Merrill Lynch
Small-Mid Cap Conference
Merrill Lynch
                                              Small-Mid Cap Conference


Iochpe-Maxion: Basics


    Two maj...
Merrill Lynch
                                               Small-Mid Cap Conference


Iochpe-Maxion: History


    1918:...
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                                                           Small-Mid Cap Conference

Shareholder Composition...
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Corporate Structure

             ...
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Net sales breakdo...
WHEEL AND CHASSIS DIVISION (*)




                  57%


(*) Division of
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                              Small-Mid Cap Conference

Wheels and Chassis Division




                    ...
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                                           Small-Mid Cap Conference

Wheels and Chassis Division: Basics


 ...
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                                         Small-Mid Cap Conference

Wheels and Chassis Division

         Cha...
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                                          Small-Mid Cap Conference

Wheels and Chassis Division

    Wheels ...
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                                         Small-Mid Cap Conference

Automotive Industry – Brazilian Output   ...
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                                        Small-Mid Cap Conference

Automotive Industry - Export              ...
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                                                            Small-Mid Cap Conference

Wheels and Chassis Div...
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                                           Small-Mid Cap Conference

Wheels and Chassis Division


         ...
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                                           Small-Mid Cap Conference

Wheels and Chassis Division


         ...
AUTOMOTIVE COMPONENTS DIVISION (*)




                  14%

(*) Division of
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                                        Small-Mid Cap Conference

Automotive Components Division: Basics


 ...
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                                            Small-Mid Cap Conference

Automotive Components Division


     ...
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                                      Small-Mid Cap Conference

Automotive Components Division: Main Product...
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Automotive Industry – Brazilian Output   ...
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Automotive Industry - Export              ...
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                                                            Small-Mid Cap Conference

Automotive Components ...
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                                     Small-Mid Cap Conference

Automotive Components Division


            ...
Subsidiaries :
AMSTED MAXION FUNDIÇÃO E EQUIPAMENTOS FERROVIÁRIOS




               30%
Merrill Lynch
                Small-Mid Cap Conference

Amsted Maxion




                                           26
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                                           Small-Mid Cap Conference

Amsted Maxion: Basics


    Integrated ...
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                                      Small-Mid Cap Conference

Amsted Maxion: Main Products



      RAILRO...
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                                                                    Small-Mid Cap Conference


Brazilian rai...
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Amsted Maxion   ...
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                                     Small-Mid Cap Conference

Amsted Maxion


               Market Share a...
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                                                            Small-Mid Cap Conference

Amsted Maxion


      ...
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                                                            Small-Mid Cap Conference

Amsted Maxion


      ...
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                                                             Small-Mid Cap Conference

Amsted Maxion


     ...
CONSOLIDATED
  FIGURES
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                                                    Small-Mid Cap Conference

Consolidated


         Net sa...
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                                                                            Small-Mid Cap Conference

Consol...
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                                                              Small-Mid Cap Conference

Consolidated        ...
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                                                          Small-Mid Cap Conference


Consolidated - First Ni...
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Consolidated - First Nine Months    ...
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                                  Small-Mid Cap Conference


Consolidated – Income Statement            R$ T...
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                                  Small-Mid Cap Conference


Consolidated – Income Statement            R$ T...
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                                              Small-Mid Cap Conference


Iochpe-Maxion: Fundamentals


   St...
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                                               Small-Mid Cap Conference


Iochpe-Maxion: Capital Markets and...
Merrill Lynch
                            Small-Mid Cap Conference

www.iochpe-maxion.com.br/




                        ...
Additional
Information
Merrill Lynch
                                                    Small-Mid Cap Conference

Automotive Industry – Brazilia...
Merrill Lynch
                                                  Small-Mid Cap Conference

Automotive Industry – Brazilian ...
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                                                  Small-Mid Cap Conference

Automotive Industry – Brazilian ...
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                                                        Small-Mid Cap Conference

Automotive Industry – Braz...
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                                                   Small-Mid Cap Conference

Brazilian Railroad Equipment In...
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                                                                     Small-Mid Cap Conference

Brazilian Rai...
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                                                                       Small-Mid Cap Conference

Brazilian R...
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                                                                             Small-Mid Cap Conference

Wheel...
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                                                           Small-Mid Cap Conference

Wheels and Chassis Divi...
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                                                                     Small-Mid Cap Conference

Automotive Co...
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                                                              Small-Mid Cap Conference


Consolidated – Net ...
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                                            Small-Mid Cap Conference


Consolidated –Debt Indexation – 3Q04
...
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                                                     Small-Mid Cap Conference


Consolidated – Foreign Curre...
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                    Small-Mid Cap Conference

Stock Performance




                                        ...
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BENCHMARK
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                                                                                                          Sm...
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                                                                                                          Sm...
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                                                                                                            ...
Merrill Lynch
                Small-Mid Cap Conference

Balance Sheet        R$ Thous.




