US$75000000 Lupatech Finance Limited - Banco Best

Flow segment
We are a leader in the Mercosul trading area in the manufacture and sale of industrial valves. Our valves,
marketed under our well-known brands “Valmicro,” “Mipel,” “Valbol” and “Jefferson,” are used in several
industrial segments including the chemical, pharmaceutical, steel, food, ethanol, construction, agriculture, and paper
and pulp industries. Our clients include Rhodia, BASF, Braskem, Companhia Vale do Rio Doce, Votorantim, Sadia
and Companhia de Gás de São Paulo - Comgás (part of the British Gas group).
In addition to our leading position in our sector, we benefit from the experience and close relationships we
have established over the years with customers who have already installed a large number of our products in their
industrial plants. We are also recognized for the quality of our maintenance services and our highly skilled sales
force.
Metal segment
We are a leader in the Brazilian market for investment castings and are widely recognized in the
international market for the development and production of parts, sub-assemblies and components used in the global
automobile industry. In 2006, General Motors, or GM, named us the global “Supplier of the Year” for powertrain
applications, which demonstrates GM’s recognition of the high level of quality of our products in this category. Our
investment casting division, Microinox, has been able to establish long-term partnerships with its customers
because, we believe, of its innovative development skills and the quality of its products. Our PIM subsidiary,
Steelinject, is a pioneer in Latin America in the use and development of this technology for the production of highly
complex metal and ceramic parts for industrial products requiring a higher level of technical specification and
performance. We believe our Itasa division is one of the best sand casting manufacturers in Latin America,
specializing in the production of value-added alloys with a high resistance to corrosion such as duplex and super
duplex, used in valves and pumps used mainly in the oil and gas industry. We supply a wide range of customers,
including General Motors, OPEL, Bosch, Dana, MWM-International and Eaton.
Financial Data
The table below sets forth our net revenue and adjusted EBITDA for the periods indicated, as well as
related percentages:
Three-month period ended
March 31, Year ended December 31,
2008 2008 2007 2007 Pro Forma (1) 2007 2007 2006 2005
(in millions of
US$, except
percentages) (2)
(in millions of reais,
except percentages)
2
(in millions of
US$, except
percentages) (2)
(in millions of
reais, except
percentages)
(in millions of
US$, except
percentages) (1)
(in millions of reais,
except percentages)
Net
revenue ........ 80.0 140.0 67.3 262.0 458.3 221.3 387.0 223.6 173.2
Oil & gas segment (3) ..... 59.7% 59.7% 25.7% - - - - - -
Domestic market..... 64.8% 64.8% 92.8% - - - - - -
Export market ......... 35.2% 35.2% 7.2% - - - - - -
Flow segment ............... 26.4% 26.4% 46.8% 81.6% 81.6% 78.3% 78.3% 66.9% 62.5%
Domestic market..... 90.7% 90.7% 95.5% 86.0% 86.0% 82.7% 82.7% 57.8% 72.3%
Export market ......... 9.3% 9.3% 7.5% 14.0% 14.0% 17.3% 17.3% 42.2% 27.7%
Metal segment .............. 13.9% 13.9% 27.5% 18.4% 18.4% 21.7% 21.7% 33.1% 37.5%
Domestic market..... 66.7% 66.7% 61.8% 65.5% 65.5% 65.5% 65.5% 66.6% 75.5%
Export market ......... 33.3% 33.3% 38.2% 34.5% 34.5% 34.5% 34.5% 33.4% 24.5%
Adjusted EBITDA (4) ... 19.4 33.9 18.5 64.0 112.0 54.9 96.0 59.5 49.6
Oil & gas
segment (3) 59.8% 59.8% 28.1% - - - - - -
Flow segment.......... 35.8% 35.8% 61.1% 95.8% 95.4% 95.4% 95.4% 83.2% 86.9%
Metal segment ........ 4.4% 4.4% 10.8% 4.2% 4.6% 4.6% 4.6% 16.8% 13.1%
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(1) For important information as to how we compiled pro forma statement of operations, see “Presentation of Financial and Other Information,”
“Unaudited Pro Forma Combined Statement of Operations” and the notes to the pro forma statement of operations included elsewhere in
this offering circular.