Romi S A : Dados Econômico-Financeiros

4Q22 Earnings Release

January 31, 2023

December 31, 2022
Share price at 01/30/2023	Earnings Conference Call broadcast over the web in Portuguese, with
ROMI3 - R$18,45 per share
simultaneous translation into English
Market value	February 1, 2023
11 a.m. (São Paulo) | 2 p.m. (London) | 9 a.m. (New York)
R$1,488.3 million
https://us02web.zoom.us/webinar/register/WN_N3ApDOepSDqVwCEVEf4RuQ
US$291.0 million
ID Zoom: 820 3245 1919
Number of shares	Dial-in number: [phone]
Common: 80,667,314
International dialing numbers: https://us02web.zoom.us/u/kszWE5ZfN
Total: 80,667,314
Free float = 50.8%

Earnings Release

4th quarter of 2022

Santa Bárbara d'Oeste - São Paulo, December 31, 2022

Romi S.A. ("Romi" or "Company") (B3: ROMI3), domestic market leader in the Machine Tools and Plastic Processing Machines markets, as well as an important producer of Rough and Machined Cast Iron Parts, announces its results for the fourth quarter of 2022 ("4Q22"). Except where otherwise stated, the Company's operating and financial information is presented on a consolidated basis, in accordance with the International Financial Reporting Standards (IFRS)

Statements contained in this release related to Romi's business outlook, projections of operating and financial results and references to the Company's growth potential are mere forecasts and have been based on Management's expectations regarding its future performance. These expectations are highly dependent upon market behavior, the economic situation in Brazil, the industry and international markets. Therefore, they are subject to changes.

Investor Relations Contact

Fábio B. Taiar

Investor Relations Officer [phone]

Highlights

Adjusted EBITDA in 4Q22 was R$124.8 (+46.6% over 4Q21)

• Consolidated net operating revenue in 4Q22 reached R$536.2 million, growth of 21.1% compared to 4Q21, reflecting the significant order entry observed in the last quarters of Romi machines and Rough and Machined Cast Iron Parts;
• At the Romi Machines Unit, net operating revenue, in 4Q22, grew by 30.6% compared to 4Q21, which, combined with the effective control of operating expenses, resulted in a 42.7% growth in adjusted operating profit, in that same comparison period;
• At the Rough and Machined Cast Iron Parts Unit, net operating revenue increased by 40.3% in 4Q22 compared to 4Q21, with the continuity of deliveries of large parts and the recovery of the other segments. Operating margin grew by 14.7 p.p., reflecting the higher production volume and improved operational efficiency;
• The order backlog in 4Q22 at the Burkhardt+Weber Unit reached R$191.7 million, an increase of 78.2% compared to 4Q21. In euros, it reached €34.4 million, growth of 82.0% over the same period of comparison, demonstrating the recovery of operations and future prospects;
• Romi launched ESG Portal during the third quarter of 2022, in line with the best market practices ("see ESG section at ROMI"). The continuous evolution of ESG practices resulted in an important evolution of the Company's score at the Ethos Institute, which increased from 5.4 to 7.5 at the end of 2022.

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Earnings Release

4th quarter of 2022

					Quarterly			Accumulated
R$'000			4Q21	3Q22	4Q22	Chg.	Chg.	20213	20223	Chg.
Revenues Volume				4Q22/3Q22 4Q22/4Q21			2022/2021
Romi Machines (units)	338	355	382	7.6%	13.0%	1,201	1,287	7.2%
Burkhardt + Weber (units)	7	2	8	300.0%	14.3%	18	13	-27.8%
Rough and Machined Cast Iron Parts (tons)	6,089	7,294	6,844	-6.2%	12.4%	27,045	26,218	-3.1%
Net Operating Revenue	442,834	398,690	536,215	34.5%	21.1%	1,383,499	1,592,302	15.1%
Gross margin (%)	32.0%	34.3%	33.8%			32.3%	32.0%
Operating Income (EBIT)	74,009	78,067	124,161	59.0%	67.8%	211,548	271,138	28.2%
Operating margin (%)	16.7%	19.6%	23.2%			15.3%	17.0%
Net Income			54,739	64,920	87,670	35.0%	60.2%	204,148	216,096	5.9%
Net margin (%)		12.4%	16.3%	16.3%			14.8%	13.6%
EBITDA			85,183	92,068	138,246	50.2%	62.3%	253,924	321,885	26.8%
EBITDA margin (%)	19.2%	23.1%	25.8%			18.4%	20.2%
EBITDA - adjusted (*)	85,183	82,604	124,831	51.1%	46.5%	253,924	299,005	17.8%
EBITDA margin (%) - adjusted (*)	19.2%	20.7%	23.3%			18.4%	18.8%
Investments (	1	)	36,542	42,418	27,547	-35.1%	-24.6%	99,815	127,322	27.6%

