IRCE

Interim / Quarterly Report • Nov 11, 2016

Informazione Regolamentata n. 0163-23-2016		Data/Ora Ricezione 11 Novembre 2016 16:05:23	MTA - Star
Societa'	:	IRCE
Identificativo Informazione Regolamentata	:	81368
Nome utilizzatore	:	IRCEN01 - CASADIO
Tipologia	:	IRAG 03
Data/Ora Ricezione	:	11 Novembre 2016 16:05:23
Data/Ora Inizio Diffusione presunta	:	11 Novembre 2016 16:25:20
Oggetto	:	at 30 september 2016	Quarterly consolidated financial statements
Testo del comunicato

Vedi allegato.

QUARTERLY CONSOLIDATED FINANCIAL STATEMENTS AT 30 SEPTEMBER 2016

The Board of Directors has today approved the consolidated financial statements as at September 30th 2016.

In the first nine months of 2016, IRCE Group (hereinafter the "Group") showed a decline in the turnover end in the results compared to the first nine months of 2015.

Compared to the same period of last year, the winding wire sector recorded a decrease in sales volumes in line with the reduction in market demand; the cable industry showed a decline, as well, due to the slowdown in demand, which worsens in last quarter.

Consolidated revenues amounted to € 221.59 million compared to € 271.70 million in the first nine months of 2015, the decrease of 18.4% is also due to the copper price reduction (the average LME copper price of nine months 2016 compared to the average of the same period 2015 was 17% lower).

The results are shown in the following table.

Consolidated income statement data (€/million)	9 months 2016	9 months 2015	Change
Turnover1	221.59	271.7	(50.11)
EBITDA22	7.76	8.99	(1.23)
EBIT	2.4	3.63	(1.23)
Profit before taxes	2.78	7.98	(5.20)
Net profit	1.39	5.13	(3.74)
Adjusted EBITDA33	8.62	11.49	(2.87)
Adjusted EBIT33	3.26	6.13	(2.87)
Consolidated statement of financial position data (€/million)	As of 30.09.2016	As of 31.12.2015	Change
Net invested capital	171.65	177.07	(5.42)
Shareholders' Equity	136.14	130.84	5.30
Net financial debt	35.51	46.23	(10.72)

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 (€ +0.86 million in nine months 2016 and € +2.50 million in nine months 2015). 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 September 2016, was € 35.51 million, down from € 46.23 million at the end of 2015 as a result of the operating cash flow and changes in working capital.

The Group's investments in the first nine months of 2016 were € 2.63 million, mostly made by IRCE S.p.A..

Despite the enduring difficult situation of our key markets, we expect for this year, however, results in line to those of 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, 11th November 2016

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 735 employees.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS	30.09.2016	30.06.2016	31.12.2015
NON- CURRENT ASSETS
Goodwill and intangibles assets	2,335,922	2,351,861	2,378,476
Property, plant and equipment	51,220,731	52,213,271	50,706,211
Equipment and other tangible assets	1,082,279	1,181,028	1,236,816
Fixed assets under construction and advance	3,040,477	3,256,277	2,957,721
Non-current financial assets and receivables	118,279	116,656	120,874
Non-current tax receivables	946,666	1,442,911	1,330,996
Deferred tax assets	3,327,998	2,679,219	2,504,948
TOTAL NON -CURRENT ASSETS	62,072,351	63,241,223	61,236,042
CURRENT ASSETS
Inventory	70,660,659	78,105,986	79,967,782
Trade receivables	69,984,199	76,414,195	65,108,753
Tax receivables	2,434,668	2,161,983	2,935,873
Receivables due from other	2,014,225	2,120,648	1,987,463
Current financial assets	471,699	525,244	314,482
Cash and cash equivalents	6,355,709	6,157,456	5,401,842
TOTAL CURRENT ASSETS	151,921,160	165,485,512	155,716,195
TOTAL ASSETS	213,993,512	228,726,736	216,952,237

SHAREHOLDERS EQUITY AND LIABILITIES	30.09.2016	30.06.2016	31.12.2015
SHAREHOLDERS' EQUITY
SHARE CAPITAL	14,626,560	14,626,560	14,626,560
RESERVES	119,861,969	120,438,485	112,993,474
PROFIT FOR THE PERIOD	1,387,537	1,198,402	2,948,503
TOTAL SHAREHOLDERS' EQUITY OF THE GROUP	135,876,065	136,263,447	130,568,537
MINORITY INTEREST	266,499	266,821	265,886
TOTAL SHAREHOLDERS' EQUITY	136,142,564	136,530,268	130,834,423
NON CURRENT LIABILITIES
Non-current financial liabilities	14,407,866	16,469,906	22,461,891
Deferred tax liabilities	1,474,926	837,065	991,376
Provision for risks and charges	2,498,711	2,557,800	2,035,769
Employee benefits' provision	6,108,955	6,214,243	5,735,559
TOTAL NON-CURRENT LIABILITIES	24,490,459	26,079,014	31,224,595
CURRENT LIABILITIES
Current financial liabilities	27,490,440	33,707,518	29,183,770
Trade payables	15,744,008	20,048,206	14,917,943
Tax payables	2,382,247	3,771,707	2,347,197
Social security contributions	1,671,526	2,040,143	2,007,135
Other current liabilities	6,072,268	6,549,881	6,437,174
TOTAL CURRENT LIABILITIES	53,360,489	66,117,454	54,893,219
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	213,993,512	228,726,736	216,952,237

