Robbins & Myers, Inc. -...

Robert W. BairdInvestor ConferenceNovember 7, 2006

Robbins & Myers, Inc.

RBN/Baird Investor ConferenceNovember 7, 2006

1

In addition to historical information, this presentation contains forward-looking statements identified by use of words such as “expects,” “anticipates,”“estimates,” and similar expressions. These statements reflect the Company’s expectations at the time this presentation was issued. Actual events and results may differ materially from those described in the forward-looking statements. Among the factors that could cause material differences are a significant decline in capital expenditures in the specialty chemical and pharmaceutical industries, a major decline in oil and natural gas prices, foreign exchange rate fluctuations, the impact of Sarbanes-Oxley section 404 procedures, work stoppages related to union negotiations, customer order cancellations, the ability of the Company to realize the benefits of its restructuring program in its Romaco and Process Solutions segments, including the receipt of cash proceeds from the sale of excess facilities, and general economic conditions that can affect demand in the process industries. The Company undertakes no obligation to update or revise any forward-looking statement.

This presentation refers to various non-GAAP measures. The Company believes these measures are helpful to investors in assessing the Company’s ongoing performance of its underlying businesses before the impact of special items on its financial performance. In addition, these non-GAAP measures provide a comparison to our previously announced earnings guidance, which excluded these special items. These non-GAAP measures are reconciled to GAAP measures in this document.

Cautionary Statement Concerning Forward-Looking and Other Information


2

Company Overview

• Leading Global Supplier of Highly-Engineered, Application-Critical Equipment and Systems

• Success Attributes Include– Close and Continuing Customer Interaction– Innovative Products– Application Expertise and Customer Support– Competitive Cost Structure

• 2006 Sales of $625 Million• Organized in Three Groups

– Fluid Management– Process Solutions– Romaco


3

Global Customers

Strategically Positioned to Meet Global Needs

Asia &Australia14%

South America

5%

Canada & Mexico11% United

States41%

Europe29%


4

Global Markets

22%

32%

31%

15%

Based on 2006 sales; excludes disposed product lines.

Diversified Market Exposures

Specialty Chemical

Pharmaceutial

Oil & Gas

Other


5

Strong Aftermarket Sales

29%

71%

Original Equipment (OE) Aftermarket

OE Sales Generate Profitable Aftermarket Business

Based on 2006 sales.


6

Creating Our Future

• Reducing Complexity

• Leveraging Assets

• Selling Non-Core Assets

• Improving Cost Structure

• Expanding Capabilities

• Turning Our Sights Toward Growth

Changing from a Holding Company to an Operating Company


7

2006 Update

Making Rapid Progress

• Realigned Company Into Three Groups– Leveraging Common Strengths, Assets– Improved Focus on Markets, Customers

• Sold Hapa & Laetus Product Lines– Proceeds of $27 Million

• Sold/Exited Additional 5 Facilities– Proceeds of $1 Million

• Reduced Our Global Footprint by ~15%• Restructuring Efforts

– Cost Structure Improved at PSG Europe & Romaco– Efforts Largely Completed

• Expanded Our Capabilities– Enhanced Operating, Corporate Leadership– Improved Capital Structure


8

Current Restructuring Status

• Goal - Reduce Complexity/Cost and Leverage Assets• Significant Strides Made in 2006

– PSG’s European OE Manufacturing Consolidated– Romaco’s Packaging Product Lines Consolidated– Romaco’s Sales Offices Reorganized…Largely Completed in ‘06

• Product Rationalization Efforts Underway• Incurred $9.6 Million of Costs in 2006• Restructuring Costs Funded by $28 Million Proceeds

($8.5 Million Gains) from Sales of Product Lines and Facility

Future Continuous Improvement Costs To Be Included in GAAP Results


9

Strengthened Leadership Team

• New Process Solutions Group Leader in Q2 2006

• New Chief Financial Officer in Q4 2006

• New Romaco Leader in Q1 2007

• Cascading Improvements Throughout the Company

Enhancing Our Capabilities


10

Lower Complexity, Higher Productivity

More Opportunities Available

3,8003,600

3,100

2004 2005 2006

$154 $168$202

2004 2005 2006

Sales per EmployeeNumber of Employees($000s)

4231

2004 2006

Fewer Manufacturing Facilities

Higher Employee Productivity


11

2004 2005 2006

Strengthening Performance

$603$553

$535

2004 2005 2006

Sales

Committed to Creating Shareholder Value

$0.50

2006

Diluted EPS

$586 $605 $625

Continued Product Lines Disposed Product Lines GAAP Ex-Special Items

$(1.31)

$1.26

$0.80

$(0.02)

$0.90

(In Millions)

See appendix for reconciliations between GAAP figures and figures adjusted for special items.


