3Q14 Earnings Release - Romi5 Economic Indexes – Conjunctural Indicators A TRADITION OF INNOVATION...
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3Q14 Earnings Release October 22, 2014
Transcript of 3Q14 Earnings Release - Romi5 Economic Indexes – Conjunctural Indicators A TRADITION OF INNOVATION...
3Q14 Earnings Release October 22, 2014
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.
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Important Note
A TRADITION OF INNOVATION
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• Continuous investments in equipment have been made in order to optimize the operational structure, increasing the competitiveness of Romi which, even facing an adverse macroeconomic scenario, reports a profit of R$ 2.1 million in 9M14.
• Net operating revenue reached in 3Q14 R$165.5 million, 9% lower than 3Q13.
• In 3Q14 gross margin was 23% due to the mix of products and expenses related to optimization of the operational structure.
• EBITDA margin was 4.6% in 3Q14, 530 basis points down from 3Q13.
• The volume of order entry was R$150.2 million in the quarter, 27.1% down from 3Q13.
• The order backlog totaled R$274.3 million as at September 30, 2014.
• A Share Repurchase Program started on July 29, 2014, with the possibility of repurchasing up to three million shares.
Highlights
A TRADITION OF INNOVATION
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Economic Indexes – Conjunctural
Indicators A TRADITION OF INNOVATION
Source: IBGE (quarter this year vs. quarter last year)
6,3 6,5 7,1
1,0
-2,7 -2,4 -1,5
5,39,3 8,8
6,9
5,34,2 3,3 2,1 1,4 0,8 0,6 0,9 1,8 1,9
3,5
2,42,2 1,9
-0,97,15,3
6,8
-2,5
-11,6 -9,1
-6,8
5,0
15,413,9
8,9
4,9 3,82,1 1,0
-0,4 -0,1-2,2
-0,7 0,0-0,9
3,12,3
2,1 0,8
-3,4
14,916,3
19,2
4,2
-13,6 -13,6
-9,0
9,6
29,927,2
20,3
11,18,8
6,22,5
2,0
-2,1-3,8 -5,6
-4,2
2,27,7
6,74,0
-2,1
-11,2
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14
GDP Industrial GDP Gross Fixed Capital Formation
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Economic Indexes – Conjunctural
Indicators A TRADITION OF INNOVATION
61.8
47.4
68.7
62.0
Oct/14 = 45.8
57.3 56.7
53.1
45
55
65
75
jan/08 jan/09 jan/10 jan/11 jan/12 jan/13 jan/14
Source: Fiesp -INA Activity Level Indicator - NUCI (Level of Utilization of Installed Capacity), August, 2014
Automotive: 76.9%
Basic Metallurgy: 80.6%
Plastic and Rubber Goods: 85.8%
Metal Goods – Ex Machinery: 77.2%
Machinery and Equipment: 73.4%
General Industry: 80.6%
65
70
75
80
85
90
95
100
Source: CNI – ICEI (Industrial Executive Confidence Index), July 2014
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Business Units
A TRADITION OF INNOVATION
Plastic Machines Raw and Machined Cast Iron Parts Machine Tools
9M14 2013
Job Shops 23% 19%
Machines and Equipments 16% 16%
Technical Schools 11% 9%
Automotive 8% 12%
Tooling 6% 5%
Agricultural Equipment 5% 8%
Others 31% 31%
Net Operating Revenues Distribution
9M14 2013
Packaging 43% 26%
Automotive 15% 15%
Job Shops 11% 8%
Furniture 9% 10%
Real Estate 4% 8%
Others 18% 33%
Net Operating Revenues Distribution
9M14 2013
Automotive - Trucks 47% 39%
Agriculture 31% 23%
Wind Power 19% 33%
Others 3% 5%
Net Operating Revenues Distribution
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Net Sales per Business Unit
A TRADITION OF INNOVATION
Net Operating Sales (R$ million)
* Amounts relating to continued operations, excluding revenues from the subsidiary Romi Italia, which are presented as discontinued operations.
