Marcopolo Sa · BMFBOVESPA:POMO3
Marcopolo Sa — Investor Presentation (June 2010)
34 slides from Marcopolo Sa's investor presentation, June 2010
Slide 1: Marcopolo Day
MARCOPOLO DAY Carlos Zignani - IR Director Thiago A. Deiro - IR Manager June, 2010.
Slide 2: Agenda
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 Ge
Slide 3: Brazilian Bus Bodies Production (units)
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
Slide 4: Market Share in Brazil (%)
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/ Fabus/Simefre. Simefre. 4
Slide 5: Bus Body World Production
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: 19
Slide 6: Brazilian Bus Fleet
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.
Slide 7: Outlook
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 Ele
Slide 8: Perspectives
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 pro
Slide 9: New Projects in Brazil
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
Slide 10: Agenda
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 Ge
Slide 11: Global Presence
THINK... WHAT WILL THE FUTURE CHARGE FROM YOU? Ns ~ a r : } g je 2 ro "4 : va > - : ? we Suet) © Filndie ) ZZ Z oil ae g + Fan A Inglotest oni Wnt sagt) ines ded y franet © 2 "Sientan j a oO Begin IO eu ro a ha des ores J BO . Ss “es 00'S ou 6 @ Hevesi a Pequistde, CHINA Olitio folreng / Boose in ow
Slide 12: Strategic Positioning
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
Slide 13: Verticalization & Competitive Advantages
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
Slide 14: Agenda
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 Ge
Slide 15: Total Production (units) & Market Share (%)
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% Mic
Slide 16: Financial Highlights (R$ Million)
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
Slide 17: Financial Highlights (R$ Million)
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%
Slide 18: Financial Highlights (R$ Million)
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
Slide 19: Financial Highlights (R$ Million)
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
Slide 20: Agenda
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 Ge
Slide 21: Organization Chart
ORGANIZATION CHART Shareholders Shareholders HEIRS’ HEIRS’ COUNCIL COUNCIL FISCAL FISCAL COUNCIL COUNCIL HR HRAND ANDETHICS ETHICS BOARD BOARD OF OF DIRECTORS DIRECTORS COMITEE COMITEE AUDIT AUDITAND ANDRISK RISK EXTERNAL EXTERNAL AUDIT AUDIT INTERNAL INTERNAL AUDIT AUDIT STRATEGY STRATEGYAND ANDINN
Slide 22: Organization Chart
ORGANIZATION CHART CEO CEO DEVELOPING DEVELOPING AND AND STRATEGY STRATEGY DIVISION DIVISION MARKETING BUSINESS BUSINESS MARKETING DEVELOPMENT AND DEVELOPMENT AND AND AND STRATEGY STRATEGY SYNCROPARTS SYNCROPARTS DIVISION DIVISION DIVISION DIVISION Bus Bus Business Business Bus Bus Business Business
Slide 23: Corporate Governance
CORPORATE GOVERNANCE Marcopolo Marcopoloadopts adoptscorporate corporategovernance governancebest bestpractices, practices,following followingthe theprinciples principlesof oftransparency, transparency, accountability, social responsibility and equitable treatment of shareholders. accountability, so
Slide 24: Shareholding Distribution
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 Petrobr
Slide 25: Stock Performance
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
Slide 26: Share Liquidity & Valuation
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 C
Slide 27: Net Profit (R$ Million) & Pay Out Ratio
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
Slide 28: Agenda
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 Ge
Slide 29: Bus Business Units
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
Slide 30: Agenda
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 Ge
Slide 31: G7 - Paradiso
G7 - PARADISO 31 re of our Planet future. Go by bus more and more. Marcopolo S.A. or You, your city and the whole world. Make this idea go round?
Slide 32: G7 - Viaggio
G7 - VIAGGIO THINK... WHAT WILL THE FUTURE CHARGE FROM YOU? ‘ 32 lake care of our Planet future. Go by bus more ond more. Marcopolo S.A. Better for You, your city and the whole world. Make this idea go round?
Slide 33: Investor Relations Contact
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
Slide 34: Disclaimer
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