Romi Sa · BMFBOVESPA:ROMI3
Romi Sa — IV Encontro Unibanco de Empresas Small & Mid Caps 2007
26 slides from Romi Sa's conference presentation, Aug 29, 2007
Slide 1: IV Encontro Unibanco de Empresas Small & Mid Caps
IV Encontro Unibanco de Empresas Small & Mid Caps August 29, 2007 1
Slide 2: Important Note
Important Note This release contains forward-looking statements subject to risks and uncertainties. Such forward-looking statements are based on the management’s beliefs and assumptions on information currently available to the Company. The reservations as Resultados Operacionais e Financeiros to fo
Slide 3: Management Presenters
Management Presenters Presenters Title Chairman of the Board Américo Emílio Romi Neto ► 28 year at the Company CFO and Investor Relations Director Sergio Roberto Novo ► Joined the Company in 2005 Investor Relations Luiz Cassiano R. Rosolen ► Joined the Company in 2006 3
Slide 4: Shareholder Structure
Shareholder Structure Romi/Chiti Fundação Fênix1 Free Float Families Romi 34,6% 8,9% 1,8% 54,7% Romi (1) Holding controled by Romi e Chiti Families 4
Slide 5: What we do
What we do Machine Tools Plastic Injection Molding Machine Casting and Machined Castings ► Machines that make parts ► Machines that make complex ► Cast iron parts used in many used by several plastic parts products / machines manufacturing segments ► “Machine that makes machines” Percentage of Net R
Slide 6: Machine Tools
Machine Tools CNC Lathes Machining Centers Turning Centers 6
Slide 7: Machine Tools
Machine Tools Some products manufactured by a Machine Tools: 7
Slide 8: Plastic Injection Molding Machines
Plastic Injection Molding Machines Eletrical Plastic Injection Molding Machine Hydraulic Plastic Injection Molding Machine 8
Slide 9: Plastic Injection Molding Machines
Plastic Injection Molding Machines Some products manufactured by a Plastic Injection Molding Machines: 9
Slide 10: Casting and Machined Casting Iron Parts
Casting and Machined Casting Iron Parts 10
Slide 11: Company Overview
Company Overview Throughout its 77 years of history, Romi has built and sold more than 144,000 machines, of which approximately 27,000 were exported Romi Geographic Presence 9 plants, totaling more than 140,000 m2 30 direct sales office throughout Brazil Presence in more than 50 countries. Sales to
Slide 12: Track Record of Growth and Profitability
Track Record of Growth and Profitability Creating a Solid Base Strengthening New Era IPO Market-oriented Novo Mercado corporation Agricultural Aggressive investment in and Follow on machinery research and technology Injection molding development Strong and ISO 14001 machines sustainable position in
Slide 13: Our Clients
Our Clients Machine Part System Final Product Tools Manufacturers Manufacturers Manufacturers Plastic Injection Part Final Product Molding Manufacturers Manufacturers Machines Castings and System Final Product Machined Manufacturers Manufacturers Castings Clientes da Romi 13
Slide 14: Market Leadership
Market Leadership Plastic Injection Molding Machines Castings and Machined Castings Machine Tools (2006) (2006) (2006)1 Imports Imports Other Locals Tupy 31% Other 40% 40% 25% Locals 20% Others 22% Romi 3% Teksid 19% Tecumseh Romi 35% 3% Thyssen 6% Weg 7% Romi 40% Fund Luk Schulz 5% 4% Source: Compa
Slide 15: Solid and Diversified Customer Base
Solid and Diversified Customer Base Machine Tools Plastic Injection Molding Machines Casting and Machined Castings Eletronics Home 6% Appliances Automotive Real Estate 6% (Trucks and Job Shops Forniture Others) 7% Automotive Others 40% 4% 42% Home Utilities (Cars) 25% Others 18% 10% 19% Energy Capit
Slide 16: Financial Results
Financial Results Operating Net Revenue (Consolidated) Operating Net Revenue (Consolidated) Annual (R$ Million) By Quarter (R$ Million) 153 156 153 548 147 CAGR: 22.3% 510 137 133 137 125 446 103 93 335 245 2002 2003 2004 2005 2006 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 16
Slide 17: Exports
Exports Exports / Operational Net Revenue (%) Main International Markets 1H07 15,8% USA 52,3% 14,7% 14,3% Europe 27,6% 15,6% 14,6% 11,9% 75 65 65 52 38 40 31 28 Africa and 22 20 12 17 Oceania 0,7% Asia Latin America 2002 2003 2004 2005 2006 1S07 9,3% 10,1% R$ Million US$ Million 17
Slide 18: Business Unit Performance
Business Unit Performance Net Operating Revenue EBIT1 (R$ million) / By Business Units (R$ million) Margin EBIT1 (%) 19.5% 18.2% 278.6 17.5% 240.1 45.9 16.2% 40.1 14.3% 52.4 40.4 32.9 25.8 180.3 159.6 2.5% 10.2 1.0 8.0 5.8 1H06 1H07 1H06 1H07 1H06 1H07 1H06 1H07 Machine Tools Plastic Injection Moldi
Slide 19: Cost of Goods Sold and Operational Expenses
Cost of Goods Sold and Operational Expenses Cost Structure - Consolidated (2H07) Operational Expenses - Consolidated (2H07) Depreciation 3% Other Costs Taxes 4% 6% Metals 13% Research and Development Domestic Raw 18% Raw Material 70% Selling 40% Material 26% Labor Domestic Raw 23% Material related t
Slide 20: Margins
Margins 120,0 Gross Margin and EBITDA1 Margin (%) 100,0 44.9% 44.1% 42.5% 41.9% 41.1% 44.6% 42.4% 41.1% 39.4% 39.7% 23.2% 19.9% 22.1% 17.6% 17.3% 22.1% 15.5% 18.5% 19.1% 14.3% 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 Gross Margin EBITDA Margin (1) In 2Q07 EBITDA Margin was adjusted by the P
Slide 21: EBITDA
EBITDA EBITDA – Annual (R$ Million) CAGR: 25.2% 108 91 85 60 44 EBITDA1 by Quarter (R$ Million) 35 34 33 2002 2003 2004 2005 2006 26 27 24 24 24 14 15 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 (1) In 2Q07 EBITDA was adjusted by Public Offering Share expenses 21
Slide 22: Net Income
Net Income Net Income – Annual (R$ million) CAGR: 36.4% 83 76 70 48 24 Net Income by Quarter (R$ million) 28 2002 2003 2004 2005 2006 25 25 23 22 20 19 18 10 9 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 22
Slide 23: Finame and Indebtedness
Finame and Indebtedness Simplified Mechanism Indebtedness Overview – 2Q 2007 791.8 Financing Net Cash Installments Funds R$282.2 Millions Customer Agent Bank 284.4 509.6 Installments 54.9 Financing 67.4 Installments Funds Product Collateral 1 Delivery BNDES 452.5 442.2 Machine Assets Liabilities Rec
Slide 24: Capex e Financing
Capex e Financing 120,0 100,0 Capex (R$ Million) Financing (R$ Million) 51.5 67.4 58.5 29.5 30.2 29.6 26.8 17.3 13.9 20.4 12.5 78 8.4 2002 2003 2004 2005 2006 1H06 1H07 2002 2003 2004 2005 2006 1H07 24
Slide 25: Capital Markets: Romi x Ibovespa
Capital Markets Romi x Ibovespa (As of June 30, 2007) ROMI3: 140% Ibovespa: 45% Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 25
Slide 26: Outlook
Outlook Outlook Net Operating Revenue Investments Margins Other 26
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