IRCE

Interim / Quarterly Report • Aug 28, 2015

Informazione Regolamentata n. 0163-19-2015		Data/Ora Ricezione 28 Agosto 2015 18:15:44	MTA - Star
Societa'	:	IRCE
Identificativo Informazione Regolamentata	:	62643
Nome utilizzatore	:	IRCEN01 - CASADIO elena
Tipologia	:	IRAG 02
Data/Ora Ricezione	:	28 Agosto 2015 18:15:44
Data/Ora Inizio Diffusione presunta	:	28 Agosto 2015 18:35:19
Oggetto	:	at 30 june 2015	Half-year consolidated financial statements
Testo del comunicato

Vedi allegato.

HALF-YEAR CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2015

The Board of Directors has today approved the consolidated financial statements as at June 30th 2015.

In the first six months of 2015, IRCE Group (hereinafter the "Group") recorded better results than the first half year of 2014.

In the winding wire sector, sales in Europe continued to go down, only partly compensated by higher sales in the Brazilian market. Different was the situation in the cable sector, which, after years of declining demand, sales recorded a significant increase in volumes.

Consolidated revenues amounted to € 188.40 million, up by 3.0%, compared to € 182.99 million of the first half of 2014, mostly due to the higher average selling copper price.

Details are reported in the following table:

Consolidated income statement data (€/million)	1° half-year 2015	1° half-year 2014	Change
Turnover1	188.40	182.99	5.41
EBITDA2	7.10	7.26	(0.16)
EBIT	3.44	3.11	0.33
Profit before taxes	6.89	4.32	2.57
Net profit	4.37	2.17	2.20
Adjusted EBITDA3	8.96	8.35	0.61
Adjusted EBIT3	5.30	4.20	1.10
Consolidated statement of financial position data (€/million)	As of 30.06.2015	As of 31.12.2014	Change
Net invested capital	189.64	187.36	2.28
Shareholders' Equity	141.27	137.72	3.55
Net financial debt	48.37	49.64	(1.27)

1 The item "Turnover" represents the "Revenues" reported in the income statement.

² EBITDA is a performance indicator used by the Management of the Group in order to assess the operating performance of the company and is not identified as an accounting item within IFRS; it is calculated by IRCE S.p.A. by adding amortisation/depreciation, allocations and write-downs to EBIT.

³ Adjusted EBITDA and EBIT are respectively calculated as the sum of EBITDA and EBIT and the income/charges from operations on copper derivatives transactions (€ +1.86 million in the first half year 2015 and € +1.09 million in the first half year 2014). These indicators are used by the Management of the Group in order to monitor and assess the operational performance of the Group and are not identified as accounting items within IFRS. Given that the composition of these measures is not regulated by the reference accounting standards, the criterion used by the Group could potentially not be consistent with that adopted by others and therefore not be comparable.

PRESS RELEASE

Consolidated net financial debt, at the end of June 2015, was € 48.37 million improved versus € 49.64 million at the end of 2014, thanks to the cash flow generated by operating activities.

The Group's investments in the first half of 2015 were € 1.44 million, mostly made in the winding wire sector.

Despite the uncertainty regarding the international economic situation, in the light the trend of the first half of the year and the book orders, we expect an improvement in the margins and in the results for the full year 2015.

The manager responsible for preparing the company's financial reports, Elena Casadio, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance that the accounting information contained in this press release corresponds to our books and accounting records.

Imola, 28th August 2015

IRCE SPA

Contacts: Investor relation. Sepriano Gianfranco Tel. + 39 0382 77535 e-mail gianfranco.sepriano@irce-group.com

IRCE Group is an important player in the winding wires and electric cable sector. The production is deployed in 4 facilities in Italy and 5 facilities abroad: Nijmegen (NI), Blackburn (UK), Joinville SC (Brazil), Kochi (India) and Kierspe (Germany). The Group includes also 6 commercial companies; five of them are located outside Italy (Germany, Spain, Switzerland, Turkey and Poland) and the Group employs about 740 employees.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS	30.06.2015	31.12.2014
NON- CURRENT ASSETS
Goodwill and intangibles assets	2,414,388	2,418,905
Property, plant and equipment	57,039,953	59,878,553
Equipment and other tangible assets	1,411,912	1,623,962
Fixed assets under construction and advance	1,448,523	441,920
Non-current financial assets and receivables	121,157	111,858
Non-current tax receivables	2,745,240	2,894,722
Deferred tax assets	2,810,349	3,013,664
TOTAL NON -CURRENT ASSETS	67,991,522	70,383,584
CURRENT ASSETS
Inventory	95,159,796	94,897,885
Trade receivables	76,528,787	71,691,779
Tax receivables	1,057,563	2,354,565
Receivables due from other	2,036,919	1,631,323
Current financial assets	641,631	1,185,817
Cash and cash equivalents	6,768,233	6,567,380
TOTAL CURRENT ASSETS	182,192,929	178,328,749
TOTAL ASSETS	250,184,451	248,712,333

