IRCE S p A : FY 2023 Financial Results Presentation

FY 2023 Financial Results Presentation - Euronext STAR Conference 2024 - Milan, 21 March 2024

FY 2023 Financial Results Presentation

Irce Spa	1
Via Lasie, 12/A - 40026 Imola BO - Italy	www.irce.it

FY 2023 Financial Results Presentation - Euronext STAR Conference 2024 - Milan, 21 March 2024

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 Spa	2
Via Lasie, 12/A - 40026 Imola BO - Italy	www.irce.it

FY 2023 Financial Results Presentation - Euronext STAR Conference 2024 - Milan, 21 March 2024

Company Profile - Highlights

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

IRCE Today	Uom	FY 2023
Number of employees FTE	Nr	671
TURNOVER	Eur M	402.8
EBITDA	Eur M	21.4
EBITDA Adj*	Eur M	21.5
EBIT	Eur M	14.4
EBIT Adj*	Eur M	14.5
RESULT of the period	Eur M	8.2

The data includes Miradolo italian plant sold on June 30, 2022

FY 2022

648

454.7

19.4

19.9

11.6

12.1

9.2

(*) Including gains/losses on copper and energy derivatives transactions if realized

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
2018	Established the Company in China
2021	Established the Company in Czech Republic
2022	June 30, sold the branch of the company for the production of power cables located in Miradolo Terme Italy
2023	Start the construction of plant in Czech Republic
Irce Spa		3
Via Lasie, 12/A - 40026 Imola BO - Italy	www.irce.it

FY 2023 Financial Results Presentation - Euronext STAR Conference 2024 - Milan, 21 March 2024

Company Profile - The Businesses

IRCE Group works in two business areas:

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

Sales breakdown by business areas

Sales breakdown by geographical area

Energy cables

Magnet Wires

20%

80%

Irce Spa	4
Via Lasie, 12/A - 40026 Imola BO - Italy	www.irce.it

FY 2023 Financial Results Presentation - Euronext STAR Conference 2024 - Milan, 21 March 2024

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 for building and industrial sector. 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).

Irce Spa	5
Via Lasie, 12/A - 40026 Imola BO - Italy	www.irce.it

FY 2023 Financial Results Presentation - Euronext STAR Conference 2024 - Milan, 21 March 2024

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.

Sales breakdown by industry	Sales breakdown by product

Irce Spa	6
Via Lasie, 12/A - 40026 Imola BO - Italy	www.irce.it

FY 2023 Financial Results Presentation - Euronext STAR Conference 2024 - Milan, 21 March 2024

Company Profile - Production Plants

1. Imola Plant	2. Guglionesi Plant	3. Umbertide Plant	4. The Netherlands Plant

	5. United Kingdom Plant	6. Brazil Plant	7.Stable Magnet Wire P.Ltd.	8. Germany Plant
1.	IRCE SpA - Headquarters	Copper and Aluminium Round Magnet Wire		Covered Area: 46,000 Sqm	ISO 9001
		Imola - Italy	and LV Energy Cables		Employees: 234		IATF 16949
								ISO 14001
2.	IRCE SpA	LV/MV Energy Cables		Covered Area: 24,000 Sqm	ISO 9001
		Guglionesi - Italy		Employees: 83
3.	IRCE SpA	Copper and Aluminium Round Magnet Wire		Covered Area: 19,400 Sqm	ISO 9001
		Umbertide - Italy		Employees: 44
4.	Smit Draad Nijmegen BV	Copper Rectangular Magnet Wire		Covered Area: 9,800 Sqm	ISO 9001
		Nijmegen - The Netherlands	Continuously Transposed Cable (CTC)		Employees: 75
5.	FD Sims Ltd				Covered Area: 7,000 Sqm	ISO 9001
			Copper and Aluminium Round and Rectangular Magnet Wire	Employees: 34		IATF 16949
		Blackburn - UK			ISO 14001
								ISO 45001
6.	IRCE Ltda	Copper and Aluminium Round and Rectangular Magnet Wire	Covered Area: 21,500 Sqm	ISO 9001
		Joinville - Brazil	Continuously Transposed Cable (CTC)		Employees: 117		IATF 16949
7.	Stable Magnet Wire P. Ltd.	Copper Round Magnet Wire		Employees: 28		ISO 9001
		Cochin - India
8.	ISODRA GmbH	Copper Round Magnet Wire		Employees: 13		ISO 9001
		Kierspe -Germany
Irce Spa						7
Via Lasie, 12/A - 40026 Imola BO - Italy	www.irce.it

FY 2023 Financial Results Presentation - Euronext STAR Conference 2024 - Milan, 21 March 2024