65.4 82.1 108.3 62.6 58.8 76.3185.7 167.3 159.3
483.5549.9
587.8
412.8
614.7 554.8431.9 431.8
508.1
548.9
632.0
696.1
475.4
673.5631.1 617.6 599.1
667.4
2006 2007 2008 2009 2010 2011 2012 2012 * 2013 *
51.617.4
35.063.3
30.0 26.853.5 49.0
32.7 30.853.0
92.6
86.9
119.8
132.5
110.3 124.6
128.4 144.8
118.0 112.7
112.5
144.2
104.3
154.8
195.8
140.3151.4
181.9193.8
150.7 143.6
165.5
1Q12 * 2Q12 * 3Q12 * 4Q12 * 1Q13 * 2Q13 * 3Q13 * 4Q13 * 1Q14 2Q14 3Q14
Machine Tools 68%
Plastic Machines
16%
Castings16%
9M14
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Sales Distribution
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A TRADITION OF INNOVATION
Foreign Sales – US$ million
* Amounts relating to continued operations, excluding the revenue from the subsidiary Romi Italia, which are presented as discontinued operations.
32.2 33.945.2
95.2 85.673.4
2009 2010 2011 2012 2012 * 2013 *
28.7
8.917.2
30.8
15.7 12.8
23.4 21.513.8 14.7
23.3
1Q12 * 2Q12 * 3Q12 * 4Q12 * 1Q13 * 2Q13 * 3Q13 * 4Q13 * 1Q14 2Q14 3Q14
Brasil76%
Europa17% Ásia
4%América Latina
2% EUA1%
9M13
Brasil74%
Europa18% Ásia
4%
América Latina
3%EUA1%
9M14
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Order Entry and Backlog
A TRADITION OF INNOVATION
Order Entry (R$ 000)Gross Values, sales taxes included
1Q13 2Q13 3Q13 1Q14 2Q14 3Q14Chg
3Q14/3Q13
Chg 3Q14/2Q14
Machine Tools 84.479 173.368 144.518 119.538 117.411 95.697 -33,8% -18,5%
Plastic Machines 25.462 45.484 25.686 18.337 24.100 20.178 -21,4% -16,3%
Rough and Machined Cast Iron Parts 43.071 37.495 35.949 36.447 26.899 34.371 -4,4% 27,8%
Total 153.012 256.347 206.154 174.321 168.410 150.245 -27,1% -10,8%
Order Book (R$ 000)Gross Values, sales taxes included
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14Chg
3Q14/3Q13
Chg 3Q14/2Q14
Machine Tools 176.377 246.312 254.591 238.522 227.486 248.174 215.695 -15,3% -13,1%
Plastic Machines 31.209 45.969 49.219 41.345 38.233 35.819 24.254 -50,7% -32,3%
Rough and Machined Cast Iron Parts 37.026 37.846 35.505 29.556 38.388 35.979 34.403 -3,1% -4,4%
Total 244.612 330.127 339.315 309.423 304.107 319.971 274.351 -19,1% -14,3%
Order Entry (R$ 000)Gross Values, sales taxes included
9M13 9M14Chg
2014/2013
Machine Tools 402.365 332.645 -17,3%
Plastic Machines 96.632 62.614 -35,2%
Rough and Machined Cast Iron Parts 116.515 97.717 -16,1%
Total 615.512 492.977 -19,9%
Cost of Goods Sold
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A TRADITION OF INNOVATION
Material65%Labor
24%
Depreciation6%
Expenses5%
9M14
20%
20%
13%
12%
Material64%
Labor24%
Depreciation6%
Expenses6%
9M13
23%
16%
13%
12%
Metals
FX Related Domestic Material
Imported material
Domestic material
Metals
FX Related Domestic Material
Imported material
Domestic material
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Profitability
A TRADITION OF INNOVATION
Gross Profit (R$ million) and Gross Margin Operating Profit (R$ million) and Operating Margin
* Amounts relating to continued operations, excluding the results from the subsidiary Romi Italia
31.421.2
36.647.4
36.242.4
51.563.2
43.7 39.7 38.0
21.8%20.3%
23.6% 24.2%25.8%
