Iochpe-Maxion - Bear Stearns Transportation Conference Presentation
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Bear Stearns Transportation Conference Presentation

Bear Stearns Transportation Conference Presentation

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Iochpe-Maxion - Bear Stearns Transportation Conference Presentation Iochpe-Maxion - Bear Stearns Transportation Conference Presentation Presentation Transcript

  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns February 2005
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Iochpe-Maxion: Basics Two major operations: - Wheels and chassis for trucks, buses, pickups and agricultural machinery - Equipments for the railroad industry Third smaller operation: - Autoparts for passenger cars Plants located in the São Paulo and Minas Gerais States in Brazil. 2
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Iochpe-Maxion: History 1918: Iochpe Group started in the lumber segment From 1978 to 1996: period of diversification in several industries followed by divestitures and concentration in the autopart and railroad equipment segments 1984: become a public company 1994: issue of ADRs level I 1998: corporate restructuring and recapitalization – Bradesco and BNDES join shareholders’ agreement along with Iochpe Family 2000: joint venture in the railroad equipment business with Amsted Industries 2001: divestiture of the diesel engine business to Navistar 2002 / 2004: divestiture of the steering column and window mechanism business, decreasing exposure to the passenger car autopart segment 2004: Bradesco sold its stake to Iochpe Family 3
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Shareholder Composition Shareholders Agreement Iochpe Family BNDES Participações Free Float Free Float – Dec. 03 Voting 75.6% Voting 21.8% Voting 2.6% Voting 3.1% Non-voting 0.5% Non-voting 62.2% Non-voting 37.3% Non-voting 28.6% Total 26.5% Total 48.2% Total 25.3% Total 19.8% Iochpe-Maxion Iochpe-Maxion S.A. Issued Shares (*) Voting 921,429,894 34.62% Non-voting 1,740,185,376 65.38% Total 2,661,615,270 100.00% (*) all outstanding 4
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Corporate Structure Iochpe-Maxion S.A. (16 Employees) Consolidated = 6,069 Employees 99.99% Maxion Componentes Estruturais Ltda. 93.7% 50% 6.2% Maxion Sistemas Amsted Maxion Fund. e Automotivos S.A. Equip. Ferroviários S.A. (3,624 Employees) 50% Wheels and Automotive Chassis Division Comp. Division Amsted (2,926 Employees) (1,315 Employees) Industries 5
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Net sales breakdown % 2004 - R$ 1,098.6 MM 2003 - R$ 675.7 MM Automotive Automotive Comp. Division Comp. Division 14% 17% 57% 59% 29% Amsted 2 4 % Amsted Maxion (*) Maxion (*) Wheels and Wheels and Chassis Division Chassis Division (*) Consolidated figures consider 50% of the net sales of Amsted Maxion 6
  • WHEEL AND CHASSIS DIVISION (*) 57% (*) Division of
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Wheels and Chassis Division: Basics Conformation of flat steel Focused on the commercial vehicles segment (trucks, buses, pickups and agricultural machinery) Continuous capex resulting in an unique manufacturing facility in the South American market Local leadership Export base (16% of sales) 8
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Wheels and Chassis Division Chassis - 52% of Division’s net sales – R$ 325 MM – 2004 Heavy Medium Light Stamped Parts Structural Siderails Parts Chassis 9
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Wheels and Chassis Division Wheels for Vehicles - 48% of Division’s net sales – R$ 301 MM – 2004 10
