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MARCOPOLO DAY

Carlos Zignani - IR Director
Thiago A. Deiro - IR Manager



                               June, 2010.
AGENDA




         Bus Market Overview
         Bus Market Overview

         Marcopolo as a leading player
         Marcopolo as a leading player

         Operating & Financial Highlights
         Operating & Financial Highlights

         Corporate Governance
         Corporate Governance

         Marcopolo Corporation
         Marcopolo Corporation

         Product Line – Generation 7
         Product Line – Generation 7
BRAZILIAN BUS BODIES PRODUCTION                                         (units)



                                                                                     +24.8%
                                                                            35,410

                                                                32,027                        32,000

                                                       27,952
                                              26,983
                                    25,280                                           25,645

           21,680 21,787   21,381              46.9%

  18,099                            35.4%
                                                       34.1%
                           32.8%                                31.6%
                   29.8%                                                    28.9%
  26.7%    27.3%
                                                                                              21.9%
                                                                                     17.7%




   2000    2001    2002    2003      2004       2005    2006     2007        2008     2009    2010 E

                             Brazilian Production         External Market



                                                                                                       3
MARKET SHARE IN BRAZIL (%)


50%

                              49.8%
                      46.0%           47.0%
         46.5%                                45.9%                                           45.5%
                                                                      44.7%
40%
                                                      42.8%                   43.0%
                                                                                      41.7%                   MP/Ciferal
                                                              39.2%
                                                                                                              Busscar
30%
                                                                                                              Caio/ Induscar


                                                                                                              Comil
20%

                                                                                                              Neobus


                                                                                                              Mascarello
10%

                                                                                                              Other (*)

                                                                                                      (*) Irizar, Maxibus.
 0%
          2000        2001    2002    2003    2004    2005    2006    2007    2008    2009    1Q10




 SOURCE: Fabus/Simefre.
         Fabus/ Simefre.
                                                                                                                             4
BUS BODY WORLD PRODUCTION                                                                                                                     OTHER ASIA
                                                                                                                                                2009 = 3,000
                                                                                                                                                2019 = 5,000

                        NORTH AMERICA - NAFTA
                        2009 = 12,000
                        2019 = 15,000                                                                                                             SOUTH KOREA
                                                                                                                                                  2009 = 12,000
                                                                                                 EAST                                             2019 = 15,000
                                                                                               EUROPE
                                                                                              2009: 16,000
                                                                        EUROPE
                                                                                              2019: 30,000                                            JAPAN
                                                                       2009: 35,000                                                                   2009 = 9,000
                                                                       2019: 40,000                                     ASIA &                        2019 = 10,000
                                                                                                                   ASIAN SOUTHEAST
                                                                                           MIDDLE EAST
                                                                                                                      2009: 196,000
                                                                                            & TURKEY
                                                                                                                      2019: 260,000
                                                      EGYPT                                2009: 11,000
                                                      2009 = 3,000                         2019: 14,000
                                                      2019 = 6,000
                                                                                                                                                 CHINA
                                                                                                                                                 2009 = 130,000
                                                                                                                                                 2019 = 150,000
                      AMERICAS
                      2009: 48,000
                      2019: 66,000                                               AFRICA
                                                                                2009: 5,000
                                                                                                                        INDIA
                                                                                2019: 9,000                             2009 = 42,000
                                                                                                                        2019 = 80,000




                                                           BRAZIL
                                                           2009 = 30,000
                                                           2019 = 42,000
   OTHER SOUTH AMERICA                                                                            SOUTH AFRICA
   2009 = 6,000                                                                                   2009 = 2,000
   2019 = 9,000                                                                                   2019 = 3,000


                                                                                                                           TOTAL PRODUCTION
                                                                                                                             2009       =   311,000
                                                                                                                             2019       =   419,000
SOURCE: OICA and internal estimates for the production of buses with more than 7ton, except for India and China.                                                  5
                                                                                                                            CAGR        = 3.0%
Note: School Buses in the USA and Canada are not considered.
                                                 considered.
BRAZILIAN BUS FLEET


                                           Total Fleet & Average Age


                                                                                16.3           457,873
             15.2
                                    13.9                        13.5                             14.1
                                                     12.1



                                                             235,161




                                76,823                                       82,880
       38,088                                  24,921


     Midwest                  Northeast            North    Southeast        South             BRAZIL

                        Fleet per Region (units)                   Average Fleet Age (years)



