Presentation marcopolo day(site)

MARCOPOLO DAYMARCOPOLO DAY

Carlos Zignani - IR Director

Thiago A. Deiro - IR Manager

June, 2010.

Bus Market OverviewBus Market Overview

Marcopolo as a leading player Marcopolo as a leading player

Corporate GovernanceCorporate Governance

Operating & Financial HighlightsOperating & Financial Highlights

AGENDA

Marcopolo CorporationMarcopolo Corporation

Product Line – Generation 7Product Line – Generation 7

25,645

35,410

32,027

27,952 26,983

21,787

18,099

21,680

32,000

25,280

21,381

21.9%

26.7% 27.3%29.8%

32.8%

35.4%

46.9%

34.1%

31.6%28.9%

17.7%

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

Brazilian Production External Market

+24.8%

3

BRAZILIAN BUS BODIES PRODUCTION (units)

45.5%

41.7%43.0%

44.7%

39.2%

42.8%

45.9%47.0%

49.8%

46.0%46.5%

0%

10%

20%

30%

40%

50%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10

MP/Ciferal

Busscar

Caio/ Induscar

Comil

Neobus

Mascarello

Other (*)

SOURCE: SOURCE: FabusFabus//SimefreSimefre..

MARKET SHARE IN BRAZIL (%)

(*) Irizar, Maxibus.

4

BUS BODY WORLD PRODUCTIONBUS BODY WORLD PRODUCTION

TOTAL PRODUCTION

2009 = 311,000

2019 = 419,000

CAGR = 3.0%

NORTH AMERICA - NAFTA2009 = 12,000

2019 = 15,000

OTHER SOUTH AMERICA2009 = 6,000

2019 = 9,000

BRAZIL2009 = 30,000

2019 = 42,000

EGYPT2009 = 3,000

2019 = 6,000

SOUTH AFRICA2009 = 2,000

2019 = 3,000

AFRICA2009: 5,0002019: 9,000

AMERICAS2009: 48,000

2019: 66,000

CHINA2009 = 130,000

2019 = 150,000

INDIA2009 = 42,000

2019 = 80,000

JAPAN2009 = 9,000

2019 = 10,000

SOUTH KOREA2009 = 12,000

2019 = 15,000

OTHER ASIA2009 = 3,000

2019 = 5,000

ASIA & ASIAN SOUTHEAST

2009: 196,000

2019: 260,000

EUROPE2009: 35,000

2019: 40,000

MIDDLE EAST& TURKEY

2009: 11,000

2019: 14,000

EASTEUROPE

2009: 16,000

2019: 30,000

5SOURCE: OICA SOURCE: OICA andand internalinternal estimatesestimates for for thethe productionproduction of of busesbuses withwith more more thanthan 7ton, 7ton, exceptexcept for for IndiaIndia andand China.China.

Note: Note: SchoolSchool BusesBuses in in thethe USA USA andand CanadaCanada are are notnot consideredconsidered..

24,921

76,823

38,088

235,161

82,880

457,873

13.915.2

12.113.5

16.3

14.1

Midwest Northeast North Southeast South BRAZIL

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

Total Total FleetFleet & & AverageAverage AgeAge

BRAZILIAN BUS FLEET

SOURCE: SOURCE: FenabraveFenabrave andand DenatranDenatran..

• 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

– School Buses for rural areas

– Long term financing for buses

– Generation 7 success

– Global Presence

– Global Sourcing

– New Concession lines - fleet renovation

7

OUTLOOK

BRTs: Approx. R$ 10.0 MM / Km

Subway: Approx. R$ 200.0 MM / Km

• 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

PERSPECTIVES

NEW PROJECTS IN BRAZIL

Growth Acceleration Program for public transport:

� R$ 11.5 billions in investments

� 39 projects for public transport,including:

• 20 BRTs systems

Belo Horizonte

6 BRTs1 Surveillance project1 Pavement project

Total: R$ 1.023,3 MM

Porto Alegre

2 BRTs3 Bus lanes1 Surveillance project

Total: R$ 368.6 MM

Cuiabá

2 BRTs1 Bus lane

Total: R$ 454.7 MM

Curitiba

1 BRT1 Surveillance project2 Pavement projects3 Bus lanes1 Bus Terminal

Total: R$ 440.6 MM

São Paulo

1 Monorail

Total: R$ 1,082.0 MM

Natal

2 Pavement projects1 Bus lane

Total: R$ 361.0 MM

Brasília

1 Pavement project1 Light Rail system

Total: R$ 361.0 MM

Salvador

1 BRT

Total: R$ 541.8 MM

Recife

2 BRTs2 Bus lanes1 Bus Terminal

Total: R$ 648.0 MM

Manaus

1 BRT1 Monorail

Total: R$ 800.0 MM

Rio de Janeiro

1 BRT

Total: R$ 1,190.0 MM

Fortaleza

3 BRTs1 Light Rail system1 Bus lane1 Subway project

Total: R$ 414.4 MM

SOURCE: NTUSOURCE: NTU 9

AGENDA







GLOBAL PRESENCE

11

STRATEGIC POSITIONING PRODUCTION UNITS

12* Includes 54 * Includes 54 unitsunits produced produced in Portugal in Portugal andand 8 8 unitsunits in in RussiaRussia..

SUEZ SUEZ -- EGYPTEGYPT

JOHANNESBURG JOHANNESBURG -- SOUTH AFRICASOUTH AFRICA

RIO DE JANEIRO RIO DE JANEIRO -- BRAZILBRAZIL

COTA COTA -- COLOMBIACOLOMBIA

MONTERREY MONTERREY -- MEXICOMEXICO

DHARWAD/LUCKNOWDHARWAD/LUCKNOWINDIAINDIA

CHANGZHOU CHANGZHOU -- CHINACHINA

LOMA HERMOSA LOMA HERMOSA -- ARGENTINAARGENTINA

CAXIAS DO SUL CAXIAS DO SUL -- BRAZILBRAZIL

(components)

2009 = 1.510

2010e = 1.500

2009 = 638

2010e = 600

2009 = 13.672

2010e = 14.9002009 = 470

2010e = 500

2009 = 207

2010e = 600

2009 = 308

2010e = 600

2009 = 2.517

2010e = 6.000

MARCOPOLO’S TOTAL PRODUCTION

2009 = 19,384*

2010e = 24,700

Variation = + 27.4%

Components Bus Production Post-sales Support

► Seats

► Foams

► Windows

► Doors

► Hydro-sanitary installation

► Handbag Compartment

► Plastic Components

► Air Conditioning System

► 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

VERTICALIZATION & COMPETITIVE ADVANTAGES

13

AGENDA







TOTAL PRODUCTION (units) & MARKET SHARE (%)

15

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

DM

EM

Marcopolo’s Total Production

24,700

21,811

+27.4%

14,82416,456

+55.9%

17,80719,384

4,964 5,3753,935

6,134

+8.3%

31.5%

37.1%

54.3%

70.9%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10

Intercity

Urban

Micro

Mini

Marcopolo’s Market Share in Brazil (by model)

16

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

DM

EM

Total Net Sales

2,550.02,532.2

+23.9%

1,750.31,709.1

+46.6%

2,101.1 2,057.7

480.3617.5

463.4679.2

+28.6%

FINANCIAL HIGHLIGHTS (R$ Million)