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Industry – Brazilian Output Thousand units 4Q04 4Q03 ∆% 2004 2003 ∆% Cars 452.0 400.1 13.0% 1,754.6 1,505.0 16.6% Pickups 91.8 62.6 46.8% 315.6 216.1 46.0% Trucks 27.9 20.6 35.1% 106.9 78.9 35.5% Buses 7.3 7.0 3.7% 28.7 27.0 6.5% Total Vehicles 579.0 490.3 18.1% 2,205.9 1,827.0 20.7% Agricultural Machinery 15.8 14.6 7.7% 66.9 58.8 13.8% Source : Anfavea 11
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Industry - Export Thousand units 4Q04 4Q03 ∆% 2004 2003 ∆% Cars 132.5 106.4 24.5% 493.8 440.3 12.1% Pickups 35.7 23.5 52.3% 110.3 72.3 52.5% Trucks 6.3 4.4 43.1% 25.3 12.8 97.5% Buses 4.8 2.8 73.7% 12.9 9.3 38.8% Total Vehicles 179.4 137.1 30.8% 642.3 534.7 20.1% Agricultural Machinery 7.8 6.5 19.9% 31.0 21.4 44.7% Source : Anfavea 12
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Wheels and Chassis Division R$ MM Net Sales 626 600 a.a. 1 .1% R =4 397 400 G CA % 7 3.1 241 = 174 208 ∆% 177 200 112 102 00 1999 2000 2001 2002 2003 2004 4Q03 4Q04 CAGR = Compounded Annual Growth Rate 13
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Wheels and Chassis Division Chassis – Market Share and Customer Base – 2004 Market Share Customer Base Volks- wagen General 23% Motors 5% 13% OEMs 69% 9% Ford 26% 29% 8% Export Dana 5% 13% Maxion Daimler Scania Chrysler Other 14
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Wheels and Chassis Division Wheels - Market Share and Customer Base – 2004 Market Share Customer Base Volks- Other wagen Scania Volvo 8% Trailer 12% 6% OEMs 6% Other 15% 12% 35% 57% Export 24% 25% Hayes Tractors Maxion 15
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns AUTOMOTIVE COMPONENTS DIVISION (*) 14% (*) Division of
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Components Division: Basics Light stamping Assembly of parts Focused on passenger cars Local leadership in main products Strong trend for globalization 17
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Components Division Partial Divestiture – Sept.10 , 2004 Sold assets related to the window mechanism business Buyer: Brose do Brasil Ltda. – subsidiary of Brose International GmbH Amount: R$ 17.8 million Asset transfer in 180 days Window mechanism business represents: 7% of the consolidated net sales 51% of the net sales to the passenger car segment 18
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Components Division: Main Products HANDBRAKE PEDAL JACKS LEVERS SETS 19
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Industry – Brazilian Output Thousand units 4Q04 4Q03 ∆% 2004 2003 ∆% Cars 452.0 400.1 13.0% 1,754.6 1,505.0 16.6% Pickups 91.8 62.6 46.8% 315.6 216.1 46.0% Trucks 27.9 20.6 35.1% 106.9 78.9 35.5% Buses 7.3 7.0 3.7% 28.7 27.0 6.5% Total Vehicles 579.0 490.3 18.1% 2,205.9 1,827.0 20.7% Agricultural Machinery 15.8 14.6 7.7% 66.9 58.8 13.8% Source : Anfavea 20
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Industry - Export Thousand units 4Q04 4Q03 ∆% 2004 2003 ∆% Cars 132.5 106.4 24.5% 493.8 440.3 12.1% Pickups 35.7 23.5 52.3% 110.3 72.3 52.5% Trucks 6.3 4.4 43.1% 25.3 12.8 97.5% Buses 4.8 2.8 73.7% 12.9 9.3 38.8% Total Vehicles 179.4 137.1 30.8% 642.3 534.7 20.1% Agricultural Machinery 7.8 6.5 19.9% 31.0 21.4 44.7% Source : Anfavea 21
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Components Division R$ MM Net Sales 150 a.a. 150 .3% R = 10 CAG 114 99 98 92 94 100 % = 35.6 ∆% 44 50 33 0 1999 2000 2001 2002 2003 2004 4Q03 4Q04 CAGR = Compounded Annual Growth Rate 22
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Components Division Market Share ShareCustomer Base Base – 9M04 Market Share and Chassis – Market % 9M04 2004 and Customer – Market Share Customer Base General Hand break lever 42% Motors Pedal Set 26% 25% SAS Jack 20% 15% Latch 9% 29% 14% Knob / Key / Cylinder 7% Volks- wagen Fiat 3% 6% 8% Ford Other After Market 23
