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IRCE Investor Presentation 2020
4035_ip_2020-09-22_840b1f31-f46e-4783-afe9-87a1232e0cab.pdf
Investor Presentation
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1ST Half 2020 Financial Results Presentation
IRCE Group – Contents
Company Profile
•Highlights •The Businesses •Production Plants
Financial Results
- •CopperandAluminiumPrice Trend
- •ProfitandLoss Statement
- •BalanceSheet
- •BusinessPerformance
- •Market Performance
IRCE Group – Highlights
IRCE is a leading European Group operating in the industriesof magnet wires and cables
| I R C E To da y |
U. m |
st 1 H 2 0 2 0 |
st 1 H 2 0 1 9 |
F Y 2 0 1 9 |
|---|---|---|---|---|
| Nu be f e loy m r o mp ee s |
Nr | 7 0 0 |
7 1 0 |
7 1 0 |
| T U R N O V E R |
Eu M r |
1 3 6. 7 |
1 7 0. 5 |
3 1 1. 9 |
| E B I T D A |
Eu M r |
2. 6 |
5. 5 |
7. 8 |
| E B I T D A A d j * |
Eu M r |
2. 9 |
6. 6 |
9. 6 |
| E B I T |
Eu M r |
( ) 1. 0 |
1. 9 |
0. 4 |
| E B I T A d j * |
Eu M r |
( 0. 7 ) |
3. 0 |
2. 2 |
| S f R E U L T t he io d o p er |
Eu M r |
( ) 0. 4 |
2. 6 |
1. 9 |
(*) Including gains/losses on copper derivatives transactions
History
| 1 9 4 7 |
C ( ) f I R E b i t t i i t i I l I t l i t h t h d t i t i e g a n s a c n m o a a e p r o c o n o m a g n e r e s v y y w u w |
|---|---|
| 1 9 6 1 |
T h d h d i f P V C i l d l l b l t t t t t t e c o m p a n y s a r e e p r o u c o n o n s u a e o w v o a g e c a e s |
| 1 9 9 6 |
T h G l i d h I l i S k E h t t t t e r o u p w a s s e o n e a a n o c x c a n g e |
| 1 9 9 8 |
A i i i f S i D d N i j B V ( T h N h l d ) t t t c q u s o n o m r a a m e g e n e e e r a n s |
| 2 0 0 1 |
f S ( ) A i i t i F D i L t d U K c q s o n o m s u |
| 2 0 0 1 |
G S S T h l i t d t h t M k t t e r o u p w a s s e o n e a r a r e e g m e n |
| 2 0 0 7 |
C f t t i B i l P l t o n s r u c o n o r a z a n |
| 2 0 0 7 |
f S ( ) A i i t i t b l M t W i P. L t d I d i c q u s o n o a e a g n e r e n a |
| 2 0 1 0 |
A i i i f I S O D R A G b H ( G ) t c q u s o n o m e r m a n y |
| 2 0 1 5 |
N l f f i i P l d e w s a e s o c e n o a n |
| 2 0 1 8 |
E b l i h d h C i C h i t t s a s e e o m p a n y n n a |
IRCE Group works in two business areas:
•Magnet wires
•Energy cables
Sales breakdown by business areas
Sales breakdown by geographical area
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
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
WhiteGoods
Embraco (Nidec Group) BSH Secop Ceme Elica Spa A.R.S. Elettromeccanica Cebi Group Domel D.O.O.
Automotive
Denso Manufacturing Robert Bosch Mahle Group G. Cartier Technologies Hanon Systems Buehler motor GmbH Spal Automotive Srl Bontaz
Electromechanical/Electronics
Siemens Schneider Electric EBM-Papst Mulfingen Panasonic Finder TE Connectivity Wuerth
IRCE Group – The Businesses >EnergyCables
The group produces the full range of low and medium voltage cables and cords with plugs.
