Romi Sa · BMFBOVESPA:ROMI3
Romi Sa — Industrials' Morning, organized by Banco Santander (June 2007)
23 slides from Romi Sa's conference presentation, Jun 13, 2007
Slide 1: Industrials' Morning – Banco Santander
June 13, 2007 Industrials’ Morning Banco Santander 1
Slide 2: Shareholder Structure
SHAREHOLDER STRUCTURE Romi is listed in the Novo Mercado, complying with the highest standards of corporate governance Shareholder Structure (voting shares only) Romi / Chiti Fênix 1 Fundação Romi Free Float Families Post-Offering 34.5% 8.9% 1.8% 54.8% % of total capital Note: 1 Fênix is a holding c
Slide 3: What We Do
WHAT WE DO Romi comprises three business units Plastic Injection Molding Casting and Machined Machine tools Machines Casting ► Machines that make parts used ► Machines that make complex ► Cast iron parts used in many by several manufacturing plastic parts products / machines segments ► “Machine that
Slide 4: Machine Tools
MACHINE TOOLS CNC Lathes Machining Centers Turning Centers 4
Slide 5: Machine Tools: Some products manufactured
MACHINE TOOLS Some products manufactured by a Machine Tools: 5
Slide 6: Plastic Injection Molding Machines
PLASTIC INJECTION MOLDING MACHINES Electrical plastic injection molding machine Hydraulic plastic injection molding machine 6
Slide 7: Plastic Injection Molding Machines: Some products manufactured
PLASTIC INJECTION MOLDING MACHINES Some products manufactured by a Plastic Injection Molding Machines:
Slide 8: Fundidos e Usinados
FUNDIDOS E USINADOS
Slide 9: Company Overview
COMPANY OVERVIEW Throughout its 76 years of history, Romi has built and sold more than 143,000 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. Sal
Slide 10: Track Record of Growth and Profitability
TRACK RECORD OF GROWTH AND PROFITABILITY Romi presented consistent growth and profitability throughout several economic cycles, and is now … Creating a Solid Base Strengthening New Era IPO International Investments in product and process Expansion quality enhancement Market-oriented Novo Mercado cor
Slide 11: Our Customers
OUR CUSTOMERS The majority of our machine’s customers are small, family owned businesses Part System Final Product Machine Tools Manufacturers Manufacturers Manufacturers Plastic Injection Part Final Product Molding Manufacturers Manufacturers Machines Castings and Machined System Final Product Cast
Slide 12: State-of-the-Art Products
STATE-OF-THE-ART PRODUCTS Romi’s machines are key to our customers’ production processes, some times being the principal machine they utilize... Cutting-edge technology and high quality products Attractive financing Solid Brand Extensive pre Proximity to our and after sales customers support ... as
Slide 13: Market Leadership
MARKET LEADERSHIP Leadership in machine tools and plastic injection molding machines with strong growth potential in castings Machine Tools Plastic Injection Molding Machines Castings and Machined Castings (2006) (2006) (2005)1 1º 1º Room for Expansion Others Tupy - Joinville Other Locals Other Loca
Slide 14: Solid and Diversified Customer Base
SOLID AND DIVERSIFIED CUSTOMER BASE Romi is exposed to different sectors of the Brazilian economy Machine Tools Plastic Injection Molding Machines (2006) Castings and Machined Castings (2006) (2006) Automotive Others Others Automotive 16% Automotive Automotive 25% 19% 13% (Cars) (trucks and 21% othe
Slide 15: Sector Attractiveness: Sector's Favorable Outlook
SECTOR ATTRACTIVENESS: SECTOR’S FAVORABLE OUTLOOK Global production of machine tools and castings are presenting solid growth rates ... Global Production Production Growth by Country per Year Machine Tools – US$ billion Machine Tools – 2002 to 2005 Global GDP Growth: 5%1 33% 30% 29% 52 26% 46 23% 21
Slide 16: Net Revenues
NET REVENUES Consistent revenue growth … Net Revenues (R$ million) Net Revenue (R$ million) – Quarterly 549 511 446 156 153 137 125 103 2004 2005 2006 1T06 2T06 3T06 4T06 1T07 16
Slide 17: EBITDA
EBITDA … and high operational efficiency … EBITDA (R$ million) and EBITDA Margin (%) EBITDA (R$ million) and EBITDA Margin (%) – Quarterly 19.7% 19.1% 18.2% 23% 108 22% 93 17% 19% 85 14% 35 34 24 24 15 2004 2005 2006 1T06 2T06 3T06 4T06 1T07 EBITDA EBITDA Margin EBITDA EBITDA Margin … with increased
Slide 18: Costs and Expenses
COSTS AND EXPENSES Room for additional efficiency gains Costs Breakdown (2006) Operating Expenses Breakdown (2006) General Depreciation Expenses 3% Other Tax Expenses 4% 4% 4% Imported Raw R&D Material 15% 18% Domestic Raw Sales Material 43% 51% Administrative, Personnel FINAME Team, 24% IT 34% 57%
Slide 19: Net Income and Dividends
NET INCOME AND DIVIDENDS High profitability and attractive return rates Net Income (R$ million) and ROE (%) Net Income (R$ million) - Quarterly 23.8% 23.5% 22.5% 83 76 70 28 25 20 18 10 1 2004 2005 2006 1T06 2T06 3T06 4T06 1T07 Net Income ROE 19
Slide 20: Investments in Technology
INVESTMENTS IN TECHNOLOGY Significant investments in research and development and in modernization of installed capacity … Modernization and Expansion (R$ million) Research and Development 3.8% 3.7% 3.7% 98.3 21 19 Machine tools: R$22.4 mm 16 ► 30% in production capacity ► Startup in 2007 Castings:
Slide 21: Finame Fabricante
FINAME FABRICANTE Finame Fabricante offers Romi flexibility to satisfy its customer’s needs with attractive financing … Simplified Mechanism Indebtness Overview – 1Q 2007 Financing 530.0 Installments Funds Net Cash Customer Agent R$15.6 Milhões Bank 74.0 Installments 468.8 Financing 36.2 58.4 Instal
Slide 22: Strategy
STRATEGY Romi’s strategy is to maintain its prominent position in its core sectors, pursue continuous growth opportunities while keeping track of profitability ► Continue to invest in new product development, especially related to machine tools and plastic injection molding machines Broaden Product
Slide 23: Management Presenters
MANAGEMENT PRESENTERS Presenters Title CEO and Chairman of the Board Américo Emílio Romi Neto ► 28 years at the Company CFO and Investor Relations Officer Sergio Roberto Novo ► Joined the Company in 2005 Investor Relations Luiz Cassiano R. Rosolen ► Joined the Company in 2006 23
Romi — Industrials' Morning, organized by Banco Santander (June 2007) on 6ix