Iochpe-Maxion - 1Q09 Results Presentation

May 2009

1Q09 Earnings Release

2

4T08 / 20081Q09 Earnings Release

The material contained in this presentation is general background information about Iochpe-Maxion S.A. (Iochpe)

as of the date of the presentation. It is information in summary form and does not purport to be complete. It is

not intended to be relied upon as advice to potential investors. No representation or warranty, express or

implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the

information presented herein.

This presentation contains statements that are forward-looking within the meaning of Section 27A of the U.S.

Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking

statements are only predictions and are not guarantees of future performance. Investors are cautioned that any

such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and

factors relating to the operations and business environments of Iochpe and its subsidiaries that may cause the

actual results of the companies to be materially different from any future results expressed or implied in such

forward-looking statements.

Although Iochpe believes that the expectations and assumptions reflected in the forward-looking statements are

reasonably based on information currently available to Iochpe management, Iochpe cannot guarantee future

results or events. Iochpe expressly disclaims a duty to update any of the forward-looking statement.

This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or

purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any

contract or commitment whatsoever.

3


� Consolidated net operating revenue R$ 290.6 million in the 1Q09, a reduction of 27.4% over the same period of last year

� EBITDA(*) of R$ 25.2 million in the 1Q09, a reduction of 58.1% when compared to the same period of last year

� Net loss of R$ 3.2 million in the 1Q09, a reduction of 109.2% when compared to the same period of last year

� Net bank debt of R$ 188.1 million (R$ 161.9 million in March 2009), or 0,8x LTM EBITDA (0,9x in March 2008)

HIGHLIGHTSHIGHLIGHTS

(*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net financial expenses, plus depreciation and amortization, plus goodwill amortization.

4


� Reduction of Brazilian production of vehicles and agricultural machineries

� Reduction of domestic demand for railway freight cars

� Reduction of exports

� Financial expenses on the operations to fix the future value of the dollar (NDFs)

MAIN DRIVERSMAIN DRIVERS

Industry Performance

6


366379

406

448

10792

2005 2006 2007 2008 1Q08 1Q09

Source: Anfavea

156 153144

122

30

14

2005 2006 2007 2008 1Q08 1Q09

� ∆ 1Q09 – 08 = -13.7%

� CAGR 2005 – 08 = 7.0%

� ∆ 1Q09 – 08 = -53.7%

� CAGR 2005 – 08 = -7.9%

LIGHT COMMERCIALS – BRAZIL (‘000 units)LIGHT COMMERCIALS – BRAZIL (‘000 units)

Production Export

7


117

106

137

167

37

25

2005 2006 2007 2008 1Q08 1Q09

Source: Anfavea

38 3941

39

9

3

2005 2006 2007 2008 1Q08 1Q09

� ∆ 1Q09 – 08 = -33.3%

� CAGR 2005 – 08 = 12.6%

� ∆ 1Q09 – 08 = -62.6%

� CAGR 2005 – 08 = 0.9%

TRUCKS – BRAZIL (‘000 units)TRUCKS – BRAZIL (‘000 units)

Production Export

8


35 34

39

44

11

8

2005 2006 2007 2008 1Q08 1Q09

Source: Anfavea

19

1615

16

3

2

2005 2006 2007 2008 1Q08 1Q09

� ∆ 1Q09 – 08 = -24.8%

� CAGR 2005 – 08 = 7.9%

� ∆ 1Q09 – 08 = -41.1%

� CAGR 2005 – 08 = -5.6%

BUSES – BRAZIL (‘000 units)BUSES – BRAZIL (‘000 units)

Production Export

9


53

46

65

85

1915

2005 2006 2007 2008 1Q08 1Q09

Source: Anfavea

31 31

22

27

30

7

4

2004 2005 2006 2007 2008 1Q08 1Q09

� ∆ 1Q09 – 08 = -22.9%

� CAGR 2005 – 08 = 17.1%

� ∆ 1Q09 – 08 = -40.4%

� CAGR 2005 – 08 = -1.1%

AGRICULTURAL MACHINERY – BRAZIL (‘000 units)AGRICULTURAL MACHINERY – BRAZIL (‘000 units)

Production Export

10


2,0092,092

2,388

2,567

638536

2005 2006 2007 2008 1Q08 1Q09

Source: Anfavea

684

635

588558

138

68

2005 2006 2007 2008 1Q08 1Q09

� ∆ 1Q09 – 08 = -15.9%

� CAGR 2005 – 08 = 8.5%

� ∆ 1Q09 – 08 = -51.2%

� CAGR 2005 – 08 = -6.56%

Production Export

PASSENGER CARS – BRAZIL (‘000 units)PASSENGER CARS – BRAZIL (‘000 units)