                               ...
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Iochpe-Maxion - Merril Lynch Small & Mid Cap Conference Presentation

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Iochpe-Maxion - Merril Lynch Small & Mid Cap Conference Presentation

  1. 1. Merrill Lynch Small-Mid Cap Conference
  2. 2. Merrill Lynch Small-Mid Cap Conference 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
  3. 3. Merrill Lynch Small-Mid Cap Conference 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
  4. 4. Merrill Lynch Small-Mid Cap Conference Shareholder Composition Shareholders Agreement Iochpe Family BNDES Participações Free Float Free Float – Sept. 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 26.6% Total 26.5% Total 48.2% Total 25.3% Total 18.5% 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
  5. 5. Merrill Lynch Small-Mid Cap Conference Corporate Structure Iochpe-Maxion S.A. (16 Employees) Consolidated = 5,969 Employees 99.99% Maxion Componentes Estruturais Ltda. 92.64% 50% 7.22% Maxion Sistemas Amsted Maxion Fund. e Automotivos S.A. Equip. Ferroviários S.A. (3,370 Employees) 50% Wheels and Automotive Chassis Division Comp. Division Amsted (2,974 Employees) (1,294 Employees) Industries 5
  6. 6. Merrill Lynch Small-Mid Cap Conference Net sales breakdown % 9M04 - R$ 786.8 MM 9M03 - R$ 494.9 MM Automotive Automotive Comp. Division Comp. Division 13% 16% 57% 60% 30% 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
  7. 7. WHEEL AND CHASSIS DIVISION (*) 57% (*) Division of
  8. 8. Merrill Lynch Small-Mid Cap Conference Wheels and Chassis Division 8
  9. 9. Merrill Lynch Small-Mid Cap Conference 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 (barriers to entry) Local leadership Cost competitiveness: steel, wages Important export base (16% of sales) 9
  10. 10. Merrill Lynch Small-Mid Cap Conference Wheels and Chassis Division Chassis - 51% of Division’s net sales – R$ 230 MM – 9M04 Heavy Medium Light Stamped Parts Structural Siderails Parts Chassis 10
  11. 11. Merrill Lynch Small-Mid Cap Conference Wheels and Chassis Division Wheels for Vehicles - 49% of Division’s net sales – R$ 220 MM – 9M04 11
  12. 12. Merrill Lynch Small-Mid Cap Conference Automotive Industry – Brazilian Output Thousand units 3Q04 3Q03 ∆% 9M04 9M03 ∆% Cars 468.7 350.4 33.8% 1,302.6 1,104.9 17.9% Pickups 83.0 55.4 49.8% 223.7 153.5 45.7% Trucks 29.1 19.6 48.5% 79.1 58.3 35.6% Buses 7.7 7.0 10.6% 21.4 20.0 7.4% Total Vehicles 588.6 432.4 36.1% 1,626.9 1,336.7 21.7% Agricultural Machinery 18.9 17.5 7.7% 51.1 44.1 15.8% Source : Anfavea 12
  13. 13. Merrill Lynch Small-Mid Cap Conference Automotive Industry - Export Thousand units 3Q04 3Q03 ∆% 9M04 9M03 ∆% Cars 147.1 104.8 40.3% 361.3 333.9 8.2% Pickups 28.5 20.1 41.8% 74.5 48.8 52.7% Trucks 7.3 3.7 98.0% 19.0 8.4 126.2% Buses 3.3 2.5 28.4% 8.1 6.5 23.9% Total Vehicles 186.3 131.2 41.9% 462.9 397.7 16.4% Agricultural Machinery 8.5 6.3 34.5% 23.2 14.9 55.5% Source : Anfavea 13
  14. 14. Merrill Lynch Small-Mid Cap Conference Wheels and Chassis Division R$ MM Net Sales .3% 600 552 . 52 a.a = 9.9% ∆% 450 =3 397 400 A GR % C 295 3.7 =5 208 241 ∆% 173 200 174 113 112 00 1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04 LTM = Last 12 months / CAGR = Compounded Annual Growth Rate 14
  15. 15. Merrill Lynch Small-Mid Cap Conference Wheels and Chassis Division Chassis – Market Share and Customer Base – 9M04 Market Share Customer Base Volks- wagen General 22% Motors 13% 74% OEMs 11% 9% Ford 28% 7% Export Dana 15% 5% 16% Scania Maxion Daimler Chrysler Other 15
