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1 1 Earnings Release 1Q09 April 30, 2009

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Page 1: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

111

Earnings Release 1Q09

April 30, 2009

Page 2: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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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 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

Page 3: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Highlights

• Romi begins operations at the new Santa Bárbarad’Oeste foundry ;

• Startup in operations of the new plant for manuf acturingheavy machine tools;

• Acquisition of technology for the manufacture o f PETblow molding machines, expanding the blow moldingproduct range;

• European sales grew 20.3% in 1Q09 compared with 1Q08;

A TRADITION OF INNOVATION

Page 4: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Plastic and Rubber Goods

Basic Metal Parts

Metal Goods - excl. Machinery

Machinery and Equipments

Automotive

70

75

80

85

90

95

100

2008-1 2008-2 2008-3 2008-4 2008-5 2008-6 2008-7 2008-8 2008-9 2008-10

2008-11

2008-12

2009-1 2009-2

Source: Fiesp – INA (Indicador de Nível de Atividade) – NUCI (Nível de Utilização da Capacidade Instalada)

Capacity Installed

A TRADITION OF INNOVATION

Capacity Utilization of some industrial sectors

Page 5: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Machine Tools - Sectors

A TRADITION OF INNOVATION

Moderate LowHigh

Page 6: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Plastic Machines and Castings - Sectors

Sector %

Packaging 31%

Job Shops 23%

Automotive 15%

Real Estate 15%

Home Utilities 4%

Others 12%

Sector %

Automotive (Trucks) 42%

Electricity Generation 41%

Agriculture 13%

Automotive (Cars) 2%

Capital Goods 2%

Plastic Machines Castings

A TRADITION OF INNOVATION

Page 7: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Net Operating Revenue

Net Operating Revenue – R$ MM NOR – 1Q09 – R$ MM

Overseas Domesti c

A TRADITION OF INNOVATION

Page 8: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Foreign Markets

Foreign Markets - 1Q09 Foreign Markets – US$MM

A TRADITION OF INNOVATION

Page 9: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Cost of Good Solds

Cost Structure – Consolidated – 1Q09

Overall sensibility to FX effects : 32%

27%

10%

9%

13% Imported Materialsand Components

Metals

Domestic Materials and Components FXrelated

Domestic Materialand Components

A TRADITION OF INNOVATION

Page 10: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Consolidated Margins

A TRADITION OF INNOVATION

R$ mm 1Q09 4Q08 1Q08 QoQ YoY

Gross Profit 25.3 61.3 61.1 -58.8% -58.6%

Gross Margin 33.4% 36.9% 40.0% -3.5 p.p. -6.6 p.p.

EBITDA -9.9 15.2 28.3 -165.3% -135.0%

EBITDA Margin -13.1% 9.1% 18.5% -22.2 p.p. -31.6 p.p.

Net Income -7.8 17.8 25.9 -144.0% -130.2%

Net Margin -10.3% 10.7% 17.0% -21.0 p.p. -27.3 p.p.

Page 11: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Business UnitsNet Revenue and Sales Volume

A TRADITION OF INNOVATION

1Q09 4Q08 1Q08 QoQ YoY

Machine Tools

R$ mm 50.3 102.6 96.7 -51.0% -48.0%

Units Sold 246 465 518 -47.1% -52.5%

Plastic Machines

R$ mm 15.4 34.0 26.7 -54.7% -42.3%

Units Sold 25 70 81 -64.3% -69.1%

Rough and MachinedCast.

R$ mm 10.0 29.5 29.4 -66.1% -66.0%

Tons Sold 1.826 4.393 5.575 -58.4% -67.3%

Page 12: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Business Units Margins

A TRADITION OF INNOVATION

1Q09 4Q08 1Q08 QoQ YoY

Machine Tools

Gross Margin 45.2% 41.3% 46.8% 1.2 p.p. -4.3 p.p.

EBIT Margin -10.3% 11.1% 20.8% -21.4 p.p. -31.1 p.p.

Plastic Machines

Gross Margin 39.4% 40.1% 35.6% -0.7 p.p. 3.8 p.p.

EBIT Margin -36.1% -4.2% 10.3% -31.9 p.p. -46.4 p.p.

Rough and MachinedCast.

Gross Margin -21.6% 18.1% 21.7% -39.7 p.p. -43.3 p.p.

EBIT Margin -40.1% 2.6% 6.6% -42.7 p.p. -46.7 p.p.

Page 13: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Cash Position

A TRADITION OF INNOVATION

Cash and Cash Equivalent – R$ MM

Note: w/o Finame Fabricante

Loan – R$ MM

Loans as of 03/31/2009: 99.8

The maturities of financing recorded asfollow :

Year Amount2009 32.52010 14.92011 16.02012 15.4After 2012 21.0Total 99.8

AmountBank Certificate of Deposit (CDB) 58.7Financial Investments with debentures 42.9LFTs - Financial Treasury Bill 0.5Others 2.2Banks 11.1Total 115.4

Net Cash = 15.6

Page 14: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Capital Markets

A TRADITION OF INNOVATION

Share Performance (ROMI3) vs. Bovespa Index (Basis: 100) - R$/SharePeriod: December/2006 - March/2009

020406080

100120140160180

dez-

06

fev-

07

mar

-07

mai

-07

jun-

07

ago-

07

set-

07

nov-

07

dez-

07

fev-

08

mar

-08

mai

-08

jun-

08

ago-

08

set-

08

out-

08

dez-

08

jan-

09

mar

-09

-

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

30.000.000

ROMI3: -57%

IBOVESPA: -8%

Page 15: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Vulcano and Paradiso Project - Status

• Paradiso Project:

• Status:

• Infrastructure: Concluded

• UF-19 Heavy Machine Tools: Concluded

• Receiving and Selling parts Building:Concluded

• Environment Unit: Concluded

• Vulcano Project:

• Status:

• Phase 1 – 10.000 ton/year: PreOperating

• Receiving and shipping building:Concluded

• Infrastructure: Near to conclude

A TRADITION OF INNOVATION

Page 16: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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Guidance 2009

Key Indicators 10/23/2008 04/28/2009

Grow – Net OperatingRevenue

-2% a 7% -45% a -30%

EBITDA Margin 13% a 17% 0% a 5%

CAPEX R$ 75 Million R$ 75 Million

A TRADITION OF INNOVATION

Assumptions 23/10/2008 28/04/2009

GDP 3,0% 0,0%

Dolar x Real (Average) 2,20 2,30

Interest Rate – SELIC(Average)

14,0% 11,0%

Page 17: Earnings Release 1Q09 April 30, 2009 · 4 Plastic and Rubber Goods Basic Metal Parts Metal Goods - excl. Machinery Machinery and Equipments Automotive 70 75 80 85 90 95 100 2008-1

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A TRADITION OF INNOVATION

Investor Relations

Contact:Luiz Cassiano R. RosolenInvestor Relations OfficerPhone: 55 (19) [email protected]