IRCE

Investor Presentation • Oct 2, 2019

1 st Half 2019 Financial Results Presentation

st Half 2019, ISMO 2019 - Milan 3rd October 2019 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

Half 2019, ISMO 2019 -	Milan 3rd October	2019
IRCE Group –	Highlights
IRCE is a leading European	Group operating	in the industries	of magnet wires	and cables
IRCE Today	st 2019 1	FY 2018	U.m.
Number of employees	720	723	Nr
TURNOVER	170.5	355.4	Eur M
EBITDA	5.5	15.0	Eur M
EBITDA Adj*	6.6	17.5	Eur M
EBIT EBIT Adj*	1.9 3.0	7.5 10.0	Eur M Eur M
NET RESULT	2.6	5.9	Eur M
(*) Including copper derivatives
		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	st 2019 1	FY 2018	U.m.
Number of employees	720	723	Nr
(*) Including copper derivatives
		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 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 BSH Secop Ceme Elica Spa Cebi Group Mahle Group

Automotive

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

Embraco (Nidec Group) A.R.S. Elettromeccanica Domel D.O.O. Electromechanical/Electronics Siemens Schneider Electric EBM-Papst Mulfingen Cummins Generator Technologies Panasonic Finder TE Connectivity Wuerth Denso Manufacturing Robert Bosch G. Cartier Technologies Hanon Systems Buehler motor GmbH Spal Automotive Srl

^> 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 Bitron SpA

st 1 Half 2019, ISMO 2019 -
	Milan 3rd October 2019
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: 240
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: 85
6. FD Sims Ltd Blackburn – UK	Copper and Aluminium Round and Rectangular Magnet Wire	Covered Area: 7,000 Sqm Employees: 40
7. IRCE Ltda Joinville - Brazil	Copper and Aluminium Round and Rectangular Magnet Wire Continuously Transposed Cable (CTC)	Covered Area: 21,500 Sqm Employees: 110
8. Stable Magnet Wire P. Ltd. Cochin – India	Copper Round Magnet Wire	Employees: 28
9. ISODRA GmbH	Copper Round Magnet Wire	Employees: 13

st Half 2019, ISMO 2019 - Milan 3rd October 2019 Company Profile 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

IRCE Group – Profit
	and Loss		Statement
Euro million	st H 2019 1	1 % Turn.	st H 2018	change % % Turn.	FY 2018	% Turn.	FY 2017 % Turn.	FY 2016	% Turn.
Hollow turnover wires	31.4		32.7	-4.0%	60.3		63.7	59.7
Hollow turnover cables	7.4		9.6	-22.9%	17.2		16.0	15.2
Total hollow turnover	38.8		42.3		-8.3% 77.5		79.7	74.9
TURNOVER (copper included)	170.5 100	.0 %	192.5 100	-11.4% .0 %	355.4 2	08 .4 %	357.1 2 0 9. 4%	295.8 153	.7 %
Other income	0.5	0.3%	0.4	25.0% 0.2%	1.0	0.6%	0.7 0.4%	0.8	0.4%
TOTAL REVENUES	171.0 100	.3 %	192.9 100	-11.4% .2 %	356.4 2	09 .0 %	357.8 2 0 9. 9%	296.6 154	.1%
Cost of material including change in stock	(134.1)	- 78.7%	(150.7)	-11.0% - 78.3%	(279.1)	- 163.7%	(273.8) - 160.6%	(226.7)	- 117.8%
Personnel costs	(15.8)	- 9.3%	(16.2)	- 8.4%	-2.5% (32.4)	- 19.0%	(31.8) - 18.7%	(30.8)	- 16.0%
Other costs and services EBITDA	(15.6) 5.5	- 9.1%	(15.6) 10.4	- 8.1% -47.1%	0.0% (29.9) 15.0	- 17.5%	(33.8) - 19.8% 18.4	(32.2) 6.9	- 16.7%
Depreciation and provisions	(3.6)	3 .2 % - 2.1%	(3.9)	5 .4 % - 2.0%	-7.7% (7.5)	8 .8 % - 4.4%	10. 8% (8.4) - 4.9%	(8.0)	3 .6 % - 4.2%
EBIT	1.9	1.1%	6.5	-70.8% 3 .4 %	7.5	4 .4 %	10.0 5. 9%	(1.1)	- 0 .6 %
Copper derivatives	1.1	0.6%	1.5	26.7% 0.8%	2.5	1.5%	(1.9) - 1.1%	1.7	0.9%
Net financial charges	0.3	0.2%	0.2	50.0% 0.1%	0.2	0.1%	0.1 0.1%	(0.2)	- 0.1%
RESULT BEFORE TAXES (EBT)	3.3	1.9 %	8.2	-59.8% 4 .3 %	10.2	6 .0 %	8.2 4. 8%	0.4	0 .2 %
Taxes	(0.7) 2.6	- 0.4%	(3.2) 5.0	-78.1% - 1.7% -48.0%	(4.3) 5.9	- 2.5%	(3.6) - 2.1% 4.6	(0.7) (0.3)	- 0.4%
NET RESULT non-controlling interests Minorities	0.0	1.5 % 0.0%	0.0	2 .6 % 0.0%	- 0.0	3 .5 % 0.0%	2. 7% 0.1 0.1%	0.1	- 0 .2 % 0.1%
NET RESULT/(LOSS)	2.6	1.5 %	5.0	-47.4% 2 .6 %	5.9	3 .5 %	4.7 2. 8%	(0.2)	- 0 .1%
			10.4
				5 .4 %	-47.1% 15.0	8 .8 %	18.4 10. 8%	6.9	3 .6 %
EBITDA	5.5	3 .2 %
Copper derivatives	1.1	0.6%	1.5	0.8%	2.5	1.5%	(1.9) - 1.1%	1.7	0.9%
EBITDA Adjusted (*) Depreciation and provisions	6.6 (3.6)	3 .9 % - 2.1%	11.9 (3.9)	-44.5% 6 .2 % - 2.0%	17.5 (7.5)	10 .3 % - 4.4%	16.5 9. 7% (8.4) - 4.9%	8.6 (8.0)	4 .5 % - 4.2%