28.0% 28.0%
32.6%
29.0%27.7%
23.0%
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
1Q12 * 2Q12 * 3Q12 * 4Q12 * 1Q13 * 2Q13 * 3Q13 * 4Q13 * 1Q14 2Q14 3Q14
236.5272.1 279.6
147.3
242.8
172.6131.8 136.5
193.3
43.1% 42.7%40.2%
31.0%
36.0%
27.4%
21.3%
22.8%
29.0%
0,0%
5,0%
10,0%
15,0%
20,0%
25,0%
30,0%
35,0%
40,0%
45,0%
0,0
50,0
100,0
150,0
200,0
250,0
300,0
350,0
400,0
2006 2007 2008 2009 2010 2011 2012 2012 * 2013 *
-6.0
-30.1
-6.6
5.3
-4.7
3.4 9.4
22.23.7
1.3
-1.0
-4.1%
-28.8%
-4.2%2.7%
-3.3%2.2% 5.1%
11.4%
2.5% 0.9% -0.6%
-100,0%
-80,0%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
-40,0
-30,0
-20,0
-10,0
0,0
10,0
20,0
30,0
40,0
1Q12 * 2Q12 * 3Q12 * 4Q12 * 1Q13 * 2Q13 * 3Q13 * 4Q13 * 1Q14 2Q14 3Q14
99.9122.4
107.1
9.276.9
-11.1
-51.9-37.2
30.3
18.2% 19.4%15.4%
1.9%
11.4%
-1.8%
-8.4%-6.2%
4.5%
-50,0%
-40,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
-80,0
-30,0
20,0
70,0
120,0
170,0
2006 2007 2008 2009 2010 2011 2012 2012 * 2013 *
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Profitability
A TRADITION OF INNOVATION
EBITDA (R$ million) and EBITDA Margin Net Income (R$ million) and Net Margin
* Amounts relating to continued operations, excluding the results from the subsidiary Romi Italia
2.8
-21.0
3.0 15.1 4.611.7
18.1
31.4
12.6 10.1 7.6
1.9%
-20.2%
1.9% 7.7% 3.3% 7.7% 9.9% 16.2%8.4% 7.0% 4.6%
-200,0%
-150,0%
-100,0%
-50,0%
0,0%
-30,0
-20,0
-10,0
0,0
10,0
20,0
30,0
40,0
50,0
60,0
1Q12 * 2Q12 * 3Q12 * 4Q12 * 1Q13 * 2Q13 * 3Q13 * 4Q13 * 1Q14 2Q14 3Q14
110.6133.7 122.3
29.1
100.9
17.7-14.3
-0.2
66.3
20.1% 21.2% 17.6%6.1%
15.0%2.8% -2.3%
0.0% 9.9%
-200,0%
-150,0%
-100,0%
-50,0%
0,0%
50,0%
100,0%
-30,0
20,0
70,0
120,0
170,0
220,0
2006 2007 2008 2009 2010 2011 2012 2012 * 2013 *
-0.5
-18.2
-5.1
1.4
-5.5
5.1 9.1
17.63.0
-0.7 -0.2
-0.3%
-17.4%
-3.3%0.7%
-3.5%3.4% 5.0%
9.1%2.0% -0.5% -0.1%
-100,0%
-80,0%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
-30,0
-20,0
-10,0
0,0
10,0
20,0
30,0
1Q12 * 2Q12 * 3Q12 * 4Q12 * 1Q13 * 2Q13 * 3Q13 * 4Q13 * 1Q14 2Q14 3Q14
84.8
124.2 126.6
12.868.7
4.3
-37.4-22.3
26.4
15.4%19.7% 18.2%
2.7%
10.2%
0.7%
-6.1%
-3.7%4.0%
-50,0%
-40,0%
-30,0%
-20,0%
-10,0%
0,0%
10,0%
20,0%
30,0%
-80,0
-30,0
20,0
70,0
120,0
170,0
2006 2007 2008 2009 2010 2011 2012 2012 * 2013 *
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Business Units’ Results
A TRADITION OF INNOVATION
* Amounts relating to continued operations, excluding the results from the subsidiary Romi Italia
427.1 407.1 440.4 475.7 330.3 313.2
42.7%34.8%
27.3%33.8% 32.0% 31.1%
21.2%9.7%
3.7%13.9% 10.5% 9.8%
-100,0%
-80,0%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
40,0%
60,0%
0,0
100,0
200,0
300,0
400,0
500,0
600,0
700,0
800,0
2010 2011 2012 2013 9M13 9M14
Machine Tools
179.4 126.3 91.0 72.5 81.2 58.5 74.6
32.6%25.5%
19.7%
31.1% 34.6% 35.1% 33.8%
5.0%
-15.6%
-27.9%
-15.4%-4.8% -4.8%
0.6%
-100,0%
-80,0%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
40,0%
60,0%
0,0
50,0
100,0
150,0
200,0
250,0
300,0
350,0
400,0
2010 2011 2012 2012 * 2013 * 9M13 * 9M14
Plastic Machines
67.0 97.6 86.2 110.5 84.9 72.0
3.0%-1.3%
-7.3%
4.0% 4.4%-1.5%