Cable customers are divided into two main sectors:
Distributorsofelectrical material
Com-Cavi Spa Sonepar Tkd Kabel Gmbh
Industrialsector(whitegoods)
Whirlpool Group Electrolux Group Unionalpha Spa (Indesit Group supplier) Batav Srl (Indesit Group supplier) Selectra Srl Bitron SpA
IRCEGroup–ProductionPlants
| 1. Im la P lan t o |
3. Um be t i de P lan t 2. Gu l io i P lan t r g ne s |
4. M ira do lo P lan t |
|---|---|---|
| 5. T he Ne t he lan ds P lan t r |
6. Un i te d K in do P lan t 7. Br i l P lan t g m az |
9. Ge P lan t rm an y |
| 1. I R C E Sp A He dq ter a ua r s – Im la I ta ly o – |
Co d A lum in ium Ro d Ma t W ire p p er an un g ne d L V En Ca b les an erg y |
Co d Ar 4 6, 0 0 0 Sq ve re ea : m Em loy 2 4 0 p ee s: |
| 2. I R C E Sp A Gu l ion i I ta ly g es - |
L V / M V En Ca b les erg y |
Co d Ar 2 4, 0 0 0 Sq ve re ea : m 8 0 Em loy p ee s: |
| 3. I R C E Sp A Um be t i de I ta ly r - |
Co d A lum in ium Ro d Ma t W ire p p er an un g ne |
Co d Ar 1 9, 4 0 0 Sq ve re ea : m Em loy 4 5 p ee s: |
| 4. I R C E Sp A M ira do lo I ly ta – |
Po Co ds i h P lug t we r r w s |
Co d Ar 0 0 Sq 5, 5 ve re ea : m Em loy 3 0 p ee s: |
| 5. Sm i t Dr d N i j B V aa me g en N i j T he Ne t he lan ds me g en r – |
Co Re tan lar Ma t W ire p p er c g g ne u Co t inu ly Tr d Ca b le ( C T C ) n ou s an sp os e |
Co d Ar 9, 8 0 0 Sq ve re ea m : Em loy 8 5 p ee s: |
| 6. F D S im L d t s B lac k bu U K rn – |
Co d A lum in ium Ro d d Re lar Ma W ire tan t p p er an un an c g u g ne |
Co d Ar 7, 0 0 0 Sq ve re ea : m Em loy 4 0 p ee s: |
| C 7. I R E L t da Jo inv i l le Br i l az - |
Co d A lum in ium Ro d d Re tan lar Ma t W ire p p er an un an c g g ne u Co t inu ly Tr d Ca b le ( C T C ) n ou s an sp os e |
Co Sq d Ar 2 1, 5 0 0 ve re ea m : Em loy 1 0 5 p ee s: |
| 8. S ta b le Ma t W ire P. L t d. g ne Co h in In d ia c – |
Co Ro d Ma t W ire p p er un g ne |
Em loy 2 6 p ee s: |
| S O Gm 9. I D R A b H -G K ier sp e erm an y |
Co Ro d Ma t W ire p p er un g ne |
Em loy 1 5 p ee s: |
IRCE Group – Contents
Company Profile
- •Highlights
- •TheBusinesses
- •Production Plants
Financial Results
- •CopperandAluminiumPrice Trend
- •ProfitandLoss Statement
- •BalanceSheet
- •BusinessPerformance
- •Market Performance
IRCE Group –Copper and Aluminium price trend
IRCE Group –Profit and Loss Statement
| Eu i l l ion ro m |
st 1 H 2 0 2 0 |
