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Institutional presentation

  1. 1. April, 2011. Carlos Zignani - IR Director Thiago A. Deiro - IR Manager INSTITUTIONAL PRESENTATION
  2. 2. This presentation contains future information. Such information is not simply historical facts, but reflects the desires and the expectations of the Company’s leadership. The words anticipates, desires, hopes, forecasts, intends, plans, predicts, projects, wishes and similar ones, intend to identify affirmations that necessarily involve known and unknown risks. Known risks include uncertainties that are not limited to the impact of the competitiveness of the prices and services, market acceptance of services, the Company’s service transitions and its competitors, the approval of regulations, currency, fluctuation in the exchange rate, changes in the mix of services offered, and other risks described in the reports of the Company. This presentantion is updated until the present date. However, Marcopolo is not obligated to update it with new information and/or future events. ISCLAIMER 2
  3. 3. Marcopolo as a Leading Player Bus Market Overview Corporate Governance Operating & Financial Highlights Sustainability Product Line: Generation 7 Marcopolo Corporation GENDA
  4. 4. 40.0% Return On Equity in 2010: Company’s highest ever HIGHLIGHTS 23.3% Return on Invested Capital in 2010: highest level in years Market Value Added oriented Company PRODUCTS State-of-the-art technology Integrated production of nearly all parts used in manufacturing process Complete product line: coaches, urban buses, midi, micro & minibuses Founded in 1949, Marcopolo has more than 60 years in the business OVERVIEW Four factories in Brazil and seven abroad Over 20,000 employees in Brazil and abroad ARCOPOLO’S PROFILE 4
  5. 5. BUS BODY CHASSI (chassi manufacturers) NDERSTANDING OUR PRODUCT 5
  6. 6. LOBAL POSITION 6
  7. 7. SUEZ - EGYPT JOHANNESBURG - SOUTH AFRICA RIO DE JANEIRO - BRAZIL COTA - COLOMBIA MONTERREY - MEXICO DHARWAD/LUCKNOW INDIA CHANGZHOU - CHINA LOMA HERMOSA - ARGENTINA CAXIAS DO SUL - BRAZIL (components) 2010 = 1,255 2011g = 1,700 2010 = 736 2011g = 800 2010 = 18,900 2011g = 18,5002010 = 723 2011g = 800 2010 = 334 2011g = 600 2010 = 416 2011g = 400 2010 = 5,216 2011g = 6,500 MARCOPOLO’S TOTAL PRODUCTION 2010 = 27,580 2011g = 29,300 Variation = + 6.2% g = according to the guidance. TRATEGIC POSITIONING 7
  8. 8. Components Bus Production Post-sales Support ► Seats ► Foams ► Windows ► Doors ► Hydro-sanitary installation ► Handbag Compartment ► Plastic Components ► Air Conditioning System ► Audio & Video ► 11 units: 4 in Brazil and 7 abroad ► Presence in over 100 countries ► Up-to-date technology ► Low cost Structure ► Specialized efficient plants ► Qualified workforce ► Customization ► Quality widely recognized ► Sales representants ► Technical Assistance and product guarantee ► Retail facilities ► Possibility of financing from Moneo Bank ERTICALIZATION & COMPETITIVE ADVANTAGES 8
  9. 9. Marcopolo as a Leading Player Bus Market Overview Corporate Governance Operating & Financial Highlights Sustainability Product Line: Generation 7 Marcopolo Corporation GENDA
  10. 10. 21,680 21,787 21,381 25,280 26,983 27,952 32,027 35,410 25,645 33,395 27.3% 29.8% 32.8% 35.4% 46.9% 34.1% 31.6% 28.9% 17.7% 15.3% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Brazilian Production External Market +30.2% SOURCE: Fabus. BRAZILLIAN BUS BODY PRODUCTION (UN) 10
  11. 11. (*) SOURCE: Fabus/Simefre. (*) Irizar, Metalbus. ARKET SHARE IN BRAZIL (%) 11
