CORPORATE
PRESENTATION
Caxias do Sul – March, 2013.
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.
OUTLINE
Marcopolo as a Leading Player
Volare Business
Bus Market Overview
Operating & Financial Highlights
Corporate Governance
Sustainability
Marcopolo Corporation
Product Line
MARCOPOLO’S PROFILE
Founded in 1949, Marcopolo has more than 63 years in the business
OVERVIEW
Four factories in Brazil and fourteen abroad
Over 20,000 employees in Brazil and abroad
26.0% Return On Equity in 2012
HIGHLIGHTS
17.0% Return on Invested Capital in 2012
Market Value Added oriented Company
State-of-the-art technology
PRODUCTS
Integrated production of nearly all parts used in manufacturing process
Complete product line: coaches, transit buses, midi, micro & minibuses
UNDERSTANDING OUR PRODUCT
BUS BODY
CHASSI
(chassi manufacturers)
VOLARE - COMPLETE VEHICLES
5
STRATEGIC POSITIONING
MARCOPOLO’S TOTAL
PRODUCTION
CANADA
RUSSIA
(Commercial JV)
2011
= 31,526
2012
= 31,296
2013g
= 35,200
USA
CHINA
(components)
MEXICO
2011 = 1,234
2012 = 1,571
2013g = 1,800
EGYPT
2011 = 213
2012 = 250
2013g = 500
INDIA
2011 = 6,308
2012 = 7,759
2013g = 9,500
COLOMBIA
2011 = 1,049
2012 =
807
2013g =
800
ARGENTINA
2011 = 1,293
2012 =
747
2013g =
800
BRAZIL
2011 = 21,189
2012 = 19,483
2013g = 21,000
SOUTH AFRICA
2011 = 240
2012 = 244
2013g = 300
AUSTRALIA
2012 = 435
2013g = 500
6
g = expectation of the guidance for each year.
All figures are related to Marcopolo’s stake in each business.
MARCOPOLO’S PRODUCTION
(Units)
Consolidated Production 2012
-0.7%
3 1 ,526
3 5 ,200
3 1 ,296
2 7 ,580
2 1 ,811
38%
62%
2008
1 9 ,384
39%
40%
46%
60%
54%
37%
63%
2009
61%
2010
Domestic Market
2011
2012
2013 E
External Market
*E = expected
7
MARCOPOLO’S NET SALES
(R$ MM)
Total Consolidated Net Sales - 2012
+13.3%
4,300.0
2,964.5
2,532.2
39%
2,023.8
61%
68%
2008
2009
3,368.9
27%
3,817.1
36%
30%
32%
70%
2010
Domestic Market
73%
64%
2011
2012
2013 E
External Market
*E = expected
8
OUTLINE
Marcopolo as a Leading Player
Volare Business
Bus Market Overview
Operating & Financial Highlights
Corporate Governance
Sustainability
Marcopolo Corporation
Product Line
ABOUT VOLARE
Founded in 1957
Volare Production started in 1998
Production Capacity: 7,500 units/year
2012 Production: 4,665 units
2012 Net Revenue: R$ 761.0 million
New facility in Brazil with annual
capacity of 1,000 units/year is expected
to go online in the second half of 2013.
10
VOLARE’S PRODUCTION
(Units)
6000
-4.2%
5,070
4,870
5000
3,896
4000
3000
4,665
3,623
3,159
3,048
2,988
2,879
2,855
2003
2004
2005
2006
2000
1000
0
2007
2008
2009
2010
2011
2012
11
MARKET SEGMENTATION
60%
51%
50%
48%
45%
40%
39%
37%
36%
34%
26%
30%
20%
10%
7% 7%
8%
10% 8% 9%
6%
7% 6% 6%
5%
4%
0%
School Buses
Tourism/
Chartering
2009
City
2010
2011
Government's
Sales
Training Center
2012
12
OUTLINE
Marcopolo as a Leading Player
Volare Business
Bus Market Overview
Operating & Financial Highlights
Corporate Governance
Sustainability
Marcopolo Corporation
Product Line
BRAZILIAN BUS BODY PRODUCTION
(Units)
-8,1%
35,989
35,410
33,395
32,027
26,983
27,952
25,645
25,280
46.9%
21,381
35.4%
34.1%
32.8%
31.6%
28.9%
17.7%
2003
33,080
2004
2005
2006
2007
Brazilian Production
SOURCE: Fabus – does not include Volare’s production.
