IRCE — Investor Presentation 2022

Mar 23, 2022

FY 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

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

I R C E T d o a y	U. m	F Y 2 0 2 1	F Y 2 0 2 0
Nu be f e loy m r o mp ee s	Nr	7 1 4	7 0 8
T U R N O V E R	Eu M r	4 5 7. 1	2 9 5. 3
E B I T D A	Eu M r	2 3. 2	1 0. 8
E B I T D A A d j *	Eu M r	2 3. 0	1 2. 2
E B I T	Eu M r	1 4. 4	3. 2
* E B I T A d j	Eu M r	1 4. 2	4. 6
S f R E U L T t he io d o p er	Eu M r	9. 4	2. 7
( *) Inc lu d ing ins / los d e de iva ive ion t tra t g a se s o n c op p er an ne rg y r s ns ac s

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	f C T h t t d t h d t i P V i l t d l l t b l e c o m p a n s a r e e p r o c o n o n s a e o o a g e c a e s y u u w v
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	f S ( ) A i i t i F D i L t d U K c q u s o n o m s
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 t t i f 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	f S O G ( G ) A i i t i I D R A b H c q u s o n o m e r m a n y

• ²⁰¹⁵ New sales office in Poland
• ²⁰¹⁸ Established the Company in China
• ²⁰²¹ Established the Company in Czech Republic

Company Profile –The Businesses

IRCE Group works in two business areas:

• •Magnet wires 80% of sales
• •Energy cables 20% of sales

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

> 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 Bontaz

Electromechanical/ElectronicsSiemensSchneider Electric SGB-SMIT Group General Electric EBM-Papst Mulfingen PanasonicFinderTE 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:

Distributors of electrical material

E.B. Elettrofornitura Borghini SpA Com-Cavi Spa Comoli Ferrari & C. SpA Strano SpA

Industrial sector

Whirlpool 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 la t o n	3. U b t i d P la t 2. G l io i P la t m e r e n g ne s n u	4. M ira d lo P la t o n
5. T he Ne t he la d P la t r n s n	6. U i d K in d P la 7. Br i l P la t t t n e g o m n az n	9. G P la t e rm a ny n
1. I R C E Sp A He dq te a ua r rs – 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 er g y	Co d Ar 4 6, 0 0 0 Sq ve re ea : m Em loy 2 3 5 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 er g y	Co d Ar 2 4, 0 0 0 Sq ve re ea m : Em loy 8 5 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 7 p ee s:
4. I R C E Sp A M ira do lo I ta ly –	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 4 2 p ee s:
Sm 5. i t Dr d N i j B V aa me g en N i j T he Ne he lan ds t me g en r –	Co Re ta lar Ma t W ire p p er c ng u g ne Co inu ly Tr d Ca b le ( C T C ) t n ou s an sp os e	Co Sq d Ar 9, 8 0 0 ve re ea : m Em loy 8 2 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 ta t p p er an un an c ng u g ne	Co d Ar 0 0 0 Sq 7, ve re ea : m Em loy 3 0 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 ta lar Ma t W ire p p er an un an c ng u g ne Co Ca ( C C ) t inu ly Tr d b le T n ou s an sp os e	Co d Ar 2 1, 5 0 0 Sq ve re ea : m 1 1 Em loy 4 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 3 0 p ee s:
S O Gm 9. I D R A b H K ier -G sp e er ma ny	Co Ro d Ma t W ire 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 Aluminiumprice trend