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Subsidiaries : AMSTED MAXION FUNDIÇÃO E EQUIPAMENTOS FERROVIÁRIOS 29%
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Amsted Maxion: Basics Integrated freight car operation: castings and car assembly Capex + technology resulting in an unique manufacturing facility and design capabilities Steel castings Transformation of steel scrap Focused on the railroad equipment and industrial business Local leadership Export base Freight car assembly Assembly of components and castings Local leadership 25
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Amsted Maxion: Main Products RAILROAD RAILROAD BOOGIES WHEELS FREIGHT CARS 26
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Brazilian railroad equipment market Sales 4Q04 4Q03 ∆% 2004 2003 ∆% Railroad freight cars – units 1,447 1,060 37% 5,642 2,399 135% Railroad wheels – thous. units 11.2 22.6 (50%) 41.6 49.6 (16%) Railroad castings – thous. tons 0.7 0.7 0% 3.4 2.3 48% Does not include wheels and castings used in the assembly of new freight cars 27
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Amsted Maxion R$ MM Net Sales (*) 646 .a. 600 a 6 .9% R =4 G 400 CA 328 .4 % = 97 200 ∆% 182 122 120 95 110 92 0 1999 2000 2001 2002 2003 2004 4Q03 4Q04 CAGR = Compounded Annual Growth Rate (*) Amsted Maxion’s net sales. Consolidated figures consider 50% of Amsted Maxion’s sales 28
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Amsted Maxion Market Share and Customer Base – 2004 Market Share Customer Base CVRD Export Railroad Freight Cars 74% 14% Railroad Wheels 40% 48% 13% FCA Railroad Castings 80% 12% 3% MRS 6% Industrial Castings 50% 4% Other ALL Ferronorte 29
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Amsted Maxion Spot Orders 2005/2006 – Freight Cars : R$ 1.1Billion MM (*) CVRD / FCA – 5,760 cars Brasil Ferrovias - 500 cars Deliveries MRC(Mitsui/Bunge/ALL) - 350 cars 2005 – 5,557 cars CVG Ferrominera Orinoco - 225 cars 2006 – 1,376 cars Comilog – 76 cars CBG Compagnie des Bauxites de Guinee – 22 cars Total = 6,933 cars (*) Amsted Maxion’s net sales. Consolidated figures consider 50% of Amsted Maxion’s sales 30
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Amsted Maxion Recurring Orders : R$ 250.4 MM per year (*) ASF-Amsted (USA) – railroad castings – R$ 153.5MM Caterpillar (Brazil and USA) – tractor parts – R$ 72.5MM Holland Group (USA) – fifth-wheel components - R$ 12.9MM Metso (France) – industrial castings – R$ 4.5MM Truck OEMs (Brazil) – fifth-wheel – R$ 4.0MM Komatsu / CNH (USA and Italy) – industrial castings – R$ 3.0MM (*) Amsted Maxion’s net sales. Consolidated figures consider 50% of Amsted Maxion’s sales 31
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns CONSOLIDATED FIGURES
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Consolidated Net sales breakdown by customer and segment – 2004 Customer Base Segment Daimler Volks- Chrysler OEMs producing in wagen Brazil 62% 12% 10% Tractors 8% - Bus, truck and General pickups 49% Export 1 3 % 7% Motors - Passenger cars 13% 5% Trailer OEMs Brazilian railroad 4% 3% Fiat operators 25% 18% Ford Export 13% CVRD 20% Other 33
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Consolidated Exports by product segment and destination – US$ 47.3 MM / R$ 144.1 MM – 2004 9M03 – US$ 24.9 MM / R$ 80.6 MM Product Segment Destination Wheels Canada Chassis 11% 16% Mexico 52% 52% 3% USA 18% South America 32% 2% 7% 7% Railroad Asia / Equipment Oceania Africa / Europe Middle East Import 2004 - US$ 10.2MM / R$ 29.5MM (*) (*) includes US$ 3.4MM / R$ 10.0MM of machineryand equipment 34
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Consolidated R$ MM .a. 1099 Net Sales a 1000 .2% Divestiture 43 Phase = 750 GR 676 615 6 2 4 ,0 CA .5% 500 411 = 72 374 ∆% 312 250 181 0 1999 2000 2001 2002 2003 2004 4Q03 4Q04 CAGR = Compounded Annual Growth Rate 35