  SOURCE: Fenabrave and Denatran.
                        Denatran.
OUTLOOK

• Events in Brazil
  2010 – Federal and State level elections
   2011 – Renewal of interstate and international lines concessions
   2012 – Municipal Elections
   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
                                                      BRTs: Approx. R$ 10.0 MM / Km
   – Investments in BRTs and public transit systems
                                                      Subway: Approx. R$ 200.0 MM / Km
   – School Buses for rural areas
   – Long term financing for buses
   – Generation 7 success
   – Global Presence
   – Global Sourcing
   – New Concession lines - fleet renovation
                                                                                         7
PERSPECTIVES

• New Projects/Trends
  – Intercity School 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

                                                                                 8
NEW PROJECTS IN BRAZIL
 Belo Horizonte           Porto Alegre
 6 BRTs                                                   São Paulo
                          2 BRTs
 1 Surveillance project   3 Bus lanes                     1 Monorail
 1 Pavement project       1 Surveillance project          Total: R$ 1,082.0 MM         Rio de Janeiro
 Total: R$ 1.023,3 MM     Total: R$ 368.6 MM                                           1 BRT
                                                                                       Total: R$ 1,190.0 MM
 Recife
 2 BRTs                                                                                Salvador
 2 Bus lanes
 1 Bus Terminal                  Growth Acceleration Program                           1 BRT
                                                                                       Total: R$ 541.8 MM
 Total: R$ 648.0 MM                   for public transport:
                                   R$ 11.5 billions in investments
                                                                                       Brasília
 Manaus                            39 projects for public transport,                   1 Pavement project
 1 BRT                                       including:                                1 Light Rail system
 1 Monorail                                                                            Total: R$ 361.0 MM
                                             • 20 BRTs systems
 Total: R$ 800.0 MM

                                                                            Curitiba
 Fortaleza
                                                                            1 BRT
 3 BRTs                                                                     1 Surveillance project
 1 Light Rail system        Cuiabá                    Natal                 2 Pavement projects
 1 Bus lane                 2 BRTs                    2 Pavement projects   3 Bus lanes
 1 Subway project           1 Bus lane                1 Bus lane            1 Bus Terminal
 Total: R$ 414.4 MM         Total: R$ 454.7 MM        Total: R$ 361.0 MM    Total: R$ 440.6 MM
SOURCE: NTU                                                                                                  9
AGENDA




         Bus Market Overview
         Bus Market Overview

         Marcopolo as a leading player
         Marcopolo as a leading player

         Operating & Financial Highlights
         Operating & Financial Highlights

         Corporate Governance
         Corporate Governance

         Marcopolo Corporation
         Marcopolo Corporation

         Product Line – Generation 7
         Product Line – Generation 7
GLOBAL PRESENCE




                  11
STRATEGIC POSITIONING
 PRODUCTION UNITS




                                                                                                                                   CHANGZHOU - CHINA
                                                                                                                                     (components)
MONTERREY - MEXICO
2009 = 1.510                                                    SUEZ - EGYPT
2010e = 1.500                                                   2009 = 207
                                                                2010e = 600
                                                                                    DHARWAD/LUCKNOW
            COTA - COLOMBIA
                                                                                          INDIA
            2009 = 638                                                              2009 = 2.517
            2010e = 600                                                             2010e = 6.000


                                      RIO DE JANEIRO - BRAZIL

                                   CAXIAS DO SUL - BRAZIL                JOHANNESBURG - SOUTH AFRICA
        LOMA HERMOSA - ARGENTINA   2009 = 13.672                         2009 = 308
        2009 = 470                 2010e = 14.900                        2010e = 600      MARCOPOLO’S        TOTAL
        2010e = 500                                                                                 PRODUCTION
                                                                                                2009            = 19,384*
                                                                                                2010e           = 24,700
                                                                                                Variation = + 27.4%
                                                                                 * Includes 54 units produced in Portugal and 8 units in Russia.
                                                                                                                                         Russia.
                                                                                                                                                   12
VERTICALIZATION & COMPETITIVE ADVANTAGES


            Components                      Bus Production                   Post-sales Support


►   Seats                         ►   11 units: 4 in Brazil and      ►   Sales representants
                                      7 abroad
►   Foams                                                            ►   Technical Assistance and
                                  ►   Presence in over 100
►   Windows                                                              product guarantee
                                      countries
►   Doors                                                            ►   Retail facilities
                                  ►   Up-to-date technology
►   Hydro-sanitary installation                                      ►   Possibility of financing from
                                  ►   Low cost Structure
►   Handbag Compartment                                                  Moneo Bank
                                  ►   Specialized efficient plants
►   Plastic Components
                                  ►   Qualified workforce
►   Air Conditioning System
                                  ►   Customization

                                  ►   Quality widely recognized




                                                                                                    13
AGENDA




         Bus Market Overview
         Bus Market Overview

         Marcopolo as a leading player
         Marcopolo as a leading player

         Operating & Financial Highlights
         Operating & Financial Highlights

         Corporate Governance
         Corporate Governance

         Marcopolo Corporation
         Marcopolo Corporation

         Product Line – Generation 7
         Product Line – Generation 7
TOTAL PRODUCTION (units) & MARKET SHARE (%)