EBITDA	5.5	3.2%	10.4	5.4%	$-47.1%$	15.0	8.8%	18.4	10.8%	6.9	3.6%
Copper derivatives		0.6%	.5	0.8%		2.5	1.5%	(1.9)	$-1.1%$		0.9%
EBITDA Adjusted (*)	6.6	3.9%	11.9	6.2%	$-44.5%$	17.5	10.3%	16.5	9.7%	8.6	4.5%
Depreciation and provisions	(3.6)	$-2.1%$	(3.9)	$-2.0%$		(7.5)	$-4.4%$	(8.4)	$-4.9%$	(8.0)	$-4.2%$
EBIT Adjusted (*)	3.0	1.8%	8.0	4.2%	$-62.5%$	10.0	5.9%	8.1	4.8%	0.6	0.3%

st Half 2019, ISMO 2019 - Milan 3rd October 2019 IRCE Group – Balance sheet

Euro million	30 June 2019 %	31 December 2018 %	31 December 2017 %	31 December 2016 %
Working capital Fixed Assets Other assets and liabilities	155.8 79.7% 51.3 26.3% -11.7 -6.0%	149.8 78.4% 52.7 27.6% -11.5 -6.0%	147.2 78.9% 54.9 29.4% -15.6 -8.4%	121.4 70.8% 59.9 34.9% -9.8 -5.7%
NET CAPITAL EMPLOYED	195.4 100.0%	191.0 100.0%	186.5 100.0%	171.5 100.0%
Shareholders' Equity Net Financial Debt	133.3 68.2% 62.1 31.8%	131.3 68.7% 59.7 31.3%	132.4 71.0% 54.1 29.0%	135.1 78.8% 36.4 21.2%
FINANCING AND EQUITY	195.4 100.0%	191.0 100.0%	186.5 100.0%	171.5 100.0%
CAPEX	1.4	6.5	5.9	6.0
Irce Spa				13

CAPEX		. .

TURNOVER and HOLLOW TURNOVER

170.5 38.8 16.5 17.5 6.6 0.6 8.1 10.0 3.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 2016 2017 2018 1°H 2019 Euro million EBITDA Adj EBIT Adj

EBITDA Adjusted and EBIT Adjusted

36.4

Net Capital Employed Net Financial Debt Financial Debt Ratio

NET CAPITAL EMPLOYED and NET FINANCIAL DEBT WORKING CAPITAL

Irce Spa

0.0

50.0

100.0

NET EQUITY Vs MARKET CAPITALIZATION

PRICE/BOOK VALUE RATIO