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
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
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
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.