Cembre — Interim / Quarterly Report 2016

Oct 14, 2016

Results of the 1st Half 2016

Cembreat ^a Glance

Cembre is Europe's leading manufacturer of electrical crimp type connectors and related installation tools;

The Group has grown its revenues by ^a CAGR of 5.7% in the last 15 years (2001‐2015), from €56 mn in 2001 to €121.4 mn in 2015;

It is ^a dividend‐payer with ^a 15 years average dividend payout ratio of 37.3%, and an average dividend yield of 3.5% (2001‐2015);

In 2015, the Group invested €7.1 mn; the total amount of investments made by the company in the last five years (2011‐2015) is €53.5 mn; at December 31, 2014 investments amounted to €9.2 mn. In the first half 2016 the Group invested €2.7 mn;

The product mix (a total of more than 12k end products sold during 2015) is offered to around 8k single clients around the world, with 10‐biggest clients' purchases corresponding to c.16% of the consolidated turnover.

Contents

Management Team

Business overview

Results of the 1st Half 2016

1st Half 2016 guidance

Stock data & shareholding structure

Contact

Management team

Giovanni Rosani

Chief ExecutiveOfficer (CEO)

Aldo Bottini Bongrani

Sales andMarketing Director

OURMISSION

Cembre cooperates with the users of its products to find the best technical and economical solutions related to electrical connection applications.

Claudio Bornati

Chief Financial Officer(CFO)

Group Structure

Production and commercial units

Commercial units

Number of employees at June 30, 2016

BusinessOverview

Cembre is Europe's leading manufacturer of electrical crimp type connectors andrelated installation tools.

Made inBrescia…

Cembre, established in 1969, manufactures its products in its state‐of‐ art production facility located in Brescia. The facility covers an area of 51,000 ^m2 on ^a total land areaof 121,000 ^m2.

…and U.K.

In addition, Cembre has ^a production facility in the UK which operates on ^a 8,800 ^m2 land. This plant in Birmingham manufactures mainly for the local market. The sales generated in the UK are 15% of the 1st Half 2016 consolidated turnover.

Cembre Ltd.Factory in Curdworth Birmingham (UK)

AnIntegrated Business Partner…

TheGroup employs 663 employees worldwide.

79

Cembre has extensive know‐howin its operating field, and its strong R&D team allows it to respond quickly to market demands.

Sharp focus on customer needs and the efficient international sales network (102 salesmen) are significant competitive advantages forCembre.

Number of employees in the segment, at June 30, 2016

Very Strong in Europe…

Cembre is present all over the Italian territory through a network of salesmen and representatives who are able to offer fast and constant technicalassistance.

Abroad, it operates through 5 subsidiaries in Europe (UK, France, Spain, Germany and Norway) and 1 in the USA.

Present All AroundtheWorld…

Cembre has ^a network of importers and agents who provide technical andcommercial assistance and rapid delivery all around the world…

Revenues* breakdownby Product Family (€ '000)

Geographical Revenue Breakdown

15‐Year RevenueEvolution

AWide Product‐Mix

In order to maintain its leading position and increase the penetration of market, Cembre hadsensibly enlarged the range of products offered through:

•Research activities mainly focused on the development of innovative products for the sectors with the highest growth potential (rail transportation, civil and industrialplant engineering),

•Improvement and update of existing products to get them easier to use and more efficient intheir performances,

•Introduction of complementary products (e.g. cable markers).

Electrical Connectors:2.4%decrease in Sales

l i l E C t t e c r c a o n n e c o r s :	st l f 1 H 2 0 1 6 a	st l f 1 H 2 0 1 5 a	Δ
l l S T t o a a e s	2 2. 9 € m n	2 3. € 5 m n	2. % 4 ‐
( ) l l h S i I % t a e s n a y s a r e	( ) 1 1. 1 € 1 7. 1 % m n	( ) 1 0. 8 € 1 6. 7 % m n	2. 7 %
l ( h ) S i I % E T a e s n u r o p e e x‐ s a r e	( ) 9. € 1 4. 9 % 7 m n	( ) 1 0. 6 € 1 6. % 5 m n	9. 0 % ‐
( ) l % h S i R W a e s n o s a r e	( ) % 2. 2 € 3. 4 m n	( ) % 2. 1 € 3. 3 m n	% 4. 3

Characteristics:

•high and safe performance guaranteed by effective Quality Control during production process

•high level automation of manufacturing process and consequent costs reduction

•quick adaptation of products to clients' needs, thanks to its high flexible productivity