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Five Years Review R$ MM % sales 250 50% 228 Gross Profit 200 40% 150 137 116 30% 100 87 80 21% 21% 21% 20% 20% 50 19% 0 10% 2000 2001 2002 2003 2004 (*) 2002 results includes change in accounting for profit sharing, amounting to R$ 3.8 MM 36
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Five Years Review R$ MM % sales 160 50% EBIT 127 40% 120 30% 80 58 20% 46 40 36 27 12% 10% 9% 9% 7% 7% 0 0% 2000 2001 2002 2003 2004 (*) 2002 results includes change in accounting for profit sharing, amounting to R$ 3.8 MM 37
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Five Years Review R$ MM % sales 80 40% Financial Expenses, net 35% 60 56 54 30% 25% 41 40 38 20% 33 15% 13% 20 11% 10% 9% 6% 5% 3% 0 0% 2000 2001 2002 2003 2004 38
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Five Years Review R$ MM % sales 120 30% 100 Operational Result after Financial Exp. 94 25% 80 20% 60 15% 40 10% 9% 19 20 5% 3% 0 0% -2 0 -1 0 -4 % -4 % -5 % -1 4 -2 % -1 8 -4 0 -1 0 % 2000 2001 2002 2003 2004 (*) 2002 results includes change in accounting for profit sharing, amounting to R$ 3.8 MM 39
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Five Years Review R$ MM % sales 180 50% 160 156 EBITDA 40% 140 120 30% 100 89 89 80 69 20% 58 60 17% 16% 14% 13% 14% 40 10% 20 0 0% 2000 2001 2002 2003 2004 (*) 2002 results includes change in accounting for profit sharing, amounting to R$ 3.8 MM 40
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Five Years Review R$ MM x EBITDA 250 5 ,0 Net Debt 200 195 4 ,0 150 3 ,0 115 106 102 2 ,2 100 2 ,0 65 1 ,5 1 ,3 50 1 ,1 1 ,0 0 ,6 0 0 ,0 2000 2001 2002 2003 2004 (*) 2002 results includes change in accounting for profit sharing, amounting to R$ 3.8 MM 41
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Consolidated – Income Statement R$ Thous. 42
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Consolidated – Income Statement R$ Thous. 43
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Iochpe-Maxion: Fundamentals Strong organic revenue growth Steady operating margins Growing cash generation Solid capital structure – net debt / EBITDA ratio Focus on businesses related to the transportation industry Local market leadership Capex aiming at a strong competitive position – barriers to entry Growing exports Capacity expansion in line with demand growth 44
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Iochpe-Maxion: Capital Markets and Governance Public company since 1984 / ADR Level I since 1994 Investor relationship Quarterly meetings Website – exclusive IR content Annual Reports, press releases, etc. Dividend payout – 37% of net income and an additional 10% for non voting shares Growing liquidity and float Board with 2 independent members and no executive officer members Audit Board (“Conselho Fiscal”) with 1 representative of the non- controlling shareholders 45
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Stock Performance R$ THOUS . R $ / TH OU S . S H A R ES 2 5 .0 0 0 2 3 .8 8 1 3 0 0 ,0 V OLU M E / M ON T H LY A V E R A GE P R IC E 2 2 .2 5 7 IOC H P E -M A X ION P N (M Y P K 4) 2 4 7 ,0 1 2 5 0 ,0 2 0 .0 0 0 V O LU M E 19 1,6 4 2 0 0 ,0 17 3 ,6 6 15 .0 0 0 A V ER A G E P R IC E 13 6 ,4 9 16 9 ,17 15 0 ,0 10 .0 0 0 9 7 ,9 8 110 ,7 8 8 4 ,3 9 4 ,18 6 .3 14 10 0 ,0 8 0 ,9 8 0 ,7 7 6 .17 2 4 9 ,6 3 8 1,3 0 4 .2 11 5 1,9 .6 8 9 3 8 0 ,4 7 .0 9 3 .7 5 5 7 8 2 .8 15 4 ,5 1 4 .17 5 5 .0 0 0 3 .19 7 2 .6 6 5 3 .2 3 6 2 6 ,8 2 5 ,2 2 4 ,72 4 ,2 5 ,12 6 ,82 6 ,4 21.3 9 8 7 ,6 5 0 ,0 2 3 ,5 2 758 8 9 5 3 5 115 10 4 5 0 5 0 12 5 17 7 3 12 13 6 - - 3 s e g/0 4 3 4 ju 0 3 a u l/ 04 m b /0 3 ar 3 m b/ 4 ar 0 4 ay 0 3 ay 4 ja /0 2 3 ja /0 3 o c /0 4 04 p 3 c 3 p 4 c/ 4 m r/ 3 m r / 04 a u l/ 0 n/3 n/4 n o t/0 n o t/0 ju 0 fe /0 fe /0 o c /0 s e g/0 d ev/0 d ev/0 a p /0 a p /0 ju /0 ju /0 n n c de 46