Financial Results Profit and Loss Statement

Eu i l l io ro m n	2 0 2 1 F Y	% Tu rn.	2 0 2 0 F Y	% T urn	% ha c ng e	2 0 1 9 F Y	% T urn	2 0 1 8 F Y	% T urn
Ho l low tur ire no ver w s	6 7. 8		5 1. 8		3 0. 9 %	5 6. 4		6 0. 3
Ho l low tur b les no ver ca	2 4. 6		1 6. 5		4 9. 1 %	1 4. 0		1 7. 2
To ta l ho l low tu rn ov er	9 2. 4		6 8. 3		3 5. 3 %	7 0. 4		7 7. 5
O ( ) T U R N V E R inc lu de d co p p er	4 5 7. 1	% 10 0 . 0	2 9 5. 3	% 10 0 . 0	% 5 4. 8	3 1 1. 9	% 10 0 . 0	3 5 5. 4	% 10 0.0
O he inc t r om e	0. 6	0.1 %	0. 8	0.3 %	-2 0 % 5.	1. 0	0.3 %	1. 0	0.3 %
T O T A L R E V E N U E S	4 5 7. 7	1% 10 0 .	2 9 6. 1	% 10 0 . 3	5 4. 6 %	3 1 2. 9	% 10 0 . 3	3 5 6. 4	% 10 0.3
Co f m ia l inc lu d ing ha in k t o ter toc s a c ng e s	( 3 6 6. 2 )	80. 1% -	( 2 3 1. 8 )	78. 5% -	5 8. 0 %	( 2 4 6. 1 )	78. 9% -	( 2 7 9. 1 )	78. 5% -
Pe l c ts rso nn e os	( 3 0. 5 )	6.7 % -	( 2 8. 5 )	9.7 % -	7. 0 %	( 3 0. 2 )	9.7 % -	( 3 2. 4 )	9.1 % -
O t he ts d s ice r c os an erv s	( 3 7. 8 )	8.3 % -	( 2 5. 0 )	8.5 % -	5 1. 2 %	( 2 8. 8 )	9.2 % -	( 2 9. 9 )	8.4 % -
E B I T D A	2 3. 2	1% 5 .	1 0. 8	3 . % 7	1 1 4. 8 %	7. 8	2 . % 5	1 5. 0	4.2 %
De ia t ion d p is ion p rec s a n rov s	( ) 8. 8	1.9% -	( ) 7. 6	2.6 % -	% 1 5. 8	( ) 7. 4	2.4 % -	( ) 7. 5	2.1 % -
E B I T	1 4. 4	3 . 2 %	3. 2	1.1 %		0. 4	0.1 %	7. 5	2 . 1%
Co d e de iva t ive p p er an ne rg y r s	( ) 0. 2	% 0.0	1. 4	% 0.5		1. 8	% 0.6	2. 5	% 0.7
Ne f ina ia l c ha t nc rg es	0. 0	0.0 %	( 0. 3 )	0.1 % -		0. 5	0.2 %	0. 2	0.1 %
S O S ( ) R E U L T B E F R E T A X E E B T	1 4. 2	1% 3 .	4. 3	% 1.5		2. 7	% 0 . 9	1 0. 2	% 2.9
Ta xe s	( 4. 8 )	1.1% -	( 1. 6 )	0.5 % -		( 0. 7 )	0.2 % -	( 4. 3 )	1.2% -
S R E U L T t l l in in t t no n- c o n ro g e re s s	9. 4	2 . 1%	2. 7	0 . 9 %		2. 0	0 . 6 %	5. 9	1.7 %
M ino it ies r	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	9. 4	2 . 1%	2. 7	0 . 9 %		1. 9	0 . 6 %	5. 9	1.7 %

E B I T D A	2 3. 2	5 . 1%	1 0. 8	3 . 7 %	1 1 4. 8 %	8 7.	2 . 5 %	1 0 5.	4.2 %
Co d e de iva t ive p p er an ne rg r s y	( 0. 2 )	0.0 %	1. 4	0.5 %		1. 8	0.6 %	2. 5	0.7 %
E B I T D A A d j d ( *) te us	2 3. 0	5 . 0 %	1 2. 2	4 . 1%	8 8. % 5	9. 6	3.1 %	1 7. 5	4.9 %
De ia t ion d p is ion p rec an rov s	( 8. 8 )	1.9% -	( 7. 6 )	2.6 % -		( 7. 4 )	2.4 % -	( 7. 5 )	2.1 % -
E B I T A d j te d ( *) us	1 4. 2	3 . 1%	4. 6	1.6 %		2. 2	0 . 7 %	1 0. 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.

ROCE (EBIT Adj. / Net Capital Employed)% 7.9% 2.7% 1.2% 5.3%

Financial Results Balance sheet

Eu i l l ion ro m	3 1 De be 2 0 2 1 ce m r	%	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 t w ork ing ita l ca p	166 .5	.8% 84	128 .9	.4% 79	130 .2	.0% 75	149 .8	.4% 78
Fix ed As set s	44 .4	22 .6%	43 .5	26 .8%	51 .9	29 .9%	52 .7	27 .6%
Ot he ts d l iab ilit ies r a sse an	-14 .6	-7.4 %	-10 .1	-6.2 %	-8. 6	-5. 0%	-11 .5	-6. 0%
N E T C A P I T A L E M P L O Y E D	1 9 6. 3	100 .0%	1 6 2. 3	100 .0%	1 3. 7 5	100 .0%	1 9 1. 0	100 .0%
Sh ho lde rs' Eq uit are y	132 .0	67 .2%	122 .6	75 .5%	131 .5	75 .8%	13 1.3	68 .7%
Ne t F ina ial De bt nc	64 .3	.8% 32	39 .7	.5% 24	42 .0	.2% 24	59 .7	.3% 31
F I N A N C I N G A N D E Q U I T Y	1 9 6. 3	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	7. 7	2. 2	6. 1	6. 5

IRCE Group – Business Performance

TURNOVER and HOLLOW TURNOVER

EBITDA Adjusted and EBIT Adjusted

NET CAPITAL EMPLOYED and NET FINANCIAL DEBT

NET WORKING CAPITAL

IRCE Group – Market Performance

MARKET PRICE TREND IRCE (Period: 1st January 2021 – ¹⁸th March 2022)

Mark et Capitalization

Shareholders' Equity