Tools:8,7% decrease in Sales

l T o o s :	st l f 1 H 2 0 1 6 a	st l f 1 H 2 0 1 5 a	Δ
l l T S t o a a e s	1 1. 8 € m n	1 2. 9 € m n	% 8. 7 ‐
l l ( h ) S i I % t a e s n a y s a r e	( ) 3. 0 € 4. 6 % m n	( ) 2. 5 € 3. 9 % m n	1 8. 8 %
l ( h ) S i % E I T a e s n r o p e e s a r e u x‐	( ) € 3 % 4. 7 7. m n	( ) 8 € % 4. 7. 4 m n	% ‐1 4
( ) l h S i R W % a e s n o s a r e	( ) 4. 1 € 6. 3 % m n	( ) 5, 6 € 8. 8 % m n	2 7. 2 % ‐

Characteristics:

•quick installation of connectors thanks to tools used for compressing and cutting the conductors

•wide products range: mechanical, pneumatic, hydraulic and battery operated tools

Development of new products in last years:

•B15‐B54battery operated "in line" hand‐tools

•hydraulic battery operated pump already marketed in Italy and Europe

•the new generation of battery tools is intended to progressively substitute the traditional ones, as they are more appreciated thanks to the elimination ofphysical endeavour

Railway Products: 2.1%increase in Sales

i l d R P t a w a y r o u c s :	st l f 1 H 2 0 1 6 a	st l f 1 H 2 0 1 5 a	Δ
l l S T t o a a e s	2. 9 € 1 m n	2. 6 € 1 m n	2. % 1
( ) l l h S i I % t a e s n a y s a r e	( ) 0. 8 € 1. 3 % m n	( ) 1. 3 € 2. 0 % m n	3 5. 8 % ‐
l ( h ) S i E I T % a e s n u r o p e e x‐ s a r e	( ) 8. 2 € 1 2. 6 % m n	( ) 7. 7 € 1 1. 9 % m n	6. 4 %
( ) l i % h S R W a e s n o s a r e	( ) % 3. 9 € 6. 0 m n	( ) % 3. 7 € 5. 7 m n	% 6. 7

Characteristics:

•high quality products •constant R&Dactivities

•high potential growth

Development of new products:

•NutRunner ‐ NR‐11P

•Battery drill

Both the products are very competitive on the market since they offer superior flexibility, lightness and velocity against alternativeproducts

Cable Markers: 15.3%increase in Sales

b l k C M a e a r e r s :	st l f 1 H 2 0 1 6 a	st l f 1 H 2 0 1 5 a	Δ
l l T S t o a a e s	1 0. 0 € m n	8. 7 € m n	% 1 5. 3
l l ( h ) S i I % t a e s n a y s a r e	( ) 6. 4 € 9. 9 % m n	( ) 5. 7 € 8. 9 % m n	1 1. 7 %
l ( h ) S i % E I T a e s n r o p e e s a r e u x‐	( ) 3. 8 % 1 € 4. m n	( ) 2. 6 0 % € 4. m n	2 0. % 7
( ) l h S i R W % a e s n o s a r e	( ) 0. 5 € 0. 7 % m n	( ) 0. 4 € 0. 6 % m n	3 3. 9 %

With the introduction of these newproducts Cembre:

•further enriched its offer with thousand of new articles (electrical equipment wholesalers prefer supplier with ^a wide catalogue)

•strengthened its competitive position in Italy and created big opportunities toenter the European markets

•entered^a market, worth of Euro 25 million considering only Italy

•improved the production structure

Development and production, in Brescia (Italy), of thermal printer MG3

Cable Glands: 5.1%increase in Sales

b l l d C G a e a n s :	st l f 1 H 2 0 1 6 a	st l f 1 H 2 0 1 5 a	Δ
l l T S t o a a e s	4. 8 € m n	4. 6 € m n	% 5. 1
l l ( h ) S i I % t a e s n a y s a r e	( ) 4. 0 € 6. 2 % m n	( ) 3. 9 € 6. 0 % m n	2. 8 %
l ( h ) S i % E I T a e s n r o p e e s a r e u x‐	( ) 0. 6 0 % € 1. m n	( ) 0. 6 0. 9 % € m n	9. % 1
( ) l h S i R W % a e s n o s a r e	( ) 0. 2 € 0. 3 % m n	( ) 0. 1 € 0. 2 % m n	6 3. 7 %

i l l k T B e r m n a o c s :	st l f 1 H 2 0 1 6 a	st l f 1 H 2 0 1 5 a	Δ
l l T S t o a a e s	1. 3 € m n	1. 1 € m n	% 1 2. 3
( ) l l h S i I % t a e s n a y s a r e	( ) 1. 1 € 1. 7 % m n	( ) 1. 0 € 1. 5 % m n	1 4. 9 %
l ( h ) S i % E I T a e s n r o p e e s a r e u x‐	( ) 0. 2 € 0. 2 % m n	( ) 0. 2 € 0. 2 % m n	3 % ‐4

