Indústrias Romi S.A.
September, 2011
Non Deal Road Show Santander
2
Disclaimer
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 apply to information on possible or
presumed operating results, as well as any statements preceded, followed or including words such as
“believes”, “may”, “will”, “expects”, “intends”, “plans”, “estimates” or similar expressions.
Forward-looking statements are not performance guarantees; they involve risks, uncertainties and
assumptions because they refer to future events and, therefore, depend on circumstances which may or
may not occur. Future results may differ materially from those expressed or suggested by forward looking
statements. Many of the factors which will determine these results and figures are beyond Romi’s control
or prediction capacity.
A TRADITION OF INNOVATION
3
Historical Highlights
A TRADITION OF INNOVATION
The company is found under the innovating
spirit of Mr. Américo
Emílio Romi
1930
Produced the 1,000th lathe
and inaugurated a new plant
with 15,000 m² of built area
1942
Initial Public Offering – IPO; and the start
up of Plastic Injection Molding
Machines production
1972
Celebrated 80 years ; and reached the
150,000th machine produced
2010
Follow on – more than 50% of the
company’s shares on free float
2007
4
Company’s Highlights
A TRADITION OF INNOVATION
R$ 673.5 million of Net Operating Revenues in 2010
11 highly productive units with over 170,000m² floor space (9 in Brazil, 2 in Italy)
Production capacity of 3,900 machines per year and 50,000 tons of rough and machined cast iron parts
More than 150,000 machines produced and sold in more than 60 different countries
New products and technologies continuous development (4% of net revenues on average destined to R&D)
Supplier for most industrial segments
Looking forward for international expansion
5
Manufacturing Footprint
A TRADITION OF INNOVATION
Cast Iron Parts Units Supplier Units to the
Machine Assembly Units Machine Assembly Units
Casting
Heavy Casting
General Machining
Medium and Heavy Machining
General Machining
Electronic Division
Paneling and Kettling
Assembly of Plastic Processing Machines
Assembly of Heavy Machine Tools
Production of parts from Cast Iron
Casting made in high-production automated molding line for
parts up to 200 kilos and in manual and semiautomatic
lines for smaller lots and parts up to 5 tons
Casting made in manual molding line for parts from 5 to 35 tons
Internal machining of metal parts that will be part of heads, turrets, tool changers, spindles,
ball injection units, etc.
Assembly of the machines’ computer numerical control systems
Manufacture of machines’ metal shelter (paneling) And of basis for plastic injection molding machines
Assembly of sets and machines
Units Located at the Headquarters (SBO) Units Located at the Casting (SBO) Units Located at the District (SBO) Units Located in Italy
Assembly of Plastic Processing Machines
Assembly of Machine Tools
CUSTOMERS
Direct sales specialized team
Large local costumer base
Long Term relationship
between costumer and
company
Reliable relationship
between customer and
sales team
Strong knowledge of the Brazilian
Market
Products and technologies continuous
development
Highly qualified team for credit
analysis
Attractive long term financing for
customers, funded by BNDES
programs
Assistance on costumers
financing process
Sales and Financing Competences
6
Credit related competences
Sales related competences
A TRADITION OF INNOVATION
7
Machine Tools
A TRADITION OF INNOVATION
LIGHTWEIGHT HEAVYWEIGHT
METAL CHIPING
TURNING MILLING
CNC LATHESENGINE LATHESTURNING
CENTERS
MACHINING
CENTERSBORING MILLS
1H11 2010
Job Shops 26% 22%
Capital Goods 15% 16%
Automotive 11% 11%
Tooling 7% 6%
Hydraulic 5% 5%
Others 36% 40%
Net Operating Revenues Distribution
Examples of Romi Machines
Examples of parts produced by our customers
Plastic Processing Machines
8
A TRADITION OF INNOVATION
PET BLOW MOULDING
MACHINES
INJECTION MOULDING BLOW MOULDING
PLASTIC BLOW MOULDING
MACHINES
PLASTIC PROCESSING MACHINES
INJECTION MOULDING MACHINES
1H11 2010
Packaging 26% 39%
Job Shops 15% 11%
Automotive 8% 18%
Home Appliances 8% 7%
Industrial 7% 3%
Others 36% 22%
