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IRCE Investor Presentation 2021
4035_ip_2021-10-12_e92889be-e80e-40ba-adb1-1a426cb440d3.pdf
Investor Presentation
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1st Half 2021 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
Company Profile–Highlights
| I R C E To da y |
U. m |
1 °H 2 0 2 1 |
1 °H 2 0 2 0 |
F Y 2 0 2 0 |
|---|---|---|---|---|
| f e Nu be loy m r o mp ee s |
Nr | 2 4 7 |
0 7 7 |
0 8 7 |
| T U R N O V E R |
Eu M r |
2 2 8. 0 |
1 3 6. 7 |
2 9 5. 3 |
| E B I T D A E B I T D A A d j * |
Eu M r Eu M r |
1 0 7. 1 5. 7 |
2. 6 2. 9 |
1 0. 8 1 2. 2 |
| E B I T E B I T A d j * |
Eu M r Eu M r |
1 1. 5 1 0. 2 |
( 1. 0 ) ( 0. 6 ) |
3. 2 4. 6 |
| R E S U L T f he io d t o p er |
Eu M r |
6. 7 |
( 0. 4 ) |
2. 7 |
IRCEisaleadingEuropeanGroupoperatingintheindustriesofmagnetwiresand cables
(*) Including gains/losses on copper and energy derivatives transactions
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
- 2018Established the Company in China
- 2021 Established the Company in Czech Republic
Company Profile–The Businesses
Company Profile–The Businesses
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).
Company Profile – The Businesses >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 one of the top three producers by size.
Company Profile– The Businesses
>Magnet Wires
>Majorcustomers 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 SGB-SMIT Group General Electric EBM-Papst Mulfingen Panasonic Finder TE Connectivity Wuerth
Company Profile – The Businesses >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:
Distributorsofelectrical material
Com-Cavi Spa Sonepar Tkd Kabel Gmbh
Industrialsector
Whirlpool Group Electrolux Group Unionalpha Spa (Indesit Group supplier) Batav Srl (Indesit Group supplier) Selectra Srl Bitron SpA RFI (Rete Ferroviaria Italiana)
Company Profile–Production Plants
| 1. Im la P lan t o |
3. Um be t i de P lan t Gu 2. 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 ly ta 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 3 5 p ee s: |
| C Sp 2. I R E A Gu l ion i I ta ly g es - |
/ Ca L V M V En b les erg y |
Co Sq d Ar 2 4, 0 0 0 ve re ea : m Em loy 8 3 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 8 p ee s: |
| C Sp 4. I R E A M ira do lo I ta ly – |
Co Po ds i t h P lug we r r w s |
Co 0 0 Sq d Ar 5, 5 ve re ea : m Em loy 4 1 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 u g ne 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 0 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 0 0 0 Sq 7, ve re ea : m Em loy 3 2 p ee s: |