                                       Marcopolo’s Total Production
                                                    +27.4%

                                                              24,700
                                            21,811
                                                     19,384
                                   17,807
                 16,456
                          14,824

                                                                             +8.3%
                                                                                                   +55.9%

                                                                                    5,375                   6,134
                                                                           4,964
                                                                                                   3,935             EM

                                                                                                                     DM
                  2005    2006      2007     2008     2009    2010 E        3Q09    4Q09            1Q09      1Q10




                    Marcopolo’s Market Share in Brazil                                         (by model)
                                                                                                      70.9%




                                                                                                      54.3%
                                                                                                                          Intercity


                                                                                                                          Urban

                                                                                                      37.1%
                                                                                                                          Micro
                                                                                                      31.5%
                                                                                                                          Mini




          2000     2001     2002      2003      2004     2005      2006   2007     2008     2009   1Q10                               15
FINANCIAL HIGHLIGHTS (R$ Million)

                                                Total Net Sales
                                                  +23.9%

                                        2,532.2             2,550.0

                              2,101.1             2,057.7
                      1,750.3
            1,709.1


                                                                              +28.6%
                                                                                              +46.6%

                                                                                    617.5              679.2
                                                                         480.3                463.4
                                                                                                               EM
                                                                                                               DM
             2005      2006     2007     2008      2009     2010 E           3Q09   4Q09       1Q09     1Q10




                                        Gross Profit & Margin
                                                  -16.5%
                                         474.1


                                                    395.8

                      329.7     342.6


            257.2
                                                                                            +64.0%
                                                                      +65.7%                          163.7
                                                                               131.7
                                                                                             99.8
                                                                      79.5

                                                                                            21.5% 24.1%
            15.1% 18.8% 16.3%            18.7% 19.2%                  16.6% 21.3%


            2005      2006      2007     2008       2009              3Q09     4Q09         1Q09      1Q10          16
FINANCIAL HIGHLIGHTS (R$ Million)

                                            EBITDA & Margin
                                             -32.5%
                                    273.5



                                            184.7
                    168.2 168.5
                                                                      +139.6%
           120.4                                                                112.6
                                                      +85.2%
                                                               56.5    47.0
                                                      30.5                      16.6%
                                                                        10.1%
            7.0%    9.6%    8.0% 10.8% 9.0%           6.4%     9.2%

           2005     2006    2007    2008    2009      3Q09 4Q09        1Q09     1Q10




                              EBITDA (adjusted) & Margin
                                            -2.7%


                    206.3   216.4   214.2   208.4


            150.9                                                     +132.1%

                                                                                114.9
                                                      +33.9%

                                                               58.8     49.5
                                                       43.9
                                                                                16.9%
            8.8% 11.8% 10.3% 8.5%           10.1%      9.1%    9.5%     10.7%

            2005    2006    2007    2008    2009      3Q09     4Q09     1Q09     1Q10   17
FINANCIAL HIGHLIGHTS (R$ Million)

                                        Net Income & Margin
                                       +1.6%

                            146.5
                                    134.4   136.5
                    120.8

                                                                    +221.4%
             82.4                                   +208.3%
                                                                              69.1
                                                             63.2


                                                     20.5             21.5

            4.8%    6.9%    7.0%    5.3%    6.6%     4.3% 10.2%      4.6%     10.2%

            2005    2006    2007    2008    2009    3Q09    4Q09     1Q09     1Q10




                                        Net Worth & ROE
                                                                    +15.2%
                                                    +0.1%
                                    +5.9%                                    797.2
                                            724.0   723.2   724.0    691.8
                                    683.5
                            590.4
                    536.0
            464.1



                    26.0% 24.8%
                                                                             23.1%
            19.3%                   19.7% 18.9%                      18.4%
                                                    18.2% 18.9%




            2005    2006    2007    2008    2009    3Q09    4Q09     1Q09    1Q10     18
FINANCIAL HIGHLIGHTS (R$ Million)

                                                Investments

                                  132.2
                                                   -42.3%
                          110.6
                                           104.0



                                                    60.0             +1.0%                  -37.0%
                   40.4                                                              38.1
            24.8                                                                              24.0
                                                                 19.6    19.8



            2005   2006   2007    2008      2009    2010 E       3Q09    4Q09        1Q09     1Q10



                                           Net Indebtedness
                                                             -4.8%

                                                     745.7                          727.8
                                                              709.6




