CEMBRE INVESTOR RELATION ENG 13092021 A4

Investor presentation

Results of the first half 2021

CONTENTS

CEMBRE | Investor relations 2

CEMBRE at a glance

Group management team

Main product lines & applications

Results of the first half 2021

First half 2021 guidance

Stock data & shareholding structure

Contact

CEMBRE AT A GLANCE

CEMBRE is Europe’s leading manufacturer of electrical crimp typeconnectors and related installation tools.

The Group has grown its revenues by a CAGR of 4.8% in the last 20 years

(2001-2020), from 56 M€ in 2001 to 137.1 M€ in 2020. In the last 5 years theGroup has grown by a CAGR of 2.8% (2016-2020).

It is a dividend payer with a 20 years average dividend payout ratio of

45.2%, and an average dividend yield of 3.7% (2000-2020). The averagedividend yield in the last 5 years has been of 4.3% (2016-2020).

In 2020, the Group invested 8.0 M€; the total amount of investmentsmade by the company in the last five years (2016-2020) is 58.6 M€; at

December 31, 2019 investments amounted to 11.7 M€.

The product mix (a total of more than 18K end products sold during 2020)is offered to around 7K single clients around the world, with 10-biggest

clients’ purchases corresponding to c.18% of the consolidated turnover.

CEMBRE | Investor relations 32021/09

MISSION

CEMBRE cooperates with the users of its productsto search the best technical and economical

solutions related to electrical connection applications

2021/02 CEMBRE | Investor relations 4

GROUP MANAGEMENT TEAM

Giovanni RosaniChief Executive Officer (CEO)

Aldo Bottini BongraniMember of the boardM&A and Special Projects

Claudio BornatiChief Financial Officer (CFO)

Felice AlbertazziMember of the boardChief Sales & Marketing Officer (CSMO)

Franco CelliMember of the boardChief Operating Officer (COO)

5CEMBRE | Investor relations2021/09

GROUP STRUCTURE

CEMBRE S.p.A.

CEMBRE LtdUK

100%

CEMBRE SarlFrance

100%

CEMBRE SluSpain

100%

CEMBRE GmbH

Germany100%

CEMBRE IncUSA

100%


Manufacturing and trading unit

Trading unit

Employees: 39Employees: 107 Employees: 45 Employees: 56 Employees: 30

The Group employs

789 employees worldwide (at June 30, 2021)

Employees: 481

2021/09

Employees: 512

CEMBRE has extensive know-

how in its operating field and its

strong R&D team allows it to

respond quickly to marketdemands.

Sharp focus on customer needs

and the efficient international

sales network (124 salesmen)

are significant competitiveadvantages for CEMBRE.

HUMAN RESOURCES(Number of employees by segment, at June 30, 2021)

R&D

•22

Manufacturing

•458

Marketing, Sales & Distribution

•222

Administration & services

•87


MAIN PRODUCT LINES

CEMBRE is Europe’s leading manufacturer of electrical crimp type connectors and related installation tools


Railway

products

Identification

systems

Cable glands,

accessories & other

Electrical

connectors Tools

2021/09

Cable glands

Connectors

Tools

Labelling

INDUSTRY & AUTOMATION

2021/02 9

POWER DISTRIBUTION

APPLICATIONS

Rail drilling

machine

Sleeper drilling

machine

APPLICATIONS: RAILWAY

10

NUMBERS


18,000 product types sold every year

22,800 product types for immediate delivery

4.5 Millions electrical

connectors sold by CEMBRE Group

each working day

2021/09

MADE IN BRESCIA

CEMBRE has beenestablished in 1969 andmanufactures its products inits state-of-art productionfacility located in Brescia.

The facility covers an area of60,000 m2 on a total landarea of 121,000 m2.

In December 2011 CEMBREpurchased a 13,500 m2

industrial area next to itsplant, by investing 9.7 M€.


CEMBRE S.p.A. – Headqquarter in Brescia (Italy)

2021/09

… AND MADE IN UK

In addition, CEMBRE has aproduction facility in the UKwhich operates on a 8,800 m2

land.

