111

Earnings Release 2Q09

July 30, 2009

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

A TRADITION OF INNOVATION

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

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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.

Highlights

• Reports recovery in new orders entry against the last twoquarters ;

A TRADITION OF INNOVATION

quarters ;

• Ebitda margin improves 20 percentage points comparedwith 1Q09;

• Net Operating Revenue posts a quarter on quarterincrease of 37.4%;

3

increase of 37.4%;

• Growth of 11.3% in order entry for Plastic Blow MoldingMachines in 2Q09 compared with 2Q08;

Capacity Installed

A TRADITION OF INNOVATION

Capacity Utilization of some industrial sectors

Basic Metal Parts

100

Plastic and Rubber Goods

Basic Metal Parts

Automotive

80

85

90

95

4

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

Metal Goods - excl. Machinery

Machinery and Equipments

70

75

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 2009-3 2009-4 2009-5 2009-6

JobS

hops

Autom

otive

Capital

Goods

Education

Tooling

Agricultural

Equipm

ent

Oil&

Gas

Others

CNC Lathes – Flat

Machine Tools - Sectors

A TRADITION OF INNOVATION

CNC Lathes – Flat Bad

Heavy CNC Lathes

Machining Center

CNC LathesCombination

CNC Lathes Slant

5

ConventionalLathes

MF NOR 1H09 23% 7% 7% 7% 7% 5% 12% 32%

MF NOR 2008 21% 17% 14% 2% 7% 6% 4% 24%

Moderate LowHigh

Plastic Machines Castings

Plastic Machines and Castings - Sectors

A TRADITION OF INNOVATION

SECTORROL %

1H09 2008

Packaging 30% 21%

Job Shops 19% 15%

Automotive 15% 22%

SECTORROL %

1H09 2008

Automotive (Trucks) 54% 38%

Electricity Generation

32% 15%

Agriculture 10% 14%

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Real Estate 11% 8%

Home Utilities 5% 9%

Others 20% 25%

Agriculture 10% 14%

Automotive (Cars) 1% 24%

Capital Goods 3% 9%

Net Operating Revenue

Net Operating Revenue – R$ MM NOR – 2Q09 – R$ MM

A TRADITION OF INNOVATION

282.8380.6

435.3 483.5549.9

587.851.9

65.175.3

65.4

82.1108.3

334.7

445.7510.6

548.9

696.1632.0

156.9

58.390.4

20.4

17.5

13.7

104.1

-41.3%

177.3

37.4%

7

Overseas Domesti c

282.8

2003 2004 2005 2006 2007 2008 2Q08 1Q09 2Q09

Foreign Markets

Foreign Markets - 2Q09 Foreign Markets – US$MM

A TRADITION OF INNOVATION

12.5

North America17.5%

LatinAmerica10.5%

Africa, Asia& Oceania

1.4%

6.8

-45.6%

8

Europe70.6% 2Q08 2Q09

Cost of Good Solds

Cost Structure – Consolidated – 1H09

A TRADITION OF INNOVATION

27%

11%

11%

11% Imported Materials and Components

Metals

Domestic Materials and Components FX related

Domestic Material and Components

Material61%

Labor

Depreciation4%

Other Expenses

5%

9

Overall sensibility to FX effects : 33%

11% Imported Materials and ComponentsLabor30%

Consolidated Margins

A TRADITION OF INNOVATION

R$ mm 2Q09 1Q09 2Q08 QoQ YoY

Gross Profit 31.2 25.3 73.6 23.4% -57.6%Gross Profit 31.2 25.3 73.6 23.4% -57.6%

Gross Margin 30.0% 33.4% 41.5% -3.4 p.p. -11.5 p.p.

EBITDA 7.2 -9.9 36.7 172.4% -80.4%

EBITDA Margin 6.9% -13.1% 20.7% 20.0 p.p. -13.8 p.p.

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Net Income 0.5 -7.8 32.7 106.4% -98.5%

Net Margin 0.5% -10.3% 18.5% 10.8 p.p. -18.0 p.p.