11


7,270

3,668

1,249

5,118

1,253

349

2005 2006 2007 2008 1Q08 1Q09

Vendas

Sales

� ∆ 1Q09 – 08 = -72.1%

� CAGR 2005 – 08 = -11.0%

Source: Amsted Maxion estimate

RAILWAY FREIGHT CARS – BRAZIL (units)RAILWAY FREIGHT CARS – BRAZIL (units)

12


MARKET SHARE – BRAZIL MARKET SHARE – BRAZIL

67% 66%

34%33%

1Q08 1Q09

Others

Maxion

ChassisChassis

63% 57%

43%37%

1Q08 1Q09

Others

Maxion

85%

50%

50%

15%

1Q08 1Q09

Others

Maxion

80% 80%

20%20%

1Q08 1Q09

Others

Maxion

Commercial Vehicles Commercial Vehicles WheelsWheels

Railway Freight Railway Freight CarsCars

Railway CastingsRailway Castings

Source: Iochpe-Maxion estimate

Financial and Operating Performance

14


1,828

1,289

291

401

1,494

1,248

2005 2006 2007 2008 1Q08 1Q09

Net Operating Revenue

� ∆ 1Q09 – 08 = -27.4%

� CAGR 2005 – 08 = 7.0%

NET OPERATING REVENUE (R$ million)NET OPERATING REVENUE (R$ million)

15


346.0

54.6

Domestic Export

109.7

259.631.4

Wheels & Chassis Automotive Comp.

Amsted-Maxion

1Q08

� Domestic: ∆ 1Q09 – 08 = -28.7%

� Export: ∆ 1Q09 – 08 = -19.6%246.8

43.9

Domestic Export

1Q09

46.6

218.5

25.5


Amsted-Maxion

� Wheels and Chassis: ∆ 1Q09 – 08 = -15.8%

� Automotive Comp.: ∆ 1Q09 – 08 = -18.7%

� Amsted Maxion: ∆ 1Q09 – 08 = -57.5%

NET OPERATING REVENUE (R$ million)NET OPERATING REVENUE (R$ million)

16


Revenue by Customer – 1Q09

ALL

6%

Daimler

14%

Fiat

5%Ford

5%GMB

8%

Scania

5%

Tractors

7%

Vale

2%

Others

9%

VW

21%

MRS

2%

Export

15%

Caterpillar

1%

Revenue by Customer – 1Q08

ALL

2% Daimler

13%

Fiat

4%

Ford

3%GMB

5%Scania

4%

Tractors

7%

Vale

9%

Others

12%

VW

17%

MRS

9%

Export

14%

Caterpillar

1%

NET OPERATING REVENUENET OPERATING REVENUE

17


19

31

146

96

120119

2005 2006 2007 2008 1Q08 1Q09

Exports

� ∆ 1Q09 – 08 = -40.3%

� CAGR 2005 – 08 = 15.0%

EXPORTS (USD million)EXPORTS (USD million)

18


18.2

36.1

0.3


Amsted-Maxion

16.1

27.7

0.1


Amsted-Maxion

Variation 1Q09 - 08 = -19.6%

� Wheels & Chassis: ∆ 1Q09 – 08 = -23.2%


� Amsted Maxion: ∆ 1Q09 – 08 = -11.5%

6.9

11.8

0.0


Amsted-Maxion

10.4

20.8

0.2


Amsted-Maxion

1Q09 - R$ thousand 1Q08 - R$ thousand

1Q09 - US$ thousand 1Q08 - US$ thousand

Variation 1Q09 - 08 = -40.3%

� Wheels & Chassis: ∆ 1Q09 – 08 = -43.1%


� Amsted Maxion: ∆ 1Q09 – 08 = -34.1%

EXPORTS BY DIVISIONEXPORTS BY DIVISION

19


40

228

289

80

219236

357

14%

20%

18%19%

21%18%

20%

2004 2005 2006 2007 2008 1Q08 1Q09

Gross Profit % NOR

Gross Profit

� ∆ 1Q09 – 08 = -49.3%

� CAGR 2005 – 08 = 16.1%

GROSS PROFIT (R$ million)GROSS PROFIT (R$ million)

