Earnings Presentation1Q09

Sao Paulo, 05 | 15 | 09

Earnings Presentation – 1Q09

Agenda1

Quarterly performance

Actions

Segments performanceAcquisitions

Expectations review

2

3

4

5

Change of accounting rules6

Net Revenues and Gross Profit

7

Expenses variation

8

EBITDA

9

Financial result

10

Capital Structure and Liquidity

11

Working Capital

12

13

Strengthen of the financing structure of the Company

Earnings Presentation – 1Q09

Strengthening the debt structure with a new debt profile

Actual Debt StructureActual Debt Structure Future Debt StructureFuture Debt Structure

Actual:

• 1.8 year maturity

• ST limitations

• Uses commercial banking facilities

• Impacts Company’ Cash Flow

Future:

• 5.3 years maturity

• ST flexibility

• Releases commercial banking facilities

• Reduces impacts Company’ Cash Flow, with conversion

Earnings Presentation – 1Q09

83.0

106.0

36.9

31.719.5

13.5

0

20

40

60

80

100

120

140

160

1Q08 1Q09

R$ m

Energy Products Flow Control Metallurgy

28.6

36.8

16.9

13.63.0

0.5

0

10

20

30

40

50

60

1Q08 1Q09

R$ m

Energy Products Flow Control Metallurgy

Quarterly Performance

Net RevenuesNet Revenues Gross Profit and MarginGross Profit and Margin

139.5151.2

+8.4%48.6

51.0+4.9%

34,7%

43,1%

3,7%

34,5%

45,7%

15,6%

Earnings Presentation – 1Q09

Actions

Designation of a Senior Manager to coordinate the negotiations with suppliers

Impacts will be noticed over the coming quarters

Longer cycle to accounts payable

Lower costs

Higher interaction with customers seeking to increase the foreseeable demand;

New initiatives to increase industrial productivity;

adjustments in personnel;

General expenses reduction;

Implementation of coordinated actions involving all the main managers of business units targeting to accelerate synergy gains.

Earnings Presentation – 1Q09

Segments trend

Energy Energy ProductsProducts

Metallurgy

Flow Control

Net revenues trend 1Q09 vs. 1Q08

Energy Products +27.7%

Flow Control -14.2%

Metalurgia -30.9%

Earnings Presentation – 1Q09

Norpatagonica acquisition

Service provider to the Oli & Gas sector with more than 20 years of presence in Neuquen, Argentina

Well strucutured operations to support oil & gas producers in maintaining production.

It will be used as a platform in Argentina to distribute completion tools, coatings, sensors as well as other services.

Earnings Presentation – 1Q09

Expectations Review

Energy Products: The 25% projected growth over 2008 will be a result of the conversation of the Company’s backlog.

Flow Control: The market scenario, mainly in the Argentinean business and the trend for the Brazilian Real to appreciate, will be the main factors to affect 2009 fiscal year.

Metallurgy: Management forecasts businesses improvements and positive developments for the coming quarters of 2009, creating opportunities to recover part of the 1Q09 performance.

Segment % Change over 2008

Energy Products 25%

Flow Control -20%

Metallurgy -20%

Earnings Presentation – 1Q09

Adjustments Law 11,638 – 1Q08

Loss of the quarter ended in March, 31st 2008 (comparative) ConsolidatedBy Law 11,638/07 and MP 449/08 (4,421)Exchange result over investments abroad (1,485)Remuneration based in shares (stock option) 806 Intangible assets write-off 270 Present value adjustment 523 Deferred taxes over adjustments (196)Equity pick-up effect over adjustments - By the accounting rules in place in 2007 (4,503)

Earnings Presentation – 1Q09

83.0

106.0

36.9

31.719.5

13.5

0

20

40

60

80

100

120

140

160

1Q08 1Q09

R$ m

Energy Products Flow Control Metallurgy

28.6

36.8

16.9

13.63.0

0.5

0

10

20

30

40

50

60

1Q08 1Q09

R$ m

Energy Products Flow Control Metallurgy

Net Revenues and Gross Profit

Net RevenuesNet Revenues Gross Profit and MarginGross Profit and Margin

139.5151.2

+8.4%48.6

51.0+4.9%

34.7%

43.1%

3.7%

34.5%

45.7%

15.6%

Earnings Presentation – 1Q09

- -

6.28.1

7.04.9

9.1

2.6

6.53.2

3.2 3.2

2.7

3.4 3.4

1.8

1.4 1.4

1.1

1.2 1.2

0.4

0.5 0.5

1.1-

5

10

15

20

25

30

1Q08 1Q09 Acquisitions Organic

R$ m

Sales - Energy Products Administrative - Energy Products Sales - Flow Control Administrative - Flow Control

Sales - Metalurgia Administratives - Metalurgia Mgt Salary

Expenses

+31.9%

20.4

26.9

+30.0%

+84.1%

-0.5%

+28.7%

-25.5% +6.7%

+43.2%

3.7

23.2

Earnings Presentation – 1Q09

19.921.9

3.1

18.8

12.0 7.97.9

1.4

-0.1 -0.1

-5

0

5

10

15

20

25

30

35

40

1Q08 1Q09 Aquisições Orgânico

R$ m

Energy Products Flow Control Metal lurgy

EBITDA

-11.0%

33.3

29.7 26.6

3.1

Earnings Presentation – 1Q09

Financial Result

0.6

12.3

(18.9)(27.2)

(1.5)

(1.8)(9.9)

(18.7)

1.20.3 2.2

12.6

(60)

(40)

(20)

-

20

40

60

1Q08 1Q09

R$ m

Interest Income Others Exchange variance Interest expense Others Exchange variance

Earnings Presentation – 1Q09

214.7 214.7

280.7

84.526.5

285.2

391.7 405.0

Debt w/ Maturity Maturing 2009 2010 2011 2012+ Liquidity

* Numbers in R$ million* Numbers in R$ million

Short Term

Long Term

Cash

Working Capital

Current Assets

690.2 Debt with

Maturity

606.4

Liquidity

83.8

Capital Structure and Liquidity

Earnings Presentation – 1Q09

Working Capital

716704

673

556

460

387

276251245231219

193179

56.6%55.2%49.9%

45.9%48.6%

50.0%51.8%49.3%48.1%

48.9%

35.2%30.8%

25.6%

-

100

200

300

400

500

600

700

800

1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09

R$ m

0%

10%

20%

30%

40%

50%

60%

Net Revenues (LTM) % WC over Net Revenues

Earnings Presentation – 1Q09

IR Contacts

Thiago Alonso de OliveiraCFO & IRO

Cynthia BurinIR Manager

ir@lupatech.com.br

Telephone: +55 (11) 2134-7000/7088

www.lupatech.com.br