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Earnings Presentation

Earnings Presentation. 1Q09. Sao Paulo, 05 | 15 | 09. Strengthen of the financing structure of the Company. 1. Quarterly performance. 2. Actions. 3. Segments performance. 4. Acquisitions. 5. Expectations review. 6. Change of accounting rules. 7. Net Revenues and Gross Profit. 8.

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Earnings Presentation

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  1. Earnings Presentation 1Q09 Sao Paulo, 05 | 15 | 09

  2. Strengthen of the financing structure of the Company 1 Quarterly performance 2 Actions 3 Segments performance 4 Acquisitions 5 Expectations review 6 Change of accounting rules 7 Net Revenues and Gross Profit 8 Expenses variation 9 EBITDA 10 Financial result 11 Capital Structure and Liquidity 12 Working Capital 13 Agenda

  3. Strengthening the debt structure with a new debt profile Actual Debt Structure Future 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

  4. Quarterly Performance Net Revenues Gross Profit and Margin 151.2 +8.4% 139.5 51.0 +4.9% 48.6 3,7% 15,6% 43,1% 45,7% 34,7% 34,5%

  5. 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.

  6. Segments trend Metallurgy • Net revenues trend 1Q09 vs. 1Q08 • Energy Products +27.7% • Flow Control -14.2% • Metalurgia -30.9% Flow Control Energy Products

  7. 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.

  8. 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.

  9. Adjustments Law 11,638 – 1Q08

  10. Net Revenues and Gross Profit Net Revenues Gross Profit and Margin 151.2 +8.4% 139.5 51.0 +4.9% 48.6 3.7% 15.6% 43.1% 45.7% 34.7% 34.5%

  11. Expenses 23.2 26.9 +43.2% +31.9% +6.7% -25.5% +28.7% 20.4 -0.5% +84.1% 3.7 +30.0%

  12. EBITDA 33.3 29.7 -11.0% 26.6 3.1

  13. Financial Result

  14. Capital Structure and Liquidity Current Assets 690.2 Liquidity83.8 Debt with Maturity 606.4 Cash Short Term Working Capital Long Term * Numbers in R$ million

  15. Working Capital

  16. IR Contacts Thiago Alonso de Oliveira CFO & IRO Cynthia Burin IR Manager ir@lupatech.com.br Telephone: +55 (11) 2134-7000/7088 www.lupatech.com.br

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