  16. 16. Merrill Lynch Small-Mid Cap Conference Wheels and Chassis Division Wheels - Market Share and Customer Base – 9M04 Market Share Customer Base Volks- Other wagen Scania Volvo 10% Trailer 11% 6% OEMs 6% Other 16% 11% 39% 51% Export 2 4 % 26% Hayes Tractors Maxion 16
  17. 17. AUTOMOTIVE COMPONENTS DIVISION (*) 14% (*) Division of
  18. 18. Merrill Lynch Small-Mid Cap Conference Automotive Components Division: Basics Light stamping Assembly of parts Focused on passenger cars Low barriers to entry Local leadership in main products Strong trend for globalization 18
  19. 19. Merrill Lynch Small-Mid Cap Conference 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 19
  20. 20. Merrill Lynch Small-Mid Cap Conference Automotive Components Division: Main Products HANDBRAKE PEDAL JACKS LEVERS SETS 20
  21. 21. Merrill Lynch Small-Mid Cap Conference Automotive Industry – Brazilian Output Thousand units 3Q04 3Q03 ∆% 9M04 9M03 ∆% Cars 468.7 350.4 33.8% 1,302.6 1,104.9 17.9% Pickups 83.0 55.4 49.8% 223.7 153.5 45.7% Trucks 29.1 19.6 48.5% 79.1 58.3 35.6% Buses 7.7 7.0 10.6% 21.4 20.0 7.4% Total Vehicles 588.6 432.4 36.1% 1,626.9 1,336.7 21.7% Agricultural Machinery 18.9 17.5 7.7% 51.1 44.1 15.8% Source : Anfavea 21
  22. 22. Merrill Lynch Small-Mid Cap Conference Automotive Industry - Export Thousand units 3Q04 3Q03 ∆% 9M04 9M03 ∆% Cars 147.1 104.8 40.3% 361.3 333.9 8.2% Pickups 28.5 20.1 41.8% 74.5 48.8 52.7% Trucks 7.3 3.7 98.0% 19.0 8.4 126.2% Buses 3.3 2.5 28.4% 8.1 6.5 23.9% Total Vehicles 186.3 131.2 41.9% 462.9 397.7 16.4% Agricultural Machinery 8.5 6.3 34.5% 23.2 14.9 55.5% Source : Anfavea 22
  23. 23. Merrill Lynch Small-Mid Cap Conference Automotive Components Division R$ MM Net Sales 150 0% a.a. 138 = 9. 28.9 % C AGR ∆% = 114 105 99 98 100 92 94 82 % = 38.6 ∆% 50 37 27 0 1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04 LTM = Last 12 months / CAGR = Compounded Annual Growth Rate 23
  24. 24. Merrill Lynch Small-Mid Cap Conference Automotive Components Division Market Share and Customer Base – 9M04 Market Share Share and Customer Base – 9M04 9M04 Chassis – Market % Market Share Customer Base General Window mechanism 42% Motors Hand break lever 43% 25% Pedal Set 27% Volks- 15% wagen Jack 20% 31% Latch 9% 14% SAS Knob / Key / Cylinder 7% Fiat 4% 7% 4% Other After Ford Market 24
  25. 25. Subsidiaries : AMSTED MAXION FUNDIÇÃO E EQUIPAMENTOS FERROVIÁRIOS 30%
  26. 26. Merrill Lynch Small-Mid Cap Conference Amsted Maxion 26
  27. 27. Merrill Lynch Small-Mid Cap Conference 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 High barrier to entry Local leadership Important export base Freight car assembly Assembly of components and castings Focused on the Brazilian railroad operators Low to medium entry barriers Local leadership 27
  28. 28. Merrill Lynch Small-Mid Cap Conference Amsted Maxion: Main Products RAILROAD RAILROAD BOOGIES WHEELS FREIGHT CARS 28
  29. 29. Merrill Lynch Small-Mid Cap Conference Brazilian railroad equipment market Sales 3Q04 3Q03 ∆% 9M04 9M03 ∆% Railroad freight cars – units 1,579 511 209% 4,195 1,339 213% Railroad wheels – thous. units 13.6 8.9 53% 30.4 27.0 13% Railroad castings – thous. tons 0.7 0.7 0% 2.7 1.6 69% Does not include wheels and castings used in the assembly of new freight cars 29