  12. 12. TOTAL PRODUCTION 2009 = 311,000 2019 = 419,000 CAGR = 3.0% NORTH AMERICA - NAFTA 2009 = 12,000 2019 = 15,000 OTHER SOUTH AMERICA 2009 = 6,000 2019 = 9,000 BRAZIL 2009 = 30,000 2019 = 42,000 EGYPT 2009 = 3,000 2019 = 6,000 SOUTH AFRICA 2009 = 2,000 2019 = 3,000 AFRICA 2009: 5,000 2019: 9,000 AMERICAS 2009: 48,000 2019: 66,000 CHINA 2009 = 130,000 2019 = 150,000 INDIA 2009 = 42,000 2019 = 80,000 JAPAN 2009 = 9,000 2019 = 10,000 SOUTH KOREA 2009 = 12,000 2019 = 15,000 OTHER ASIA 2009 = 3,000 2019 = 5,000 ASIA & ASIAN SOUTHEAST 2009: 196,000 2019: 260,000 EUROPE 2009: 35,000 2019: 40,000 MIDDLE EAST & TURKEY 2009: 11,000 2019: 14,000 EAST EUROPE 2009: 16,000 2019: 30,000 SOURCE: OICA and internal estimates for the production of buses with more than 7ton, except for India and China. Note: School Buses in the USA and Canada are not considered. 12 BUS BODY WORLD PRODUCTION Marcopolo has approximatley 8% of the world’s market share
  13. 13. 320.2 335.2 353.6 375.7 401.0 424.1 449.1 13.1 14.3 13.6 13.8 13.9 14.1 14,5 2004 2005 2006 2007 2008 2009 2010 Total Fleet (thousand units) Average Fleet Age (years) Total Fleet & Average Age SOURCE: Fenabrave and Denatran. RAZILIAN BUS FLEET 13
  14. 14. • Events in Brazil 2011 – Renewal of interstate and international lines concessions 2012 – Municipal Elections/Euro 5 Engine 2013 – FIFA Confederations Cup 2014 – FIFA World Cup / Federal and State level elections 2016 – Olympic and Paralympic Games / Municipal Elections • Growth Drivers / Opportunities – GDP Growth – Investments in BRTs and public transit systems – School Buses for rural areas – Long term financing for buses – Launching of G7 new models: Double Decker and Low Driver – Global Presence – Global Sourcing – New Concession lines - fleet renovation BRTs: Approx. R$ 10.0 MM / Km Subway: Approx. R$ 200.0 MM / Km UTLOOK 14
  15. 15. • New Projects/Trends – Scholar City Buses – “Caminhos da Saúde” program – CBU’s exports financed by BNDES – Restrictions on the circulation of vehicles in central areas of big cities • Targets/Goals – #1 or #2 in every region in which we have factories – Premium prices – Lowest production cost • Threats – Strong exchange rate appreciation – Regional airlines – Trains/subways – Cars/motorcycles UTLOOK 15
  16. 16. THINK BRT. RT – BUS RAPID TRANSIT 16  Safer and more environmentally friendly traffic  Better air quality in cities  The speed and convenience of BRT traffic persuade more people to leave their cars at home and take the bus  High passenger capacity  Shorter travel times  Significantly reduced emissions and fuel consumption  Profitable within a very short time  Frees more space in the city
  17. 17. Growth Acceleration Program for public transport:  R$ 11.5 billions in investments  39 projects for public transport, including: • 20 BRTs systems Belo Horizonte 6 BRTs 1 Surveillance project 1 Pavement project Total: R$ 1.023,3 MM Porto Alegre 2 BRTs 3 Bus lanes 1 Surveillance project Total: R$ 368.6 MM Cuiabá 2 BRTs 1 Bus lane Total: R$ 454.7 MM Curitiba 1 BRT 1 Surveillance project 2 Pavement projects 3 Bus lanes 1 Bus Terminal Total: R$ 440.6 MM São Paulo 1 Monorail Total: R$ 1,082.0 MM Natal 2 Pavement projects 1 Bus lane Total: R$ 361.0 MM Brasília 1 Pavement project 1 Light Rail system Total: R$ 361.0 MM Salvador 1 BRT Total: R$ 541.8 MM Recife 2 BRTs 2 Bus lanes 1 Bus Terminal Total: R$ 648.0 MM Manaus 1 BRT 1 Monorail Total: R$ 800.0 MM Rio de Janeiro 2 BRTs Total: R$ 1,190.0 MM Fortaleza 3 BRTs 1 Light Rail system 1 Bus lane 1 Subway project Total: R$ 414.4 MM SOURCE: NTU. EW PROJECTS IN BRAZIL 17
  18. 18. Marcopolo as a Leading Player Bus Market Overview Corporate Governance Operating & Financial Highlights Sustainability Product Line: Generation 7 Marcopolo Corporation GENDA
  19. 19. Marcopolo’s Total Production 21,811 17,807 14,824 +6.2% 19,384 29,300 Marcopolo’s Market Share in Brazil (by model) 27,580 OTAL PRODUCTION (units) & MARKET SHARE (%) Domestic Market External Market 19
  20. 20. Total Net Revenues 2,964.5 2,532.2 2,101.1 1,750.3 +6.3% 2,023.8 3,150.0 Gross Profit and Margin +64.1% 2,200.0 950.0 Domestic Market External Market INANCIAL HIGHLIGHTS (R$ Million) 20
