IRCE

Quarterly Report • May 12, 2017

Informazione Regolamentata n. 0163-13-2017		Data/Ora Ricezione 12 Maggio 2017 17:19:46	MTA - Star
Societa'	:	IRCE
Identificativo Informazione Regolamentata	:	89474
Nome utilizzatore	:	IRCEN01 - CASADIO
Tipologia	:	IRAG 03
Data/Ora Ricezione	:	12 Maggio 2017 17:19:46
Data/Ora Inizio Diffusione presunta	:	12 Maggio 2017 17:20:09
Oggetto	:	2017	Interim report on operations at 31st march
Testo del comunicato

Vedi allegato.

INTERIM REPORT ON OPERATIONS AT 31 ST MARCH 2017

The Board of Directors has today approved the consolidated financial statements as at March 31st 2017.

Sales of winding wire sector were higher than those recorded in the first quarter of 2016, in particular half of the growth was generated by sales in the South American market. The situation in the cable sector was still negative, and was affected not only by the drop in volumes but also by a reduction in the price level.

Consolidated turnover amounted to € 92.48 million, compared to € 77.83 million in the first quarter of 2016, the increase of 19% was largely due to the rise in copper prices.

The results are shown in the following table.

Consolidated income statement data (€/million)	st quarter 2017 1	st quarter 2016 1	Change
Turnover1	92.48	77.83	14.65
EBITDA22	4.72	2.45	2.27
EBIT	3.10	0.92	2.18
Profit before taxes	3.67	1.17	2.50
Net profit	2.55	0.51	2.04
Adjusted EBITDA33	4.94	2.58	2.36
Adjusted EBIT33	3.32	1.05	2.27
Consolidated statement of financial position data (€/million)	As of 31.03.2017	As of 31.12.2016	Change
Net invested capital	189.72	173.49	16.23
Shareholders' Equity	140.43	137.24	3.19
Net financial debt	49.29	36.25	13.04

1 The item "Turnover" represents the "Revenues" reported in the income statement.

² EBITDA is a performance indicator used by the Management of the Group in order to assess the operating performance of the company and is not identified as an accounting item within IFRS; it is calculated by IRCE S.p.A. by adding amortisation/depreciation, allocations and write-downs to EBIT.

³ Adjusted EBITDA and EBIT are respectively calculated as the sum of EBITDA and EBIT and the income/charges from operations on copper derivatives transactions (€ +0.22 million in the 1° quarter 2017 and € +0.13 million in the 1° quarter 2016). These indicators are used by the Management of the Group in order to monitor and assess the operational performance of the Group and are not identified as accounting items within IFRS. Given that the composition of these measures is not regulated by the reference accounting standards, the criterion used by the Group could potentially not be consistent with that adopted by others and therefore not be comparable.

PRESS RELEASE

Consolidated net financial debt, at the end of March 2017, was € 49.29 million, up from € 36.25 million at the end of 2016, due to the increase of the net working capital.

The Group's investments in 1st quarter 2017 were € 0.85 million and concern European plants.

The winding wire sector, in the first quarter of this year, recorded sales volumes higher than in the last quarter of 2016, showing some signs of improvement with regard to the rest of the year. In the cable sector there are no signals of change of trend.

The manager responsible for preparing the company's financial reports, Elena Casadio, declares, pursuant to paragraph 2 of Article 154-bis of the Consolidated Law on Finance that the accounting information contained in this press release corresponds to our books and accounting records.

Imola, 12nd May 2017

IRCE SPA

Contacts:

Investor relation. Sepriano Gianfranco Tel. + 39 0382 77535 e-mail gianfranco.sepriano@irce-group.com

IRCE Group is an important player in the winding wires and electric cable sector. The production is deployed in 4 facilities in Italy and 5 facilities abroad: Nijmegen (NI), Blackburn (UK), Joinville SC (Brazil), Kochi (India) and Kierspe (Germany). The Group includes also 6 commercial companies; five of them are located outside Italy (Germany, Spain, Switzerland, Turkey and Poland) and the Group employs about 733 employees.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

ASSETS	31.03.2017	31.12.2016
NON- CURRENT ASSETS
Goodwill and intangibles assets	1,821,849	1,827,881
Property, plant and equipment	51,754,828	52,627,264
Equipment and other tangible assets	1,126,493	1,209,192
Fixed assets under construction and advance	4,813,309	4,177,393
Non-current financial assets and receivables	126,610	122,677
Non-current tax receivables	879,082	811,582
Deferred tax assets	2,402,887	2,470,294
TOTAL NON -CURRENT ASSETS	62,925,058	63,246,283
CURRENT ASSETS
Inventory	74,770,614	72,427,659
Trade receivables	89,932,908	75,918,372
Tax receivables	1,889,401	2,442,219
Receivables due from other	1,797,843	2,061,055
Current financial assets	619,806	543,981
Cash and cash equivalents	4,168,834	7,775,737
TOTAL CURRENT ASSETS	173,179,406	161,169,023
TOTAL ASSETS	236,104,464	224,415,306