This plant in Birminghammanufactures mainly for thelocal market.

The sales generated in the UKare 13% of the consolidatedturnover of the first half 2021


CEMBRE Ltd. – Factory in Curdworth Birmingham (UK)

2021/09

VERY STRONG IN EUROPE

CEMBRE is present all overthe Italian territory througha network of salesmen andrepresentatives who areable to offer fast andconstant technicalassistance.

Abroad, it operates through4 subsidiaries in Europe (UK,France, Spain andGermany) and 1 in the USA.


Group companies

Regional offices

Main importers

Brescia

Madrid

München

Paris

Birmingham

2021/09

… PRESENT ALL OVER THE WORD

CEMBRE has a network of importers and agents who provide technical andcommercial assistance and rapid delivery worldwide


Edison

Group companies

Main importers

2021/09

REVENUES BREAKDOWN before commercial rebates by product family (€’000)


Electr.

connectorsTools

Railway

products

Marking

systems

Cable

glandsOthers Total

1st Half

2021

37,787 13,239 13,055 17,109 7,704 3,159 92,053

41.05% 14.38% 14.18% 18.59% 8.37% 3.43% 100%

1st Half

2020

27,523 10,272 11,154 12,249 5,653 2,718 69,569

39.56% 14.77% 16.03% 17.61% 8.13% 3.91% 100%

Change 37.29% 28.88% 17.04% 39.68% 36.28% 16.23% 32.32%

1st Half 2021

Electrical connectors Tools Railway Products

Marking Systems Cable Glands Others

1st Half 2020

Electrical connectors Tools Railway Products

Marking Systems Cable Glands Others

2021/09

GEOGRAPHICAL REVENUES BREAKDOWN


Italy 1st Half 2021 1st Half 2020 ∆

Sales 36.4 M 25.4M 43.2%

% on total 43.0% 39.3%

Rest of the World 1st Half 2021 1st Half 2020 ∆

Sales 8.6 M 8.9 M -3.1%

% on total 10.2% 13.7%

Europe (Italy excluded)

1st Half 2021 1st Half 2020 ∆

Sales 39.6 M 30.4 M 30.2%

% on total 46.8% 47.0%

2021/09

50,456,0 56,9 59,9

65,1 70,0

84,1

93,4 94,3

76,0

93,9

103,0 103,9 104,5

112,9121,4

122,6

132,6

144,1 146,3

137,1

0

20

40

60

80

100

120

140

160

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

REVENUES EVOLUTION


Global Economic

Crisis

€ Millions

2021/09

CONSOLIDATED RESULTS OF THE FIRST HALF 2021


€ Millions1st Half

2021

1st Half

2020

Change %

2021-2020

1st Half

2019

Change %

2021-2019

Sales 84.5 64.7 30.8% 76.9 10.0%

EBITDA% of sales

25.229.8%

15.624.1%

61.9% 20.927.2%

20.6%

EBIT% of sales

19.623.2%

10.215.8%

92.1% 16.221.0%

21.2%

EBT% of sales

19.723.3%

10.215.8%

92.9% 16.020.9%

22.7%

Net profit% of sales

14.717.3%

7.611.8%

92.8% 12.416.1%

18.4%

Tax rate % 25.5% 25.5% 22.8%

2021/09

«PATENT BOX» FISCAL BENEFIT

The parent company CEMBRE S.p.A. in December 2017 signed, with thesupport of Business Tax and Consulting firm Deloitte, an agreement with theItalian Revenue Office defining the calculation methods and criteria for theeconomic contribution to business revenue of intangible assets in thecontext of the «Patent Box» scheme, for tax years 2015-2019. The renewal ofthe agreement for tax years 2020-2024 is under evaluation, but, at the timeof present document, the closing date and the result of this process is notforeseeable.