20


136

178

15

126

52

232

5%

13%10%

11%12% 13%

2005 2006 2007 2008 1Q08* 1Q09

EBIT %NOR

EBIT

� ∆ 1Q09 – 08 = -72.0%

� CAGR 2005 – 08 = 9.2%

EARNINGS BEFORE INCOME TAX – EBIT (R$ million)EARNINGS BEFORE INCOME TAX – EBIT (R$ million)

(*) In compliance with Instruction 539/08 of CVM (Brazil’s securities commission) of March 14, 2008 and guidance of the Accounting Pronouncement Committee, Iochpe-Maxion incorporated the amounts accounted as non-operating expenses in 2008 into operating expenses, therefore reducing EBIT presented in the 1Q08 presentation

21


205

24

268

60

156163

15%14% 13%

12%

15%

8%

2005 2006 2007 2008 1T08** 1T09

EBITDA %NOR

(*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net financial expenses, plus depreciation and amortization, plus goodwill amortization

(**) In compliance with Instruction 539/08 of CVM (Brazil’s securities commission) of March 14, 2008 and guidance of the Accounting Pronouncement Committee, Iochpe-Maxion incorporated the amounts accounted as non-operating expenses in 2008 into operating expenses, therefore reducing EBIT presented in the 1Q08 presentation

EBITDA

� ∆ 1Q09 – 08 = -59.5%

� CAGR 2005 – 08 = 9.3%

EBITDA* (R$ million) EBITDA* (R$ million)

22


16

37

21

10

-2

286%

1%

1%

2%2%2%

2005 2006 2007 2008 1Q08 1Q09

Financial Expenses %NOR

Net Financial Expenses

� ∆ 1Q09 – 08 = 746.6%

� CAGR 2005 – 08 = -8.9%

NET FINANCIAL EXPENSES (R$ million)NET FINANCIAL EXPENSES (R$ million)

23


� Impact of the FX rate variation on Financial Expense (Revenue)

� Operations related to fix the future value of the dollar

(NDFs)

� If the operations would expire on 03/31/2009 (at FX Rate of R$

2.3297) , it would represent a negative result of R$ 13.5 million

(R$ 8.9 net of taxes)

(*) provision for NDFs related to selling future dollar that at the end of the quarter had no forecasted exports shipment for the subsequent months

� At the end of the 1Q09, the Equity had a positive adjustment of R$ 7.1 million, due to the market value of the non-

deliverable forward operations (negative adjustment of R$ 8.9 million, net of taxes) and the FX rate variation of the

foreign investments (positive adjustment of R$ 16.0 million)

IMPACT OF THE FX RATE VARIATIONIMPACT OF THE FX RATE VARIATION

Period OperationsContracted Value

US$

Average FX

Rate

Gain/Loss

R$ thousand

NDFs (selling) 30,050 1.9010 13,509

Total NDFs 13,509

At the end

of 1Q09

1Q09

BalanceValue

US$ million

Impact

R$ MM

NDF Expired 24.0 10.6

NDF to Expire* 6.8 2.9

Financial Exp./Rev. 13.5

24


214

35

-3

7258

72

9%

-1%

12%

6%5%

5%

2005 2006 2007 2008 1Q08 1Q09

Net Income %NOR

76

76

133

Net Income

� ∆ 1Q09 – 08 = -109.1%

� CAGR 2005 – 08 = 43.8%

NET INCOME (R$ million)NET INCOME (R$ million)

25


125

188

132 128

256

162

0.8

0.6

0.91.0

0.8

0.8

2005 2006 2007 2008 1Q08 1Q09

Net Debt x EBITDA*

NET BANK DEBT (R$ million)NET BANK DEBT (R$ million)


LTM EBITDA

26


Others

10%

BNDES-EXIM

45% Working

Capital

6%

Import

19%

ACC

20%

TJLP

47%

Others

1%

YUAN

10%

Dollar

42%

191

- -

97 100

188

288

Short Term Long Term Total Debt Cash Net Debt

INDEBTEDNESS – Mar/08 (R$ million)INDEBTEDNESS – Mar/08 (R$ million)

Debt by Lines

Debt Indexation

Indexation Average Cost

Indexed in R$ 78% CDI

Indexed in US$ 6,5% per year

27


68

113

84

20

12

68

2005 2006 2007 2008 1Q08 1Q09

CAPEX (R$ million)CAPEX (R$ million)