2008
2009
Exports
15.3%
2010
11.7%
2011
13.5%
2012
14
BRAZILIAN BUS FLEET
Total Fleet & Average Age
486.6
320.2
335.2
14.3
353.6
13.6
375.7
13.8
401.0
424.1
14.1
13.9
452.0
14.7
14.5
13.1
2004
2005
2006
2007
Total Fleet (thousand units)
SOURCE: Fenabrave and Denatran.
2008
2009
2010
2011
Average Fleet Age (years)
15
MARKET SHARE IN BRAZIL (%)
50%
47.0%
46.3%
45.9%
40%
44.7%
42.8%
43.0%
45.7%
45.2%
41.7%
M P/Ciferal
39.2%
Buss car
30%
Caio/ Indu scar
Comil
20%
Neo bus
M ascarello
10%
Other
(*)
(*) Irizar, Metalbus.
0%
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
16
SOURCE: Fabus/Simefre.
OUTLOOK
• Events in Brazil
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: 2,500 up to 3,000 units estimated demand;
– New order to produce up to 4,100 school buses related to the “Caminho da Escola” program
(school buses), in additional to new orders from the previous contract;
– Extension of FINAME – PSI 4: interest rate at 3.5% (p.a.) for requests registered from
January to June and 4% (p.a.) from July to December;
– Global Sourcing;
– School Bus program for urban areas;
– Government incentive plans: “Reintegra” (until 2013) and pay roll tax cuts (until 2014);
– Payroll tax break benefit to the bus operators starting January, 2013;
– Bidding for regular interstate and international lines to be published until the end of March.
17
OUTLOOK
• Targets/Goals
– #1 or #2 in every country in which we have factories
– Premium prices
– Lowest production cost
• Threats
– Strong exchange rate appreciation
– Regional airlines
– Trains/subways
– Cars/motorcycles
18
OUTLINE
Marcopolo as a Leading Player
Volare Business
Bus Market Overview
Operating & Financial Highlights
Corporate Governance
Sustainability
Marcopolo Corporation
Product Line
TOTAL PRODUCTION (units)
& MARKET SHARE (%)
Marcopolo’s Total Production
-0.7%
35,200
31,526
31,296
40%
46%
40%
-12.6%
8,394
EM
8,291
35%
52%
36%
DM
65%
48%
64%
4Q11
3Q12
4Q12
7,339
60%
54%
60%
2011
2012
2013 E
Marcopolo’s Market Share in Brazil
-0.5pp
+0.6pp
46.2
44.7
45.3
45.7
45.2
4Q11
3Q12
4Q12
2011
2012
*E = expected
FINANCIAL HIGHLIGHTS
(R$ Milllion)
Total Net Revenues
4,300.0
+13.3%
3,817.1
3,368.9
27%
36%
73%
64%
+10.9%
EM
DM
1,061.2
948.7
26%
956.7
41%
74%
59%
66%
4Q11
3Q12
4Q12
34%
2011
Gross Profit and Margin
2012
+4.6%
741.7
776.0
+19.5%
226.3
23.9%
4Q11
190.1
19.9%
3Q12
227.2
21.4%
4Q12
22.0%
2011
20.3%
2012
2013 E
*E = expected
FINANCIAL HIGHLIGHTS
(R$ Milllion)
EBITDA and Margin
-5.2%
464.1
439.8
+22.8%
141.1
106.2
14.9%
4Q11
130.4
11.1%
12.3%
13.8%
3Q12
4Q12
2011
11.5%
2012
Net Profit and Margin
-12.1%
344.0
302.4
+36.0%
113.4
94.1
69.2
12.0%
4Q11
7.2%
8.9%
3Q12
4Q12
10.2%
7.9%
2011
2012
FINANCIAL HIGHLIGHTS
(R$ Milllion)
Net Equity & ROE
+1.9%
1,162.1
36.0%
4Q11
1,276.1
1,299.9
1,299.9
1,162.1
36.0%
29.9%
26.0%
26.0%
3Q12
4Q12
ROIC
23.4
+11.9%
2011
(%)
23.4
-1.9pp
2012
-6.4pp
18.9
17.0
4Q11
3Q12
4Q12
17.0
2011
2012
FINANCIAL HIGHLIGHTS
(R$ Milllion)
Investments
277.2
+271.1%
200.0
+309.9%
11.6
17.1
4Q11
3Q12
70.1
74.7
4Q12
2011
2012
2013 E
*E = expected
Net Indebtedness
+74.9%
745.7
811.3
709.6
508.4
1.7x
1.1x
2008
2009
 = Financial Segment
2010
463.9
2011
 = Industrial Segment
0.5x
2012
Net Debt (Industrial
Segment)/LMT EBITDA
OUTLINE
Marcopolo as a Leading Player
Volare Business
Bus Market Overview
Operating & Financial Highlights
Corporate Governance
Sustainability
Marcopolo Corporation
Product Line
ORGANIZATION CHART
SHAREHOLDERS
FISCAL COUNCIL
BOARD OF DIRECTORS
COMMITTEE OF:
EXECUTIVE COMMITTEE
•
HR AND ETHICS
•
STRATEGY AND INNOVATION
•
AUDIT ANS RISK
INTERNAL AUDIT
EXTERNAL AUDIT
IR DIRECTOR
26
CEO
CORPORATE GOVERNANCE
Marcopolo adopts corporate governance best practices, following the principles of transparency,
accountability, social responsibility and equitable treatment of shareholders.