12

Improving Our Operating Capabilities

• Focus on Profitable Growth• High Incremental Margins• Implementing Lean Processes

7.7%

5.1%5.5%

2004 2005 2006

Creating a Competitive Cost Structure

Adj. EBIT Margins



13

Improved Financial Discipline

• Simplified Structure• Better Asset Utilization• Capacity Flexing Among Facilities

11.2%

7.8%7.5%

2004 2005 2006

Adj. RONA

Sharing Resources, Minimizing Investment As We Grow

Calculated as Adjusted EBIT/Average Net Assets. Net assets exclude cash and have been adjusted to reflect the 2006 goodwill adjustment in beginning and ending asset balances for analytical purposes only.


14

Strengthened Financial Condition

25.0 22.2

16.7

100.0100.0 100.0

40.0 40.0

5.5

13.2

Q4 2004 Q4 2005 Q4 2006

Senior Notes

Converts

Sub. NotesOther

(In Millions)

$175.4

$105.5

$181.7Total Debt

CashNet Debt-to-Net Cap

$23.036.8%

$8.639.6%

$48.414.5%

Increasing Our Strategic Opportunities

Net debt is computed as total debt less total cash. Net capitalization is computed as net debt plus shareholder equity. 2004 and 2005 shareholder equity has been adjusted to reflect the $39.2 million 2006 goodwill write-off for analytical purposes only.


15

Three Businesses

$149

$245 $231

Fluid Management Group Process Solutions Group

Romaco

Three Unique Value-Creating Platforms

(In Millions)

2006 sales as reported.


16

Fluid Management Group (FMG)

Oilfield Equipment & Services• Power Sections• Wellhead Products• Down-hole Pump Systems• Pipeline Closure Products

Wastewater Treatment &Industrial Equipment• Progressing Cavity Pumps• Grinding Systems


17

FMG Business Dynamics

• Global Demand for Energy

• Price of Oil & Gas• Active Rig Count• Funding of Water &

Wastewater Projects• Chemical Processing

Industry Spending• General US Economy

• Global Expansion With Customers

• Enhancing Service Opportunities

• Increasing System Integration Capabilities

• Creating Additional Capacity Across the Group With Limited Investment

Leading Brands For Growing Markets

Market Drivers Company Initiatives


18

FMG Momentum

0

4

8

12

16

20

Q1 Q2 Q3 Q40

15

30

45

60

75

Q1 Q2 Q3 Q4

($ in millions)

Capitalizing On Opportunities In A Strong Market

FY 2006 Sales FY 2006 EBIT


19

Process Solutions Group (PSG)

Chemical & Pharmaceutical• Glass-lined Reactor Systems• Agitation Systems• Thermal Fluid Systems

Industrial• Industrial Agitators & Mixing

Equipment• Fluoropolymer Based

Products


20

PSG Business Dynamics

• Chemical/Process Industry Capacity Utilization

• Fine Chemical Demand –China

• Increasing Pharmaceutical Capacity in India

• New Compounds Developed by End Users

• Market Demand in Selected Markets – Food, Pulp & Paper, Wastewater

• Increased Capabilities in Asia

• Capacity Rationalization in Europe/Americas

• Integration of Worldwide PSG Resources

• New Applications


Repositioning Capabilities To Meet Market Demand


21

Wet Flue Gas Desulphurization

• Coal Based Power Generation

• Significant Opportunity for Agitation Systems

• $4.2 Million DP&L Order

• Expected to Grow Significantly

• Major Opportunity in China


22

PSG Momentum

0

2

4

6

8

Q1 Q2 Q3 Q40

15

30

45

60

75

Q1 Q2 Q3 Q4

($ in millions)

Leveraging Market Leadership into New Markets


FY 2006 Sales FY 2006 Adj. EBIT


23

Romaco Business Group

Packaging Equipment forPharmaceutical andCosmetic Markets• Customized Packaging• Blister Packaging• Strip & Sachet Packaging• Carton Packaging

Processing Equipment forPharmaceutical, Cosmeticand Food Markets• Homogenizing• Vacuum Processing• Washing Stations• Granulation Systems


24

Romaco Business Dynamics

• New Drug Discovery/ Commercialization

• Greater Use of Drugs & Nutriceuticals

• Emerging Markets• Aging Population• Growth of Generics• Direct Consumer

Advertising

• Simplifying Business –Sold Print & Security

• Rationalizing Manufacturing Facilities

• Simplifying Route to Market

• Updating Product Offerings


Simplifying Business And Reducing Cost Structure


25

Romaco Momentum

-4

-3

-2

-1

0

1

2

Q1 Q2 Q3 Q4

0

15

30

45

Q1 Q2 Q3 Q4

Significant Player In Niche Markets

Adjusted sales excludes sales from Hapa & Laetus product lines, which were sold in March 2006. See appendix for reconciliations between GAAP figures and figures adjusted for special items.