€ Millions 2019 2018 2017

Fiscal benefit 1.7 1.8 1.7

Fiscal benefit for years 2015-2016 - - 2.3

Tax rate % 19.5% 19.8% 14.5%

Normalised tax rate % 26.0% 26.2% 29.2%

2021/09

GROUP’S COMPANIES TURNOVER* OF THE FIRST HALF 2021


Company(Euro thousands)

1st Half

2021

1st Half

2020

Changes

%

1st Half

2019

CEMBRE S.p.A. (Italy) 46,948 33,279 41.1% 40,361

CEMBRE Ltd. (UK) 10,983 7,642 43.7% 10,401

CEMBRE S.a.r.l. (France) 5,956 4,309 38.2% 5,633

CEMBRE España S.L.U. (Spain) 6,548 5,495 19.2% 6,045

CEMBRE GmbH (Germany)** 9,335 7,956 17.3% 7,689

CEMBRE Inc. (USA) 4,777 5,975 -20.1% 6,749

CEMBRE Group 84,547 64,656 30.8% 76,878

* net of intragroup sales

** 2019 datum includes IKUMA turnover

2021/09

€ MillionsJun. 30,

2021

Dec. 31,

2020

Jun. 30,

2020

a Net operating working capital% of sales

63.240.8%

56.241.0%

59.245.8%

b Net fixed assets 105.4 104.3 103.8

c Assets available for sales - - -

d Employees’ severance indemnities 2.1 2.2 2.2

e Provisions for risks and charges 0.3 0.2 1.0

f Deferred taxes 3.1 2.9 2.8

Net invested capital (a+b+c-d-e-f) 163.1 155.2 157.0

g Equity 164.4 163.6 152.3

h Net financial position (1.3) (8.4) 4.7

Total sources (g+h) 163.1 155.2 157.0

JUNE 30, 2021 CONSOLIDATED BALANCE SHEET



CEMBRE’S REVENUES AND PROFITABILITY TREND (€ ‘000)

56.0

03

56.9

46

59.8

70

65.1

49

69.9

97

84.1

27

93.4

17

94.2

88

75.9

84

93.9

34

103.0

28

103.8

99

104.5

47

112.9

05

121.3

77

122.6

05

132.6

37

144.0

96

146.2

96

137.1

37

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Revenues

2021/09



11

.01

7

10

.25

3

10

.89

2

12

.18

7

14

.71

8

19

.13

1

21

.71

0

19

.27

3

13

.41

2

20

.17

0

20

.22

8

20

.10

8

20

.40

7 24

.35

2 28

.53

7

30

.02

5 33

.43

4

35

.65

0

37

.09

8

36

.29

7

19,7%18,0%

18,2% 18,7%21,0%

22,7% 23,2%

20,4%17,7%

21,5% 19,6% 19,4% 19,5%21,6%

23,5%24,5% 25,2% 24,7% 25,4%

26,5%

00%

10%

20%

30%

40%

50%

60%

70%

80%

0

4.000

8.000

12.000

16.000

20.000

24.000

28.000

32.000

36.000

40.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Ebitda (value and margin % on sales)

2021/09



6.9

32

6.2

71

6.3

64 7.6

56

11

.02

3

15

.94

1 18

.42

0

16

.22

1

10

.58

1

17

.37

9

17

.29

1

16

.45

6

15

.83

8

19

.43

3

22

.83

6

24

.09

5

27

.03

6

28

.49

6

27

.18

1

25

.20

0

12,4%11,0% 10,6% 11,8%

15,7%

18,9%19,7%

17,2%

13,9%

18,5%16,8%

15,8% 15,1%17,2%

18,8% 19,7% 20,4% 19,8%

18,6% 18,4%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

50,0%

55,0%

60,0%

65,0%

0

5.000

10.000

15.000

20.000

25.000

30.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Ebit (value and margin % on sales)

2021/09

CEMBRE’S REVENUES AND PROFITABILITY TREND(€ ‘000)


3.806

3.213

2.988

3.830

6.605

9.327

11.896

10.857

6.887

11.340

11.400

11.507

10.503

13.542

15.933

16.927

22.727

22.736

21.690

18.975

6,8%5,6%

5,0% 5,9%

9,4%

11,1%12,7%

11,5%

9,1%

12,1%11,1% 11,1% 10,0%

12,0%13,1%

13,8%

17,1% 15,8%14,8% 13,8%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

35,0%

40,0%

45,0%

0

5.000

10.000

15.000

20.000

25.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Net profit (value and margin % on sales)