  30. 30. Merrill Lynch Small-Mid Cap Conference Amsted Maxion R$ MM Net Sales (*) % 600 556 9 6.5 a.a. ∆% = 464 .2% = 45 GR 400 328 % CA 1.5 236 = 11 ∆% 189 200 122 110 120 95 89 0 1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04 LTM = Last 12 months / CAGR = Compounded Annual Growth Rate (*) Amsted Maxion’s net sales. Consolidated figures consider 50% of Amsted Maxion’s sales 30
  31. 31. Merrill Lynch Small-Mid Cap Conference Amsted Maxion Market Share and Customer Base – 9M04 Market Share Customer Base CVRD Railroad Freight Cars 75% 57% Railroad Wheels 40% 14% MRS Railroad Castings 80% 12% Export 3% 7% 3% Industrial Castings 50% 4% FCA Other Ferronorte Caterpillar 31
  32. 32. Merrill Lynch Small-Mid Cap Conference Amsted Maxion Spot Orders 2004 : R$ 580.0 MM (*) CVRD / FCA – 2,878 cars MRS - 630 cars Delivered ADM - 140 cars As of Sept. 30 – 3,116 cars Mineração Serra and 30 boxes do Sossego - 42 cars Still in 2004 – 724 cars MRS / ALL - 50 boxes and 20 boxes MRC (Mitsui) – 150 cars Total = 3,840 cars and 50 boxes (*) Amsted Maxion’s net sales. Consolidated figures consider 50% of Amsted Maxion’s sales 32
  33. 33. Merrill Lynch Small-Mid Cap Conference Amsted Maxion Spot Orders 2005 : R$ 130.0 MM (*) MRC (Mitsui) – 350 cars C.V.G. Ferrominera Orinoco - (Venezuela) - 225 cars Comilog S.A. (Gabon) - 76 cars CBG – Compagnie des Bauxites de Guinee (Guinee) - 24 cars Total = 675 cars (*) Amsted Maxion’s net sales. Consolidated figures consider 50% of Amsted Maxion’s sales 33
  34. 34. Merrill Lynch Small-Mid Cap Conference Amsted Maxion Recurring Orders : R$ 132.2 MM per year (*) Caterpillar (Brazil and USA) – tractor parts - R$ 54.0MM ASF-Amsted (USA) – railroad castings – R$ 44.7MM C.V.G. Ferrominera Orinoco (Venezuela) – railroad castings – R$ 10.1MM Truck OEMs (Brazil) – fifth-wheel – R$ 8.5MM ConMet-Amsted (USA) – fifth-wheel components - R$ 7.7MM Metso (France) – industrial castings - R$ 3.6MM Komatsu / CNH (USA and Italy) – industrial castings - R$ 3.6MM (*) Amsted Maxion’s net sales. Consolidated figures consider 50% of Amsted Maxion’s sales 34
  35. 35. CONSOLIDATED FIGURES
  36. 36. Merrill Lynch Small-Mid Cap Conference Consolidated Net sales breakdown by customer and segment – 9M04 Customer Base Segment Daimler Volks- Chrysler OEMs producing in General Brazil 61% wagen Motors 9% 12% 7% - Bus, truck and Tractors 7% pickups 48% Export 1 3 % Fiat - Passenger cars 13% 4% 4% MRS 3% Brazilian railroad Ford operators 26% 17% 24% Export 13% CVRD Other 36
  37. 37. Merrill Lynch Small-Mid Cap Conference Consolidated Exports by product segment and destination – US$ 33.6 MM / R$ 99.5 MM - 9M04 9M03 – US$ 24.9 MM / R$ 80.6 MM Product Segment Destination Wheels Canada Chassis 10% 53% 17% 53% Mexico 3% USA 19% South 29% America 1% 1% 7% 7% Railroad Asia / Equipment Oceania Automotive Africa / Europe Comp. Middle East Import 9M04 - US$ 8.0MM / R$ 23.6MM (*) (*) includes US$ 3.4MM / R$ 10.0MM of machineryand equipment 37
  38. 38. Merrill Lynch Small-Mid Cap Conference Consolidated R$ MM Net Sales a.a. 968 1000 .3% .0% 41 = 59 Divestiture = 787 Phase GR ∆% 750 624 CA 676 615 495 .6% 500 411 = 65 374 ∆% 305 250 184 0 1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04 LTM = Last 12 months / CAGR = Compounded Annual Growth Rate 38
  39. 39. Merrill Lynch Small-Mid Cap Conference Consolidated - First Nine Months % net sales Operating Margins 23% 22% 22% 21% 19% 17% 16% 15% 15% 15% 13% 9% 10% 10% 8% 7% 4% -1% -5% -2% G r o s s P r o f it E B ITD A E B IT A f te r F in a n c ia l E xp e n s e s 9M00 9M01 9M02 9M03 9M04 39