                                     323.9



              115.4       86.6
               0.8x                      0.6x         1.7x     1.1x                  0.9x
                                                                                                     Net Debt (Industrial
                          0.4x
                                                                                                     Segment)/LTM EBITDA
               2005       2006           2007        2008      2009                 1Q10

                             = Financial Segment             = Industrial Segment                                           19
AGENDA




         Bus Market Overview
         Bus Market Overview

         Marcopolo as a leading player
         Marcopolo as a leading player

         Operating & Financial Highlights
         Operating & Financial Highlights

         Corporate Governance
         Corporate Governance

         Marcopolo Corporation
         Marcopolo Corporation

         Product Line – Generation 7
         Product Line – Generation 7
ORGANIZATION CHART


                        Shareholders
                        Shareholders

   HEIRS’ COUNCIL
   HEIRS’ COUNCIL                           FISCAL COUNCIL
                                            FISCAL COUNCIL         HR AND ETHICS
                                                                   HR AND ETHICS

                       BOARD OF DIRECTORS
                       BOARD OF DIRECTORS          COMITEE
                                                   COMITEE        AUDIT AND RISK
                                                                  AUDIT AND RISK


   EXTERNAL AUDIT
   EXTERNAL AUDIT                           INTERNAL AUDIT
                                             INTERNAL AUDIT   STRATEGY AND INNOVATION
                                                              STRATEGY AND INNOVATION


                                                                    EXECUTIVE
                                                                    EXECUTIVE


        IR DIRECTOR
         IR DIRECTOR




                             CEO
                             CEO




                                                                                        21
ORGANIZATION CHART
                                 CEO
                                 CEO


                                            DEVELOPING AND
                                            DEVELOPING AND
                                           STRATEGY DIVISION
                                           STRATEGY DIVISION
                                                                   MARKETING               BUSINESS
                                                                                           BUSINESS
                                                                    MARKETING          DEVELOPMENT AND
                                                                  AND STRATEGY         DEVELOPMENT AND
                                                                  AND STRATEGY           SYNCROPARTS
                                                                                         SYNCROPARTS
                                                                     DIVISION
                                                                     DIVISION              DIVISION
                                                                                            DIVISION




                 Bus Business
                 Bus Business     Bus Business
                                  Bus Business
                 Latin America     Africa and               LCV            Financial
                                                                           Financial
                 Latin America      Africa and              LCV            Services
                  and Europe
                  and Europe       Middle East                              Services
                                   Middle East


Administrative
Administrative
  Director
  Director

  Financial
  Financial
  Services
  Services
  Director
   Director

Manufacturing
Manufacturing
     and
      and
 Engineering
 Engineering
   Director
   Director

 System and
 System and
  Process
   Process
  Director
   Director


                                                                                                         22
    Service
   Providers                               Business Units
CORPORATE GOVERNANCE

  Marcopolo adopts corporate governance best practices, following the principles of transparency,
   Marcopolo adopts corporate governance best practices, following the principles of transparency,
           accountability, social responsibility and equitable treatment of shareholders.
            accountability, social responsibility and equitable treatment of shareholders.


   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 IGC, SMLL, INDX and ITAG indexes

   Heirs’ Succession Plan

                                                                                                     23
SHAREHOLDING DISTRIBUTION


                      Preferred Shares                                                         Common Shares


                 4.6%         0.7%                                                                        2.0%
                                                                                        3.7%
         5.2%                                                                   6.1%
  7.7%
                                                                         8.5%




                                                   48.7%
                                                                       15.2%
   33.1%                                                                                                                    64.5%

                Foreign Shareholders                                               Controling Shareholders

                Other Shareholders in Brazil                                       Fundação Bco. Central - CENTRUS

                Jose Antonio Fernandes Martins                                     Other Shareholders in Brazil

                Fundo Petrobras Seg. Soc. Petros                                   Bco. Bradesco S.A. / Bradesco Seguros S.A.

                BNDES Part. S.A. - BNDESPAR                                        Marcopolo Foundation

                Controling Shareholders                                            BNDES Part. S.A. - BNDESPAR


                                                       As of May, 31, 2010.
                                                             May,                                                                   24
STOCK PERFORMANCE




                 Marcopolo PN x Ibovespa - Base 100

                             POMO4: +94.9%

                             IBOV: +18.5%                  R$ 8.46




                                                           63.046 pts

   R$ 4.34




  53.197 pts




  05/31/09     08/31/09         11/30/09        02/28/10    05/31/10




                                                                        25
SHARE LIQUIDITY & VALUATION




                                                                              Marcopolo PN - POMO4
                                      6.0                                                                                                 2,000

                                                                                                                                          1,800
  Average daily volume (R$ million)




                                      5.0
                                                                                                                                          1,600