IRCE Group - Copper and Aluminium price trend

Irce Spa	8
Via Lasie, 12/A - 40026 Imola BO - Italy	www.irce.it

FY 2023 Financial Results Presentation - Euronext STAR Conference 2024 - Milan, 21 March 2024

Financial Results - Profit and Loss Statement

Euro million		FY 2023 % Turn.	FY 2022 % Turn.	change %		FY 2021		FY 2020
Hollow turnover wires		71.0			72.2			-1.7%		67.8		51.8
Hollow turnover cables		28.2			24.5			15.1%		24.6		16.5
Total hollow turnover		99.2			96.7			2.6%		92.4		68.3
TURNOVER (copper included)		402.8	10 0	.0 %	454.7	10 0	.0 %	-11.4%		457.1		295.3
Other income	1.8		0.4%	4.9		1.1%	-63.3%		0.6		0.8
TOTAL REVENUES		404.6	10 0	.4 %	459.6	10 1.1%	-12.0%		457.7		296.1
Cost of material including change in stock		(314.6)	-78.1%	(361.9)	-79.6%	-13.1%		(366.2)		(231.8)
Personnel costs		(30.5)	-7.6%	(30.0)	-6.6%	1.7%		(30.5)		(28.5)
Other costs and services	(38.1)	-9.5%	(48.3)	-10.6%	-21.1%		(37.8)		(25.0)
EBITDA		21.4	5.3 %	19.4	4	.3 %	10.3%		23.2		10.8
Depreciations and provisions	(7.0)		-1.7%	(7.8)		-1.7%	-10.3%		(8.8)		(7.6)
EBIT		14.4	3	.6 %	11.6	2	.6 %	24.1%		14.4		3.2
Copper and energy derivatives	0.1		0.0%	0.5		0.1%	80.0%		(0.2)		1.4
Net financial charges	(2.0)	-0.5%	(1.8)	-0.4%			0.0		(0.3)
RESULT BEFORE TAXES (EBT)		12.5	3 .1%	10.3	2	.3 %	21.4%		14.2		4.3
Taxes		(4.3)		-1.1%	(1.1)	-0.2%	290.9%		(4.8)		(1.6)
RESULT non-controlling interests		8.2	2	.0 %	9.2	2	.0 %	-10.9%		9.4		2.7
Minorities		0.0		0.0%	0.0		0.0%	0%		0.0		0.0
RESULT OF THE PERIOD		8.2	2	.0 %	9.2	2	.0 %	-10.9%		9.4		2.7
EBITDA		21.4	5.3 %	19.4	4	.3 %	10.3%		23.2		10.8
Copper and energy derivatives		0.1		0.0%	0.5		0.1%			(0.2)		1.4
EBITDA Adjusted (*)		21.5	5.3 %	19.9	4	.4 %	8.0%		23.0		12.2
Depreciation and provisions		(7.0)		-1.7%	(7.8)		-1.7%	12.8%		(8.8)		(7.6)
EBIT Adjusted (*)		14.5	3	.6 %	12.1	2 .7%	19.8%		14.2		4.6

(*) 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 if realized.

The data includes Miradolo italian plant sold on June 30, 2022

	ROCE (EBIT Adj. / Net Capital Employed)%		7.6%	6.0%		7.9%		2.7%

Irce Spa	9
Via Lasie, 12/A - 40026 Imola BO - Italy	www.irce.it

FY 2023 Financial Results Presentation - Euronext STAR Conference 2024 - Milan, 21 March 2024

Financial Results - Balance sheet

Euro million		31 December 2023	%		31 December 2022	%		31 December 2021	%		31 December 2020	%
Net working capital	128.4	71.7%	152.3	74.4%		166.5	84.8%		128.9	79.4%
Fixed Assets		59.3	33.1%		51.7	25.2%		44.4	22.6%		43.5	26.8%
Other assets and liabilities	-8.7	-4.9%	0.8	0.4%		-14.6	-7.4%		-10.1	-6.2%
NET CAPITAL EMPLOYED		179.0	100.0%		204.8	100.0%		196.3	100.0%		162.3 100.0%
Shareholders' Equity		153.3	85.6%		144.8	70.7%		132.0	67.2%		122.6	75.5%
Net Financial Position		25.7	14.4%		60.0	29.3%		64.3	32.8%		39.7	24.5%
FINANCING AND EQUITY		179.0	100.0%		204.8	100.0%		196.3	100.0%		162.3 100.0%

CAPEX

14.2

13.6

7.7

2.2

Irce Spa	10
Via Lasie, 12/A - 40026 Imola BO - Italy	www.irce.it