  40. 40. Merrill Lynch Small-Mid Cap Conference Consolidated - First Nine Months R$ MM Operating Profits 175 126 107 104 85 74 78 67 68 63 51 49 36 45 28 21 20 (3) (15) (10) Gross Profit EBITDA EBIT After Financial Expenses 9M00 9M01 9M02 9M03 9M04 40
  41. 41. Merrill Lynch Small-Mid Cap Conference Consolidated – Income Statement R$ Thous. 41
  42. 42. Merrill Lynch Small-Mid Cap Conference Consolidated – Income Statement R$ Thous. 42
  43. 43. Merrill Lynch Small-Mid Cap Conference 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 43
  44. 44. Merrill Lynch Small-Mid Cap Conference 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 44
  45. 45. Merrill Lynch Small-Mid Cap Conference www.iochpe-maxion.com.br/ 45
  46. 46. Additional Information
  47. 47. Merrill Lynch Small-Mid Cap Conference Automotive Industry – Brazilian Output Thousand units 1800 C a rs 1600 1400 1200 1000 800 600 400 200 0 94 95 96 97 98 99 00 01 02 03 19 19 19 19 19 19 20 20 20 20 M LT 04 3Q 47
  48. 48. Merrill Lynch Small-Mid Cap Conference 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 19 19 19 19 19 19 20 20 20 20 M LT 04 3Q 48
  49. 49. Merrill Lynch Small-Mid Cap Conference Automotive Industry – Brazilian Output Thousand units 140 120 T ru c k s Buses 100 80 60 40 20 0 94 95 96 97 98 99 00 01 02 03 19 19 19 19 19 19 20 20 20 20 M LT 04 3Q 49
  50. 50. Merrill Lynch Small-Mid Cap Conference 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 19 19 19 19 19 19 20 20 20 20 M LT 04 3Q 50
  51. 51. Merrill Lynch Small-Mid Cap Conference 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 19 19 19 19 19 19 20 20 20 20 M LT 04 3Q 51
  52. 52. Merrill Lynch Small-Mid Cap Conference 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 19 19 19 19 19 19 20 20 20 20 M LT 04 3Q Does not include wheels used in the assembly of new freight cars 52
  53. 53. Merrill Lynch Small-Mid Cap Conference 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 19 19 19 19 19 19 20 20 20 20 M LT 04 3Q Does not include castings used in the assembly of new freight cars 53
  54. 54. Merrill Lynch Small-Mid Cap Conference 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 54
  55. 55. Merrill Lynch Small-Mid Cap Conference Wheels and Chassis Division Wheels – New Orders: R$ 17.4 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 Jo h n D eere 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 M AAP M o ro cco M a y .0 4 1 .0 B r id g e s t o n e S p a in F e b .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 55
  56. 56. Merrill Lynch Small-Mid Cap Conference Automotive Components Division New Orders: R$ 1,2 MM Annual Sales (*) M o d e l - C u s to m e r s P ro d u c t S t a r t in g A n n u a l S a le s D a te R$ M M Fox - VW Jack O c t .0 3 0 .9 P ic k - u p M o n t a n a - G M L a tc h N o v .0 3 0 .3 (*) Does not include new orders of window mechanisms, due to the divestiture of this business 56
  57. 57. Merrill Lynch Small-Mid Cap Conference Consolidated – Net Debt Breakdown – 3Q04 – R$ MM DEBT TYPE SHORT LONG TOTAL Local Bonds 2 7 .3 2 7 .3 T r a d e F in a n c e / E x p o r t L in e s 3 5 .9 4 5 .6 8 1 .5 E q u ip m e n t F in a n c in g L in e s 2 4 .9 2 0 .3 4 5 .2 L o c a l L in e s 2 3 .3 2 3 .3 1 1 1 .4 6 5 .9 1 7 7 .3 (- ) C a s h a n d M a r k e t a b le S e c u r it ie s 2 6 .0 2 6 .0 Net Debt 8 5 .4 6 5 .9 1 5 1 .3 57