2021/09

INDEX ANALYSIS


ROI (EBIT/Investments) ROACE (EBIT/Average Net Capital Employed)

ROE (Net profit/Equity) ROS (EBIT/Net Sales)

10,69%

8,69% 9,01%9,80%

14,18%

17,80%

18,85%

16,60%

10,79%

15,56%

13,90%

12,40%11,64%

13,26%

14,66%14,72%

15,85%

14,62%

13,37%

11,41%

0,00%

4,00%

8,00%

12,00%

16,00%

20,00%

9,89%

8,08%7,28%

8,13%

12,54%

15,69%

17,83%

15,19%

9,06%

13,23%

12,24%11,28%

9,59%

11,29%

12,15%

12,30%

15,88%

14,87%

13,52%

11,60%

0,00%

4,00%

8,00%

12,00%

16,00%

20,00%

14,84%

13,61% 12,87%

15,59%

22,24%

29,45% 29,05%

23,39%

15,01%

24,34%

21,23%

17,12%

15,45%

18,35%

20,61%

21,49%

23,13%

21,25%

18,11%

16,26%

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

30,00%

35,00%

12,38%

11,01% 10,63%

11,75%

15,75%

18,95%

19,72%

17,20%

13,93%

18,50%

16,78%15,84%

15,15%

17,21%

18,81%

19,65%20,38%

19,78%18,58%

18,38%

0,00%

5,00%

10,00%

15,00%

20,00%

25,00%

2021/09

INVESTMENTS TREND


€ ‘000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Investments in tangible assets 1,910 5,353 6,404 4,064 4,815 3,863 16,183 12,591 6,802 8,759 6,534 7,064 11,732 17,775 10,609 7,181

Investments in intangible assets 142 87 500 544 182 169 418 597 573 477 601 569 1.101 691 1.057 793

Total investments 2,052 5,440 6,904 4,608 4,997 4,032 16,601 13,188 7,375 9,236 7,135 7,633 12,833 18,466 11,666 7,974

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Investments in tangible assets Investments in intangible assets Total investments

2021/09

CEMBRE | Presentazione agli investitori 29

COVID-19 PANDEMIC

Implications of COVID-19 pandemic

In 2020 Cembre Group incurred the following additional costs:

Amount Description

196,000 € Implementation of COVID-19 prevention measures (purchase of

personal protective equipment and of hygiene products, sanitisation of

environments, antibody tests and flu vaccination for employees)

18,000 € equipment (thermal scanners)

410,800 € salary compensation(to partially compensate the reduction in wages

that occurred during the furlough, used during activities lock-down

period) and an attendance bonus for those who worked “in presence”

during the 2020 lock-down period from March 23 to April 17

98,000 € donations to institutions committed on the front line of the fight against

the virus

722,800 € TOTAL COSTS

Cembre Group used for the first time in his history Government wagesguarantee fund (Cassa Integrazione), but product deliveries have neverbeen interrupted because the Group supplies railway and electricalcompanies

2021/09

2021 AND ONWARDS

CEMBRE focused on these targets:

Business development thanks to:

A strengthening of CEMBRE competitive advantage by developingnew products and continuous product range renewing by an intenseR&D activity

Improvement of the distributor channel in foreign countries

An higher penetration in the foreign markets, especially in the US andGermany

A commercial commitment focus on high growing potential products

Cost management by a better operative efficiency obtained fromeconomies of scale and process innovations;

Enforcing the manufacturing structure by investing in high-tech, highly-automated machinery.


The automated warehouse, located in a 4,800 m2 industrial building built in2012, has been operating from January, 2013.

This automated warehouse is 3 time more efficient, and has a 50% increasein end-product capacity warehousing compared to the previousautomated warehouse that has been converted to stock raw material.

2021 AND ONWARDS


2021 AND ONWARDS


In 2018, a new 9,600 m2 industrial building (two floors) started to be used,increasing the dimension of the production and parking area.

