Slide 1: Earnings Release – 3Q08
Earnings Release – 3Q08 October 23, 2008 1
Slide 2: Important Note
Important Note A TRADITION OF INNOVATION 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-lookin
Slide 3: 3Q08 Highlights
3Q08 Highlights A TRADITION OF INNOVATION Net Operating Revenue reaches R$ 199.8 million in 3Q08 and grows 21.5% compared with 3Q07, The Machine Tool Order Book reports a year on year increase of 33.4%, Growth in Net Operating Revenue at all Business Units, Exports in US dollars increase 65.2% in 3Q
Slide 4: Company Overview
Company Overview A TRADITION OF INNOVATION A Capital Goods Company focused on Machine Tools, Plastic Processing Machines and Rough and Machined Casting Iron Parts: • 9 Industrial Plants in Brazil and 2 in Italy • 6 Subsidiaries located in USA, Germany, France, UK, Spain, The Netherlands • Presence i
Slide 5: Machine Tools - Sectors
Machine Tools - Sectors A TRADITION OF INNOVATION High Moderate Low 5
Slide 6: Plastic Machines and Castings - Sectors
Plastic Machines and Castings - Sectors A TRADITION OF INNOVATION Plastic Machines Castings Sector % Sector % Automotive 18% Automotive (Trucks) 39% Job Shops 17% Automotive (Cars) 17% Packaging 16% Electricity Generation 21% Home Utilities 13% Agriculture 15% Real Estate 10% Capital Goods 8% Furnit
Slide 7: Net Revenue
Net Revenue A TRADITION OF INNOVATION Net Operating Revenue (Cons.) – Year – R$ mm Net Operating Revenue (Cons.) – 9M – R$ mm 19.6% Exports Domestic Sales 7
Slide 8: Foreign Markets
Foreign Markets A TRADITION OF INNOVATION Foreign Markets 9M08 Foreign Markets – KUSD 8
Slide 9: Cost Structure
Cost Structure A TRADITION OF INNOVATION Cost Structure – Consolidated – 9M08 Overall sensibility to FX effects: 49% 9
Slide 10: Consolidated Margins
Consolidated Margins A TRADITION OF INNOVATION R$ mm 3Q08 2Q08 3Q07 QoQ YoY 9M08 9M07 YoY Gross Profit 83.5 73.6 73.1 13.5% 14.2% 218.2 193.2 13.0% Gross 41.8% 41.5% 44.4% 0.3 p.p. -2.6 p.p. 41.2% 43.6% -2.4 p.p. Margin Adjusted 42.1 36.7 40.0 14.8% 5.3% 107.1 98.4 8.9% EBITDA Adj. EBITDA 21.1% 20.7
Slide 11: Business Units Net Revenue and Sales Volume
Business Units Net Revenue and Sales Volume A TRADITION OF INNOVATION R$ mm 3Q08 2Q08 3Q07 QoQ YoY 9M08 9M07 YoY Machine Tools R$ mm 125.7 114.9 109.1 9.4% 15.2% 337.3 289.4 16.6% Units Sold 697 650 599 7.2% 16.4% 1,865 1,669 11.7% Plastic Machines R$ mm 37.6 29.8 26.0 26.1% 44.6% 94.1 72.0 30.7% Un
Slide 12: Business Units Margins
Business Units Margins A TRADITION OF INNOVATION R$ mm 3Q08 2Q08 3Q07 QoQ YoY 9M08 9M07 YoY Machine Tools Gross Margin 45.1% 45.2% 47.2% -0.1 p.p. -2.1 p.p. 45.6% 46.3% -0.7 p.p. EBIT Margin 22.8% 19.9% 23.3% 2.9 p.p. -0.5 p.p. 21.2% 20.8% 0.4 p.p. Plastic Machines Gross Margin 40.1% 35.7% 38.4% 4.4
Slide 13: Romi Itália Srl
Romi Itália Srl A TRADITION OF INNOVATION 9M08 Romi Consol. Romi Gain from Romi w/o Italy Itália Subsidiaries (*) Consol. Net Operating Revenue 524,269 5,686 529,955 EBIT 98,159 (1,746) 19,316 115,729 Net Income 97,478 (1,469) 12,773 108,782 9M08 9M07 Romi Consol. Romi w/o Italy Consol. % Net Operat
Slide 14: Cash Position
Cash Position A TRADITION OF INNOVATION Cash and Cash Equivalent – R$ MM Loan – R$ MM Loans as of 30/09/2008: 89.6 Amount Bank Certificate of Deposit (CDB) 153.9 The maturities of financing recorded as Financial Investments with debentures 85.0 of Sept 30, 08 are as follow : LFTs - Financial Treasur
Slide 15: Paradiso Project
Paradiso Project A TRADITION OF INNOVATION • Summary: Transfer of manufacturing plants from • Capacity Increase: from 2,900 to 4,800 Headquarters site to District site, machines/year (Depending on product parallel to the increase on capacity of mix produced). the transferred units. • Synergies: Redu
Slide 16: Vulcano Project New Foundry and New Machining Unit
Vulcano Project A TRADITION OF INNOVATION New Foundry and New Machining Unit Capacity: 40,000 ton/year CAPEX: R$ 230 million Total area: 48,000 m² Location: Santa Barbara d’Oeste Schedule: Under Revision Phase 1 Phase 2 Phase 3 Phase 4 Area (m²) 22,500 22,500 48,000 48,000 Capacity (t/year) 10,000 2
Slide 17: Acquisitions
Acquisitions A TRADITION OF INNOVATION • Transaction Date: January 25, 2008 • Transaction Amount: R$ 5.5 Millions • Loans Assumed: R$ 1.2 Million • Sinergies: • Equivalent manufacturing operations • Merger of industrial operations • Costumers base • Closing Date: July 24, 2008 • Transaction Amount:
Slide 18: Corporate Governance
Corporate Governance A TRADITION OF INNOVATION • Novo Mercado – joining the Novo Mercado in March 2007 positioned Romi in Bovespa’s highest level of Corporate Governance • Tag along - 100% • Board of Directors – one year term, 7 34,6% 8,9% 1,8% 54,7% members, being 5 indicated by shareholders and 2
Slide 19: Capital Markets
Capital Markets A TRADITION OF INNOVATION Share Performance (ROMI3) vs. Bovespa Index (Basis: 100) - R$/Share Period: December/2006 - September/2008 180 30,000,000 IBOVESPA: 11% 160 25,000,000 140 120 20,000,000 100 15,000,000 80 ROMI3: -39% 60 10,000,000 40 5,000,000 20 0 - Mar-08 May-08 Jun-08 Mar
Slide 20: Key Indicators
Guidance 2008 e 2009 TRADIÇÃO EM INOVAR Key Indicators 2008 2009 Grow – Net Operating 14% - 18% -2% a 7% Revenue EBITDA Margin 21% - 23% 13% a 17% CAPEX R$ 125 Million R$ 75 Million Assumptions 2009 GDP 3.0% Dolar x Real (Average) 2.20 Interest Rate – SELIC 14.0% (Average) 20
Slide 21: A Tradition of Innovation
A TRADITION OF INNOVATION (©) ROMI A TRADITION OF INNOVATION 21