Slide 1: Earnings Release October 29, 2009
Earnings Release October 29, 2009
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: Presenters
Presenters A TRADITION OF INNOVATION Livaldo Aguiar dos Santos CEO – Chief Executive Officer • Appointed Chief Executive Officer of Romi in August 2007 Sergio Roberto Novo CFO – Chief Financial Officer • Appointed Chief Finance Officer of Romi in 2005 Luiz Cassiano R. Rosolen Executive Director • Ex
Slide 4: History – 30's to 50's
History – 30’s to 50’s A TRADITION OF INNOVATION 1939 1933 The company had 60 employees and 1946 The first Foundry was producing Reached production was built, with the about 5 thousand of 200 units per 1930 first coal furnace agricultural month. Was born in Santa Bárbara equipment d'Oeste - SP - Bra
Slide 5: History – 60's to 80's
History – 60’s to 80’s A TRADITION OF INNOVATION 1972 1960 Beginning of production of 1976 1987 First Heavy duty Lathe: “TP-100” Plastic Injection Molding Machines Made the first CNC lathe: “ECN-40” First CNC milling machine: “Interact 4” Initial Public Offering – IPO 1960 1963 1966 1969 1972 1975 1
Slide 6: History – 90's to 00's
History – 90’s to 00’s A TRADITION OF INNOVATION 2007 1992 1994 2005 Public Offering – Follow on Launching of Primax Injection Line ISO 9002 Certification (UF-10) ISO 14001:2004 Certification Novo Mercado - BOVESPA 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 1990 2008 1997 Inauguration of UF-1
Slide 7: 9M09 Net Sales by Product Line
Product Line A TRADITION OF INNOVATION Machine Tools Plastic Processing Machines Casting R$ 32,9 mm 11% 11% 11% 9M09 Net Sales R$ 192,7 mm 25% R$ 76,3 mm 25% 25% 64% 64% 64% 7
Slide 8: Manufacturing Facilities
Manufacturing Facilities A TRADITION OF INNOVATION Romi has 9 production units located in Santa Bárbara d’Oeste in Brazil and 2 units in the region of Turin, Italy Brazil Italy Brazil Italy Sta Bárbara d’Oeste, State of São Paulo Region of Turin • Machining and Components • Plastic Injection Machine
Slide 9: Diversified Portfolio of Clients
Diversified Portfolio of Clients A TRADITION OF INNOVATION Legend Industrial units Subsidiaries Sales representatives • Romi has a diversified portfolio of clients in terms of industry and geographic location • More than 149.000 Romi machines were sold for customers in more than 60 countries 9
Slide 10: Extensive Pre and Post-Sales Support
Extensive Pre and Post-Sales Support A TRADITION OF INNOVATION Romi’s sales and services in Brazil • Romi sales and service network in Brazil is Manaus Fortaleza comprised of more than 30 direct sales and service points, including branches in all main industrial areas in 12 Brazilian states • Romi h
Slide 11: Market Positioning
Market Positioning A TRADITION OF INNOVATION Leading Position in the Brazilian Market Romi is the undisputable leader in the Brazilian market for machine tools and plastic injection molding machines State-of-the-Art Technology and High Quality Products Romi is constantly developing new equipment and
Slide 12: Focus on Technology and HQ Products
Focus on Technology and HQ Products A TRADITION OF INNOVATION Romi has 190 engineers and highly qualified technicians R&D Expenses (R$ MM) Revenues from New Products (% of net revenues) (1) 28,8 26,3 55,7% 21,1 18,8 37,1% 38,8% 31,4% 2005 2006 2007 2008 2005 2006 2007 2008 (1) Considers sales of pro
Slide 13: Economic Indicators
Economic Indicators A TRADITION OF INNOVATION GDP – Industrial GDP – Gross Fixed Capital Formation 19.7 20 16.6 15.4 15 10 7.1 6.1 6.2 6.8 6.9 5.7 3.8 5 1.3 0 GDP -1.8 -1.2 Indl GDP Investiments -5 -2.1 -10 -7.9 -9.3 -15 -14.0 -17.0 -20 08-I 08-II 08-III 08-IV 09-I 09-II Source: IBGE (quarter x quar
Slide 14: Industry Confidence Indicator
Industry Confidence Indicator ICEI – Industry Confidence Indicator 70 65.5 65.9 62.0 59.4 60 60.4 58.2 57.2 56.5 56.6 54.3 52.5 50 49.4 40 . out/04 abr/05 out/05 abr/06 out/06 abr/07 out/07 abr/08 out/08 abr/09 out/09 Source: CNI - ICEI – Industry Confidence Indicator 14
Slide 15: Capacity Utilization - Brazilian Industry
