MARCOPOLO DAY

MARCOPOLO DAY
Carlos Zignani - IR Director
Thiago A. Deiro - IR Manager
June, 2010.
AGENDA
Bus
Bus Market
Market Overview
Overview
Marcopolo
Marcopolo as
as aa leading
leading player
player
Operating
Operating &
& Financial
Financial Highlights
Highlights
Corporate
Corporate Governance
Governance
Marcopolo
Marcopolo Corporation
Corporation
Product
Product Line
Line –– Generation
Generation 77
BRAZILIAN BUS BODIES PRODUCTION
(units)
35,410
+24.8%
32,027
25,280
21,680 21,787
21,381
18,099
26.7%
26,983
29.8%
27,952
25,645
46.9%
35.4%
27.3%
32,000
34.1%
32.8%
31.6%
28.9%
17.7%
2000
2001
2002
2003
2004
2005
Brazilian Production
2006
2007
2008
2009
21.9%
2010 E
External Market
3
MARKET SHARE IN BRAZIL (%)
50%
49.8%
46.5%
47.0%
46.0%
45.9%
40%
44.7%
42.8%
43.0%
45.5%
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/
Fabus/Simefre.
Simefre.
4
BUS BODY WORLD PRODUCTION
OTHER ASIA
2009 = 3,000
2019 = 5,000
NORTH AMERICA - NAFTA
2009 = 12,000
2019 = 15,000
EUROPE
2009: 35,000
2019: 40,000
EGYPT
2009 = 3,000
2019 = 6,000
AMERICAS
2009: 48,000
2019: 66,000
OTHER SOUTH AMERICA
2009 = 6,000
2019 = 9,000
EAST
EUROPE
2009: 16,000
2019: 30,000
MIDDLE EAST
& TURKEY
2009: 11,000
2019: 14,000
JAPAN
2009 = 9,000
2019 = 10,000
ASIA &
ASIAN SOUTHEAST
2009: 196,000
2019: 260,000
CHINA
2009 = 130,000
2019 = 150,000
AFRICA
2009: 5,000
2019: 9,000
BRAZIL
2009 = 30,000
2019 = 42,000
SOUTH KOREA
2009 = 12,000
2019 = 15,000
INDIA
2009 = 42,000
2019 = 80,000
SOUTH AFRICA
2009 = 2,000
2019 = 3,000
TOTAL PRODUCTION
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.
considered.
2009
=
311,000
2019
=
419,000
CAGR
= 3.0%
5
BRAZILIAN BUS FLEET
Total Fleet & Average Age
16.3
457,873
15.2
13.9
13.5
14.1
12.1
235,161
82,880
76,823
38,088
Midwest
24,921
Northeast
Fleet per Region (units)
SOURCE: Fenabrave and Denatran.
Denatran.
North
Southeast
South
Average Fleet Age (years)
BRAZIL
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
– Investments in BRTs and public transit systems
BRTs: Approx. R$ 10.0 MM / Km
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
1 Surveillance project
1 Pavement project
Total: R$ 1.023,3 MM
2 BRTs
3 Bus lanes
1 Surveillance project
Total: R$ 368.6 MM
São Paulo
1 Monorail
Total: R$ 1,082.0 MM
Rio de Janeiro
1 BRT
Total: R$ 1,190.0 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
Salvador
Growth Acceleration Program
for public transport:
R$ 11.5 billions in investments
39 projects for public transport,
including:
1 BRT
Total: R$ 541.8 MM
• 20 BRTs systems
Total: R$ 361.0 MM
SOURCE: NTU
1 Pavement project
1 Light Rail system
Curitiba
Fortaleza
3 BRTs
1 Light Rail system
1 Bus lane
1 Subway project
Total: R$ 414.4 MM
Brasília
Cuiabá
Natal
2 BRTs
1 Bus lane
Total: R$ 454.7 MM
2 Pavement projects
1 Bus lane
Total: R$ 361.0 MM
1 BRT
1 Surveillance project
2 Pavement projects
3 Bus lanes
1 Bus Terminal
Total: R$ 440.6 MM
9
AGENDA
Bus
Bus Market
Market Overview
Overview
Marcopolo
Marcopolo as
as aa leading