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Additional Information
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns BENCHMARK
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Benchmark – Gross Profit % net sales G e n te x S t o n e rid g e E a to n S t ra t t e c Io c h p e - M a x i o n T h y s s e n K ru p p B o rg W a rn e r C u m m in s A u t o liv Tennec o A m e ric a n A x le J o h n s o n C o n t ro ls D u ra V a le o TR W A u to Lear F a u re c ia A r vi n M e r i t o r D e lp h i 2004 2003 V is t e o n 0% 10% 20% 30% 40% A ve g a r e = 15% Source: Companies releases Full Year 2004 of each company, except for Strattec with 6 months result and ArvinMeritor, Johnson Controls and Thyssen Krupp with 3 months results 49
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Benchmark – EBIT % net sales G e n te x S t ra t t e c Io c h p e - M a x i o n B o rg W a rn e r E a to n A u t o liv A m e ric a n A x le T h y s s e n K ru p p Lear TR W A u to J o h n s o n C o n t ro ls Tennec o D u ra C u m m in s V a le o F a u re c ia A r vi n M e r i t o r D e lp h i V is t e o n 2004 2003 S t o n e rid g e -2 0 % -1 0 % 0% 10% 20% 30% 40% A ve r a g e = 5 % Source: Companies releases Full Year 2004 of each company, except for Strattec with 6 months result and ArvinMeritor, Johnson Controls and Thyssen Krupp with 3 months results 50
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Benchmark – EBITDA % net sales S tra tt e c B o rg W a rn e r Io c h p e - M a x i o n A u t o liv A m e ric a n A x le V a le o TR W A u to T h y s s e n K ru p p Tennec o D u ra C u m m in s F a u re c ia Lear J o h n s o n C o n t ro ls D e lp h i 2004 2003 A r vi n M e r i t o r V is t e o n -1 0 % 0% 10% 20% 30% 40% A ve r a g e = 9 % Source: Companies releases Full Year 2004 of each company, except for Strattec with 6 months result and ArvinMeritor, Johnson Controls and Thyssen Krupp with 3 months results 51
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns ROCE – Return of Capital Employed - 2004 (*) S t ra t t e c G e n te x Io c h p e - M a x i o n C u m m in s E a to n A m e ric a n A x le B o rg W a rn e r J o h n s o n C o n t ro ls Lear A u t o liv Tennec o T h y s s e n K ru p p TR W A u to V a le o D u ra F a u re c ia A r vi n M e r i t o r S t o n e rid g e V is t e o n -8 0 , 0 % -6 0 , 0 % -4 0 , 0 % -2 0 , 0 % 0 ,0 % 2 0 ,0 % 4 0 ,0 % 6 0 ,0 % A ve r a g e = 1 2 , 0 % Source: Companies releases (*) (Net Income + Interest net of 34% income taxes) / (Average Net Bank Debt + Average Net Worth) 52
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Industry – Brazilian Output Thousand units 2000 C a rs 1800 1600 1400 1200 1000 800 600 400 200 0 94 95 96 97 98 99 00 01 02 03 04 19 19 19 19 19 19 20 20 20 20 20 53
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Industry – Brazilian Output Thousand units 350 300 P ic k u p s 250 200 150 100 50 0 94 95 96 97 98 99 00 01 02 03 04 19 19 19 19 19 19 20 20 20 20 20 54
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Industry – Brazilian Output Thousand units 160 140 T ru c k s Buses 120 100 80 60 40 20 0 94 95 96 97 98 99 00 01 02 03 04 19 19 19 19 19 19 20 20 20 20 20 55
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Industry – Brazilian Output Thousand units 80 A g r ic u lt u r a l M a c h in e r y 70 60 50 40 30 20 10 0 94 95 96 97 98 99 00 01 02 03 04 19 19 19 19 19 19 20 20 20 20 20 56
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Brazilian Railroad Equipment Industry Units 6000 F r e ig h t C a r s 5000 4000 3000 2000 1000 0 94 95 96 97 98 99 00 01 02 03 04 19 19 19 19 19 19 20 20 20 20 20 57