Capacity Utilization - Brazilian Industry A TRADITION OF INNOVATION Capacity Utilization of some industrial sectors 100 95 Basic Metal Parts Automotive 90 Plastic and Rubber Goods 85 80 Machinery and Equipments Metal Goods - excl. 75 Machinery 70 2008-1 2008-2 2008-3 2008-4 2008-5 2008-6 2008-7 2008
Slide 16: Machine Tools – Sales main sectors
Machine Tools – Sales main sectors A TRADITION OF INNOVATION Equipment Agricultural Automotive Job Shops Education Oil & Gas Tooling Goods Capital Others CNC Lathes – Flat Bed Heavy CNC Lathes Machining Center CNC Lathes Combination CNC Lathes Slant Conventional Lathes MF Net Rev. 9M09 20% 12% 10% 4
Slide 17: Plastic Machines and Castings – Sales main sectors
Plastic Machines and Castings – Sales main sectors A TRADITION OF INNOVATION Plastic Machines Castings ROL % ROL % SECTOR SECTOR 9M09 2008 9M09 2008 Packaging 30% 21% Automotive 57% 38% (Trucks) Job Shops 12% 15% Electricity 27% 15% Generation Automotive 17% 22% Agriculture 11% 14% Real Estate 6% 8%
Slide 18: Order Entry
Order Entry A TRADITION OF INNOVATION Order Entry (R$ thousands) 3Q08 3Q09 % Chg. Machine Tools 136,795 115,371 (15.7) Plastic Machines 31,811 45,892 44.3 Rough and Machined Cast Iron Parts 41,425 17,290 (58.3) Total 210,031 178,553 (15.0) Order Entry (R$ thousands) 1Q09 2Q09 3Q09 % Chg. Machine Too
Slide 19: Continuous Growth and Profitability
Continuous Growth and Profitability A TRADITION OF INNOVATION Net Revenues (R$ MM) EBITDA and EBITDA Margin (R$ MM) 696.1 632.0 21.2% 108.3 20.1% 82.1 18.9% 19.1% 548.9 18.2% 510.6 65.4 17.6% 445.7 75.3 133.7 12.3 65.1 110.6 334.7 587.8 92.7 51.9 85.3 549.9 483.5 63.2 435.3 380.6 282.8 2003 2004 200
Slide 20: Foreign Markets
Foreign Markets A TRADITION OF INNOVATION Foreign Markets – 3Q09 Foreign Markets – US$MM 17.3 África, América Ásia e Latina Oceania -58.9% 6.6% EUA 0.3% 26.6% 7.1 Europa 66.5% 3Q08 3Q09 Foreign Markets – 9M09 Foreign Markets – US$MM – 9M09 70.6 África, América Ásia e Latina Oceania -37.7% 8.9% 0.6%
Slide 21: Cost of Good Solds
Cost of Good Solds Estrutura do Custo – Consolidado – 3Q09 Other Expenses 5% Depreciation 4% Domestic Material and Components 30% Material 66% 12% Domestic Materials and Components FX related Labor 25% 9% Metals 15% Imported Materials and Components Estrutura do Custo – Consolidado – 9M09 Other Expe
Slide 22: Consolidated Margins
Consolidated Margins A TRADITION OF INNOVATION R$ MM 3Q09 2Q09 3Q08* QoQ YoY 9M09 9M08* YoY Gross Profit 37.0 31.2 83.5 18.6% -55.7% 93.5 218.2 -57.2% Gross Margin 30.3% 30.0% 41.8% 0.3 p.p. -11.5 p.p. 31.0% 41.2% -10.2 p.p. Adjusted 8.9 7.2 42.1 23.6% -78.9% 6.2 107.1 -94.2% EBITDA EBITDA 7.3% 6.9%
Slide 23: Business Units Net Revenue and Sales Volume
Business Units Net Revenue and Sales Volume A TRADITION OF INNOVATION R$ MM 3Q09 2Q09 3Q08 QoQ YoY 9M09 9M08 YoY Machine Tools R$ mm 77.7 64.6 125.7 20.3% -38.2% 192.7 337.3 -42.9% Units Sold 365 319 697 14.4% -47.6% 930 1,865 -50.1% Plastic Machines R$ mm 32.1 28.9 37.6 11.1% -14.6% 76.3 94,1 -18.9
Slide 24: Business Units Margins
Business Units Margins A TRADITION OF INNOVATION R$ MM 3Q09 2Q09 3Q08* QoQ YoY 9M09 9M08* YoY Machine Tools Gross Margin 40.4% 33.7% 45.1% 6.7 p.p. -4.7 p.p. 38.7% 45.6% -6.9 p.p. EBIT Margin 13.4% 10.3% 22.8% 3.1 p.p. -9.4 p.p. 6.2% 21.2% 0.4 p.p. Plastic Machines Gross Margin 25.6% 36.2% 40.1% -10
Slide 25: Cash Position
Cash Position A TRADITION OF INNOVATION Cash and Cash Equivalent – R$ MM Loan – R$ MM Loans as of 09/30/2009: 105.1 Amount Bank Certificate of Deposit (CDB) 48.9 The maturities of financing recorded as Financial Investments with debentures 17.7 follow: Others 1.5 Banks 9.8 Year Amount Total 77.9 200
Slide 26: 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 Ownership Structure Corporate Governance • Tag along - 100% Romi / Chiti Fundação • Board of Directors – One year term, 7 members, being Fenix (1) Free
Slide 27: Guidance 2009 e 2010
Guidance 2009 e 2010 TRADIÇÃO EM INOVAR Key Indicators 2009 2010 Grow – Net Operating -30% a -45% 20% a 30% Revenue EBITDA Margin 0% a 5% 6% a 12% CAPEX R$ 50 Million R$ 45 Million Assumptions 2010 GDP 4.5% Dolar x Real (Average) 1.60 Interest Rate – SELIC 9.5% (Average) 27
Slide 28: www.romi.com.br
® ‘© RONMI | A TRADITION OF INNOVATION www.romi.com.br