| 7. I R C 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 t inu ly Tr d Ca b le ( C T C ) n ou s an sp os e |
Co d Ar 2 1, 5 0 0 Sq ve re ea : m Em loy 1 1 6 p ee s: |
| 8. S b le Ma W ire P. L d. ta t t g ne Co h in In d ia c – |
Co Ro d Ma W ire t p p er un g ne |
Em loy 3 0 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 t W ire p p er un g ne |
Em loy 1 3 p ee s: |
Financial Results–Copper and Aluminium price trend
Financial Results–Profit and Loss Statement
| Eu i l l ion ro m |
st 1 H 2 0 2 1 |
% T urn |
st 1 H 2 0 2 0 |
% T urn |
ha % c ng e |
F Y 2 0 2 0 |
% T urn |
F Y 2 0 1 9 |
% T urn |
F Y 2 0 1 8 |
% T urn |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Hol low tur ires nov er w |
34. 6 |
24. 6 |
40. 7% |
51. 8 |
56. 4 |
60. 3 |
|||||
| Hol low tur abl nov er c es |
12. 2 |
6.3 | 93. 7% |
16. 5 |
14. 0 |
17. 2 |
|||||
| Tot al h oll tu ow rno ver |
46. 8 |
30. 9 |
51. 5% |
68. 3 |
70. 4 |
77. 5 |
|||||
| TU RN OV ER (co r in clu ded ) ppe |
228 .0 |
10 0.0 % |
136 .7 |
10 0.0 % |
66. 8% |
295 .3 |
100 .0% |
311 .9 |
10 0.0 % |
355 .4 |
100 .0 % |
| Oth inc er om e |
0.4 | 0.2% | 0.6 | 0.4% | -33 .3% |
0.8 | 0.3% | 1.0 | 0.3% | 1.0 | 0.3% |
| TO TA L R EV EN UE S |
228 .4 |
10 0.2 % |
137 .3 |
10 0.4 % |
66. 4% |
296 .1 |
100 .3% |
312 .9 |
10 0.3 % |
356 .4 |
100 .3 % |
| Co st o f m ate ria l in clu din ha in sto ck g c nge |
( 179 .1) |
78.6 % - |
( 108 .7) |
79.5 % - |
64. 8% |
( 231 .8) |
78.5 % - |
( 246 .1) |
78.9 % - |
( 279 .1) |
78.5 % - |
| Pe l co sts rso nne |
( 8) 15. |
6.9% - |
( 3) 14. |
10.5 % - |
5% 10. |
( 5) 28. |
9.7% - |
( 2) 30. |
9.7% - |
( 4) 32. |
9.1% - |
| Oth ts a nd vic er cos ser es |
( 16. 5) |
7.2% - |
( 11. 7) |
8.6% - |
41. 0% |
( 25. 0) |
8.5% - |
( 28. 8) |
9.2% - |
( 29. 9) |
8.4% - |
| EB ITD A |
17. 0 |
7.5 % |
2.6 | 1.9% | 553 .8% |
10. 8 |
3 .7% |
7.8 | 2.5 % |
15. 0 |
4 .2 % |
| De cia tio d p isio pre ns an rov ns |
( ) 5.5 |
2.4% - |
( 3.6 ) |
2.6% - |
52. 8% |
( 7.6 ) |
2.6% - |
( 7.4 ) |
2.4% - |
( ) 7.5 |
2.1% - |
| EB IT |
11. 5 |
5.0 % |
( 1.0 ) |
0.7 % - |
3.2 | 1.1% | 0.4 | 0 .1% |
7.5 | 2.1 % |
|
| Co nd de riva tive ppe r a ene rgy s |
( 1.3 ) |
0.6% - |
0.3 | 0.2% | 1.4 | 0.5% | 1.8 | 0.6% | 2.5 | 0.7% | |
| Ne t fi nci al cha na rge s |
( 0.1 ) |
0.0% | 0.4 | 0.3% | ( 0.3 ) |
0.1% - |
0.5 | 0.2% | 0.2 | 0.1% | |
| RE SU LT BE FO RE TA XE S ( EB T) |
10. 1 |
4.4 % |
( 0.3 ) |
0.2 % - |
4.3 | 1.5% | 2.7 | 0.9 % |
10. 2 |
2 .9 % |
|
| Tax es |
( 3.4 ) |
1.5% - |
( 0.1 ) |
0.1% - |
( 1.6 ) |
0.5% - |