  21. 21. 120.8 146.5 134.4 125.0 295.8 6.9% 7.0% 5.3% 6.2% 10.0% 2006 2007 2008 2009 2010 Net Profit and Margin EBITDA and Margin +124.5% +136.6% INANCIAL HIGHLIGHTS (R$ Million) 21
  22. 22. Net Equity & ROE +4.9PP ROIC (%) +31.0% INANCIAL HIGHLIGHTS (R$ Million) 22
  23. 23. Net Indebtedness Investments 132.2 40.4 -28.3% 110.6 113.6 81.5 70.0 Net Debt (Industrial Segment)/LMT EBITDA -28.4% 745.7 86.6 323.9 709.6 508.4 1.1x1.7x0.6x  = Financial Segment  = Industrial Segment 0.4x INANCIAL HIGHLIGHTS (R$ Million) - 23
  24. 24. ALANCE SHEET BY SEGMENT (R$ Thousand) Consolidated Industrial Segment Financial Segment 12/31/10 12/31/09 01/01/09 12/31/10 12/31/09 01/01/09 12/31/10 12/31/09 01/01/09 Assets Current assets Cash and cash equivalents 672,123 498,972 416,077 617,932 465,978 403,352 54,191 32,994 12,725 Financial assets measured at fair value through profit or loss 40,424 32,210 14,354 40,424 4,622 83 27,588 14,271 Derivative financial instruments 13,668 5,228 13,668 5,228 Trade accounts receivable 810,464 701,260 681,435 585,424 502,848 517,285 225,040 198,412 164,150 Inventories 311,448 237,403 303,021 311,448 237,403 303,021 Other accounts receivable 142,382 141,290 236,623 129,583 133,748 229,809 12,799 7,542 6,814 1,990,509 1,616,363 1,651,510 1,698,479 1,349,827 1,453,550 292,030 266,536 197,960 Non-current assets Trade accounts receivable 425,700 398,943 329,721 1,222 1,217 6,694 424,478 397,726 323,027 Available-for-sale assets 199,517 85,309 87,482 183,073 77,382 87,482 16,444 7,927 Other accounts receivable 22,272 20,114 18,399 22,272 20,114 18,399 Investments 318,761 282,278 259,487 318,431 281,933 259,159 330 345 328 Property, plant and equipment 72,842 71,887 73,203 72,455 71,591 73,161 387 296 42 Intangible assets 1,039,092 858,531 768,292 597,453 452,237 444,895 441,639 406,294 323,397 Total assets 3,029,601 2,474,894 2,419,802 2,295,932 1,802,064 1,898,445 733,669 672,830 521,357 Liabilities and stockholders' equity Current liabilities 306,901 204,920 187,517 306,901 204,920 187,517 Suppliers 267,412 372,898 582,506 101,797 205,951 461,283 165,615 166,947 121,223 Loans and financing and derivative financial instruments 788 6,906 39,473 788 6,906 39,473 Other accounts payable 373,635 257,256 296,581 352,936 242,632 281,516 20,699 14,624 15,065 948,736 841,980 1,106,077 762,422 660,409 969,789 186,314 181,571 136,288 Non-current liabilities Financial institutions 1,094,439 866,156 548,156 689,087 494,037 260,460 405,352 372,119 287,696 Other accounts payable 23,036 28,085 80,542 20,771 28,065 80,539 2,265 20 3 1,117,475 894,241 628,698 709,858 522,102 340,999 407,617 372,139 287,699 Non-controlling interests 7,496 8,815 11,809 7,496 8,815 11,809 Stockholders' equity 955,894 729,858 673,218 816,156 610,738 575,848 139,738 119,120 97,370 Total liabilities and stockholders' equity 3,029,601 2,474,894 2,419,802 2,295,932 1,802,064 1,898,445 733,669 672,830 521,357 24
  25. 25. Consolidated Industrial Segment Financial Segment 12/31/10 12/31/09 12/31/10 12/31/09 12/31/10 12/31/09 Statement of operations Net revenues 2,964,499 2,023,819 2,896,568 1,974,629 67,931 49,190 Cost of products sold (2,333,156) (1,639,100 ) (2,333,156) (1,639,100) Gross profit 631,343 384,719 563,412 335,529 67,931 49,190 Operating income (expenses) Selling (162,650) (148,512 ) (156,032) (123,047) (6,618) (25,465) Management fees (15,014) (15,853 ) (15,014) (15,853) Administrative expenses (123,160) (85,185 ) (108,737) (77.704) (14,423) (7,481) Other operating income (expenses), net 26,189 4,299 29,366 3,916 (3,177) 383 Operating profit before equity results and financial income 7,084 2,050 7,084 2,050 Equity in earnings of investees 363,792 141,518 320,079 124,891 43,713 16,627 Financial result Financial expenses 208,803 223,968 208,708 223,038 95 930 Financial income (130,638) (174,713 ) (130,638) (174,713) Profit before taxation 441,957 190,773 398,149 173,216 43,808 17,557 Income tax and social contribution (146,203) (62,381 ) (128,157) (55,383) (18,046) (6,998) Operations not continued (3,409 ) (3,409) Net income for the period 295,754 124,983 269,992 114,424 25,762 10,559 NCOME STATEMENT BY SEGMENT (R$ Thousand) 25