                                                                                                                                                  Market Cap (R$ million)
                                                                                                                                          1,400
                                      4.0
                                                                                                                                          1,200

                                      3.0                                                                                                 1,000

                                                                                                                                          800
                                      2.0
                                                                                                                                          600

                                                                                                                                          400
                                      1.0
                                                                                                                                          200

                                      -                                                                                                   -
                                            Jun-09   Jul-09   Aug-09 Sep-09   Oct-09   Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10

                                                                 Average Daily Volume                       Market Cap


                                                                                                                                                                            26
NET PROFIT (R$ Million) & PAY OUT RATIO



                                AVERAGE PAY OUT:
                                     47.2%
           150




           100




            50
                                           51.2                      52.6
                  52.9         41.8                       38.8


             0
                 2005          2006        2007           2008       2009
                         Net Profit      Pay Out (in %)          Dividends
                         (Company)




                                                                             27
AGENDA




         Bus Market Overview
         Bus Market Overview

         Marcopolo as a leading player
         Marcopolo as a leading player

         Operating & Financial Highlights
         Operating & Financial Highlights

         Corporate Governance
         Corporate Governance

         Marcopolo Corporation
         Marcopolo Corporation

         Product Line – Generation 7
         Product Line – Generation 7
BUS BUSINESS UNITS




   Ana Rech – Caxias do Sul-RS - Brasil      Planalto – Caxias do Sul-RS - Brasil       Neobus – Caxias do Sul-RS - Brasil            Ciferal – Duque de Caxias - RJ - Brasil




   Superpolo – Cota - Colômbia               Polomex – Monterrey - México               MASA – Johannesburg - África do Sul           GB Polo – Suez - Egito




                      Metalpar – Loma Hermosa - Argentina             Tata Marcopolo Motors LMTD – Dharward - Índia          Tata Marcopolo Motors LMTD – Lucknow - Índia




                                                                                                                                                                                29
AGENDA




         Bus Market Overview
         Bus Market Overview

         Marcopolo as a leading player
         Marcopolo as a leading player

         Operating & Financial Highlights
         Operating & Financial Highlights

         Corporate Governance
         Corporate Governance

         Marcopolo Corporation
         Marcopolo Corporation

         Product Line – Generation 7
         Product Line – Generation 7
G7 - PARADISO




                31
G7 - VIAGGIO




               32
INVESTOR RELATIONS CONTACT




 Carlos Zignani                     Thiago A. Deiro
 Investor Relations Director        Investor Relations Manager
 carlos.zignani@marcopolo.com.br    thiago.deiro@marcopolo.com.br
 Phone: +55 54 2101.4115            Phone: +55 54 2101.4660




               www.marcopolo.com.br/ri_eng
                          ri@marcopolo.com.br

                                                                    33
DISCLAIMER

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.

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Presentation marcopolo day(site)