Business UnitsNet Revenue and Sales Volume

A TRADITION OF INNOVATION

2Q09 1Q09 2Q08 QoQ YoY

Machine Tools

R$ mm 64.6 50.3 114.9 28.4% -43.8%

Units Sold 319 246 650 29.7% -50.9%

Plastic Machines

R$ mm 28.9 15.4 29.8 87.3% -3.2%

Units Sold 61 25 104 144.0% -41.3%

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Units Sold 61 25 104 144.0% -41.3%

Rough and Machined Cast.

R$ mm 10.6 10.0 32.6 5.5% -67.5%

Tons Sold 1,952 1,826 5,669 6.9% -65.6%

Business Units Margins

A TRADITION OF INNOVATION

2Q09 1Q09 2Q08 QoQ YoY

Machine ToolsMachine Tools

Gross Margin 33.7% 42.5% 45.2% -8.8 p.p. -11.5 p.p.

EBIT Margin 10.3% -10.3% 19.7% 20.6 p.p. -9.4 p.p.

Plastic Machines

Gross Margin 36.2% 39.4% 35.7% -3.2 p.p. 0.5 p.p.

EBIT Margin -3.8% -36.1% 12.0% 32.3 p.p. -15.8 p.p.

Rough and Machined

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Rough and Machined Cast.

Gross Margin -9.5% -21.6% 33.9% 12.1 p.p. -43.4 p.p.

EBIT Margin -25.8% -40.0% 21.5% 14.2 p.p. -47.3 p.p.

Order Entry (R$ thousands) 2Q08 2Q09 % Chg.

New Orders

A TRADITION OF INNOVATION

Order Entry (R$ thousands) 2Q08 2Q09 % Chg.Machine Tools 168,928 73,964 (56.2)Plastic Machines 49,726 31,441 (36.8)Rough and Machined Cast Iron Parts 31,727 9,332 (70.6)Total 250,381 114,737 (54.2)

Order Entry (R$ thousands) 1Q09 2Q09 % Chg.Machine Tools 34,040 73,964 117.3Plastic Machines 15,159 31,441 107.4

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Plastic Machines 15,159 31,441 107.4Rough and Machined Cast Iron Parts 3,621 9,332 157.7Total 52,820 114,737 117.2

Cash Position

A TRADITION OF INNOVATION

Cash and Cash Equivalent – R$ MM Loan – R$ MM

Loans as of 06/30/2009: 111.3Amount

The maturities of financing recorded as follow :

Year Amount 2009 30.12010 16.12011 21.22012 21.92013 20.6After 2013 1.4

Amount Bank Certificate of Deposit (CDB) 52.4Financial Investments with debentures 27.9Others 1.6Banks 18.0Total 99.9

Net Debt = 11.4

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Note: w/o Finame Fabricante

Total 111.3

Capital Markets

A TRADITION OF INNOVATION

30.000.000 180

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

5.000.000

10.000.000

15.000.000

20.000.000

25.000.000

20

40

60

80

100

120

140

160

IBOVESPA: 16%

ROMI3: -39%

15

Source: BM&F Bovespa

-0

Dec

-06

Feb

-07

Mar

-07

May

-07

Jun-

07

Aug

-07

Sep

-07

Nov

-07

Dec

-07

Feb

-08

Mar

-08

May

-08

Jun-

08

Aug

-08

Sep

-08

Oct

-08

Dec

-08

Jan-

09

Mar

-09

Apr

-09

Jun-

09

Vulcano and Paradiso Project - Status

• Paradiso Project:

• Status:

Infrastructure: Concluded

A TRADITION OF INNOVATION

• Infrastructure: Concluded

• UF-19 Heavy Machine Tools: Concluded

• Receiving and Selling parts Building: Concluded

• Environment Unit: Concluded

• Vulcano Project:

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• Vulcano Project:

• Status:

• Phase 1 – 10.000 ton/year: Concluded

• Receiving and shipping building: Concluded

• Infrastructure: Concluded

A TRADITION OF INNOVATION

Investor Relations

Contact:

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Contact:Luiz Cassiano R. RosolenInvestor Relations OfficerPhone: 55 (19) 3455-9004 dri@romi.com.br