Romi Sa · BMFBOVESPA:ROMI3
Romi Sa — Indústrias Romi — Investor Presentation (March 2014)
20 slides from Romi Sa's investor presentation, Mar 13, 2014
Slide 1: Indústrias Romi S.A.
Indústrias Romi S.A. March, 2014
Slide 2: Disclaimer
Disclaimer A TRADITION OF INNOVATION The forward-looking statements are 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
Slide 3: Historical Highlights
Historical Highlights A TRADITION OF INNOVATION 1930 1942 1956 1972 2007 2013 • The • Produced • Launch of • Initial Public • Follow on – • Focus on company is the 1,000th the “Romi- Offering – more than cash found under lathe Isetta”, the IPO 50% of the generation the • Inaugurated first Brazilian
Slide 4: Company’s Highlights
Company’s Highlights A TRADITION OF INNOVATION R$ 667.4 million of Net Operating Revenues in 2013 11 highly productive units with over 170,000m² floor space (9 in Brazil and 2 in Germany) Production capacity of 3,450 machines per year and 50,000 tons of rough and machined cast iron parts More than 1
Slide 5: Manufacturing Footprint
Manufacturing Footprint A TRADITION OF INNOVATION Supplier Units to the Cast Iron Parts Units Machine Assembly Units Machine Assembly Units Assembly of sets and machines Production of parts from Cast Iron Medium and Heavy General Machining Machining Assembly of Plastic Internal machining of metal pa
Slide 6: Organizational Structure
Organizational Structure (Since March 2012) A TRADITION OF INNOVATION CEO Continuous Improvement and Internal Audit Strategic Planning Investor Machine Tools Plastic Machines Castings Services Relations and Burkhardt + CFO Executive Officer Executive Officer Executive Officer Executive Officer Admin
Slide 7: 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 OWNERSHIP STRUCTURE • Tag along - 100% 37.9% • Board of Directors – One year term, 11 FÊNIX (1) members, being 6 indicated by shar
Slide 8: Net Sales per Business Unit
Net Sales per Business Unit 2013 – Continued Operations A TRADITION OF INNOVATION PLASTIC PROCESSING MACHINE TOOLS MACHINES R$ 475.7 R$ 81.2 Net Operating Sales (R$ million) 12.2% 696.1 673.5 667.4 71.3% 632.0 631.1 617.6 599.1 548.9 475.4 CASTING 508.1 587.8 431.9 431.8 R$ 110.5 549.9 614.7 554.8 4
Slide 9: Conjunctural Indicators
Conjunctural Indicators A TRADITION OF INNOVATION 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 29,9 27,2 19,2 20,3 14,9 16,3 15,4 13,9 11,1 9,6 8,8 6,3 6,5 7,1 8,9 2,5 9,1 7,3 5,3 6,2 3,2 5,5 4,2 5,3 3,3 2,0 1,0 9,3 8,8 4,2 2
Slide 10: Economic Indexes
Economic Indexes A TRADITION OF INNOVATION 100 95 90 Basic Metallurgy: 87.3% 85 Plastic and Rubber Goods: 84.4% 80 General Industry: 80.0% Automotive: 79.5% 75 Metal Goods – Ex Machinery: 78.8% Machinery and Equipment: 72.9% 70 65 Source: Fiesp -INA Activity Level Indicator - NUCI ( Level of Utiliza
Slide 11: Order Entry and Backlog
Order Entry and Backlog A TRADITION OF INNOVATION Order Book (R$ 000) 4Q12 3Q13 4Q13 Chg % Chg % Gross Values, sales taxes included 4Q13/4Q12 4Q13/3Q13 Machine Tools 210,390 254,591 238,522 13.4% -6.3% Plastic Machines 33,249 49,219 41,345 24.3% -16.0% Rough and Machined Cast Iron Parts 24,180 35,50
