%	1 7 3. 4	100 .0%	1 8 0. 5	100 .0%	1 7 7. 0	100 .0%

I N V E S T M E N T S	2. 1	6. 0	2. 1	4. 1

IRCE Group –Business Performance

TURNOVER and HOLLOW TURNOVER

EBITDA Adjusted and EBIT Adjusted

NET CAPITAL EMPLOYED and NET FINANCIAL DEBT

WORKING CAPITAL