Romi S A : Dados Econômico-Financeiros (2025)

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Earnings Release 4th quarter of 2024

Message from Management

2024 remained challenging until its end, but we successfully served our customers with excellence, capturing opportunities to continue evolving. Our solution portfolio, developed over recent years, solidified further, driving significant growth in order intake (+16.3% vs. 2023) and order backlog (+32.2% compared to December 31, 2023).

Our solutions, such as machine rental and Prodz (our fintech specialized in financing ROMI machines), have established themselves as successful examples for our customers, responding positively in volatile environments. This has allowed us to mitigate reductions in certain markets, maintaining our businesses solid and profitable. It is gratifying to note that a significant part of our rental customers are conducting new business with ROMI, reflecting our commitment to the success of each of them. In 2024, the volume of new rentals grew 41% compared to 2023, demonstrating to be a highly competitive solution for the needs of our customers.

In 4Q24 the operation in Germany (B+W) delivered the projects that were scheduled, resulting in a significant volume of revenue and, consequently, positive operating results. In 2024, the total volume of new orders reached R$241,5 million, leading to an order backlog of R$355,8 million, to be delivered in 2025 and early 2026. This performance reflects the accuracy of our strategy, which combines customized solutions for complex applications with a close and committed approach to customer success. With a strengthened order book and positive outlooks, we remain focused on building sustainable growth and consolidating our position as a strategic partner for our customers.

In the Rough and Machined Cast Iron Parts Unit, 2024 also continued to present challenges due to the reduction in demand. However, our focus on gradually recovering profitability through the review of internal processes and higher value-added solutions, has started to show results, as can be seen in the evolution of the gross margin in this fourth quarter compared to the fourth quarter of 2023. Additionally, the Rough and Machined Cast Iron Parts Unit recorded a 20.2% increase in order intake in 4Q24 compared to the same period in 2023 driven by orders from the wind power sector throughout 2024.

We closed the year 2024 successfully, but certain that we need to keep continuously improving in every detail, so that we can contribute sustainably to our customers' success. We are prepared in all fundamental pillars of ROMI, and remain confident that our competitive advantages will allow us to continue evolving and adding value to all stakeholders. We maintain solid investments in innovation, encompassing technologies such as connectivity, big data, artificial intelligence, next-generation machinery, process enhancement, and, above all, caring for and developing our team of employees.

Luiz Cassiano Rando Rosolen - Chief Executive Officer

Santa Barbara d'Oeste - São Paulo, February 4, 2024

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 2024 ("4Q24"). Except where otherwise stated, ROMI'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

+55 (19) 3455-9418 | dri@romi.com

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Earnings Release 4th quarter of 2024

1. 4Q23, 3Q24, and 4Q24: EBIT and EBITDA are adjusted by the amounts of R$ 16,008, R$ 10,607, (R$ 7,076), respectively; and profit by the amounts of R$ 15,496, R$ 10,229, (R$ 7,076), respectively, related to the recognition of the impacts of the Vila ROMI Residence project, the sale of the land on Avenida JK, and the recognition of present value adjustment.
   2023 and 2024: EBIT and EBITDA are adjusted in the amounts of R$ 51,966 and R$ 18,983, respectively; and profit by the amounts of R$ 50,305 and R$ 18,124, respectively, related to the recognition of the impacts of the Vila ROMI Residence project, the sale of the land on Avenida JK, and the recognition of present value adjustment.
   (**) Of the investments made in 4Q23, 3Q24, and 4Q24, the amounts of R$ 25.1 million, R$ 37.5 million, and R$ 43.2 million, respectively, refer to the machines manufactured by the Company that were allocated to the machine rental business. Up to December 2023 and 2024, R$ 87.8 million and R$ 145.5 million, respectively, had been invested.

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Earnings Release 4th quarter of 2024

Corporate Profile

Founded in 1930, ROMI is a renowned company operating in the Brazilian industrial machinery and equipment market.

Over the years, it has emerged as a key manufacturer of rough and machined cast iron parts, establishing itself as a key player in the industry. Notably, ROMI is publicly listed on the B3 exchange's prestigious "New Market" segment, which is dedicated to companies with a strong commitment to corporate governance. Specializing in an extensive range of machine tools, ROMI manufactures Conventional Lathes, Computerized Numerical Control (CNC) Lathes, Lathing Centers, Machining Centers, Vertical and Horizontal Heavy and Extra-Heavy Lathes, and Drilling Mills. Additionally, ROMI manufactures Plastic Injection and Blow Molding Machines, as well as ductile or CDI gray cast iron parts, both raw and machined. A distinguishing feature of ROMI's products and services lies in its incorporation of Industry 4.0 technologies across its products and services. These advanced capabilities facilitate the intelligent utilization of data generated by ROMI equipment. The data can be processed internally through built-in artificial intelligence or transmitted via networks (connectivity) to a central analysis site. These high- quality equipment and solutions are globally distributed and widely adopted across various industrial sectors. Industries such as agricultural machinery, capital goods, consumer goods, packaging, tooling, hydraulic equipment, sanitation, automotive, and wind energy rely on ROMI's machinery for their operations.

ROMI operates a network of thirteen manufacturing units. These units encompass four facilities dedicated to the final assembly of industrial machinery, two foundries, four units for machining mechanical components, two units for manufacturing steel sheet components, and one unit for the assembly of electronic panels. While eleven units are based in Brazil, two are located in Germany. The Company's production capacity amounts to approximately 2,900 industrial machines and 50,000 metric tons of castings per year.

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Earnings Release 4th quarter of 2024

Current Economic Scenario

Throughout the year, the Entrepreneur Confidence Index in the industrial sector showed a gradual decline, ending the year at 49.1 points, reflecting uncertainties and the prospect of rising interest rates in Brazil. Although this result indicates a neutral confidence scenario in the Brazilian industrial sector, the current performance of the industry, especially the manufacturing sector, remains favorable, creating new business opportunities for ROMI.