163.7

99.8131.7

79.5

395.8

474.1

342.6329.7

257.2

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

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

-16.5%

Gross Profit & Margin

+65.7%

+64.0%

120.4

168.2 168.5

273.5

184.7

30.5

56.5 47.0

112.6

7.0% 9.6% 8.0% 10.8% 9.0% 6.4% 9.2% 10.1%

16.6%

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

114.9

49.558.843.9

208.4214.2216.4206.3

150.9

16.9%10.7%9.5%9.1%10.1%8.5%10.3%11.8%8.8%

2005 2006 2007 2008 2009 3Q09 4Q09 1Q09 1Q10 17

-2.7%

EBITDA (adjusted) & Margin

+33.9%

+132.1%

EBITDA & Margin-32.5%

+85.2%

+139.6%


69.1

21.5

63.2

20.5

136.5134.4146.5

120.8

82.4

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

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

464.1

536.0590.4

683.5724.0 723.2 724.0 691.8

797.2

19.3%

26.0% 24.8%

19.7% 18.9% 18.2% 18.9% 18.4%23.1%

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

Net Income & Margin

18

+5.9%

Net Worth & ROE

+0.1%+15.2%

+1.6%

+208.3%+221.4%


19

Net Indebtedness

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

Investments

60.0

132.2-42.3%

40.4

24.8

-37.0%

110.6104.0

19.6 19.8

38.1

24.0

+1.0%

Net Debt (Industrial

Segment)/LTM EBITDA

-4.8%

2005 2006 2007 2008 2009 1Q10

745.7

86.6115.4

323.9

709.6727.8

0.9x1.1x1.7x0.6x

�� = Financial Segment �� = Industrial Segment

0.8x 0.4x


AGENDA







ShareholdersShareholders

FISCAL COUNCILFISCAL COUNCILHEIRS’ COUNCILHEIRS’ COUNCIL

CEOCEO

IR DIRECTORIR DIRECTOR

BOARD OF DIRECTORSBOARD OF DIRECTORS

INTERNAL AUDITINTERNAL AUDITEXTERNAL AUDITEXTERNAL AUDIT

COMITEECOMITEE AUDIT AND RISKAUDIT AND RISK

HR AND ETHICSHR AND ETHICS

STRATEGY AND INNOVATIONSTRATEGY AND INNOVATION

EXECUTIVEEXECUTIVE

ORGANIZATION CHART

21

Service Providers Business Units

Manufacturingand

EngineeringDirector

Manufacturingand

EngineeringDirector

AdministrativeDirector

AdministrativeDirector

System and Process Director

System and Process Director

DEVELOPING AND STRATEGY DIVISIONDEVELOPING AND

STRATEGY DIVISION

MARKETING AND STRATEGY

DIVISION

MARKETING AND STRATEGY

DIVISION

BUSINESS DEVELOPMENT AND

SYNCROPARTS DIVISION

BUSINESS DEVELOPMENT AND

SYNCROPARTS DIVISION

Financial Services

Financial Services

Bus BusinessLatin America and Europe

Bus BusinessLatin America and Europe

Bus Business Africa and

Middle East

Bus Business Africa and

Middle EastLCV LCV

Financial Services Director

Financial Services Director

CEOCEO

ORGANIZATION CHART

22

� Independent Board Members (3 out of 7)

� Fiscal Council

� Support Committees: Human Resouces & Ethics; Audit & Risks; Strategy & Innovation; andExecutive

� 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

Marcopolo adopts corporate governance best practices, following the principles of transparency,

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

accountability, social responsibility and equitable treatment of shareholders.

CORPORATE GOVERNANCE

23

0.7%4.6%

5.2%7.7%

33.1%

48.7%

Foreign Shareholders

Other Shareholders in Brazil

Jose Antonio Fernandes Martins

Fundo Petrobras Seg. Soc. Petros

BNDES Part. S.A. - BNDESPAR

Controling Shareholders

24

Preferred Shares Common Shares

As As ofof MayMay, 31, 2010., 31, 2010.

SHAREHOLDING DISTRIBUTION

2.0%3.7%6.1%

8.5%

15.2%64.5%

Controling Shareholders

Fundação Bco. Central - CENTRUS

Other Shareholders in Brazil

Bco. Bradesco S.A. / Bradesco Seguros S.A.

Marcopolo Foundation

BNDES Part. S.A. - BNDESPAR

Marcopolo PN x Ibovespa - Base 100

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

POMO4: +94.9%

IBOV: +18.5%

R$ 4.34

53.197 pts

R$ 8.46

63.046 pts

25

STOCK PERFORMANCE

Marcopolo PN - POMO4

-

1.0

2.0

3.0

4.0

5.0

6.0

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 (R$ million)

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Market Cap (R$ million)

Average Daily Volume Market Cap

26

SHARE LIQUIDITY & VALUATION

52.638.8

51.241.852.9

0

50

100

150

2005 2006 2007 2008 2009

Net Profit Pay Out (in %) Dividends(Company)

AVERAGE PAY OUT: AVERAGE PAY OUT: 47.2%47.2%

NET PROFIT (R$ Million) & PAY OUT RATIO

27

AGENDA







GB Polo – Suez - EgitoMASA – Johannesburg - África do SulPolomex – Monterrey - MéxicoSuperpolo – Cota - Colômbia

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

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

29

BUS BUSINESS UNITS

AGENDA







G7 - PARADISO

31

G7 - VIAGGIO

32

Carlos Zignani

Investor Relations Director

[email protected]

Phone: +55 54 2101.4115

Thiago A. Deiro

Investor Relations Manager

[email protected]

Phone: +55 54 2101.4660

www.marcopolo.com.br/ri_eng

[email protected]

www.marcopolo.com.br/ri_eng

[email protected]

INVESTOR RELATIONS CONTACT

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)