IRCE

Investor Presentation • Mar 19, 2019

FY 2018 Financial Results Presentation

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

STAR Conference 2019, Milan 21st	March 2019
IRCE Group –	Highlights
IRCE is a leading European	Group operating	in the industries	of magnet wires	and cables
IRCE Today	FY 2018	FY 2017	U.m.
Number of employees	723	725	Nr
TURNOVER	355.4	357.1	Eur M
EBITDA	15.0	18.4	Eur M
EBITDA Adj*	17.5	16.5	Eur M
EBIT EBIT Adj*	7.5 10.0	10.0 8.1	Eur M Eur M
NET RESULT	5.9	4.7	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

Number of employees	723	725	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

• Energy cables IRCE Group – The Businesses

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

Electromechanical/Electronics

Embraco BSH Nidec Corporation Ceme Elica Spa A.R.S. Elettromeccanica Cebi Group Domel D.O.O. Denso Manufacturing Mahle Group

Automotive

White Goods Siemens Schneider Electric EBM-Papst Mulfingen Cummins Generator Technologies Panasonic Finder Tyco Electronics Wuerth Robert Bosch G. Cartier Technologies Magna Group 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 Dieter Eifler Gmbh Bitron SpA

STAR Conference 2019, Milan 21st	March 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: 245
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: 100
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: 100
8. Stable Magnet Wire P. Ltd. Cochin – India	Copper Round Magnet Wire	Employees: 28
	Copper Round Magnet Wire	Employees: 13

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

STAR Conference 2019, Milan 21st	March 2019
IRCE Group – Profit and	Loss	Statement
Euro million	FY 2018	% Turn.	FY 2017	% Turn.	change %	FY 2016	% Turn.	FY 2015	% Turn.
Hollow turnover wires	60.3		63.7		-5.3%	59.7		63.7
Hollow turnover cables	17.2		16.0		7.5%	15.2		17.1
Total hollow turnover	77.5		79.7		-2.8%	74.9		80.8
TURNOVER (copper included)	355.4	100.0%	357.1	100.0%	-0.5%	295.8	82.8%	349.9	99.8%
Other income	1.0	0.3%	0.7	0.2%	42.9%	0.8	0.2%	0.6	0.2%
TOTAL REVENUES	356.4	100.3%	357.8	100.2%	-0.4%	296.6	83.1%	350.5	100.0%
Cost of material including change in stock	(279.1)	-78.5%	(273.8)	-76.7%	1.9%	(226.7)	-63.5%	(275.7)	-78.6%
Personnel costs	(32.4)	-9.1%	(31.8)	-8.9%	1.9%	(30.8)	-8.6%	(32.4)	-9.2%
Other costs and services	(29.9)	-8.4%	(33.8)	-9.5%	-11.5%	(32.2)	-9.0%	(34.2)	-9.8%
EBITDA	15.0	4.2%	18.4	5.2%	-18.5%	6.9	1.9%	8.2	2.3%
Depreciation and provisions	(7.5)	-2.1%	(8.4)	-2.4%	-10.7%	(8.0)	-2.2%	(7.5)	-2.1%
EBIT	7.5	2.1%	10.0	2.8%	-25.0%	(1.1)	-0.3%	0.7	0.2%
Copper derivatives	2.5	0.7%	(1.9)	-0.5%	231.6%	1.7	0.5%	3.0	0.9%
Net financial charges	0.2	0.1%	0.1	0.0%	100.0%	(0.2)	-0.1%	1.7	0.5%
RESULT BEFORE TAXES (EBT)	10.2	2.9%	8.2	2.3%	24.4%	0.4	0.1%	5.4	1.5%
Taxes	(4.3)	-1.2%	(3.6)	-1.0%	19.4%	(0.7)	-0.2%	(2.4)	-0.7%
NET RESULT non-controlling interests	5.9	1.7%	4.6	1.3%	28.3%	(0.3)	-0.1%	3.0	0.9%
Minorities	0.0	0.0%	0.1	0.0%	-	0.1	0.0%	0.0	0.0%
NET RESULT/(LOSS)	5.9	1.7%	4.7	1.3%	26.2%	(0.2)	-0.1%	3.0	0.9%
EBITDA	15.0	4.2%	18.4	5.2%	-18.5%	6.9	1.9%	8.2	2.3%
Copper derivatives	2.5	0.7%	(1.9)	-0.5%		1.7	0.5%	3.0	0.9%
EBITDA Adjusted (*)	17.5	4.9%	16.5	4.6%	6.1%	8.6	2.4%	11.2	3.2%
Depreciation and provisions	(7.5)	-2.1%	(8.4)	-2.4%		(8.0)	-2.2%	(7.5)	-2.1%

Copper derivatives	2.5	0.7%	(1.9)	-0.5%	1.7	0.5%	3.0	0.9%
Depreciation and provisions	(7.5)	-2.1%	(8.4)	-2.4%	(8.0)	-2.2%	(7.5)	-2.1%

ROCE (EBIT Adj. / Net Capital Employed)%	5.3%	4.5%	0.4%	2.0%

IRCE Group – Balance sheet

31 December 2018 31 December 2017 31 December 2016 31 December 2015 % % % % Working capital 149.8 147.2 121.4 130.2 78.4% 78.9% 70.8% Fixed Assets 52.7 54.9 59.9 57.3 27.6% 29.4% 34.9% -11.5 -15.6 -9.8 -10.5 -6.0% -8.4% -5.7% 191.0 186.5 171.5 177.0 100.0% 100.0% 100.0% Shareholders' Equity 131.3 132.4 135.1 130.8 68.7% 71.0% 78.8% 73.9% Net Financial Debt 59.7 54.1 36.4 46.2 31.3% 29.0% 21.2% 191.0 186.5 171.5 177.0 100.0% 100.0% 100.0%		STAR Conference 2019, Milan 21st March 2019
	Euro million
					73.6% 32.4%
	Other assets and liabilities				-5.9%
	NET CAPITAL EMPLOYED				100.0%
					26.1%
	FINANCING AND EQUITY				100.0%
	CAPEX	6.5	5.9	6.0	4.1
	Irce Spa	40026 Imola BO – Italy www.irce.it			13

CAPEX	6.5	5.9	6.0	4.1

TURNOVER and HOLLOW TURNOVER

357.1 355.4 11.2 8.6 16.5 17.5 3.7 0.6 8.1 10.0 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 2015 2016 2017 2018 Euro million EBITDA Adj EBIT Adj

EBITDA Adjusted and EBIT Adjusted

NET EQUITY Vs MARKET CAPITALIZATION

PRICE/BOOK VALUE RATIO