( 0.7 ) |
0.2% - |
( 4.3 ) |
1.2% - |
|
| S R E U L T n tro l l ing in ter ts on -co n es |
6.7 | 3.0 % |
( 0.4 ) |
0.3 % - |
2.7 | 0 .9% |
2.0 | 0.6 % |
5.9 | 1.7% | |
| Min ori tie s |
( 0.0 ) |
0.0% | 0.0 | 0.0% | - | ( 0.0 ) |
0.0% | ( 0.1 ) |
0.0% | 0.0 | 0.0% |
| R E S U L T O F T H E P E R I O D |
6. 7 |
% 2.9 |
( 0. 4 ) |
% 0.3 - |
2. 7 |
.9% 0 |
1. 9 |
% 0.6 |
5. 9 |
1.7% |
| EB ITD A |
17. 0 |
% 7.5 |
2.6 | 1.9% | .8% 553 |
10. 8 |
3 .7% |
7.8 | 2.5 % |
15. 0 |
4 .2 % |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Co nd de riva tive ppe r a ene rgy s |
( 1.3 ) |
0.6% - |
0.3 | 0.2% | 1.4 | 0.5% | 1.8 | 0.6% | 2.5 | 0.7% | |
| EB ITD A A dju ste d ( *) |
15. 7 |
6.9 % |
2.9 | 2 .1% |
442 .8% |
12. 2 |
4.1 % |
9.6 | 3 .1% |
17. 5 |
4 .9 % |
| De cia tio nd vis ion pre n a pro s |
( 5.5 ) |
2.4% - |
( 3.6 ) |
2.6% - |
( 7.6 ) |
2.6% - |
( 7.4 ) |
2.4% - |
( 7.5 ) |
2.1% - |
|
| EB IT A dju ste d ( *) |
10. 2 |
4.5 % |
( 0.7 ) |
0.5 % - |
4.6 | 1.6% | 2.2 | 0.7 % |
10. 0 |
2 .8 % |
(*) 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 and energy derivatives transactions.
| R O C E ( E B I T A d j. / Ne Ca i l Em loy d ) % t ta p p e |
% 5. 5 |
-0. 4 % |
2. % 7 |
1. 2 % |
3 % 5. |
|---|---|---|---|---|---|
Financial Results–Balance sheet
| Eu i l l ion ro m |
3 0 Ju 2 0 2 1 ne |
% | 3 1 De be 2 0 2 0 ce m r |
% | 3 1 De be 2 0 1 9 ce m r |
% | 3 1 De be 2 0 1 8 ce m r |
% |
|---|---|---|---|---|---|---|---|---|
| Ne ork ing ita l t w ca p |
176 .5 |
86. 4% |
128 .9 |
79. 4% |
130 .2 |
75. 0% |
149 .8 |
78. 4% |
| Fix ed Ass ets |
42. 2 |
20. 6% |
43. 5 |
26. 8% |
51. 9 |
29. 9% |
52. 7 |
27. 6% |
| Oth d l iab ilit ies ets er ass an |
-14 .3 |
-7.0 % |
-10 .1 |
-6.2 % |
-8.6 | -5.0 % |
-11 .5 |
-6.0 % |
| C O N E T A P I T A L E M P L Y E D |
2 0 4. 4 |
100 .0% |
1 6 2. 3 |
100 .0% |
1 7 3. 5 |
100 .0% |
1 9 1. 0 |
100 .0% |
| Sh ho lde rs' Equ ity are |
131 .6 |
64. 4% |
122 .6 |
75. 5% |
131 .5 |
75. 8% |
131 .3 |
68. 7% |
| Ne t F ina nci al De bt |
72. 8 |
35. 6% |
39. 7 |
24. 5% |
42. 0 |
24. 2% |
59. 7 |
31. 3% |
| F I N A N C I N G A N D E Q U I T Y |
2 0 4. 4 |
100 .0% |
1 6 2. 3 |
100 .0% |
1 7 3. 5 |
100 .0% |
1 9 1. 0 |
100 .0% |
| C A P E X |
2. 1 |
2. 2 |
6. 1 |
6. 5 |
|---|---|---|---|---|
Financial Results–Business Performance
TURNOVER and HOLLOW TURNOVER
17.5 9.6 12.2 15.7 10.0 2.2 4.6 10.2 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 18.0 20.0 2018 2019 2020 1° 2021 Euro million EBITDA AdjEBIT Adj
EBITDA Adjusted and EBIT Adjusted
NET WORKING CAPITAL
Financial Results–Market Performance