leading player
player
Operating
Operating &
& Financial
Financial Highlights
Highlights
Corporate
Corporate Governance
Governance
Marcopolo
Marcopolo Corporation
Corporation
Product
Product Line
Line –– Generation
Generation 77
GLOBAL PRESENCE
11
STRATEGIC POSITIONING
PRODUCTION UNITS
CHANGZHOU - CHINA
(components)
MONTERREY - MEXICO
2009 = 1.510
2010e = 1.500
SUEZ - EGYPT
2009 = 207
2010e = 600
DHARWAD/LUCKNOW
INDIA
2009 = 2.517
2010e = 6.000
COTA - COLOMBIA
2009 = 638
2010e = 600
RIO DE JANEIRO - BRAZIL
LOMA HERMOSA - ARGENTINA
2009 = 470
2010e = 500
CAXIAS DO SUL - BRAZIL
2009 = 13.672
2010e = 14.900
JOHANNESBURG - SOUTH AFRICA
2009 = 308
2010e = 600
MARCOPOLO’S
TOTAL
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
►
Seats
►
Foams
►
Windows
Bus Production
►
►
►
►
►
►
Sales representants
►
Technical Assistance and
7 abroad
►
►
11 units: 4 in Brazil and
Post-sales Support
Presence in over 100
product guarantee
countries
Doors
►
Up-to-date technology
►
Low cost Structure
Hydro-sanitary installation
Handbag Compartment
►
Specialized efficient plants
►
Qualified workforce
►
Customization
►
Quality widely recognized
Plastic Components
Air Conditioning System
►
Retail facilities
►
Possibility of financing from
Moneo Bank
13
AGENDA
Bus
Bus Market
Market Overview
Overview
Marcopolo
Marcopolo as
as aa leading
leading player
player
Operating
Operating &
& Financial
Financial Highlights
Highlights
Corporate
Corporate Governance
Governance
Marcopolo
Marcopolo Corporation
Corporation
Product
Product Line
Line –– Generation
Generation 77
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%
4,964
+55.9%
6,134
5,375
3,935
EM
DM
2005
2006
2007
2008
2009
2010 E
3Q09
4Q09
1Q09
Marcopolo’s Market Share in Brazil
1Q10
(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
2,101.1
1,709.1
2,550.0
2,057.7
1,750.3
+28.6%
480.3
617.5
+46.6%
679.2
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
15.1% 18.8% 16.3%
18.7% 19.2%
2005
2008
2006
2007
2009
16.6% 21.3%
3Q09
4Q09
21.5% 24.1%
1Q09
1Q10
16
FINANCIAL HIGHLIGHTS (R$ Million)
EBITDA & Margin
273.5
-32.5%
184.7
168.2 168.5
+139.6%
120.4
112.6
+85.2%
56.5
47.0
9.2%
10.1%
30.5
7.0%
9.6%
2005
2006
8.0% 10.8% 9.0%
2007
2008
2009
6.4%
16.6%
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%
43.9
58.8
49.5
16.9%
8.8% 11.8% 10.3% 8.5%
10.1%
9.1%
9.5%
10.7%
2005
2009
3Q09
4Q09
1Q09
2006
2007
2008
1Q10
17
FINANCIAL HIGHLIGHTS (R$ Million)
Net Income & Margin
+1.6%
146.5
134.4
136.5
120.8
+208.3%
82.4
+221.4%
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
1Q09
1Q10
4Q09
Net Worth & ROE
+15.2%
+0.1%
+5.9%
683.5
536.0
797.2
724.0
723.2
724.0
691.8
590.4
464.1
26.0% 24.8%
19.3%
2005
2006
2007
23.1%
19.7% 18.9%
18.2% 18.9%
18.4%
2008
3Q09
1Q09
2009
4Q09
1Q10
18
FINANCIAL HIGHLIGHTS (R$ Million)
Investments
132.2
-42.3%
110.6
104.0
60.0
+1.0%
40.4
38.1
24.8
2005
2006
-37.0%
2007
2008
2009
2010 E
19.6
19.8
3Q09
4Q09
24.0
1Q09
1Q10
Net Indebtedness
-4.8%
745.7
709.6
727.8
323.9