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Brazilian Railroad Equipment Industry Units 60000 R a ilr o a d W h e e ls 50000 40000 30000 20000 10000 0 94 95 96 97 98 99 00 01 02 03 04 19 19 19 19 19 19 20 20 20 20 20 Does not include wheels used in the assembly of new freight cars 58
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Brazilian Railroad Equipment Industry Tons 4500 4000 R a ilr o a d C a s t in g s 3500 3000 2500 2000 1500 1000 500 0 94 95 96 97 98 99 00 01 02 03 04 19 19 19 19 19 19 20 20 20 20 20 Does not include castings used in the assembly of new freight cars 59
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Wheels and Chassis Division Chassis – New Orders: R$ 19.2 MM Annual Sales P ro d u c t / C u s to m e r C o u n try S ta r tin g D a te A n n u a l S a le s R$ MM L ig h t S ta m p in g s - A r v in M e r ito r B r a z il M a y .0 5 9 .6 M e d iu m S ta m p in g s - D a im le r C h r y s le r B r a z il A u g .0 4 3 .1 C h a s s is - V o lk s w a g e n (C K D - M e x ic o ) B r a z il M a r .0 4 2 .3 C h a s s is - V o lk s w a g e n B r a z il A p r .0 4 2 .2 L ig h t S ta m p in g s - D a im le r C h r y s le r B r a z il J u n .0 4 1 .3 M e d iu m S ta m p in g s - P e u g e o t C itr o e n B r a z il O c t.0 4 0 .4 S id e r a il R e in fo r c e m e n t - D a im le r C h r y s le r B r a z il M a y .0 4 0 .3 60
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Wheels and Chassis Division Wheels – New Orders: R$ 19.1 MM Annual Sales CUST O M ER C o u n tr y S t a r t in g D a t e A n n u a l S a le s R$ M M W o rk h o rs e USA J u n .0 5 6 .5 J o h n D e e re B r a z il N o v .0 4 3 .2 S t ip T u n is ia M a y .0 4 2 .3 D u n lo p S o u t h A f r ic a J u n .0 4 1 .5 K u rt L e y s e r C o rp . S o u t h A f r ic a A p r .0 4 1 .5 P e tr o m a s te r R u s s ia J a n .0 5 1 .2 M AAP M o ro c c o M a y .0 4 1 .0 J a rl E l J a o u d a A r g e lia N o v .0 4 0 .8 K r is t a n a s S p ir o s G re e c e J u l.0 4 0 .6 In t e r n a t io n a l T r a d e M o ro c c o J a n .0 5 0 .5 61
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Automotive Components Division New Orders: R$ 3.1 MM Annual Sales (*) M o d e l - C u s to m e r s P ro d u ct S ta r tin g A n n u a l S a le s D a te R$ M M New Cab - VW Knobs J u n .0 5 1 .6 F o x E u ro - V W J a c k / L a tc h e s J a n .0 5 1 ,1 Id e a - F ia t H in g e s M a i.0 5 0 .4 (*) Does not include new orders of window mechanisms, due to the divestiture of this business 62
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Consolidated – Net Debt Breakdown – Dec.04 – R$ MM DEBT TYPE SHORT LONG TOTAL Local Bonds 2 8 .1 2 8 .1 T r a d e F in a n c e / E x p o r t L in e s 2 2 .1 3 5 .2 5 7 .3 E q u ip m e n t F in a n c in g L in e s 2 1 .6 2 3 .8 4 5 .4 L o c a l L in e s 4 5 .0 4 5 .0 1 1 6 .8 5 9 .0 1 7 5 .8 (- ) C a s h a n d M a r k e t a b le S e c u r it ie s 7 3 .9 2 6 .0 Net Debt 4 2 .9 5 9 .0 1 0 1 .9 63
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Consolidated –Debt Indexation – Dec.04 CDI (interbank) 26% TJLP (BNDES 23% rate) Dollar 32% 3% 16% INPC IGPM (consumer (general Inflation) Inflation) 64
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns Consolidated – Foreign Currency Exposure – Dec. 04 B a la n c e S h e e t US$ MM A s s e ts d e n o m in a te d in fo re ig n c u rre n c y . M a r k e t a b l e S e c u r it ie s / In v e s t m e n t s 2 .6 . A c c o u n t s R e c e iv a b l e 5 .2 7 .8 L ia b ilitie s d e n o m in a te d in fo re ig n c u rre n c y . B a n k D e b t ( E x p o r t L in e s / O t h e r ) (1 5 .5 ) . A c c o u n ts P a y a b le (3 .7 ) (1 9 .2 ) N e t P o s itio n (1 1 .4 ) 65
  • 2005 Brazilian Infrastructure, Transport and Logistics Conference Bear Stearns February 2005