Additional Information

29


-72.20%

-41,22%

-80.00%

-70.00%

-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09

MYPK3 IBOVESPA

SHARES PERFORMANCE - LTMSHARES PERFORMANCE - LTM

30


Average Daily Trade Volume - LTM

1,632

2,047

2,885

685

1,543

1,987

1,164

2,294

2,978

3,370

1,377

734

91

105

77

38

7581

74

43

146

221

106

132

Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09

Volume Trades

AVERAGE DAILY TRADE VOLUME – R$ thousandAVERAGE DAILY TRADE VOLUME – R$ thousand

31


SHAREHOLDERS STRUCTURESHAREHOLDERS STRUCTURE

Shareholders Structure on 03/31/2009

Shares

ON

Ioschpe Family 13,441,557 28.34%

BNDES Participações 11,593,401 24.44%

Controlling Shareholders 25,034,958 52.78%

BNY Mellon ARX Invest. Ltda 2,462,493 5.19%

Credit Suisse Hedging-Griffo Corr. Valores S.A 3,081,047 6.50%

Others 16,853,188 35.53%

Total Iochpe-Maxion 47,431,686 100.00%

Shareholders %

32


INCOME STATEMENT (R$ thousand)INCOME STATEMENT (R$ thousand)


(**) In compliance with Instruction 539/08 of CVM (Brazil’s securities commission) of March 14, 2008 and guidance of the Accounting Pronouncement Committee, Iochpe-Maxion incorporated the amounts accounted as non-operating expenses in 2008 into operating expenses, therefore reducing EBIT presented in the 1Q08 presentation

Income Statement - R$ thousand 1Q09 1Q08** Var.

Net Operating Revenue 290,645 400,610 -27.4%

Cost of Goods Sold

Raw Material (144,224) (210,599) -31.5%

Labor (58,743) (62,201) -5.6%

Others (47,343) (48,230) -1.8%

(250,310) (321,030) -22.0%

Gross Profit 40,335 79,580 -49.3%

13.9% 19.9%

Operating Expenses

General and Administrative (12,379) (11,791) 5.0%

Commercial (12,379) (15,152) -18.3%

Others (1,054) (705) 49.5%

(25,812) (27,649) -6.6%

Operating Income (EBIT) 14,523 51,932 -72.0%

5.0% 13.0%

Financial Results

Financial Revenue 4,311 3,524 22.4%

Financial Expenses (20,339) (1,045) 1847.0%

(16,028) 2,479 -746.5%

Earnings After Financial Income (1,504) 54,411 -102.8%

Income Taxes (1,664) (19,745) -91.6%

Net Income (Loss) (3,169) 34,666 -109.1%

-1.1% 8.7%

EBITDA* 24,294 59,983 -59.5%

8.4% 15.0%

33


BALANCE SHEET (R$ thousand)BALANCE SHEET (R$ thousand)

ASSETS LIABILITIES

Mar-09 Dec-08 Mar-09 Dec-08

CURRENT CURRENT

Cash 99,812 90,036 Loans 191,047 219,885

Receivables 182,733 243,056 Payables 53,394 60,972

Inventory 205,174 244,527 Taxes 12,337 2,886

Recoverable Taxes 10,270 13,694 Wage & Salaries 29,563 49,908

Deferred Taxes 16,975 27,538 Customers Advance 20,052 24,152

Antecipated Expenses 2,283 1,901 Dividends 79,214 79,214

Other Receivables 8,488 7,985 Other Payables 25,635 34,937

Payable Financial

Instruments16,443 28,752

525,735 628,737 427,685 500,706

LONG TERM LONG TERM

Receivable 593 603 Loans 96,810 125,604

Recoverable Taxes 16,934 16,667 Provisions 59,239 58,021

Deferred Taxes 92,671 82,362 Others 8,356 6,611

Obligatory deposits and judicial 12,892 12,847 164,405 190,236

Other Receivables 1,883 1,718

124,973 114,197

MINORITY - -

PERMANENT EQUITY

Investments 397 395 Capital 261,463 261,463

Plants, Property and Equipment 379,605 379,330 Profit Reserves 180,788 183,958

Intangible 6,084 5,910 Equity Adjustment 7,101 (2,484)

Deferred Items 4,649 5,310

390,734 390,945 449,352 442,937

TOTAL ASSETS 1,041,442 1,133,879 TOTAL LIABILITIES 1,041,442 1,133,879

1Q09 Earnings Release

May 2009

Investor Relations

Iochpe-Maxion - 1Q09 Results Presentation