Slide 1: 3Q17 Earnings Release
3Q17 Earnings Release October 25, 2017
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
• Operating margins continue improving and EBITDA reached 13.0% in 3Q17. • Romi Machines Business Unit, in 3Q17, reached an EBITDA margin of 10.2%, an improvement of 17.2 percentage points compared with 3Q16, as a result of the operating adjustments, reduction of costs and expenses and mix of produc
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 2017 Source: CNI – ICEI (Industrial Executive Confidence Index), October 2017 Economic Indexes - Conjunctural 5
Slide 6: Business units
Rough and Machined Cast Romi Machines B+W Machines Iron Parts 9M17 2016 9M17 2016 9M17 2016 Automotive 15% 17% Machines and Equipments 11% 57% Wind Power 61% 69% Machines and Equipments 15% 10% Motors and Systems 75% 24% Automotive 16% 11% Job Shops 14% 12% Oil and Gas 0% 18% Agriculture 15% 14% Tol
Slide 7: Net Sales per Business Unit
9M16 9M17 Net Operating Sales (R$ million) Net Sales per Business Unit 7
Slide 8: Sales Distribution
9M16 9M17 Foreign Sales (US$ million) Sales Distribution 8
Slide 9: Order Entry Backlog
Order Entry (R$ 000) 3Q16 2Q17 3Q17 Chg. Chg. 9M16 9M17 Chg. Gross Values, sales taxes included 3Q17/2Q17 3Q17/3Q16 9M17/9M16 Romi Machines 62,516 71,820 72,806 1.4% 16.5% 186,943 212,399 13.6% Burkhardt+Weber Machines 31,333 43,083 41,090 -4.6% 31.1% 138,921 93,883 -32.4% Rough and Machined Cast Ir
Slide 10: Cost of Goods Sold
9M17 24% Domestic material 12% FX Related Domestic Material 18% Metals 9% Imported Material 9M16 16% Domestic material 11% FX Related Domestic Material 18% Metals 19% 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 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 9M16 9M17 Machines (qty) 170 172 192 214 162 141 195 534 498 Burkhardt+Weber (qty) 3 3 4 7 6 6 5 10 17 Cast and Iron parts (ton) 4,240 5,145 5,845 5,174 5,784 6,267 5,773 15,229 17,824 Rough and Machined Romi Machines B+W Machines Cast Iro
Slide 14: Cash Position
Cash and Cash Equivalent (R$ MM) - 09/30/2017 Amount Bank Deposit Certificate (CDB) 42.9 Financial Investment with Bonds 34.8 Financial Investment with Bonds 43.6 Banks 23.6 Total 145.0 Net Debt = 16.2 Loans* (R$ MM) - 09/30/2017 Amount 2017 (3 months) 56.7 2018 58.0 2019 13.7 2020 19.5 2021 6.3 202
Slide 15: Share Performance
Share Performance ROMI3 vs. Ibovespa From 10/01/2015 to 10/23/2017 Source: BM&FBovespa 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