  • 1. MARCOPOLO DAY Carlos Zignani - IR Director Thiago A. Deiro - IR Manager June, 2010.
  • 2. AGENDA Bus Market Overview Bus Market Overview Marcopolo as a leading player Marcopolo as a leading player Operating & Financial Highlights Operating & Financial Highlights Corporate Governance Corporate Governance Marcopolo Corporation Marcopolo Corporation Product Line – Generation 7 Product Line – Generation 7
  • 3. BRAZILIAN BUS BODIES PRODUCTION (units) +24.8% 35,410 32,027 32,000 27,952 26,983 25,280 25,645 21,680 21,787 21,381 46.9% 18,099 35.4% 34.1% 32.8% 31.6% 29.8% 28.9% 26.7% 27.3% 21.9% 17.7% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 E Brazilian Production External Market 3
  • 4. MARKET SHARE IN BRAZIL (%) 50% 49.8% 46.0% 47.0% 46.5% 45.9% 45.5% 44.7% 40% 42.8% 43.0% 41.7% MP/Ciferal 39.2% Busscar 30% Caio/ Induscar Comil 20% Neobus Mascarello 10% Other (*) (*) Irizar, Maxibus. 0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10 SOURCE: Fabus/Simefre. Fabus/ Simefre. 4
  • 5. BUS BODY WORLD PRODUCTION OTHER ASIA 2009 = 3,000 2019 = 5,000 NORTH AMERICA - NAFTA 2009 = 12,000 2019 = 15,000 SOUTH KOREA 2009 = 12,000 EAST 2019 = 15,000 EUROPE 2009: 16,000 EUROPE 2019: 30,000 JAPAN 2009: 35,000 2009 = 9,000 2019: 40,000 ASIA & 2019 = 10,000 ASIAN SOUTHEAST MIDDLE EAST 2009: 196,000 & TURKEY 2019: 260,000 EGYPT 2009: 11,000 2009 = 3,000 2019: 14,000 2019 = 6,000 CHINA 2009 = 130,000 2019 = 150,000 AMERICAS 2009: 48,000 2019: 66,000 AFRICA 2009: 5,000 INDIA 2019: 9,000 2009 = 42,000 2019 = 80,000 BRAZIL 2009 = 30,000 2019 = 42,000 OTHER SOUTH AMERICA SOUTH AFRICA 2009 = 6,000 2009 = 2,000 2019 = 9,000 2019 = 3,000 TOTAL PRODUCTION 2009 = 311,000 2019 = 419,000 SOURCE: OICA and internal estimates for the production of buses with more than 7ton, except for India and China. 5 CAGR = 3.0% Note: School Buses in the USA and Canada are not considered. considered.
  • 6. BRAZILIAN BUS FLEET Total Fleet & Average Age 16.3 457,873 15.2 13.9 13.5 14.1 12.1 235,161 76,823 82,880 38,088 24,921 Midwest Northeast North Southeast South BRAZIL Fleet per Region (units) Average Fleet Age (years) SOURCE: Fenabrave and Denatran. Denatran.
  • 7. OUTLOOK • Events in Brazil 2010 – Federal and State level elections 2011 – Renewal of interstate and international lines concessions 2012 – Municipal Elections 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 BRTs: Approx. R$ 10.0 MM / Km – Investments in BRTs and public transit systems Subway: Approx. R$ 200.0 MM / Km – School Buses for rural areas – Long term financing for buses – Generation 7 success – Global Presence – Global Sourcing – New Concession lines - fleet renovation 7
  • 8. PERSPECTIVES • New Projects/Trends – Intercity School 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 8
  • 9. NEW PROJECTS IN BRAZIL Belo Horizonte Porto Alegre 6 BRTs São Paulo 2 BRTs 1 Surveillance project 3 Bus lanes 1 Monorail 1 Pavement project 1 Surveillance project Total: R$ 1,082.0 MM Rio de Janeiro Total: R$ 1.023,3 MM Total: R$ 368.6 MM 1 BRT Total: R$ 1,190.0 MM Recife 2 BRTs Salvador 2 Bus lanes 1 Bus Terminal Growth Acceleration Program 1 BRT Total: R$ 541.8 MM Total: R$ 648.0 MM for public transport: R$ 11.5 billions in investments Brasília Manaus 39 projects for public transport, 1 Pavement project 1 BRT including: 1 Light Rail system 1 Monorail Total: R$ 361.0 MM • 20 BRTs systems Total: R$ 800.0 MM Curitiba Fortaleza 1 BRT 3 BRTs 1 Surveillance project 1 Light Rail system Cuiabá Natal 2 Pavement projects 1 Bus lane 2 BRTs 2 Pavement projects 3 Bus lanes 1 Subway project 1 Bus lane 1 Bus lane 1 Bus Terminal Total: R$ 414.4 MM Total: R$ 454.7 MM Total: R$ 361.0 MM Total: R$ 440.6 MM SOURCE: NTU 9
  • 10. AGENDA Bus Market Overview Bus Market Overview Marcopolo as a leading player Marcopolo as a leading player Operating & Financial Highlights Operating & Financial Highlights Corporate Governance Corporate Governance Marcopolo Corporation Marcopolo Corporation Product Line – Generation 7 Product Line – Generation 7