ConsolidatedResults of the 1st Half 2016

l l i i E M u r o o n s	t l f 1 s H a 2 0 1 6	t l f 1 s H a 2 0 1 5	h C a n g e s %	t l f 1 s H a 2 0 1 4
l S a e s	6 2. 7	6 3. 0	0. 6 % ‐	5 6. 6
E B I T D A f l % I n o s a e s	1 5. 2 2 3 % 4.	1 5. 3 2 2 % 4.	% 0. 3 ‐	1 2. 1 2 3 % 1.
E B I T f l I % n o s a e s	1 2. 3 1 9. 6 %	1 2. 5 1 9. 8 %	‐1 4 %	9. 7 1 7. 1 %
E B T f % l I n o s a e s	1 2. 2 % 1 9. 5	1 2. 7 % 2 0. 1	3. 9 % ‐	9. 9 % 1 7. 4
f i N P t t e r o f l I % S n o a e s	8. 5 1 3. 6 %	9. 0 1 4. 2 %	9 % ‐4	6. 8 1 2. 0 %
T % t a x r a e	3 0. 2 %	2 9. 5 %		3 0. 8 %

1st Half 2016Group's Companies Turnover*

C o m p a n y ( h ) d E t r o o s a n s u u	t f l 1 H s a 2 0 1 6	t f l 1 H s a 2 0 1 5	h C a n g e %	t f l 1 H s a 2 0 1 4
( ) b l C S. A I t e m r e p. a y	3 5, 2 2 6	3 4, 7 3 2	% 1. 4	2 9, 0 9 8
( ) b d. C L U K t e m r e	9, 3 1 3	9, 9 7 9	6. 7 % ‐	1 0, 6 3 6
b l. ( ) C S. F e m r e a. r. r a n c e	8 3 6 4,	3 0 0 4,	2. % 1 5	2 9 2 4,
( ) b ñ C E S. L. S i e m r e s p a a p a n	4, 0 8 4	4, 4 0 6	‐7 3 %	3, 5 6 7
b b h ( ) C G G e m r e m e r m a n y	3, 8 2 4	3, 6 3 3	3 % 5.	3, 6 2 7
( ) b C A S N e m r e o r w a y	2 3	5 9 1	% 9 6. 1 ‐	4 5 0
b ( ) C I U S e m r e n c.	5, 3 7 9	5, 3 9 6	0. 3 % ‐	4, 8 0 8
b C G e m r e r o p u	6 2, 6 8 5	6 3, 0 3 7	0. 6 % ‐	6, 6 3 5 1

* net of intragroup sales

June30, 2016 Consolidated Balance Sheet

	i l l i E M r o o n s u	J 3 0 2 0 1 6 n u ,	3 1, 2 0 1 D 5 e c.	J 3 0 2 0 1 5 n u ,
a	k l N i i i t t t e o p e r a n g w o r n g c a p a f l % o s a e s	5 0. 4 4 0. 2 %	4 7. 6 3 9. 2 %	5 0. 8 4 0. 3 %
b	f d N i t t e x e a s s e s	7 0. 0	7 1. 0	7 0. 5
c	l b l f l i A t s s e s a a a e o r s a e s v	‐	‐	‐
d	d S i i i t e v e r a n c e n e m n e s	2. 6	2. 6	2. 6
e	f k d h i i i P r o v s o n s o r r s s a n c a r g e s	0. 3	0. 4	0. 3
F	f d D t e e r r e a x e s	2. 1	2. 2	2. 4
	d l ( b d‐ f ) N i i t t t + +c e n v e s e c a p a a e‐ ‐	1 1 5. 4	1 1 3. 4	1 1 6. 0
g	i E t q u y	1 2 9. 9	1 3 1. 2	1 2 4. 4
H	f l N i i i i t t e n a n c a p o s o n	( ) 1 4. 5	( ) 1 7. 8	( ) 8. 4
	l ( h ) T t + o a s o r c e s g u	1 1 5. 4	3. 1 1 4	6. 0 1 1