CONSOLIDATED INCOME STATEMENT

	30.09.2016	30.09.2015	III quarter 2016	III quarter 2015
Revenues	221,590,611	271,696,860	67,775,005	83,294,290
Other revenues and income	654,471	370,938	157,445	69,584
(of which: non-recurring)
TOTAL REVENUES	222,245,083	272,067,798	67,932,451	83,363,874
Cost for raw material and consumables	(164,737,997)	(212,079,851)	(46,901,462)	(63,923,871)
Change in work in progress and finished goods	(3,273,448)	(696,260)	(5,387,319)	(1,603,293)
Cost for services	(22,921,234)	(24,828,679)	(7,090,126)	(7,622,468)
Personnel costs	(22,995,988)	(24,459,490)	(6,838,834)	(7,914,945)
Amortisation/depreciation	(4,304,029)	(4,847,036)	(1,496,001)	(1,650,564)
Allocation and write-downs	(1,062,485)	(514,470)	(7,434)	(49,842)
Other operating costs	(551,306)	(1,015,007)	(149,353)	(414,410)
EBIT	2,398,595	3,627,005	61,921	184,481
Financial incomes / (charges) (of which: non-recurring)	383,946	4,349,517	187,823	905,206
PROFIT / (LOSS) BEFORE TAXES	2,782,540	7,976,522	249,743	1,089,687
Income taxes	(1,394,390)	(2,850,991)	(60,930)	(329,064)
PROFIT BEFORE NON-CONTROLLING INTERESTS	1,388,151	5,125,531	188,814	760,623
Non-controlling interests	(614)	(436)	323	665
PROFIT FOR THE PERIOD	1,387,537	5,125,095	189,136	761,288

CONSOLIDATED STATEMENT OF CASH FLOWS	30.09.2016	30.09.2015
€/000
OPERATING ACTIVITIES
Profit for the year	1,388	5,125
Adjustmenrts for:
Amortization/depreciation	4,304	4,847
Net change in (assets) provision for (advance) deferred taxes	(339)	512
(gains)/losses from sell-off of fixed assets (gains)/losses on unrealized translation differences	(17) (264)	(11) (297)
Taxes	1,415	2,805
Financial income/(charge)	(1,200)	(2,473)
Operating profit/(loss) before change in working capital	5,286	10,509
Paid taxes	(1,249)	(1,193)
Decrease (increase) in inventory	9,307	7,259
(Increase) decrease in current assets and liabilities	(3,757)	(7,609)
(increase) decrease in non-current assets and liabilities Exchange difference on translation of financial statement in foreign	835	(25)
currency	2,686	(6,508)
CASH FLOW GENERATED BY OPERATING ACTIVITIES	13,107	2,432
INVESTING ACTIVITIES
Investments in intangible assets	(24)	(64)
Investments in tangible assets	(2,610)	(2,188)
Amount collected from sale of tangible and intangible assets	26	25
CASH FLOW USED IN INVESTMENTS	(2,608)	(2,227)
FINANCIAL ACTIVITIES
Borrowing refunds	(8,054)	19,652
Increase in funding	(1,693)	(25,586)
Exchange difference on translation of financial statement in foreign
currency	445	121
Change in current financial assets	(157)	983
Payment og interest Receipt of interest	(680) 1,879	(2,133) 4,606
Change in minority shareholders' capital	1	0
Change in translation of financial statements inforeign currency with effect in shareholders' equity	(68)	(56)
Sell/purchase own shares	(64)	1,001
Dividend paid	(803)	(803)
CASH FLOW GENERATED FROM FINANCIAL TRANSACTION	(9,194)	(2,214)
NER CASH FLOW FOR THE PERIOD	1,304	(2,007)
CASH BALANCE AT START OF YEAR	5,402	6,567
TOTAL NET CASH FLOW FOR THE PERIOD	1,304	(2,007)
EXCHANGE DIFFERENCE	(350)	255
CASH BALANCE AT THE END OF YEAR	6,356	4,815