  • 12. STRATEGIC POSITIONING PRODUCTION UNITS CHANGZHOU - CHINA (components) MONTERREY - MEXICO 2009 = 1.510 SUEZ - EGYPT 2010e = 1.500 2009 = 207 2010e = 600 DHARWAD/LUCKNOW COTA - COLOMBIA INDIA 2009 = 638 2009 = 2.517 2010e = 600 2010e = 6.000 RIO DE JANEIRO - BRAZIL CAXIAS DO SUL - BRAZIL JOHANNESBURG - SOUTH AFRICA LOMA HERMOSA - ARGENTINA 2009 = 13.672 2009 = 308 2009 = 470 2010e = 14.900 2010e = 600 MARCOPOLO’S TOTAL 2010e = 500 PRODUCTION 2009 = 19,384* 2010e = 24,700 Variation = + 27.4% * Includes 54 units produced in Portugal and 8 units in Russia. Russia. 12
  • 13. VERTICALIZATION & COMPETITIVE ADVANTAGES Components Bus Production Post-sales Support ► Seats ► 11 units: 4 in Brazil and ► Sales representants 7 abroad ► Foams ► Technical Assistance and ► Presence in over 100 ► Windows product guarantee countries ► Doors ► Retail facilities ► Up-to-date technology ► Hydro-sanitary installation ► Possibility of financing from ► Low cost Structure ► Handbag Compartment Moneo Bank ► Specialized efficient plants ► Plastic Components ► Qualified workforce ► Air Conditioning System ► Customization ► Quality widely recognized 13
  • 14. AGENDA Bus Market Overview Bus Market Overview Marcopolo as a leading player Marcopolo as a leading player Operating & Financial Highlights Operating & Financial Highlights Corporate Governance Corporate Governance Marcopolo Corporation Marcopolo Corporation Product Line – Generation 7 Product Line – Generation 7
  • 15. TOTAL PRODUCTION (units) & MARKET SHARE (%) Marcopolo’s Total Production +27.4% 24,700 21,811 19,384 17,807 16,456 14,824 +8.3% +55.9% 5,375 6,134 4,964 3,935 EM DM 2005 2006 2007 2008 2009 2010 E 3Q09 4Q09 1Q09 1Q10 Marcopolo’s Market Share in Brazil (by model) 70.9% 54.3% Intercity Urban 37.1% Micro 31.5% Mini 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10 15
  • 16. FINANCIAL HIGHLIGHTS (R$ Million) Total Net Sales +23.9% 2,532.2 2,550.0 2,101.1 2,057.7 1,750.3 1,709.1 +28.6% +46.6% 617.5 679.2 480.3 463.4 EM DM 2005 2006 2007 2008 2009 2010 E 3Q09 4Q09 1Q09 1Q10 Gross Profit & Margin -16.5% 474.1 395.8 329.7 342.6 257.2 +64.0% +65.7% 163.7 131.7 99.8 79.5 21.5% 24.1% 15.1% 18.8% 16.3% 18.7% 19.2% 16.6% 21.3% 2005 2006 2007 2008 2009 3Q09 4Q09 1Q09 1Q10 16
  • 17. FINANCIAL HIGHLIGHTS (R$ Million) EBITDA & Margin -32.5% 273.5 184.7 168.2 168.5 +139.6% 120.4 112.6 +85.2% 56.5 47.0 30.5 16.6% 10.1% 7.0% 9.6% 8.0% 10.8% 9.0% 6.4% 9.2% 2005 2006 2007 2008 2009 3Q09 4Q09 1Q09 1Q10 EBITDA (adjusted) & Margin -2.7% 206.3 216.4 214.2 208.4 150.9 +132.1% 114.9 +33.9% 58.8 49.5 43.9 16.9% 8.8% 11.8% 10.3% 8.5% 10.1% 9.1% 9.5% 10.7% 2005 2006 2007 2008 2009 3Q09 4Q09 1Q09 1Q10 17
  • 18. FINANCIAL HIGHLIGHTS (R$ Million) Net Income & Margin +1.6% 146.5 134.4 136.5 120.8 +221.4% 82.4 +208.3% 69.1 63.2 20.5 21.5 4.8% 6.9% 7.0% 5.3% 6.6% 4.3% 10.2% 4.6% 10.2% 2005 2006 2007 2008 2009 3Q09 4Q09 1Q09 1Q10 Net Worth & ROE +15.2% +0.1% +5.9% 797.2 724.0 723.2 724.0 691.8 683.5 590.4 536.0 464.1 26.0% 24.8% 23.1% 19.3% 19.7% 18.9% 18.4% 18.2% 18.9% 2005 2006 2007 2008 2009 3Q09 4Q09 1Q09 1Q10 18
  • 19. FINANCIAL HIGHLIGHTS (R$ Million) Investments 132.2 -42.3% 110.6 104.0 60.0 +1.0% -37.0% 40.4 38.1 24.8 24.0 19.6 19.8 2005 2006 2007 2008 2009 2010 E 3Q09 4Q09 1Q09 1Q10 Net Indebtedness -4.8% 745.7 727.8 709.6 323.9 115.4 86.6 0.8x 0.6x 1.7x 1.1x 0.9x Net Debt (Industrial 0.4x Segment)/LTM EBITDA 2005 2006 2007 2008 2009 1Q10 = Financial Segment = Industrial Segment 19
  • 20. AGENDA Bus Market Overview Bus Market Overview Marcopolo as a leading player Marcopolo as a leading player Operating & Financial Highlights Operating & Financial Highlights Corporate Governance Corporate Governance Marcopolo Corporation Marcopolo Corporation Product Line – Generation 7 Product Line – Generation 7
