IRCE — Investor Presentation 2020

May 25, 2020

1STQ 2020 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

IRCE Group – Highlights

IRCE is ^a leading European Group operating in the industries of magnet wires and cables

I R C E To da y	U. m.	st 1 Q 2 0 2 0	st 1 Q 2 0 1 9	F Y 2 0 1 9
f e Nu be loy m r o mp ee s	Nr	1 0 7	2 3 7	1 0 7
T U R N O V E R	Eu M r	7 7. 3	8 5. 2	3 1 1. 9
E B I T D A E B I T D A A d j *	Eu M r Eu M r	2. 9 0. 5	2. 7 4. 1	7. 8 9. 6
E B I T E B I T A d j *	Eu M r Eu M r	1. 1 ( 1. 3 )	1. 0 2. 4	0. 4 2. 2
R E S U L T f t he io d o p er	Eu M r	( 0. 9 )	1. 5	1. 9

(*) Including gains/losses on copper derivatives transactions

History

1 9 4 7	I R C E b i i i i I l ( I l ) i h h d i f i t t t t t t t t e g a n s a c v y n m o a a y w e p r o u c o n o m a g n e w r e s
1 9 6 1	T h t t d t h d t i f P V C i l t d l l t b l 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 t d t h I t l i S t k E h 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 t i f S i t D d N i j B V ( T h N t h l d ) 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	A i i i f F D S i L d ( U K ) t t c q s o n o m s u
2 0 0 1	T h G l i d h S M k S t t t t t e r o p a s s e o n e a r a r e e g m e n u w
2 0 0 7	C i f B i l P l t t t o n s r c o n o r a a n u z
2 0 0 7	A i i i f S b l M W i P. L d ( I d i ) t t t t c q s o n o a e a g n e r e n a u
2 0 1 0	A i i t i f I S O D R A G b H ( G ) 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 t b l i h d t h C i C h i 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

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

White Goods

Embraco (Nidec Group) BSHSecopCemeElica 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

Electromechanical/ElectronicsSiemensSchneider Electric EBM-Papst Mulfingen Cummins Generator Technologies PanasonicFinderTE Connectivity Wuerth

>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:

Distributors of electrical material

Com-Cavi Spa SoneparTkd Kabel Gmbh

Industrial sector (white goods)

Whirlpool Group Electrolux Group Unionalpha Spa (Indesit Group supplier) Batav Srl (Indesit Group supplier) Selectra Srl Bitron SpA

IRCE Group – Production Plants

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	Ge 9. 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 ly ta 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 Em loy 8 0 p ee s:
C Sp 3. I R E 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 Sq d Ar 1 9, 4 0 0 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 t h P lug we r r w s	Co d Ar 5, 5 0 0 Sq ve re ea : m Em loy 3 5 p ee s:
Sm 5. 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 u g ne Co Ca ( C C ) t inu ly Tr d b le T n ou s an sp os e	Co Sq d Ar 9, 8 0 0 ve re ea : m Em loy 8 5 p ee s:
6. F D S im L t d s B lac k bu U K rn –	Co d A lum in ium Ro d d Re tan lar Ma t W ire 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 u g ne Co Ca ( C C ) t inu ly Tr d b le T n ou s an sp os e	Co 2 1, 0 0 Sq d Ar 5 ve re ea : m 1 0 Em loy 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 8 p ee s:
9. I S O D R A Gm b H K ier -G sp e erm an y	Co Ro d Ma W ire t p p er un g ne	Em loy 1 3 p ee s:

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

IRCE Group – Copper and Aluminium price trend

IRCE Group – Profit and Loss Statement

Eu i l l ion ro m	st 1 Q 2 0 2 0	% T urn	st 1 Q 2 0 1 9	% T urn	% ha c ng e	2 0 1 9 F Y	% T urn	2 0 1 8 F Y	% T urn	2 0 1 F Y 7	% T urn
Hol low tur ires nov er w	13. 9		15. 6		-10 .9%	56. 4		60. 3		63. 7
Hol low tur abl nov er c es	3.6		3.5		2.9 %	14. 0		17. 2		16. 0
Tot al h ollo w t urn ove r	17. 5		19. 1		-8.4 %	70. 4		77. 5		79. 7
TU RN OV ER (co r in clu ded ) ppe	77. 3	10 0.0 %	85. 2	10 0.0 %	-9.3 %	311 .9	10 0.0 %	355 .4	100 .0%	357 .1	100 .0%
Oth inc er om e	0.4	0.5%	0.4	0.5%	0.0 %	1.0	0.3%	1.0	0.3%	0.7	0.2%
TO TA L R EV EN UE S	77. 7	10 0.5 %	85. 6	10 0.5 %	-9.2 %	312 .9	10 0.3 %	356 .4	100 .3%	357 .8	100 .2%
Co f m ria l in clu din han in s k st o ate toc g c ge	( 60. 2)	77.9 % -	( 67. 1)	78.8 % -	-10 .3%	( 246 .1)	78.9 % -	( 279 .1)	78.5 % -	( 273 .8)	76.7 % -
Pe l co sts rso nne	( 7.7 )	10.0 % -	( 7.8 )	9.2% -	-1.3 %	( 30. 2)	9.7% -	( 32. 4)	9.1% -	( 31. 8)	8.9% -
Oth ts a nd vic er cos ser es	( ) 6.9	8.9% -	( ) 8.0	9.4% -	.8% -13	( 8) 28.	9.2% -	( 9) 29.	8.4% -	( 8) 33.	9.5% -
EB ITD A	2.9	% 3.8	2.7	% 3.2	7.4 %	7.8	% 2.5	15. 0	% 4.2	18. 4	% 5.2
De cia tio d p isio pre ns an rov ns	( 1.8 )	2.3% -	( 1.7 )	2.0% -	5.9 %	( 7.4 )	2.4% -	( 7.5 )	2.1% -	( 8.4 )	2.4% -
EB IT	1.1	1.4%	1.0	1.2%	10. 0%	0.4	0.1%	7.5	2 . 1%	10. 0	2.8 %
Co r d eri ive vat ppe s	( 2.4 )	3.1% -	1.4	1.6%	-27 1.4 %	1.8	0.6%	2.5	0.7%	( 1.9 )	0.5% -
Ne t fi cia l ch nan arg es	0.2	0.3%	0.0	0.0%		0.5	0.2%	0.2	0.1%	0.1	0.0%
SU FO S ( T) RE LT BE RE TA XE EB	( ) 1.1	1.4% -	2.4	2.8 %	% -14 5.8	2.7	0.9 %	10. 2	2.9 %	8.2	2.3 %
Tax es	0.2	0.3%	( 0.9 )	1.1% -	122 .2%	( 0.7 )	0.2% -	( 4.3 )	1.2% -	( 3.6 )	1.0% -
R E S U L T n tro l l ing in ter ts on -co n es	( 0.9 )	1.2% -	1.5	1.8%	-16 0.0 %	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. 9 )	1.1% -	1. 5	1.8%	-1 5 8. 0 %	1. 9	0.6 %	5. 9	1.7%	4. 7	1.3%

EB ITD A	2.9	3.8 %	2.7	3.2 %	% 7.4	7.8	2.5 %	15. 0 4.2 %	18. 4 5.2 %
Co r d eri vat ive ppe s	( 2.4 )	3.1% -	1.4	1.6%		1.8	0.6%	2.5 0.7%	( 1.9 ) 0.5% -
EB ITD A A dju ste d ( *)	0.5	0.6 %	4.1	4.8 %	-87 .8%	9.6	3.1 %	17. 5 4.9 %	16. 5 4.6 %
De cia tio nd vis ion pre n a pro s	( 1.8 )	2.3% -	( 1.7 )	2.0% -		( 7.4 )	2.4% -	( 7.5 ) 2.1% -	( 8.4 ) 2.4% -
EB IT A dju ste d ( *)	( 1.3 )	1.7% -	2.4	2.8 %	-15 4.2 %	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.

IRCE Group – Balance sheet

Eu i l l ion ro m	3 1 Ma h 2 0 2 0 rc	%	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	%
Net rkin ital wo g c ap	132 .3	78. 5%	132 .0	75. 9%	149 .8	78. 4%	147 .2	78. 9%
Fix ed Ass ets	48. 2	28. 6%	51. 9	29. 8%	52. 7	27. 6%	54. 9	29. 4%
Oth ets d li abi litie er ass an s	-12 .0	-7.1 %	-10 .0	-5.8 %	-11 .5	-6.0 %	-15 .6	-8.4 %
C O N E T A P I T A L E M P L Y E D	1 6 8. 5	100 .0%	1 7 3. 9	100 .0%	1 9 1. 0	100 .0%	1 8 6. 5	100 .0%
Sh hol der s' E ity are qu	122 .6	72. 8%	131 .5	75. 6%	131 .3	68. 7%	132 .4	71. 0%
Net Fi cia l De bt nan	45. 9	27. 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 6 8. 5	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. 5	6. 1	6. 5	9 5.

IRCE Group – Business Performance

TURNOVER and HOLLOW TURNOVER

16.517.59.60.58.110.02.2-1.3-5.00.05.010.015.020.0^{2017 2018 2019} 1st Q 2020 Euro million

EBITDA Adj

EBIT Adj

EBITDA Adjusted and EBIT Adjusted

NET WORKING CAPITAL

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

IRCE Group – Market Performance

NET EQUITY Vs MARKET CAPITALIZATION

PRICE/BOOK VALUE RATIO