In January 2021 CEMBRE signed the convention for additional 15,000 m2

area dedicated to future expansion on the manufacturing plant.

CEMBRE | Investor relations

2021 AND ONWARDS

33

Future structures

Automated

warehouse

2021/09

STOCK DATA & SHAREHOLDING STRUCTURE


Cembre has been listed since

December 1997, and is a part ofthe Star Index since September

2001.

Shareholders Share

LYSNE Spa 52.39%

Sara Rosani 8.65%

Giovanni Rosani 8.53%

Anna Maria Onofri 0.71%

Others 29.72%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Dividend per share (€) 0.10 0.08 0.07 0.10 0.15 0.22 0.26 0.16 0.12 0.26 0.16 0.16 0.26 0,36 0.46 0.70 0.80 0.90 0.90 0.90

Payout Ratio1 44% 42% 41% 41% 39% 40% 37% 25% 30% 39% 24% 24% 42% 45% 49% 70% 59% 66% 69% 79%

Dividend Yield2 4.1% 4.4% 2.9% 3.3% 3.2% 3.6% 4.2% 4.8% 2.6% 4.2% 2.9% 2.5% 2.9% 3.5% 3.3% 5.0% 3.7% 4.4% 4.8%3 4.8%

Cembre

FTSE Italia Stardata updated at September 8, 2021

1 Using consolidated profit 2 Using the year-end share price

2021/09

SHARE PRICE EVOLUTION


Total return* 2001-2021

+14.1%

CAGR

Performance** 2001-2021

+12.8%

CAGR

* Total Return is the average ‘Share return’ growth inthe period** Performance is the average ‘Share price’ growthin the period

1 at the end of the year 2 at September 8, 2021

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

A) Share price1 2,42 1,90 2,68 2,99 4,75 6,12 6,25 3,30 4,66 6,25 5,45 6,34 8,99 10,21 13,90 13,90 21,60 20,25 24,00 18.85 26.902

Change in share price -21.5% 41.1% 11.6% 58.9% 28.8% 2.1% -47.2% 41.2% 34.1% -12.8% 16.3% 41.8% 13.6% 36.1% 0.0% 55.4% -6.3% 18.5% -21.5% 42.7%

Received dividend 0,10 0,08 0,07 0,10 0,15 0,22 0,26 0,16 0,12 0,26 0,16 0,16 0,26 0,36 0,46 0,70 0,80 0,90 0.90 0.90

B) Accrued receiveddividends

0,10 0,18 0,25 0,35 0,50 0,72 0,98 1,14 1,26 1,52 1,68 1,84 2,10 2,46 2,92 3,62 4,42 5,32 6.22 7.12

Share return (A+B) 2,42 2,00 2,86 3,24 5,10 6,62 6,97 4,28 5,80 7,51 6,97 8,02 10,83 12,31 16,36 16,82 25,22 24,67 29,32 25.07 34.02

Price quota 100.0% 95.0% 93.7% 92.3% 93.1% 92.4% 89.7% 77.1% 80.3% 83.2% 78.2% 79.1% 83.0% 82.9% 85.0% 82.6% 85.6% 82.1% 81.9% 75.2% 79.1%

Dividend quota 0.0% 5.0% 6.3% 7.7% 6.9% 7.6% 10.3% 22.9% 19.7% 16.8% 21.8% 20.9% 17.0% 17.1% 15.0% 17.4% 14.4% 17.9% 18.1% 24.8% 20.9%

2021/09

0

2

4

6

8

10

12

14

16

18

20

22

24

26

28

30

32

34Share price Share return

Claudio BornatiCFO & IR

Via Serenissima 9 • 25135 Brescia (BS) ITALYph. +39 030 [email protected]

The manager responsible for preparing the Company’s financial reports,Claudio Bornati, declares, pursuant to paragraph 2 of Article 154 bis ofthe Consolidated Law on Finance, that the accounting informationcontained in this presentation corresponds to the document results,books and accounting records.


CONTACTS

Thank you

2021/09

Documents

CEMBRE INVESTOR RELATION ENG 13092021 A4