1.9%-2.3% -5.9%
3.5% 3.6%-1.3%
-80,0%
-60,0%
-40,0%
-20,0%
0,0%
20,0%
40,0%
60,0%
0,0
50,0
100,0
150,0
200,0
250,0
300,0
2010 2011 2012 2013 9M13 9M14
Raw and Machined Cast Iron Parts
Sales 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 9M13 9M14
Machine Tools (units) 400 304 387 443 245 281 325 1.091 851
Plastic Machines (units) 44 61 49 60 53 38 37 154 128
Rough and Machined Cast Iron Parts (ton.) 3.598 4.436 4.991 4.475 3.564 3.571 4.167 13.025 11.302
Quarter Accumulated
(*) without Finame Manufacturer
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Cash Position
A TRADITION OF INNOVATION
Cash and Cash Equivalent – R$ million – 09/30/2014
Loans* – R$ million – 09/30/2014
Amount
2014 (3 months) 11,0
2015 103,1
2016 31,9
2017 40,9
2018 17,5
2019 and afterwards 7,8
Total 212,2
Amount
Bank Deposit Certificate (CDB) 73,3
Financial Investment with Bonds 5,2
Banks 20,4
Total 98,8
Net Debt = 113,4
-36.9-63.7 -56.2
-73.8
-147.3-148.9-156.0-140.4-129.8-121.6
-104.4 -95.6 -86.5-102.4
-113.4
-400,0
-350,0
-300,0
-250,0
-200,0
-150,0
-100,0
-50,0
0,0
50, 0
100 ,0
0,0
100 ,0
200 ,0
300 ,0
400 ,0
500 ,0
600 ,0
1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14
Net Cash (Debt) Position
Cash and Cash Equivalent Loans Net Cash
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A TRADITION OF INNOVATION
Burkhardt + Weber
3Q13 2Q14 3Q14Chg %
3Q/3Q
Chg %
3Q/2Q9M13 9M14
Chg %
14/13
Net Operating Revenue 14.964 5.373 11.629 (22,3) 116,4 29.338 24.543 (16,3)
Cost of Gods Sold (11.193) (4.237) (9.313) (16,8) 119,8 (22.882) (19.452) (15,0)
Gross Profit 3.771 1.136 2.316 (38,6) 103,9 6.455 5.091 (21,1)
Gross Margin % 25,2% 21,1% 19,9% 22,0% 20,7%
Operating Income (Expenses) (2.077) (1.905) (1.954) (5,9) 2,6 (5.569) (5.763) 3,5
Selling expenses (834) (572) (677) (18,9) 18,3 (2.148) (1.832) (14,7)
General and administrative expenses (1.243) (1.333) (1.277) 2,8 (4,1) (3.421) (3.931) 14,9
Operating Income before Financial Results 1.694 (769) 362 (78,6) (147,1) 887 (672) (175,8)
Operating Margin % 11,3% -14,3% 3,1% 3,0% -2,7%
Financial Results, Net (78) (73) (94) 20,5 28,7 (249) (280) 12,7
Operating Income 1.616 (841) 268 (83,4) (131,9) 638 (952) (249,3)
Income tax and social contribution (230) - 240 (204,6) - (212) 240 (213,3)
Net income 1.387 (841) 508 (63,4) (160,4) 426 (712) (267,2)
Net Margin % 9,3% -15,7% 4,4% 1,5% -2,9%
EBITDA 2.086 (465) 814 (61,0) (274,9) 2.221 360 (83,8)
Net income / loss 1.387 (841) 508 (63,4) (160,4) 426 (712) (267,2)
Income tax and social contribution 230 - (240) (204,6) - 212 (240) (213,3)
Financial Results, Net 78 73 94 20,5 28,7 249 280 12,7
Depreciation 392 303 452 15,5 49,2 1.334 1.032 (22,6)
EBITDA Margin % 13,9% -8,7% 7,0% 7,6% 1,5%
Income Statement B+W
€ 000
Source: BM&FBovespa
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Share Performance
A TRADITION OF INNOVATION
Oct-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14
-
2.00 0.000
4.00 0.000
6.00 0.000
8.00 0.000
10.0 00.00 0
12.0 00.00 0
0
50
100
150 Share Performance ROMI3 vs. IbovespaFrom 10/01/2012 to 09/30/2014
Ibovespa ROMI3 Volume
IBOV: -9%
ROMI3: -27%