  26. 26. Marcopolo as a Leading Player Bus Market Overview Corporate Governance Operating & Financial Highlights Sustainability Product Line: Generation 7 Marcopolo Corporation GENDA
  27. 27. FISCAL COUNCIL IR DIRECTOR HR AND ETHICS COMITEE STRATEGY AND INNOVATION COMITEE INTERNAL AUDIT EXTERNAL AUDIT AUDIT AND RISK COMITEE EXECUTIVE COMITEE CEO HEIRS’ COUNCIL BOARD OF DIRECTORS SHAREHOLDERS 27 RGANIZATION CHART
  28. 28.  Independent Board Members (3 out of 7)  Fiscal Council  Support Committees: Human Resouces & Ethics; Audit & Risks; Strategy & Innovation; and Executive  Independent External Audit  Tag Along (100% Common and 80% Preferred shares)  BM&FBovespa Corporate Governance Level 2 since 2002  Financial Statements in IFRS  Code of Conduct  Disclosure and Negotiation Policy  Participation in the BMF&Bovespa IBrX, IGC, SMLL, INDX and ITAG indexes  Heirs’ Succession Plan Marcopolo adopts corporate governance best practices, following the principles of transparency, accountability, social responsibility and equitable treatment of shareholders. ORPORATE GOVERNANCE 28
  29. 29. As of February, 28, 2011. Common Shares HAREHOLDING DISTRIBUTION 29
  30. 30. Preferred Shares As of February, 28, 2011. HAREHOLDING DISTRIBUTION 30
  31. 31. Marcopolo PN x Ibovespa - Base 100 POMO4: +119.1% IBOV: +1.0% R$ 3.19* 68,588 pts R$ 6.99* 69,304 pts * Adjusted by 100% stock dividend approved on September 10th, 2010. TOCK PERFORMANCE 12/30/2009 03/30/2010 06/30/2010 09/30/2010 12/30/2010 31
  32. 32. 80.2 120.5 146.5 134.4 136.5 295.8 42.4 50.4 75.0 52.1 71.8 150.0 53% 42% 51% 39% 53% 51% 2005 2006 2007 2008 2009 2010* Net Profit (Company) Dividends Pay Out (in%) AVERAGE PAY OUT: 48% HAREHOLDER REMUNERATION (R$ Million) * 2010 Net Profit according to IFRS standards. 32
  33. 33. - 500 1.000 1.500 2.000 2.500 3.000 3.500 - 2,0 4,0 6,0 8,0 10,0 12,0 14,0 dec/09 jan/10 feb/10 mar/10 apr/10 may/10 jun/10 jul/10 aug/10 sep/10 oct/10 nov/10 dec/10 MarketCap(R$million) Averagedailyvolume(R$million) Average Daily Volume Market Cap Marcopolo PN - POMO4 HARE LIQUIDITY & VALUATION 33
  34. 34. Marcopolo as a Leading Player Bus Market Overview Corporate Governance Operating & Financial Highlights Sustainability Product Line: Generation 7 Marcopolo Corporation GENDA
  35. 35. Source: www.transportdirect.info. O2 EMISSION COMPARISON 35
  36. 36. HICH WAY IS SUSTAINABLE? 36
  37. 37. Marcopolo as a Leading Player Bus Market Overview Corporate Governance Operating & Financial Highlights Sustainability Product Line: Generation 7 Marcopolo Corporation GENDA
  38. 38. GB Polo - Suez - Egipty MASA - Johannesburg – South Africa Polomex - Monterrey - Mexico Superpolo – Cota - ColombiaAna Rech - Caxias do Sul-RS - Brazil Planalto - Caxias do Sul-RS - Brazil Neobus - Caxias do Sul-RS - Brazil Ciferal - Duque de Caxias -RJ - Brazil Metalpar - Loma Hermosa - Argentina Tata MP Motors LMTD - Dharward - India Tata MP Motors LMTD - Lucknow - India US BUSINESS UNITS 38
  39. 39. Marcopolo as a Leading Player Bus Market Overview Corporate Governance Operating & Financial Highlights Sustainability Product Line: Generation 7 Marcopolo Corporation GENDA
  40. 40. ENERATION 7 40
  41. 41. Carlos Zignani Investor Relations Director carlos.zignani@marcopolo.com.br Tel: +55 (54) 2101.4115 Thiago A. Deiro Investor Relations Manager thiago.deiro@marcopolo.com.br Tel: +55 (54) 2101.4660 www.marcopolo.com.br/ri_eng ri@marcopolo.com.br NVESTOR RELATIONS CONTACTS

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