 Independent Board Members (4 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 IBrX, IGC, SMLL, INDX, IDIV, ITAG indexes and MSCI
 Heirs’ Succession Plan
27
SHAREHOLDING DISTRIBUTION
Common Shares
13,0%
2,2%
3,7%
15,2%
65,9%
28
As of December
31st,
2012.
SHAREHOLDING DISTRIBUTION
Preferred Shares
16.2%
5.6%
1.1%
0.9%
53.0%
23.2%
29
As of December
31st,
2012.
CORPORATE STRUTURE
448.450.042
Total Shares
277,637,170 PN Shares
170,812,872 ON Shares
Free Float: 74.2%
(outstanding shares)
Market cap on December 31st, 2012
R$ 5.8 billion
30
STOCK PERFORMANCE
Marcopolo PN x Ibovespa - Base 100
POMO4: +81.9%
IBOV: +7.4%
R$ 12.90
R$ 7.09
60,952 pts
56,754 pts
12/29/2011
3/29/2012
6/29/2012
9/29/2012
12/29/2012
31
SHARE LIQUIDITY & VALUATION
Marcopolo PN - POMO4
30,0
7000
Average Daily Volume (R$ Million)
5000
20,0
4000
15,0
3000
10,0
2000
5,0
Market Cap (R$ Million)
6000
25,0
1000
-
0
Dec-11 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Average Daily Volume (R$ MM)
Market Cap (R$ MM)
32
SHAREHOLDER REMUNERATION
AVERAGE PAY OUT:
47%
344.0
53%
51%
42%
295.8 51%
302.4
48%
47%
39%
166.1
146.5
120.5
75.0
2006
2007
2008
143.1
71.8
52.1
50.4
150.0
136.5
134.4
2009
Net Profit (Company)
* 2012 until 2010 Net Profit according to IFRS standards.
Dividends
2010*
2011*
Pay Out (in%)
2012*
33
OUTLINE
Marcopolo as a Leading Player
Volare Business
Bus Market Overview
Operating & Financial Highlights
Corporate Governance
Sustainability
Marcopolo Corporation
Product Line
CO2 EMISSION COMPARISON
Source: www.transportdirect.info.
ABRATI e ANAC.
WHICH WAY IS SUSTAINABLE?
36
OUTLINE
Marcopolo as a Leading Player
Volare Business
Bus Market Overview
Operating & Financial Highlights
Corporate Governance
Sustainability
Marcopolo Corporation
Product Line
BUS BUSINESS UNITS
Ana Rech – Caxias do Sul-RS
Superpolo – Cota
Planalto – Caxias do Sul-RS
Polomex – Monterrey
Neobus – Caxias do Sul-RS
Metalsur – Santa Fe
Ciferal – Duque de Caxias - RJ
Metalpar – Lama Hermosa
Volgren – Newcastle - Australia
Volgren – Melbourne - Australia
Volgren – Perth - Australia
Volgren – Brisbane - Australia
Tata Marcopolo Motors LMTD
Dharward - India
GB Polo – Suez - Egypt
Tata Marcopolo Motors LMTD
Lucknow - India
MASA – Johannesburg
South Africa
Headquarters/Winnipeg
St. Cloud
TCB Enterprises, LLC
Crookston
38
Marcopolo Auto Components C.O.LTD.
OUTLINE
Marcopolo as a Leading Player
Volare Business
Bus Market Overview
Operating & Financial Highlights
Corporate Governance
Sustainability
Marcopolo Corporation
Product Line
PRODUCT FAMILY
40
INVESTOR RELATIONS CONTACTS
Carlos Zignani
Thiago A. Deiro
Investor Relations Director
Investor Relations Manager
carlos.zignani@marcopolo.com.br
thiago.deiro@marcopolo.com.br
Tel: +55 (54) 2101.4115
Tel: +55 (54) 2101.4660
www.marcopolo.com.br/ir
ri@marcopolo.com.br