Net Operating Revenues Distribution
Examples of Romi Machines
Examples of parts produced by our customers
9
Casting
A TRADITION OF INNOVATION
1H11 2010
Automotive - Trucks 59% 70%
Agricultural Equipment 16% 17%
Electricity Generation 10% 3%
Capital Goods 8% 8%
Automotive - Cars 5% 2%
Others 2% 0%
Net Operating Revenues Distribution
FOUNDRY
PARTS PRODUCED OF GRAY, NODULAR AND VERMICULAR
IRON CASTCNC MACHINING CASTS
ROUGH CASTINGS MACHINED CASTINGS
Examples of parts produced by Romi
10
Economic Indexes – Conjunctural
Indicators A TRADITION OF INNOVATION
Source: IBGE
6,4% 6,5% 7,1%
0,8%
-3,0% -2,8%-1,8%
5,0%
9,3% 9,2%
6,7%
5,0%4,2%
3,1%7,3%
5,5%6,8%
-2,8%
-12,2%
-9,9%
-7,7%
4,2%
15,1%14,1%
8,3%
4,3%3,5% 1,7%
15,8%17,1%
19,2%
2,8%
-16,2%-17,1%
-12,9%
5,7%
28,4% 28,1%
21,2%
12,3%
8,8%
5,9%
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
11
A TRADITION OF INNOVATION
Source: Fiesp -INA Activity Level Indicator - NUCI ( Level of Utilization of Installed Capacity)
Economic Indexes – Level of Activity
Index
Automotive: 90.9%
Basic Metal Parts: 87.3%
Plastic and Rubber Goods: 85.6%
Metal Goods – Ex Machinery: 78.4%
Machinery and Equipment: 77.7%
General Industry: 82.7%
70
75
80
85
90
95
100
Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11
12
A TRADITION OF INNOVATION
Source: CNI - ICEI (Industrial Executives’ Confidence Index
Economic Indexes – Industrial
Enterpreneus Confidence Index
61.8
47.4
68.7
62.0
Sep/11 = 56.4
45
55
65
75
Jan-08 Apr-08 Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10 Jan-11 Apr-11 Jul-11
11.2 15.0 13.4 19.2 16.7 16.3
134.0152.6 156.2
172.0
122.1156.5
145.1
167.6 169.6191.2
138.7
172.8
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
Foreign Sales Domestic Sales
13
Net Sales per Business Unit 2Q11
63.8%
22.8%
13.4%
MACHINE TOOLS
R$ 110.3 million
PLASTIC PROCESSING
MACHINES
R$ 39.3 million
CASTING
R$ 23.2 million
A TRADITION OF INNOVATION
Net Operating Sales (R$ million)
65.4 82.1 108.3 62.6 58.8
483.5549.9
587.8
412.8
614.7
548.9
632.0696.1
475.4
673.5
2006 2007 2008 2009 2010
Foreign Sales Domestic Sales
14
Note: Gross values, including sales taxes
Order Entry R$ thousand
A TRADITION OF INNOVATION
Order Entry (R$ thousand) 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1H10 1H11
Machine Tools 94,084 132,784 111,777 99,194 110,370 129,179 226,868 239,549
Plastic Machines 42,138 53,187 43,865 32,127 30,418 37,846 95,325 68,264
Rough and Machined Cast Iron Parts 21,968 22,065 24,276 13,729 38,149 21,186 44,033 59,335
Total 158,190 208,036 179,918 145,050 178,937 188,211 366,226 367,148
Order Entry (R$ thousand)Change
2Q11/1Q11
Change
2Q11/2Q10
Change
1H11/1H10
Machine Tools 17.0% -2.7% 5.6%
Plastic Machines 24.4% -28.8% -28.4%
Rough and Machined Cast Iron Parts -44.5% -4.0% 34.8%
Total 5.2% -9.5% 0.3%
15
Foreign Market
15
A TRADITION OF INNOVATION
Year Foreign Sales – US$ million
Quarter Foreign Sales – US$ million
32.2 33.9
0,0
10,0
20,0
30,0
40,0
2009 2010
5.3%
2Q10 Foreign Sales Destination
2Q11 Foreign Sales Destination
6.28.4 7.8
11.5 10.0 10.3
0,0
5,0
10,0
15,0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
66.1%
USA30.9%
Europe60.2%
Latin America
8.9%
USA24.1%
Europe54.6%
Latin America
21.3%
16
Cost of Goods Sold
A TRADITION OF INNOVATION
17
Profitability
A TRADITION OF INNOVATION
52.259.6 65.2 65.7
43.450.9
36.0% 35.6%38.5%
34.4%31.3%
29.5%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
80,0
90,0
100,0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
236.5272.1 279.6
147.3
242.8
43.1% 43.1%40.2%
31.0%
36.0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
50,0%
0,0
50,0
100,0
150,0
200,0
250,0
300,0
350,0
400,0
2006 2007 2008 2009 2010
13.917.7
23.7 21.5
2.6 2.7
9.6% 10.6%14.0%
11.2%
1.9% 1.6%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
0,0
5,0
10,0
15,0
20,0
25,0
30,0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
99.9122.4
107.1
9.2
76.9
18.2% 19.4%15.4%
1.9%
11.4%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
0,0
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
180,0
2006 2007 2008 2009 2010
EBIT (R$ million) e EBIT Margin Gross Profit (R$ million) and Gross Margin
18
Profitability
A TRADITION OF INNOVATION
