Slide 1: 3Q18 Earnings Release
3Q18 Earnings Release October 24, 2018
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
• Order entry in 3Q18, when compared to 3Q17, increased by 40.5%, especially in the Romi Machines Business Unit, which increased by 49.6%, as a result of the release of new products and the gradual economic recovery in 2018; • In 3Q18, the Romi Machines Business Unit posted a 35.3% increase in net o
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), August 2018 Source: CNI – ICEI (Industrial Executive Confidence Index), October 2018 Economic Indexes - Conjunctural 5
Slide 6: Business units
Rough and Machined Cast Romi Machines B+W Machines Iron Parts 9M18 2017 9M18 2017 9M18 2017 Machines and Equipments 17% 13% Machines and Equipments 64% 21% Wind Power 42% 58% Job shops 16% 15% Motors and Systems 19% 48% Automotive 24% 18% Automotive 9% 13% Oil and Gas 5% 10% Agriculture 18% 15% Tool
Slide 7: Net Sales per Business Unit
9M17 9M18 Net Operating Sales (R$ million) Net Sales per Business Unit 7
Slide 8: Sales Distribution
9M17 9M18 Foreign Sales (US$ million) Sales Distribution 8
Slide 9: Order Entry Backlog
Order Entry (R$ 000) 3Q17 2Q18 3Q18 Chg. Chg. 9M17 9M18 Chg. Gross Values, sales taxes included 3Q18/2Q18 3Q18/3Q17 9M18/9M17 Romi Machines 72,806 119,045 108,944 -8.5% 49.6% 204,156 276,853 35.6% Burkhardt+Weber Machines 41,090 22,270 78,231 251.3% 90.4% 93,884 135,566 44.4% Rough and Machined Cast
Slide 10: Cost of Goods Sold
9M18 19% Domestic material 12% FX related domestic material 16% Metals 20% Imported material 9M17 24% Domestic material 12% FX related domestic material 18% Metals 9% Imported material Cost of Goods Sold 10
Slide 11: Profitability
Gross Profit (R$ million) and Gross Margin Operating Profit (loss) (R$ million) and Operating Margin (*) Amounts relating to continued operations, excluding the results from the subsidiary Romi Italia Profitability 11
Slide 12: Profitability
EBITDA (R$ million) and EBTIDA Margin Net income (loss) (R$ million) and Net Margin (*) Amounts relating to continued operations, excluding the results from the subsidiary Romi Italia Profitability 12
Slide 13: Business Units’ Results
Quarter Accumulated Sales 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 9M17 9M18 Machines (qty) 162 141 195 246 144 183 227 498 554 Burkhardt+Weber (qty) 6 6 5 8 3 4 9 17 16 Cast and Iron parts (ton) 5,784 6,267 5,773 4,172 4,592 5,453 5,520 17,824 15,565 Rough and Machined Romi Machines B+W Machines Cast Iro
Slide 14: Cash Position
Cash and Cash Equivalent (R$ MM) - 09/30/2018 Amount Bank Deposit Certificate (CDB) 22.3 Financial Investment with Bonds 20.3 Financial Investment with Bonds 4.9 Banks 16.9 Total 64.4 Net Debt = 47.7 Loans* (R$ MM) - 09/30/2018 Amount 2018 (3 months) 22.4 2019 56.8 2020 9.9 2021 7.7 2022 7.4 2023 an
Slide 15: Share Performance
Share Performance ROMI3 vs. Ibovespa From 09/30/2016 to 10/22/2018 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