SHAREHOLDERS EQUITY AND LIABILITIES	30.06.2015	31.12.2014
SHAREHOLDERS' EQUITY
SHARE CAPITAL	14,626,560	14,626,560
RESERVES	122,015,960	119,029,666
PROFIT OF THE PERIOD	4,363,807	3,794,509
TOTAL GROUP SHAREHOLDERS' EQUITY OF THE GROUP	141,006,327	137,450,735
SHAREHOLDERS' EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTERESTS	265,843	264,740
TOTAL SHAREHOLDERS' EQUITY	141,272,170	137,715,475
NON -CURRENT LIABILITIES
Non-current financial liabilities	8,535,914	3,251,830
Deferred tax liabilities	1,151,723	1,099,952
Provisions for risks and charges	1,916,281	1,675,283
Employee benefits' provisions	5,784,826	5,954,529
TOTAL NON- CURRENT LIABILITIES	17,388,744	11,981,594
CURRENT LIABILITIES
Current financial liabilities	46,644,963	53,424,816
Trade payables	30,593,805	34,290,234
Tax payables	4,734,187	2,595,190
Social security contributions	2,364,558	2,105,954
Other current liabilities	7,186,024	6,599,070
TOTAL CURRENT LIABILITIES	91,523,537	99,015,264
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	250,184,451	248,712,333

CONSOLIDATED INCOME STATEMENT
-------------------------------	--

	30.06.2015	30.06.2014
Revenues	188,402,570	182,986,751
Other revenues and income	301,354	557,963
(of which: non-recurring)	-	163,000
TOTAL REVENUES	188,703,924	183,544,714
Cost for raw material and consumables	(148,155,980)	(147,866,891)
Change in inventories of work in progress and finished goods	907,033	5,036,329
Cost for services	(17,206,211)	(16,976,348)
Personnel costs	(16,544,545)	(15,748,120)
Amortization/depreciation	(3,196,472)	(3,499,950)
Allocation and write-downs	(464,628)	(643,950)
Other operating costs	(600,597)	(731,955)
EBIT	3,442,524	3,113,829
Financial incomes / (charges)	3,444,311	1,204,946
PROFIT / (LOSS) BEFORE TAXES	6,886,835	4,318,775
Income taxes	(2,521,927)	(2,145,481)
PROFIT / (LOSS) BEFORE NON-CONTROLLING INTERESTS	4,364,908	2,173,294
Non-controlling interests	(1,101)	(1,118)
PROFIT / (LOSS) FOR THE PERIOD	4,363,807	2,172,176

Earnings (loss) per share (EPS) - basic EPS of the year ascribable to ordinary shareholders of the parent company 0.1631 0.0828 - diluted EPS of the year ascribable to ordinary shareholders of the parent company 0.1631 0.0828

CONSOLIDATED STATEMENT OF CASH FLOWS	30/06/2015	30/06/2014
€/000
OPERATING ACTIVITIES
Net profit for the period	4,364	2,172
Adjustments for:
Amortization/depreciation	3,196	3,500
Change in deferred taxes	255	252
(Gains)/losses from disposals of fixed assets	(7)	(13)
(Gains)/losses on unrealized translation differences	238	(96)
Taxes	2,479	1,723
Financial income/(loss)	(1,871)	(1,073)
Operating profit/(loss) before change in working capital	8,654	6,465
Taxes paid	(465)	(260)
Decrease (increase) in inventory	(262)	(8,294)
Change in current assets and liabilities	(6,759)	45
Change in non-current assets and liabilities	62	92
Exchange difference on translation of financial statement in foreign currency	(268)	2,015
CASH FLOW PROVIDED BY OPERATING ACTIVITIES	961	63
INVESTING ACTIVITIES
Investments in intangible assets	(48)	(155)
Investments in tangible assets	(1,395)	(1,260)
Proceeds from disposals	9	149
CASH FLOW USED IN INVESTING ACTIVITES	(1,434)	(1,266)
FINANCIAL ACTIVITIES
Increase of borrowings	5,284	1,637
Change in current other financial payables	(6,780)	(577)
Exchange difference on translation of financial statement in foreign currency	(23)	(572)
Change in current financial assets	544	593
Interest paid	(1,504)	(1,465)
Interest received	3,375	2,538
Change in minority shareholders' capital	1	3
Change in translation of financial statement in foreign currency with effect in
equity	(118)	564
Shares buy back	1,013	-
Dividend paid	(803)	(262)
CASH FLOW PROVIDED BY FINANCING ACTIVITIES	990	2,458
NET CASH FLOW FOR THE PERIOD	517	1,255
CASH AND EQUIVALENT AT THE BEGINNING OF THE PERIOD	6,567	5,625
TOTAL NET CASH FLOW FOR THE PERIOD	517	1,255
Exchange difference on translation of financial statement in foreign currency	(316)	144
CASH AND EQUIVALENT AT THE END OF THE PERIOD	6,768	7,024