  58. 58. Merrill Lynch Small-Mid Cap Conference Consolidated –Debt Indexation – 3Q04 TJLP 22% (BNDES rate) 47% Dollar 15% 3% INPC 13% (consumer Inflation) IGPM CDI (general (interbank) Inflation) 58
  59. 59. Merrill Lynch Small-Mid Cap Conference Consolidated – Foreign Currency Exposure – Sept. 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 1 .8 . A c c o u n t s R e c e iv a b l e 9 .9 1 1 .7 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 ) (2 8 .5 ) . A c c o u n ts P a y a b le (2 .6 ) (3 1 .1 ) N e t P o s itio n (1 9 .4 ) 59
  60. 60. Merrill Lynch Small-Mid Cap Conference Stock Performance 60
  61. 61. Merrill Lynch Small-Mid Cap Conference Consolidated – Employee Prodctivity W h e e ls a n d A u t o m o t iv e A m s te d C o rp o ra te a n d C o n s o lid a t e d ( * * ) C h a s s is C o m p o n e n t s M a x io n O th e r S e p t. 2 0 0 4 S e p t. 2 0 0 3 E m p lo y e e s 2 ,9 7 4 1 ,2 9 4 3 ,3 7 0 16 5 ,9 6 9 4 ,1 4 0 P r o d u c t iv it y ( * ) R $ t h o u s . / E m p lo y e e 1 8 5 .5 1 0 6 .6 1 6 4 .9 - 1 6 2 .1 1 4 5 .9 (*) Last 12 months sales /Number of employees at the end of the period (**) Consolidated ficgures consider 50% of Amsted Maxion 61
  62. 62. BENCHMARK
  63. 63. Merrill Lynch Small-Mid Cap Conference Benchmark – Gross Profit % net sales F r a s le G e n te x R a nd o n M a n g e ls S to n e r i d g e E a to n S tr a tte c Io c h p e -M a x io n A c c u rid e M a r c o p o lo F e d e ra l M o g u l B o rg W a rn e r V a le o C u m m in s T i ta n Te nne co A u to li v A m e r i c a n A x le L in a m a r J o h n s o n C o n tr o ls M a g na D u ra T R W A u to S u p e rio r D a na C o lli n s & A i k m a n A r v i n M e r i to r Lear Tow er 3Q04 3Q03 D e lp h i V i s te o n 0% 10% 20% 30% 40% A vg . = 1 7 % Fonte: Companies releases 2004 first nine months of each company, except for Strattec with 3 months result and ArvinMeritor and Johnson Controls with 12 months results 63
  64. 64. Merrill Lynch Small-Mid Cap Conference Benchmark – EBIT % net sales G e n te x F r a s le Randon A c c u r id e S tr a tte c Io c h p e -M a x io n M a n g e ls S t o n e r id g e M a r c o p o lo B o rg W a rn e r E a to n A m e r ic a n A x le L in a m a r A u t o liv T it a n S u p e r io r Magna J o h n s o n C o n t r o ls T R W A u to T enneco C u m m in s V a le o Dana D u ra Lear A r v in M e r it o r T ower F e d e ra l M o g u l C o llin s & A ik m a n 3Q04 3Q03 D e lp h i V is t e o n -5 % 5% 15% 25% 35% Avg. = 8% Fonte: Companies releases 2004 first nine months of each company, except for Strattec with 3 months result and ArvinMeritor and Johnson Controls with 12 months results 64
  65. 65. Merrill Lynch Small-Mid Cap Conference Benchmark – EBITDA % net sales G e n te x F r a s le A c c u rid e R a nd o n S tr a tte c Io c h p e -M a x io n L in a m a r S to n e r i d g e M a n g e ls B o rg W a rn e r A u to li v E a to n A m e r i c a n A x le T i ta n M a r c o p o lo S u p e rio r M a g na T R W A u to Te nne co F e d e ra l M o g u l Tow er D a na D u ra C u m m in s J o h n s o n C o n tr o ls A r v i n M e r i to r C o lli n s & A i k m a n Lear 3Q04 3Q03 D e lp h i V i s te o n 0% 10% 20% 30% 40% A vg . = 1 2 % Fonte: Companies releases 2004 first nine months of each company, except for Strattec with 3 months result and ArvinMeritor and Johnson Controls with 12 months results 65
  66. 66. Merrill Lynch Small-Mid Cap Conference Balance Sheet R$ Thous. 66

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