The external environment remains a point of concern, as global economies face growth challenges and monetary policy adjustments, along with ongoing geopolitical tensions. While the current environment calls for caution, especially in investment decisions, adaptability and the pursuit of strategic alternatives continue to generate moderate optimism, reflected in expectations for the coming months.

Industrial Entrepreneur Confidence Index - ICEI

Source: CNI-ICEI, January 2025

According to data from the National Confederation of Industry (CNI), the Installed Capacity Utilization Index (UCI) of the national industry remained at 68% in December 2024, 1 percentage point above the historical average for the month of December in terms of Installed Capacity Utilization, remaining at a high and stable level, indicating that installed capacity utilization remains steady.

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Earnings Release 4th quarter of 2024

Average Installed Capacity Utilization (UCI)

Source: CNI - UCI, December 2024

The capital goods market is characterized by a volatile business environment, requiring companies to efficiently manage production to face demand challenges. Recognizing this volatility, we have adopted an even more agile and flexible structure, capable of quickly adapting to market fluctuations. Several initiatives have been implemented in recent years, focusing on optimizing indirect structures and automating and digitizing internal processes. These actions allow us to respond more efficiently and quickly to changes, reinforcing our adaptability in a dynamic environment.

The Company has strategically prioritized the development of new product generations aligned with the technological advancements of Industry 4.0. This strategic focus has yielded significant advancements in technological content, resulting in a successful market reception of our recent product launches, both domestically and internationally. Looking ahead, ROMI remains committed to launching new machine generations and integrating cutting-edge technologies into our product portfolio, ensuring our continued relevance and competitiveness in the industry. In mid-2020, we also launched a solution for our customers, the rental of ROMI machines. This solution has proven to be highly competitive and has provided our customers with more business opportunities. With the aim of financially supporting our customers, in 2022 we created a fintech, PRODZ, which offers credit lines for the purchase of machines, directly from ROMI, in an easy, agile, digital and uncomplicated way. Since 2022, PRODZ has carried out around 304 operations, totaling R$ 124.2 million in credits granted. These new solutions have supported a large number of customers on their journeys of growth and success, demonstrating ROMI's strategic purpose of taking care of the success of its customers.

In the foreign market, we continue to strengthen our customer service structures to enhance the overall experience. We believe this approach is key to achieving sustainable international growth and market consolidation.

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Earnings Release 4th quarter of 2024

Market

The Company holds a prominent position in the market, driven by its notable competitive advantages. Ongoing investments in cutting-edge product development and innovative solutions, alongside an extensive nationwide distribution network, contribute to its market leadership. The Company's unwavering commitment to customer satisfaction is exemplified by the provision of a dedicated in-house technical assistance service, machine rental options, attractive customer credit packages in local currency, and efficient product delivery. As a result, the ROMI brand enjoys a long-standing reputation for excellence and prestige, as recognized and valued by its discerning customers.

Order Intake

* The informed amounts related to order intake and order backlog do not include parts and services.

In 4Q24, ROMI Machines Unit posted an increase of 37.9% in order intake compared to the same period in 2023. This positive performance was driven by the consolidation of new business models, such as machine rental and PRODZ fintech. In the foreign market, current inflation and interest rate levels, along with political instabilities, continue to impact investment outlooks.

As previously mentioned, the new generations of products, with important technical evolutions in the mechatronic part, in thermal compensation and in connectivity, also allowed the Company to seek competitive alternatives to enable new business to its customers, such as, for example, the rental of machines. In the fourth quarter of 2024, 43 new machines have been rented or 53 new contracts (43 machines in 4Q23 or 46 new contracts), which represent approximately R$ 19.7 million (R$ 13.2 million in the fourth quarter of 2023). Since the launch of this market solution in June 2020, 966 machines have been rented under 1,123 contracts, typically lasting between 12 to 24 months.

The German subsidiary B+W continued to demonstrate its ability to develop highly complex and customized technological solutions in 4Q24. As a result, order intake grew by 28.9% compared to 4Q23.

The Rough and Machined Cast Iron Parts Unit recorded a 6.4% decline in order intake in

4Q24 compared to the same period in 2023.

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Earnings Release 4th quarter of 2024

Order Backlog

* The informed amounts related to order intake and order backlog do not include parts and services.

In the 4th quarter of 2024, the order backlog increased by 32.2% compared to the same period in 2023, reflecting the growth in new orders previously mentioned. It is also noteworthy that, in the specific case of German subsidiary B+W, the backlog at the end of 2024 considers projects with deliveries scheduled for 2025 and early 2026.

Net Operating Revenue by Business Unit

The Company's net operating revenue in 4Q24 reached R$ 458.6 million, an increase of 18.6% compared to 4Q23, with growth across all business units. The expansion of new business generation in 2024, when compared to 2023, reflects the Company's ability to consistently develop solutions and technologies aimed at enabling customers to achieve sustainable success in their activities.

ROMI MACHINES

The net operating revenue of this Business Unit achieved solid growth, reaching R$ 260.2 million in 4Q24, representing a 20.0% increase compared to 4Q23. This increase reflects the higher volume of orders obtained throughout 2024, both in machinery and in the rental business.

It is important to highlight that revenue from the Machine Rental business has become increasingly relevant to the total revenue of this Unit, being recognized monthly according to rental values. Thus, the revenue growth of this Unit, derived from rentals, will be reflected gradually over time. In 4Q24 and throughout 2024, the machine rental business accounted for R$41.711 and R$151.959 of the net operating revenue of this Business Unit, respectively.

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