1. 3Q22, 4Q22 and 2022: are adjusted by the values of: (i) EBIT and EBITDA in the amounts of R$9,463, R$13,415 and R$22,879, respectively; and (ii) Profit in the amounts of R$9,149, R$13,048 and R$22,197, respectively, referring to the recognition of the impacts of the Vila Romi
   Residence project, as described in the section "Vila Romi Residence (real estate project)" and the sale of a non-industrial land owned by the Company.

1. Of the investments made in 4Q21, 3Q22 and 4Q22, the amounts of R$10.2, R$16.8 and R$11.2 million refer to machines manufactured by the Company that were allocated to the machine rental business, a new solution launched in the third quarter of 2020. In the accumulated of the years 2021 and 2022, R$38.9 and R$64.9 million were invested, respectively.

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Earnings Release

4th quarter of 2022

Corporate Profile

Romi, founded in 1930, is the leader in the Brazilian industrial machinery and equipment market, and an important manufacturer of rough and machined cast iron parts.

The Company is listed on B3's "New Market", which is reserved for companies with a higher level of corporate governance. Romi manufactures machine tools (Conventional Lathes, Computerized Numerical Control (CNC) Lathes, Lathing Centers, Machining Centers, Vertical and Horizontal Heavy and Extra-Heavy Lathes and Drilling Mills), Plastic Injection or Blow Molding Machines and ductile or CDI gray cast iron parts, either in raw or machined form. The Company's cutting-edge products and services, which feature Industry

4.0 technologies, enable the smart use of the data generated, whether through built-in artificial intelligence or through the transfer of big data over the networks (connectivity) to a central analysis site. This equipment is sold worldwide and used by a number of industrial segments, such as the agricultural machinery, capital goods, consumer goods, packaging, tooling, hydraulic equipment, sanitation, automotive and wind energy industries, among many others.

The Company has thirteen manufacturing units, four of which for final assembly of industrial machinery, two foundries, four units for machining of mechanical components, two units for manufacture of steel sheet components, and a unit for assembly of electronic panels. Of these, eleven are located in Brazil and two in Germany. The Company has an installed production capacity of approximately 2,900 industrial machines and 50,000 thousand metric tons of castings per year.

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Earnings Release

4th quarter of 2022

Current Economic Scenario

A large portion of 2022 continued to indicate a favorable environment for investments, as we can see in the business confidence indexes and the use of installed capacity. This recovery in business volume can be noticed in all units, both in businesses in the domestic market and in exports and more recently at the Burkhardt Weber business unit.

The Company, having already consolidated channels in the foreign market, as well as new solutions, such as the leasing of machines and financial support to its customers in the acquisition of equipment, has strengthened these businesses with the aim of continuing to support its customers with excellence, in addition to achieving relevant sales and, consequently, operating volumes.

Added to a global scenario of inflation and rising interest rates, we currently have a more challenging and turbulent environment for investments, both in the domestic and foreign markets, already reflected in the incoming orders in 4Q22, detailed later in this report.

Industrial Entrepreneur Confidence Index - ICEI

Source: CNI-ICEI, January 2023

Having suffered the impact of the pandemic, the Installed Capacity Utilization (UCI) index of the domestic industry in general, released by the National Confederation of Industry (CNI), shown recovery in 2022, and in December it reached the level of 67%, a level that demonstrates that industrial activity continues operate at very adequate levels.

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