Robbins & Myers, Inc. April 17 th 2012 Yen-Hua Huang (Gina) Cheng- Yuan Huang Yu-Te Hung (Ted) Te-Chi Kuo (William)

Agenda Overview Macroeconomics Industry Descriptions Company Descriptions Financial Analysis and Competitors Projections and Models Recommendation

Brief Description: Robbins & Myers, Inc. (NYSE: RBN) is a leading supplier of equipment and systems for global energy, chemical and other industrial markets. It is Houston based. Its business includes products and services sold under many brands, such as Robbins & Myers, T-3, Monyo, Chemineer, Pfaudler and Edlon. Source from RBN website

Brief Description Robbins Myers Process Solutions Group Fluid Management Group Provides mission-critical products to customers in upstream oil & gas markets for use in drilling and exploration, production and completion, as well as pipeline transmission infrastructure. Aims at customers in industrial, chemical, pharmaceutical, wastewater treatment, food and beverage, and other end markets.

Fundamental Numbers at a Glance

Macroeconomics - There is no slowdown in the energy sector. - A sharp downturn in energy and mineral exploration and production in late New orders emerge due to strong oil demand. - A turning point formed in 2011 that the subsequent gains has not been offset. Besides, the oil & gas equipment industry is expected to grow at an annualized rate of 4.6% through Shale gas starts to play a role in the growth.

Macroeconomics: -Trade-weighted index -World price of crude oil correlates demand from mining -World price of steel Source from IBIS world

Industry at a Glance: on Mining, Oil & Gas Machinery Manufacturing Source from IBIS

Industry at a Glance: on Mining, Oil & Gas Machinery Manufacturing Source from IBIS world

Industry at a Glance: On Diversified Machinery Manufacturing Source from IBIS world

Industry at a Glance: Industry Cost Structure

1.The company traces its origins back to the 1889, and has 3,387 employees worldwide. 2. The sales of 2011 were $820 million, 72% higher than the 2010 number of $478 million Company Overview

markets. Enterprise Business Profile

Product (FMG) Source from RBN website

Product(PSG) Source from RBN website

Operating Strategy O T-3 manufactures and repairs pressure, flow control and wellhead equipment for drilling and completion of oil and gas wells O Expands Robbins & Myers’ attractive energy business. O Creates opportunities for combined companies to reduce costs.

Operating Strategy

O Designs, manufactures and markets packaging and secondary processing equipment for the pharmaceutical, healthcare, food and cosmetic industries O focused on engineered solutions for key customers.

SWOT Analysis Strengths: 1.Higher profit margin (vs. competitor) 2.Aftermarket sales, Customers-led Weaknesses: 1.Impairment in the value of Goodwill 2.Currency fluctuation risks

SWOT Analysis Enter into hedging transactions, primarily currency swaps

SWOT Analysis Opportunities: 1.horizontal drilling is not only an effective way to reach these reserves, but also an effective way to improve drilling economics Source from RBN website

SWOT Analysis Threats: 1.Regulatory and legal developments 2.Competition in our markets could cause our sales to decrease. (scenario DCF) 3.Product liability lawsuits(liability insurance coverage)

2 years stock performance Source from Yahoo Finance

Competitors Company's NameTicker Stock Price Forward P/E EPSEBIT/TAEBIT/EV Robbins & Myers Inc. RBN SPX Corporation SPW Weatherford International Ltd. WFT

Relevant Stock Price Source from yahoo finance

Joel Greenblatt (in million) Company's NameEBIT Tangible assets Enterprise Value EBIT/TAEBIT/EVSum Robbins & Myers Inc SPX Corporation Weatherford International Ltd

Multiples Company's Name Market CapCurrent PE Forward PE Profit MarginP/BP/SROEROA RBN 2.2B % % 8.76 % SPW 3.88B % % 3.72 % WFT 10.49B % % 4.10 % Oil equip 655B25NA8.50%5.3NA9.70%NA Diversified Machinery M10NA8.20%5.7NA11.90%NA

Target Price from Multiple Current Price$50.09 Average P/E EPS 3.92 Target Price from Multiple

DuPont Analysis Profit Margin11.10%9.78%5.33%16.33% Assets Turnover 91.03%66.18%58.53%51.84% Equity multiplier %164.94%166.39%135.71% Return on Equity 16.96%10.68%5.19%11.49%

Assets Breakdown

As horizontal drilling methods for oil in unconventional shale plays have grown, drilling equipment maker Robbins & Myers (RBN) has enjoyed a spurt of new orders. The firm has logged six straight quarters of double- or triple- digit revenue and profit gains. In its most recent quarter, reported March 27, earnings shot up 35% from the earlier year to 84 cents a share while revenue jumped 39% to $255.9 million. Robbins & Myers Sees Big Spurt From Shale Oil Drilling

Demand for our energy products and services remained robust and industrial demand improved. Our primary objectives for this segment are to increase our manufacturing capacity to meet current demand Growth of FMG

FMG

pricing has not fully recovered for European chemical market capital goods. Our primary objectives are to reduce operating costs in developed regions, increase manufacturing capabilities in low cost areas and increase aftermarket opportunities. Growth of PSG

PSG

CEO of RBN, Peter C. Wallace said: "So whether gas rigs are up or oil rigs are up, it really makes little difference to us.“ "What generally matters is the total number of rigs along with the service intensity of the rigs." Good News 4/12/2012 Source from RBN website

Required Return Current Shares (in thousands) Shares Outstanding45, Current Share Price$50.09 Beta1.45 Equity Value$2,298, Debt$ Leverage (Debt/Equity Ratio)0.02% Tax Rate31.88% Risk Free Rate (adjusted)3.22% Market Risk Premium5% CAPM (80%)10.47% ROE(20%)11.08% Cost of Equity10.59% Cost of Debt12.38% WACC10.59% Risk Premium0.5% Required Return11.09%

Put more eggs in the same basket Competition in our markets could cause our sales to decrease Goodwill Risks

Current RBN Price$50.09 (2012/4/16) P/E Multiple Price$58.78 DCF Model Price$44.08~$47.14 Target Price$47.02~$49.47 Recommendation Put in our watch list We already have shares of Diamond Offshore Drilling, Inc. in our Portfolio.