Slide 1: 3Q19 Earnings Release
3Q19 Earnings Release October 23, 2019
Slide 2: 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 to forward-looking statements also apply to information on
Slide 3: Highlights
▪ Net operating revenue in 3Q19 reached 246.5 million, an increase of 19.7% over the same period of the previous year, with emphasis on Romi Machines and B+W Machines Business Units; ▪ EBITDA margin in 3Q19 reached 14.4%, an increase of 2.8 p.p. over 3Q18, with highlights to the B+W Machines Busines
Slide 4: Conjunctural Indicators – GDP and FBKF
Source: IBGE (current quarter vs. the same quarter last year) Conjunctural Indicators – GDP and FBKF 4
Slide 5: Economic Indexes - Conjunctural
Source: CNI – UCI (Utilization of installed Capacity), September 2019 Source: CNI – ICEI (Industrial Executive Confidence Index), October 2019 Economic Indexes - Conjunctural 5
Slide 6: Business units
Rough and Machined Cast Romi Machines B+W Machines Iron Parts 9M19 2018 9M19 2018 9M19 2018 Job shops 17% 16% Machines and Equipments 45% 52% Automotive 32% 25% Machines and Equipments 10% 16% Automotive 31% 30% Agriculture 25% 19% Toolling 8% 6% Motors and Systems 17% 11% Construction 22% 15% Autom
Slide 7: Net Sales per Business Unit
9M18 9M19 Romi B+W Romi B+W Machines Machines Machines Machines 48% 24% 49% 30% Cast Iron Cast Iron Parts 28% Parts 21% Net Operating Sales (R$ million) Net Sales per Business Unit 7
Slide 8: Sales Distribution
9M18 9M19 Europe 28% LatAm 4% Europe 31% LatAm 2% USA 3% USA 2% Asia 8% Asia 6% Brazil 60% Brazil 56% Foreign Sales (US$ million) Sales Distribution 8
Slide 9: Order Entry Backlog
2 Order Entry (R$ 000) Q 3Q18 2Q19 3Q19 Chg. Chg. 9M18 9M19 Chg. 19/18 Gross Values, sales taxes included 1 3Q19/2Q19 3Q19/3Q18 7 Romi Machines 108,944 116,053 92,413 -20.4% -15.2% 276,853 280,422 1.3% Burkhardt+Weber Machines 78,231 41,396 36,673 -11.4% -53.1% 135,566 110,268 -18.7% Rough and Machi
Slide 10: Cost of Goods Sold
9M18 Expenses 5% Depreciation 19% Domestic material 6% 12% FX related domestic material Material 16% Metals 67% 20% Imported material Labor 22% 9M19 Expenses 5% 21% Domestic material Depreciation 5% 16% FX related domestic material Material 68% 14% Metals 17% Imported material Labor 22% Cost of Good
Slide 11: Profitability
Gross Profit (R$ million) and Gross Margin Operating Profit (loss) (R$ million) and Operating Margin (*) According to the information in the 3Q19 Earnings Release, operating income is adjusted as follows: (i) 2Q18/2018: increased by R$1.6 million; and (ii) 1Q19: reduced by R$74.3 million. Profitabil
Slide 12: Profitability
EBITDA (R$ million) and EBTIDA Margin Net income (loss) (R$ million) and Net Margin (*) According to the information in the 3Q19 Earnings Release, EBITDA is adjusted by the following aspects: (i) 2Q18/2018: increased by R$1.6 million; and (ii) 1Q19: reduced by R$74.3 million. (**) According to the i
Slide 13: Business Units’ Results
Quarter Accumulated Sales 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19 Machines (qty) 144 183 227 270 137 172 242 554 551 Burkhardt+Weber (qty) 3 4 9 13 2 8 12 16 22 Cast and Iron parts (ton) 4,592 5,453 5,520 3,469 3,567 3,836 4,286 15,565 11,689 Rough and Machined Romi Machines B+W Machines Cast I
Slide 14: Cash Position
Cash and Cash Equivalent (R$ MM) - 09/30/2019 Amount Bank Deposit Certificate (CDB) 79.0 Financial Investment with Bonds 1.0 Financial Investment with Bonds 53.2 Banks 21.0 Total 154.3 Net Cash= 15.8 Loans* (R$ MM) - 09/30/2019 Amount 2019 (3 months) 53.4 2020 61.8 2021 7.3 2022 7.4 2023 2.2 2024 an
Slide 15: Share Performance
Share Performance ROMI3 vs. Ibovespa From 09/30/2017 to 10/21/2019 400 ROMI3: 135.3% IBOV: 42.7% 350 300 250 200 150 100 50 0 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Mar-19 Jun-19 Sep-19 Romi Volume Ibov espa Source: B3 Share Performance 15
Slide 16: Luiz Cassiano R. Rosolen, Fábio B. Taiar
Luiz Cassiano R. Rosolen Fábio B. Taiar CEO CFO lrosolen@romi.com ftaiar@romi.com +55 (19) 3455 9004 +55 (19) 3455 9418