% T urn |
st 1 H 2 0 1 9 |
% T urn |
ha % c ng e |
F Y 2 0 1 9 |
% T urn |
F Y 2 0 1 8 |
% T urn |
F Y 2 0 1 7 |
% T urn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Ho llow tur ires nov er w |
24. 6 |
31. 4 |
-21 .7% |
56. 4 |
60. 3 |
63. 7 |
|||||
| Ho llow tur abl nov er c es |
6.3 | 7.5 | -16 .0% |
14. 0 |
17. 2 |
16. 0 |
|||||
| Tot al h oll tu ow rno ver |
30. 9 |
38. 9 |
-20 .6% |
70. 4 |
77. 5 |
79. 7 |
|||||
| TU RN OV ER (c r in clu de d) op pe |
136 .7 |
10 0 .0% |
170 .5 |
10 0 .0% |
-19 .8% |
311 .9 |
100 .0 % |
355 .4 |
10 0.0 % |
357 .1 |
100 .0 % |
| Oth inc er om e |
0.6 | 0.4% | 0.5 | 0.3% | 20. 0% |
1.0 | 0.3% | 1.0 | 0.3% | 0.7 | 0.2% |
| TO TA L R EV EN UE S |
137 .3 |
10 0 .4% |
171 .0 |
10 0 .3% |
-19 .7% |
312 .9 |
100 .3 % |
356 .4 |
10 0.3 % |
357 .8 |
100 .2 % |
| Co st o f m ate ria l in clu din ha in sto ck g c nge |
( 108 .7) |
79.5 % - |
( 134 .1) |
78.7 % - |
-18 .9% |
( 246 .1) |
78.9 % - |
( 279 .1) |
78.5 % - |
( 273 .8) |
76.7 % - |
| Pe l co sts rso nne |
( 14. 3) |
10.5 % - |
( 15. 8) |
9.3% - |
-9.5 % |
( 30. 2) |
9.7% - |
( 32. 4) |
9.1% - |
( 31. 8) |
8.9% - |
| Oth ts a nd vic er cos ser es |
( 7) 11. |
8.6% - |
( 6) 15. |
9.1% - |
.0% -25 |
( 8) 28. |
9.2% - |
( 9) 29. |
8.4% - |
( 8) 33. |
9.5% - |
| EB ITD A |
2.6 | 1.9 % |
5.5 | 3 .2% |
-52 .7% |
7.8 | 2 .5 % |
15. 0 |
4.2 % |
18. 4 |
5 .2 % |
| De cia tio d p isio pre ns an rov ns |
( 3.6 ) |
2.6% - |
( 3.6 ) |
2.1% - |
0.0 % |
( 7.4 ) |
2.4% - |
( 7.5 ) |
2.1% - |
( 8.4 ) |
2.4% - |
| EB IT |
( 1.0 ) |
0 .7% - |
1.9 | 1.1% | -15 2.6 % |
0.4 | 0.1 % |
7.5 | 2 .1% |
10. 0 |
2 .8 % |
| Co r d eri ive vat ppe s |
0.3 | 0.2% | 1.1 | 0.6% | -72 .7% |
1.8 | 0.6% | 2.5 | 0.7% | ( 1.9 ) |
0.5% - |
| Ne t fi nci al cha na rge s |
0.4 | 0.3% | 0.3 | 0.2% | 0.5 | 0.2% | 0.2 | 0.1% | 0.1 | 0.0% | |
| RE SU LT BE FO RE TA XE S ( EB T) |
( 0.3 ) |
0 .2% - |
3.3 | 1.9 % |
-10 9.1 % |
2.7 | 0 .9 % |
10. 2 |
2.9 % |
8.2 | 2 .3 % |
| Ta xe s |
( 0.1 ) |
0.1% - |
( 0.7 ) |
0.4% - |
85. 7% |
( 0.7 ) |
0.2% - |
( 4.3 ) |
1.2% - |
( 3.6 ) |
1.0% - |
| S R E U L T n tro l l ing in te ts on -co n res |
( 0.4 ) |
0 .3% - |
2.6 | 1.5 % |
-11 5.4 % |
2.0 | 0 .6 % |
5.9 | 1.7 % |
4.6 | 1.3 % |
| Min ori tie s |
0.0 | 0.0% | 0.0 | 0.0% | - | ( 0.1 ) |
0.0% | 0.0 | 0.0% | 0.1 | 0.0% |
| R E S U L T O F T H E P E R I O D |
( 0. 4 ) |
0 .3% - |
2. 6 |