SHAREHOLDERS EQUITY AND LIABILITIES	31.03.2017	31.12.2016
SHAREHOLDERS' EQUITY
SHARE CAPITAL	14,626,560	14,626,560
RESERVES	122,992,394	122,288,345
PROFIT FOR THE PERIOD	2,548,407	54,676
TOTAL SHAREHOLDERS' EQUITY OF THE GROUP	140,167,361	136,969,581
MINORITY INTEREST	266,831	266,216
TOTAL SHAREHOLDERS' EQUITY	140,434,192	137,235,797
NON CURRENT LIABILITIES
Non-current financial liabilities	11,905,101	13,968,266
Deferred tax liabilities	280,705	289,176
Provision for risks and charges	2,510,740	2,434,053
Employee benefits' provision	6,029,128	6,027,372
TOTAL NON-CURRENT LIABILITIES	20,725,674	22,718,867
CURRENT LIABILITIES
Current financial liabilities	41,898,316	30,132,677
Trade payables	22,732,396	24,991,819
Tax payables	2,258,743	1,340,080
Social security contributions	1,522,606	2,147,394
Other current liabilities	6,532,537	5,848,672
TOTAL CURRENT LIABILITIES	74,944,598	64,460,642
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES	236,104,464	224,415,306

CONSOLIDATED INCOME STATEMENT

	31.03.2017	31.03.2016
Revenues	92,480,862	77,830,748
Other revenues and income	118,040	168,787
TOTAL REVENUES	92,598,902	77,999,535
Cost for raw material and consumables	(73,435,998)	(60,161,631)
Change in inventories of work in progress and finished goods	3,012,337	750,223
Cost for services	(8,836,826)	(7,939,732)
Personnel costs	(8,156,267)	(7,818,505)
Amortization/depreciation of tangible and intangible assets	(1,474,295)	(1,371,790)
Allocation and write-downs	(146,247)	(151,837)
Other operating costs	(463,241)	(382,437)
EBIT	3,098,365	923,826
Financial incomes / (charges)	571,901	242,742
PROFIT / (LOSS) BEFORE TAXES	3,670,266	1,166,568
Income taxes	(1,121,244)	(654,416)
PROFIT / (LOSS) BEFORE NON-CONTROLLING INTERESTS	2,549,022	512,152
Non-controlling interests	(615)	(1,922)
PROFIT / (LOSS) FOR THE PERIOD	2,548,407	510,230

Earnings/(loss) per share (EPS) - basic EPS ascribable to ordinary shareholders of the parent	0.095	0.019
company - diluted EPS ascribable to ordinary shareholders of the parent company	0.095	0.019

CONSOLIDATED STATEMENT OF CASH FLOWS	31.03.2017	31.03.2016
€/000
OPERATING ACTIVITIES Profit for the year	2,548	510
Adjustmenrts for: Amortization/depreciation Net change in (assets) provision for (advance) deferred taxes (gains)/losses from sell-off of fixed assets (gains)/losses on unrealized translation differences Taxes Financial income/(charge) Operating profit/(loss) before change in working capital	1,474 59 4 23 1,015 (674) 4,449	1,372 (174) - 7 806 (292) 2,230
Decrease (increase) in inventory (Increase) decrease in current assets and liabilities (increase) decrease in non-current assets and liabilities Exchange difference on translation of financial statement in foreign currency CASH FLOW GENERATED BY OPERATING ACTIVITIES	(2,343) (15,585) 79 398 (13,002)	477 661 65 (387) 3,046
INVESTING ACTIVITIES
Investments in intangible assets Investments in tangible assets Amount collected fromsale of tangible and intangible assets	(3) (847) 3	(12) (499) 17
CASH FLOW USED IN INVESTMENTS	(847)	(494)
FINANCIAL ACTIVITIES Net change in loans Net change in short-term debt Exchange difference on translation of financial statement in foreign currency Change in current financial assets Payment of interest Receipt of interest Change in minority shareholders' capital Sell/purchase own shares CASH FLOW GENERATED FROM FINANCIAL TRANSACTION NER CASH FLOW FOR THE PERIOD	(2,063) 11,766 (328) (76) (94) 768 1 - 9,976 (3,874)	(2,114) (1,877) 875 303 (288) 580 2 (5) (2,523) 29
CASH BALANCE AT START OF YEAR	7,776	5,402
TOTAL NET CASH FLOW FOR THE PERIOD EXCHANGE DIFFERENCE	(3,874) 267	29 199
CASH BALANCE AT THE END OF YEAR	4,169	5,232