Irce S.p.a.MIL: IRC

1 Half 2025 Financial Results Presentation

· Issued by Irce S.p.a.
1° Half 2025 Financial Results Presentation


IRCE Group - Contents

Company Profile

  • Highlights

  • The Businesses

  • Production Plants

    Financial Results

    New Projects

  • 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

IRCE Today

Uom

1°H 2025

1°H 2024

FY 2024

Number of employees FTE

Nr

675

684

681

TURNOVER

Eur M

204.1

208.4

397.7

EBITDA

Eur M

10.8

12.4

20.9

EBITDA Adj*

Eur M

11.7

13.0

21.4

EBIT

Eur M

7.9

8.4

14.5

EBIT Adj*

Eur M

8.8

9.0

15.0

RESULT of the period

Eur M

3.8

4.8

6.9

(*) 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

2024 Start the construction of plant in China

2025 May 2025 the Dutch Company Smith Draad has ceased its activity

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%

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).

Company Profile- The Businesses

>MagnetWires

> 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


Company Profile- Production Plants
  1. Imola Plant
  2. Guglionesi Plant 3. Umbertide Plant 4. United Kingdom Plant
    1. Brazil Plant
    2. Stable Magnet Wire P.Ltd.
    3. Germany Plant
    4. Czech Republic 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: 227

    IATF 16949

    ISO 14001

    2. IRCE SpA

    Covered Area: 24,000 Sqm

    ISO 9001

    LV/MV Energy Cables

    Guglionesi - Italy Employees: 85

  3. IRCE SpA Covered Area: 19,400 Sqm ISO 9001

Umbertide - Italy

Employees: 41

4. FD Sims Ltd

Covered Area: 7,000 Sqm

ISO 9001

Employees: 36

Copper and Aluminium Round and Rectangular Magnet Wire

IATF 16949

Blackburn - UK

ISO 14001

ISO 45001

5. IRCE Ltda

Copper and Aluminium Round and Rectangular Magnet Wire

Covered Area: 21,500 Sqm

ISO 9001

Joinville - Brazil

Continuously Transposed Cable (CTC)

Employees: 132

IATF 16949

Copper and Aluminium Round Magnet Wire

  1. Stable Magnet Wire P. Ltd. Cochin - India

  2. ISODRA GmbH

    Copper Round Magnet Wire Employees: 27

    ISO 9001

    Kierspe -Germany

    Copper Round Magnet Wire Employees: 14 ISO 9001

  3. Irce S.R.O. Cechia Covered Area: 20,000 Sqm ISO 9001

Copper and Aluminium Round and Rectangular Magnet Wire

Ostrava -Czech Republic Employees: 28

IATF 16949

Compliance Letter



IRCE Group - Copper and Aluminium price trend



Financial Results- Profit and Loss Statement

Euro million

1st H 2025

% T urn.

1st H 2024

% T urn.

change %

FY 2024

FY 2023

FY 2022

Hollow turnover wires

34.3

36.1

-5.0%

68.0

71.0

72.2

Hollow turnover cables

12.9

15.9

-18.9%

28.2

28.2

24.5

Total hollow turnover

47.2

52.0

-9.2%

96.2

99.2

96.7

TURNOVER (copper included)

204.1

10 0 .0 %

208.4

10 0 . 0 %

-2.1%

397.7

402.8

454.7

Other income

1.3

0.6%

0.7

0.3%

85.7%

1.8

1.8

4.9

TOTAL REVENUES

205.4

10 0 .6 %

209.1

10 0 . 3 %

-1.8%

399.5

404.6

459.6

Cost of material including change in stock

(155.8)

-76.3%

(159.3)

-76.4%

-2.2%

(304.1)

(314.6)

(361.9)

Personnel costs

(17.2)

-8.4%

(16.9)

-8.1%

1.8%

(35.8)

(30.5)

(30.0)

Other costs and services

(21.6)

-10.6%

(20.5)

-9.8%

5.4%

(38.7)

(38.1)

(48.3)

EBITDA

10.8

5.3 %

12.4

6 . 0 %

-12.9%

20.9

21.4

19.4

Depreciations and provisions

(2.9)

-1.4%

(4.0)

-1.9%

-27.5%

(6.4)

(7.0)

(7.8)

EBIT

7.9

3 .9 %

8.4

4 . 0 %

-6.0%

14.5

14.4

11.6

Copper and energy derivatives

0.9

0.4%

0.6

0.3%

-50.0%

0.5

0.1

0.5

Net financial charges

(1.9)

-0.9%

(1.0)

-0.5%

90.0%

(2.1)

(2.0)

(1.8)

RESULT BEFORE TAXES (EBT)

6.9

3 .4 %

8.0

3 . 8 %

-13.8%

12.9

12.5

10.3

Taxes

(3.1)

-1.5%

(3.2)

-1.5%

-3.1%

(6.0)

(4.3)

(1.1)

RESULT non-controlling interests

3.8

1.9 %

4.8

2 . 3 %

-20.8%

6.9

8.2

9.2

Minorities

0.0

0.0%

0.0

0.0%

0%

0.0

0.0

0.0

RESULT OF THE PERIOD

3.8

1.9 %

4.8

2 . 3 %

-20.8%

6.9

8.2

9.2

EBITDA

10.8

0.1

12.4

6 . 0 %

-12.9%

20.9

21.4

19.4

Copper and energy derivatives

0.9

0.4%

0.6

0.3%

0.5

0.1

0.5

EBITDA Adjusted (*)

11.7 5.7%

13.0 6 . 2 %

-10.0%

21.4

21.5

19.9

Depreciation and provisions

(2.9)

-1.4%

(4.0)

-1.9%

120.0%

(6.4)

(7.0)

(7.8)

EBIT Adjusted (*)

8.8

4 .3 %

9.0

4 . 3 %

-2.2%

15.0

14.5

12.1

(*) For a better comparison of the operating results, we have introduced the concepts of EBITDA and EBIT Adjusted, that are equal to the t radit ional definitions plus income or loss on copper and energy derivatives if realized. FY 2022 includes M iradolo italian plant, sold on June 30, 2022

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

Headquarters: 9

Financial Results- Balance sheet

Euro million

30 June 2025

%

31 December 2024

%

31 December 2023

%

31 December 2022

%

Net working capital

139.7

64.0%

122.4

62.1%

128.4

71.7%

152.3

74.4%

Fixed Assets

92.3

42.3%

86.5

43.9%

59.3

33.1%

51.7

25.2%

Other assets and liabilities

-13.8

-6.3%

-11.8

-6.0%

-8.7

-4.9%

0.8

0.4%

10.7

NET CAPITAL EMPLOYED

218.2

10 0 . 0 %

197.1

10 0 . 0 %

179.0 10 0 . 0 %

204.8 10 0 . 0 %

Shareholders' Equity 152.8

70.0%

150.6

76.4% 153.3

85.6%

144.8

70.7%

Net Financial Position 65.4

30.0%

46.5

23.6% 25.7

14.4%

60.0

29.3%

FINANCING AND EQUITY 218.2 10 0 . 0 %

197.1 10 0 . 0 % 179.0 10 0 . 0 %

204.8 10 0 . 0 %

CAPEX 35.0 14.2 13.6

Headquarters:

IRCE Spa,Via Lasie, 12/A - 40026 Imola BO - Italy 10