115.4
86.6
0.8x
0.4x
0.6x
1.7x
1.1x
0.9x
2005
2006
2007
2008
2009
1Q10
= Financial Segment
= Industrial Segment
Net Debt (Industrial
Segment)/LTM EBITDA
19
AGENDA
Bus
Bus Market
Market Overview
Overview
Marcopolo
Marcopolo as
as aa leading
leading player
player
Operating
Operating &
& Financial
Financial Highlights
Highlights
Corporate
Corporate Governance
Governance
Marcopolo
Marcopolo Corporation
Corporation
Product
Product Line
Line –– Generation
Generation 77
ORGANIZATION CHART
Shareholders
Shareholders
HEIRS’
HEIRS’ COUNCIL
COUNCIL
BOARD
BOARD OF
OF DIRECTORS
DIRECTORS
EXTERNAL
EXTERNAL AUDIT
AUDIT
FISCAL
FISCAL COUNCIL
COUNCIL
HR
HRAND
ANDETHICS
ETHICS
COMITEE
COMITEE
AUDIT
AUDITAND
ANDRISK
RISK
INTERNAL
INTERNAL AUDIT
AUDIT
STRATEGY
STRATEGYAND
ANDINNOVATION
INNOVATION
EXECUTIVE
EXECUTIVE
IR
IR DIRECTOR
DIRECTOR
CEO
CEO
21
ORGANIZATION CHART
CEO
CEO
DEVELOPING
DEVELOPING AND
AND
STRATEGY
STRATEGY DIVISION
DIVISION
MARKETING
MARKETING
AND
AND STRATEGY
STRATEGY
DIVISION
DIVISION
Bus
Bus Business
Business
Latin
Latin America
America
and
and Europe
Europe
Bus
Bus Business
Business
Africa
Africa and
and
Middle
Middle East
East
LCV
LCV
BUSINESS
BUSINESS
DEVELOPMENT
DEVELOPMENT AND
AND
SYNCROPARTS
SYNCROPARTS
DIVISION
DIVISION
Financial
Financial
Services
Services
Administrative
Administrative
Director
Director
Financial
Financial
Services
Services
Director
Director
Manufacturing
Manufacturing
and
and
Engineering
Engineering
Director
Director
System
System and
and
Process
Process
Director
Director
Service
Providers
22
Business Units
CORPORATE GOVERNANCE
Marcopolo
Marcopoloadopts
adoptscorporate
corporategovernance
governancebest
bestpractices,
practices,following
followingthe
theprinciples
principlesof
oftransparency,
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
4.6%
Common Shares
0.7%
3.7%
2.0%
6.1%
5.2%
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,
May, 31, 2010.
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
2,000
1,800
5.0
1,600
1,400
4.0
1,200
3.0
1,000
800
2.0
600
Market Cap (R$ million)
Average daily volume (R$ million)
6.0
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
52.9
51.2
41.8
38.8
52.6
0
2005
2006
Net Profit
(Company)
2007
Pay Out (in %)
2008
2009
Dividends
27
AGENDA
Bus
Bus Market
Market Overview
Overview
Marcopolo
Marcopolo as
as aa leading
leading player
player
Operating
Operating &
& Financial
Financial Highlights
Highlights
Corporate
Corporate Governance
Governance
Marcopolo
Marcopolo Corporation
Corporation
Product
Product Line
Line –– Generation
Generation 77
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
Bus Market
Market Overview
Overview
Marcopolo
Marcopolo as
as aa leading
leading player
player
Operating
Operating &
& Financial
Financial Highlights
Highlights
Corporate
Corporate Governance
Governance
Marcopolo
Marcopolo Corporation
Corporation
Product
Product Line
Line –– Generation
Generation 77
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.