EBITDA (R$ million) and EBITDA Margin Net Profit (R$ million) and Net Margin
18.623.7
30.5 28.1
9.6 10.1
12.8% 14.1%18.0%
14.7%
6.9% 5.9%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
0,0
5,0
10,0
15,0
20,0
25,0
30,0
35,0
40,0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
110.6133.7 122.3
29.1
100.9
20.1% 21.2%17.6%
6.1%
15.0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
0,0
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
180,0
200,0
2006 2007 2008 2009 2010
10.615.2
25.6
17.7
7.95.0
7.3% 9.1%
15.1%
9.2%5.7%
2.9%
-30,0%
-25,0%
-20,0%
-15,0%
-10,0%
-5,0%
0,0%
5,0%
10,0%
15,0%
20,0%
0,0
5,0
10,0
15,0
20,0
25,0
30,0
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11
84.8
124.2 126.6
12.868.7
15.4%19.7% 18.2%
2.7%
10.2%
-26,0%
-16,0%
-6,0%
4,0%
14,0%
24,0%
0,0
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
180,0
2006 2007 2008 2009 2010
19
Business Units’ Results
A TRADITION OF INNOVATION
1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 1H10 1H11
Machine Tools (units sold) 526 538 556 706 441 572 1,064 1,013
Plastic Machines (units sold) 83 119 112 111 101 129 129 202
Rough and Machined Cast (tons sold) 2,432 3,016 3,403 2,635 3,240 4,155 5,448 7,395
Quarter Year
439,924 310,672 427,104 195,725
44,6%
38,1%42,7%
37,5%
25,8%
15,0%
20,6%
13,2%
-40,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
0
100.000
200.000
300.000
400.000
500.000
600.000
700.000
800.000
2008 2009 2010 1H11
Machine Tools
128,074 119,859 179,413 74,389
38,1%
29,3%32,6%
28,8%
6,3%
-7,5%
5,0%
-7,8%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
40,0%
60,0%
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
400.000
450.000
500.000
2008 2009 2010 1H11
Plastic Machines
128,126 44,903 67,012 41,407
26,9%
-13,7%
3,0%-1,1%
15,4%
-19,7%
1,9%-1,0%
-50,0%
-40,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
0
50.000
100.000
150.000
200.000
250.000
300.000
350.000
400.000
2008 2009 2010 1H11
Casting
Cash and Cash Equivalent – R$ million – 06/30/2011
(*) without Finame Manufacturer
20
Loans* – R$ million – 06/30/2011
Cash Position
A TRADITION OF INNOVATION
Amount
2011 13.5
2012 111.4
2013 33.5
2014 25.6
2015 18.6
2016 and afterwards 27.9
Total 230.5
Amount
Bank Deposit Certificate (CDB) 125.4
Financial Investment with Bonds 29.8
Time Deposit - Abroad 1.4
Banks 10.1
Total 166.8
Net Debt = 63.7
21
Outlooks
A TRADITION OF INNOVATION
Oil & Gas (Pre-salt):
• Investments of US$ 202.2 billion from 2009 to 2013
Sports Events Investments:
• 2014 World Cup: US$6.4 billion
• 2016 Olympic Games: US$ 16 billion
• Total investment -including those presented above - of US$ 56.7 billion until 2027 in infrastructure
Automotive Industry
• Investments of R$ 24.2 billion from 2010 to 2013 in installed capacity
Metal cutting machinery consumption in Brazil:
• CAGR 2010-2015: 7.8%
Injection and Blow Moulding machinery consumption in Brazil:
• CAGR 2010-2015: 4.8%
Castings production in Brazil:
• CAGR 2010-2015: 9.8%
Wind Power
•2011 to 2014 capacity will increase from 1 to 7 GW, and to 20 in 2021
•4 new companies will start producing in Brazil from 2011 on
•57 wind farms reinstalled and 30 are under construction
•Investments around R$ 30 billion
Source: IBGE, ANFAVEA, BNDES, Energetic Research Enterprise, Press Clippings
22
Corporate Governance
• Novo Mercado – Joining the Novo Mercado in March 2007 positioned Romi in Bovespa’s highest level of Corporate Governance
• Tag along - 100%
• Board of Directors – One year term, 8 members, being 4 indicated by shareholders and 4 independent
• Diffuse Capital - free float of 52.6%
• Full IFRS report – One of the first Brazilian Companies to report on International Financial Reporting Standards since 12/31/2007.
• CPC´s - early adoption – One of the first Companies to early adopt the statements issued by the Comitê de Pronunciamentos Contábeis - CPC.
• ISE – Corporate Sustainability Index – benchmark in the Brazilian market for socially and environmentally responsible investments. Romi Joined this Index in December 2009.
A TRADITION OF INNOVATION
Source: BM&FBovespa
23
Share Performance
A TRADITION OF INNOVATION
Livaldo Aguiar dos Santos
Chief Executive Officer
Luiz Cassiano R. Rosolen
Investor Relations Officer