indústrias romi s.a. non deal road show santander · emílio romi 1930 2010 produced the 1,000th...

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


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


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


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


7

Machine Tools


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


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%


Examples of Romi Machines

Examples of parts produced by our customers

9

Casting


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%


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


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


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


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


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


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


17

Profitability


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


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


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


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


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.


Source: BM&FBovespa

23

Share Performance


Livaldo Aguiar dos Santos

Chief Executive Officer

Luiz Cassiano R. Rosolen

Investor Relations Officer

indústrias romi s.a. non deal road show santander · emílio romi 1930 2010 produced the 1,000th...

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