($ in millions)

FY 2006 Adj. Sales FY 2006 Adj. EBIT


26

2006 Consolidated Financial Results

Building Momentum; Q4 2006 Orders Up 27% Year-Over-Year

+9%

2005 2006

+52%

+28%

SalesEx-Disposals

Adj. EBIT

Adj. EBITDA

Adj. Diluted EPS

Ending Backlog

$605$553

$31

$52

$0.50

$117

$625$602

$48

$66

$1.26

$174

+152%


+50%


27

2007 Objectives

• Expand Organic Growth Focus– New Products/Applications, Improved Distribution,

Geographic Expansion

• Accelerate Lean Efforts• Continue to Reduce Complexity

– Rationalize Product Lines– Leverage Collective Strengths

• Increase Presence in Asia• Complete Romaco Restructurings

Continue to Build On Our Positive Momentum


28

2007 DEPS Guidance

• Q4 2006 Orders and Backlog Create Momentum for Solid Start in 2007• Capturing Restructuring Benefits; Reinvesting for Growth• Target Incremental Margins of 30-40%• First Quarter Includes Gain on Sale of Mexico Facility Reduced by

Romaco Restructuring Charges; Expect Net $0.15 Benefit

2006 2007

Full Year

$1.70-$1.90

$1.26

First Quarter

GAAP

Ex-Special Items

Committed to Creating Shareholder Value

$0.40-$0.50

2006 2007

$0.40-$0.50

$0.06

20062006

$(1.31) $(2.02)

2006



29

Summary

• Solid Accomplishments in 2006– Restructuring Largely Completed, Margins Improving

• Improved Performance Throughout 2006– Strong Finish in Q4

• Well-Positioned for Profitable Growth in 2007– Increased Focus on Customers and Growing Markets

• Companywide Capabilities Continue to Expand– Resources Support Strategic Flexibility

Operating Performance Improved – Turning To Growth Agenda

Questions?


31

Reconciliations

Reconciliation of Net Income and Diluted EPS to Net Income and Dilutes EPS Before Special Items:

Twelve Months Ended Three Months EndedAugust 31, August 31, August 31, November 30,

(in thousands, except per share data) 2006 2005 2004 2005

Net income (loss) ($19,587) ($262) $11,648 ($29,734)

Plus special items, net of tax:Inventory write-offs included in cost of sales 710 192 0Process Solutions segment restructuring charges and facility dispositions 3,328 4,067 495 217Romaco segment restructuring charges and business dispositions (4,471) 3,259 446CEO retirement costs 896Goodwill impairment charge 39,174 30,000

Net income before special items $19,154 $7,256 $13,039 $929

Diluted net income (loss) per share ($1.31) ($0.02) $0.80 ($2.02)

Plus special items:Inventory write-offs included in cost of sales 0.04 0.01 0.00Process Solutions segment restructuring charges and facility dispositions 0.22 0.28 0.04 0.01Romaco segment restructuring charges and business dispositions (0.31) 0.23 0.03CEO retirement costs 0.06Goodwill impairment charge 2.62 0.00 2.04

Diluted net income per share before special items $1.26 $0.50 $0.90 $0.06


32

Reconciliations

Reconciliation of Net Income to EBIT, EBIT before Special Items and EBITDA Before Special Items:

Consolidated PROCESS SOLUTIONS ROMACOTwelve Months Ended Three Months Ended Three Months Ended

Aug. 31, Aug. 31, Aug. 31, Aug. 31, May 31, Feb. 28, Nov. 30, Aug. 31, May 31, Feb. 28, Nov. 30,(in thousands) 2006 2005 2004 2006 2006 2006 2005 2006 2006 2006 2005

Net income (loss) ($19,587) ($262) $11,648

Minority Interest 1,560 1,440 557

Income Tax Expense 12,589 5,840 3,685

Interest Expense 12,946 14,433 14,427

Earning Before Interest and Taxes (EBIT) 7,508 21,451 30,317 $6,177 ($617) $1,398 $1,909 ($732) ($1,388) ($2,419) ($33,650)

Plus special items:Inventory write-offs included in cost of sales 1,127 738 370 757Process Solutions segment restructuring charges and facility dispositions 4,160 4,999 761 (132) 3,516 431 345Romaco segment restructuring charges and business dispositions (4,146) 4,279 1,414 (7,463) 1,430 473CEO retirement costs 1,378Goodwill impairment charge 39,174 9,174 30,000

EBIT Before Special Items $47,823 $31,467 $32,456 $6,045 $2,899 $2,199 $2,254 $1,439 $323 ($989) ($3,177)EBIT Before Special Items as a Percent of Sales 7.7% 5.1% 5.5%

Plus Depreciation and Amortization 18,578 20,393

EBITDA Before Special Items $66,401 $51,860

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