1.5 % |
-1 1 4. 2 % |
1. 9 |
0 .6 % |
5. 9 |
1.7 % |
4. 7 |
1.3 % |
| EB ITD A |
2.6 | % 1.9 |
5.5 | .2% 3 |
-52 .7% |
7.8 | % 2 .5 |
15. 0 |
% 4.2 |
18. 4 |
% 5 .2 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Co r d eri vat ive ppe s |
0.3 | 0.2% | 1.1 | 0.6% | 1.8 | 0.6% | 2.5 | 0.7% | ( 1.9 ) |
0.5% - |
|
| EB ITD A A dju d ( *) ste |
2.9 | 2.1 % |
6.6 | 3 .9% |
-56 .1% |
9.6 | 3.1 % |
17. 5 |
4.9 % |
16. 5 |
4 .6 % |
| De cia tio nd vis ion pre n a pro s |
( 3.6 ) |
2.6% - |
( 3.6 ) |
2.1% - |
( 7.4 ) |
2.4% - |
( 7.5 ) |
2.1% - |
( 8.4 ) |
2.4% - |
|
| EB IT A dju ste d ( *) |
( 0.7 ) |
0 .5% - |
3.0 | 1.8 % |
-12 3.3 % |
2.2 | 0 .7 % |
10. 0 |
2.8 % |
8.1 | 2 .3 % |
(*) For a better comparison of the operating results, we have introduced the concepts of EBITDA and EBIT Adjusted, that are equal to the traditional definitions plus income or loss on copper derivatives transactions.
| O C ( / Ca ) % R E E B I T A d j. Ne t i ta l Em loy d p p e |
% -0. 8 |
% 3. 2 |
% 1. 2 |
% 5. 3 |
% 4. 5 |
|---|---|---|---|---|---|
IRCE Group –Balance sheet
| Eu i l l ion ro m |
3 0 Ju 2 0 2 0 ne |
% | 3 1 De be 2 0 1 9 ce m r |
% | 3 1 De be 2 0 1 8 ce m r |
% | 3 1 De be 2 0 1 7 ce m r |
% |
|---|---|---|---|---|---|---|---|---|
| Ne t w ork ing ita l ca p |
122 .5 |
76. 9% |
132 .0 |
75. 9% |
149 .8 |
78. 4% |
147 .2 |
78. 9% |
| Fix ed Ass ets |
46. 0 |
28. 9% |
51. 9 |
29. 8% |
52. 7 |
27. 6% |
54. 9 |
29. 4% |
| Oth ets d l iab ilit ies er ass an |
-9.2 | -5.8 % |
-10 .0 |
-5.8 % |
-11 .5 |
-6.0 % |
-15 .6 |
-8.4 % |
| N E T C A P I T A L E M P L O Y E D |
1 9. 3 5 |
100 .0% |
1 3. 9 7 |
100 .0% |
1 9 1. 0 |
100 .0% |
1 8 6. 5 |
100 .0% |
| Sh ho lde rs' Equ ity are |
120 .8 |
8% 75. |
131 .5 |
6% 75. |
131 .3 |
7% 68. |
132 .4 |
0% 71. |
| Ne t F ina nci al De bt |
38. 5 |
24. 2% |
42. 4 |
24. 4% |
59. 7 |
31. 3% |
54. 1 |
29. 0% |
| F I N A N C I N G A N D E Q U I T Y |
1 5 9. 3 |
100 .0% |
1 7 3. 9 |
100 .0% |
1 9 1. 0 |
100 .0% |
1 8 6. 5 |
100 .0% |
| C A P E X |
0. 8 |
6. 1 |
6. 5 |
9 5. |
|---|---|---|---|---|
IRCE Group –Business Performance
TURNOVER and HOLLOW TURNOVER
16.5 17.5 9.6 2.9 8.1 10.0 2.2 -0.7 -5.0 0.0 5.0 10.0 15.0 20.0 2017 2018 2019 1st H 2020 Euro million
EBITDA Adj EBIT Adj
EBITDA Adjusted and EBIT Adjusted
NET CAPITAL EMPLOYED and NET FINANCIAL DEBT
NET WORKING CAPITAL
IRCE Group –Market Performance