Slide 12: Foreign Market
Foreign Market A TRADITION OF INNOVATION Sales Destination 2012 LatAm 2013 USA LatAm 6% 17% Asia 8% USA 5% 19% Asia 24% Europe 62% Europe 59% Foreign Sales – US$ million 95.2 85.6 73.4 32.3 32.9 30.8 28.7 45.2 20.0 23.4 21.5 32.2 33.9 17.2 15.7 12.8 10.0 8.9 2009 2010 2011 2012 2012 * 2013 * 1Q12 2Q
Slide 13: Cost of Goods Sold
Cost of Goods Sold 2012 A TRADITION OF INNOVATION Expenses 5% 11% Metals Depreciation 12% FX Related Domestic Material 7% 19% Imported material Material 63% Labor 21% 25% Domestic material 2013 Expenses 12% 5% Metals Depreciation 13% FX Related Domestic Material 6% 16% Imported material Material Lab
Slide 14: Main Focus (2013 / 2014)
Main Focus (2013 / 2014) A TRADITION OF INNOVATION Cash generation Improve operating margins (operational efficiency / price recovery) Reduction in production lead-time Decrease Romi’s exposure to credit risk Romi Italia 14
Slide 15: Profitability
Profitability A TRADITION OF INNOVATION Gross Profit (R$ million) and Gross Margin Operating Profit (R$ million) and Operating Margin 100,0 45,0% 40,0 11.4% 20,0% 5.1% 0.0% -4.2% 2.7% -3.3%2.2% 90,0 40,0% 30,0 -5.9% -5.8% -4.1% 0,0% 80,0 32.6% 35,0% 20,0 28.0%28.0% -31.4% 70,0 -28.8% 30,0% -20,0% 24
Slide 16: Profitability
Profitability A TRADITION OF INNOVATION EBITDA (R$ million) and EBITDA Margin Net Income (R$ million) and Net Margin 40,0 40,0 20,0% 16.2% 9.1% 7.7% 5.0% 0.2% 4.9% 1.9% 1.9% 3.7% 8.1% 9.9% -0.3% -3.3% 0.7% 3.4% 30,0 0.0% 30,0 -2.3% -5.0% -2.1% 0,0% -20.2% 0,0% -22.8% 20,0 -4.0% 20,0 15.1 -20,0% 31.4
Slide 17: Business Units’ Results
Business Units’ Results A TRADITION OF INNOVATION 400,00 60% 300,00 Machine Tools Plastic Machines Raw and Machined Cast Iron Parts 38.1% 31.1% 34.6% 60% 44.6% 38.1% 42.7% 34.8% 350,00 29.3% 32.6% 25.5% 40% 33.8% 19.7% 250,00 26.9% 25.8% 27.3% 40% 21.2% 300,00 6.3% 20% 15.0% 13.9% 5.0% 9.7% 20% 4.0%
Slide 18: Cash Position
Cash Position A TRADITION OF INNOVATION Cash and Cash Equivalent – R$ million – 12/31/2013 Loans* – R$ million – 12/31/2013 Amount Amount Bank Deposit Certificate (CDB) 68.7 2014 54.2 Financial Investment with Bonds 7.9 2015 87.4 Banks 30.6 2016 27.5 Total 107.2 2017 15.6 2018 and afterwards 18.1 Ne
Slide 19: Burkhardt + Weber
Burkhardt + Weber A TRADITION OF INNOVATION € 000 Chg % Chg % Chg % 4Q12 3Q13 4Q13 * 2012 2013 * 4T/4T 4T/3T 13/12 Net Operating Revenue 19.598 14.964 12.944 (34,0) (13,5) 47.863 42.828 (10,5) Cost of Gods Sold (15.602) (11.193) (9.233) (40,8) (17,5) (39.704) (32.415) (18,4) Gross Profit 3.997 3.771
Slide 20: Strategic Planning
Strategic Planning A TRADITION OF INNOVATION Rough and Machine Plastic Machined Cast Services Tools Machines Iron Parts Leadership (heavy and Expand Services Increase complexity Stability complex parts); Portfolio (maintenance Technology (weight, (superior quality, Aggregate machining; contracts, le