Cembre's Revenue andProfitability Trend (€ '000)

24

Indexanalysis

Investmentstrend

Totalinvestments

€ '0 00	20 01	20 02	20 03	20 04	20 05	20 06	20 07	20 08	20 09	20 10	20 11	20 12	20 13	20 14	20 15
b le Inv in i est nts tan ets me g ass	3.1 21	8.8 58	3.6 87	3.0 92	1.9 10	5.3 53	6.4 04	4.0 64	4.8 15	3.8 63	16 .18 3	12 .59 1	6.8 02	8.7 59	6.5 34
in int i b le Inv est nts ets me an g ass	28	1.8 12	13 0	11 2	14 2	87	50 0	54 4	18 2	16 9	41 8	59 7	57 3	47 7	60 1
l To inv ta est nts me	3.1 49	10 .67 0	3.8 17	3.2 04	2.0 52	5.4 40	6.9 04	4.6 08	4.9 97	4.0 32	16 .60 1	13 .18 8	7.3 75	9.2 36	7.1 35

2016 andonwards…

Cembre focused on these targets:

Increase of turnover thanksto:

•A strengthening of Cembre competitive advantage by developing new products and continuous product range renewing by an intense R&D activity,

•Anhigher penetration in the foreign markets, especially in the US,

•Acommercial commitment focus on high growing potential products.

Cost management by ^a better operative efficiency obtained from economies of scale andprocess innovations;

Enforcing the manufacturing structure by investing in high‐tech, highly‐automated machinery:

•The purchase of the 13,500 ^m2 industrial area next to its plant (dec – 2011), by investing €9.7 mn (Brescia plant and offices today cover ^a floor‐space of 51,000 ^m2 while the total plant area reached 121,000 ^m2), this area will be dedicated toproduction enforcement.

2016 andonwards…

•The construction of ^a new 4,800 ^m2 industrial building which is the new logistic center. This center include an automated warehouse with 16‐metre‐high shelves. The construction started in March 2012, and the new automatic warehouse is operative since January 2013. This warehouse is 3 time more efficient, and has ^a 50% increase in end‐product capacity warehousing.

Stock Data &Shareholding Structure

h h l d S a r e o e r s :	h S a r e :
L Y S N E S p a	5 5. 0 4 %
f A i O i M n n a a r a n o r	8. 3 % 5
S i R a r a o s a n	8 2 % 4.
i i i G R o v a n n o s a n	% 4. 7 1
h O t e r	2 6. 3 8 %

Cembre has been listed since December 1997, and is ^a part of the Star Index since September 2001.

	2 0 1 5	2 0 1 4	2 0 1 3	2 0 1 2	2 0 1 1	2 0 1 0	2 0 0 9	2 0 0 8	2 0 0 7	2 0 0 6	2 0 0 5	2 0 0 4	2 0 0 3	2 0 0 2	2 0 0 1
d d ( ) D i i i i € v e n p e r a z o n e	0. 4 6	0. 3 6	0. 2 6	0. 1 6	0. 1 6	0. 2 6	0. 1 2	0. 1 6	0. 2 6	0. 2 2	0. 1 5	0. 1 0	0. 0 7	0. 0 8	0. 1 0
* i P R t t a o a o y u	9 % 4	% 4 5	2 % 4	2 % 4	2 % 4	3 9 %	3 0 %	2 % 5	3 % 7	0 % 4	3 9 %	% 4 1	% 4 1	2 % 4	% 4 4
d d l d ** i i i D Y v e n e	% 3. 3	% 3. 5	% 2. 9	% 2. 5	% 2. 9	% 4. 2	% 2. 6	% 4. 8	% 4. 2	% 3. 6	% 3. 2	% 3. 3	% 2. 9	% 4. 4	% 4. 1

*

Using consolidated profit ** Using the year‐end share price

Contact

Claudio Bornati:CFO and IRVia Serenissima 9, 25135 Brescia (BS) Italy

Phone: ++39 030 36921Email: claudio.bornati@cembre.comCompany Webpage: www.cembre.com

The manager responsible for preparing the Company's financial reports, Claudio Bornati, declares, pursuan^t to paragraph 2 of Article 154 bis of the Consolidated Law on Finance, that the accounting information contained in this presentation corresponds to the document results, books and accounting records.