  • 21. ORGANIZATION CHART Shareholders Shareholders HEIRS’ COUNCIL HEIRS’ COUNCIL FISCAL COUNCIL FISCAL COUNCIL HR AND ETHICS HR AND ETHICS BOARD OF DIRECTORS BOARD OF DIRECTORS COMITEE COMITEE AUDIT AND RISK AUDIT AND RISK EXTERNAL AUDIT EXTERNAL AUDIT INTERNAL AUDIT INTERNAL AUDIT STRATEGY AND INNOVATION STRATEGY AND INNOVATION EXECUTIVE EXECUTIVE IR DIRECTOR IR DIRECTOR CEO CEO 21
  • 22. ORGANIZATION CHART CEO CEO DEVELOPING AND DEVELOPING AND STRATEGY DIVISION STRATEGY DIVISION MARKETING BUSINESS BUSINESS MARKETING DEVELOPMENT AND AND STRATEGY DEVELOPMENT AND AND STRATEGY SYNCROPARTS SYNCROPARTS DIVISION DIVISION DIVISION DIVISION Bus Business Bus Business Bus Business Bus Business Latin America Africa and LCV Financial Financial Latin America Africa and LCV Services and Europe and Europe Middle East Services Middle East Administrative Administrative Director Director Financial Financial Services Services Director Director Manufacturing Manufacturing and and Engineering Engineering Director Director System and System and Process Process Director Director 22 Service Providers Business Units
  • 23. CORPORATE GOVERNANCE Marcopolo adopts corporate governance best practices, following the principles of transparency, Marcopolo adopts corporate governance best practices, following the principles of transparency, accountability, social responsibility and equitable treatment of shareholders. accountability, social responsibility and equitable treatment of shareholders. 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 IGC, SMLL, INDX and ITAG indexes Heirs’ Succession Plan 23
  • 24. SHAREHOLDING DISTRIBUTION Preferred Shares Common Shares 4.6% 0.7% 2.0% 3.7% 5.2% 6.1% 7.7% 8.5% 48.7% 15.2% 33.1% 64.5% Foreign Shareholders Controling Shareholders Other Shareholders in Brazil Fundação Bco. Central - CENTRUS Jose Antonio Fernandes Martins Other Shareholders in Brazil Fundo Petrobras Seg. Soc. Petros Bco. Bradesco S.A. / Bradesco Seguros S.A. BNDES Part. S.A. - BNDESPAR Marcopolo Foundation Controling Shareholders BNDES Part. S.A. - BNDESPAR As of May, 31, 2010. May, 24
  • 25. STOCK PERFORMANCE Marcopolo PN x Ibovespa - Base 100 POMO4: +94.9% IBOV: +18.5% R$ 8.46 63.046 pts R$ 4.34 53.197 pts 05/31/09 08/31/09 11/30/09 02/28/10 05/31/10 25
  • 26. SHARE LIQUIDITY & VALUATION Marcopolo PN - POMO4 6.0 2,000 1,800 Average daily volume (R$ million) 5.0 1,600 Market Cap (R$ million) 1,400 4.0 1,200 3.0 1,000 800 2.0 600 400 1.0 200 - - Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Average Daily Volume Market Cap 26
  • 27. NET PROFIT (R$ Million) & PAY OUT RATIO AVERAGE PAY OUT: 47.2% 150 100 50 51.2 52.6 52.9 41.8 38.8 0 2005 2006 2007 2008 2009 Net Profit Pay Out (in %) Dividends (Company) 27
  • 28. AGENDA Bus Market Overview Bus Market Overview Marcopolo as a leading player Marcopolo as a leading player Operating & Financial Highlights Operating & Financial Highlights Corporate Governance Corporate Governance Marcopolo Corporation Marcopolo Corporation Product Line – Generation 7 Product Line – Generation 7
  • 29. BUS BUSINESS UNITS Ana Rech – Caxias do Sul-RS - Brasil Planalto – Caxias do Sul-RS - Brasil Neobus – Caxias do Sul-RS - Brasil Ciferal – Duque de Caxias - RJ - Brasil Superpolo – Cota - Colômbia Polomex – Monterrey - México MASA – Johannesburg - África do Sul GB Polo – Suez - Egito Metalpar – Loma Hermosa - Argentina Tata Marcopolo Motors LMTD – Dharward - Índia Tata Marcopolo Motors LMTD – Lucknow - Índia 29
  • 30. AGENDA Bus Market Overview Bus Market Overview Marcopolo as a leading player Marcopolo as a leading player Operating & Financial Highlights Operating & Financial Highlights Corporate Governance Corporate Governance Marcopolo Corporation Marcopolo Corporation Product Line – Generation 7 Product Line – Generation 7
  • 33. INVESTOR RELATIONS CONTACT Carlos Zignani Thiago A. Deiro Investor Relations Director Investor Relations Manager carlos.zignani@marcopolo.com.br thiago.deiro@marcopolo.com.br Phone: +55 54 2101.4115 Phone: +55 54 2101.4660 www.marcopolo.com.br/ri_eng ri@marcopolo.com.br 33
  • 34. DISCLAIMER 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.