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TRANSCRIPT
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.
DISCLAIMER
Marcopolo as a Leading Player
Bus Market Overview
Corporate Governance
Operating & Financial Highlights
Sustainability
Marcopolo Corporation
Product Line
OUTLINE
Volare Business
26.0% Return On Equity in 2012
HIGHLIGHTS 17.0% Return on Invested Capital in 2012
Market Value Added oriented Company
PRODUCTS
State-of-the-art technology
Integrated production of nearly all parts used in manufacturing process
Complete product line: coaches, transit buses, midi, micro & minibuses
Founded in 1949, Marcopolo has more than 63 years in the business
OVERVIEW Four factories in Brazil and fourteen abroad
MARCOPOLO’S PROFILE
Over 20,000 employees in Brazil and abroad
EGYPT
SOUTH AFRICA
COLOMBIA
MEXICO
INDIA
CHINA
ARGENTINA
BRAZIL
(components)
2011 = 1,234
2012 = 1,571
2013g = 1,800
2011 = 1,049
2012 = 807
2013g = 800
2011 = 21,189
2012 = 19,483
2013g = 21,000
2011 = 1,293
2012 = 747
2013g = 800
2011 = 213
2012 = 250
2013g = 500
2011 = 240
2012 = 244
2013g = 300
2011 = 6,308
2012 = 7,759
2013g = 9,500
MARCOPOLO’S TOTAL
PRODUCTION
2011 = 31,526
2012 = 31,296
2013g = 35,200
g = expectation of the guidance for each year.
All figures are related to Marcopolo’s stake in each business.
AUSTRALIA
2012 = 435
2013g = 500
RUSSIA
(Commercial JV)
STRATEGIC POSITIONING
6
CANADA
USA
21,81119,384
27,580
31,526 31,296
35,200
2008 2009 2010 2011 2012 2013 E
Domestic Market External Market
-0.7%
46%
54%
40%
60%
39%
61%
37%
63%
38%
62%
Consolidated Production 2012
*E = expected
MARCOPOLO’S PRODUCTION (Units)
7
2,532.2
2,023.8
2,964.53,368.9
3,817.1
4,300.0
2008 2009 2010 2011 2012 2013 E
Domestic Market External Market
36%
64%
27%
73%
30%
70%
32%
68%
39%
61%
Total Consolidated Net Sales - 2012
+13.3%
*E = expected
MARCOPOLO’S NET SALES (R$ MM)
8
Marcopolo as a Leading Player
Bus Market Overview
Corporate Governance
Operating & Financial Highlights
Sustainability
Marcopolo Corporation
Product Line
OUTLINE
Volare Business
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.
ABOUT VOLARE
10
3,048 2,988 2,879 2,855
3,159
5,070
3,6233,896
4,8704,665
0
1000
2000
3000
4000
5000
6000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
VOLARE’S PRODUCTION (Units)
11
-4.2%
MARKET SEGMENTATION
12
0%
10%
20%
30%
40%
50%
60%
School Buses Tourism/
Chartering
City Government's
Sales
Training Center
7%
36%
10%
39%
7%7%
45%
8%
34%
6%8%
51%
9%
26%
6%6%
37%
5%
48%
4%
2009 2010 2011 2012
Marcopolo as a Leading Player
Bus Market Overview
Corporate Governance
Operating & Financial Highlights
Sustainability
Marcopolo Corporation
Product Line
OUTLINE
Volare Business
21,381
25,280
26,983 27,952
32,027
35,410
25,645
33,395
35,989
33,080
32.8%
35.4%
46.9%
34.1%31.6%
28.9%
17.7%15.3%
11.7%13.5%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Brazilian Production Exports
-8,1%
SOURCE: Fabus – does not include Volare’s production.
BRAZILIAN BUS BODY PRODUCTION (Units)
14
320.2 335.2 353.6
375.7 401.0
424.1 452.0
486.6
13.1
14.313.6
13.813.9
14.114.5
14.7
2004 2005 2006 2007 2008 2009 2010 2011
Total Fleet (thousand units) Average Fleet Age (years)
Total Fleet & Average Age
SOURCE: Fenabrave and Denatran.
BRAZILIAN BUS FLEET
15
47.0% 45.9%
42.8%
39.2%
44.7%
43.0%41.7%
46.3%45.7% 45.2%
0%
10%
20%
30%
40%
50%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
MP/Ciferal
Busscar
Caio/ Induscar
Comil
Neobus
Mascarello
Other (*)
SOURCE: Fabus/Simefre.
(*) Irizar, Metalbus.
MARKET SHARE IN BRAZIL (%)
16
• 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.
OUTLOOK
17
• 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
OUTLOOK
18
Marcopolo as a Leading Player
Bus Market Overview
Corporate Governance
Operating & Financial Highlights
Sustainability
Marcopolo Corporation
Product Line
OUTLINE
Volare Business
46.2 44.7 45.3 45.7 45.2
4Q11 3Q12 4Q12 2011 2012
Marcopolo’s Market Share in Brazil
Marcopolo’s Total Production
*E = expected
-0.5pp +0.6pp
4Q11 3Q12 4Q12 2011 2012 2013 E
40%
7,339 8,394 8,291
35,200
-12.6%
31,296 31,526
-0.7%
DM
EM 54%
48%
36%
65%
60%
40%
60%
52%
46%
35%
64%
TOTAL PRODUCTION (units)
& MARKET SHARE (%)
4Q11 3Q12 4Q12 2011 2012 2013 E
Total Net Revenues
Gross Profit and Margin
+10.9%
948.7
4,300.0 +13.3%
956.7 1,061.2
3,368.9
3,817.1
34% 26%
74%
41%
36%
64%
66%
73%
27%
59% DM
EM
226.3190.1
227.2
741.7776.0
23.9%19.9% 21.4% 22.0% 20.3%
4Q11 3Q12 4Q12 2011 2012
+4.6%
+19.5%
FINANCIAL HIGHLIGHTS (R$ Milllion)
*E = expected
141.1
106.2130.4
464.1
439.8
14.9%11.1% 12.3% 13.8%
11.5%
4Q11 3Q12 4Q12 2011 2012
EBITDA and Margin
Net Profit and Margin
-5.2%
+22.8%
113.4
69.2
94.1
344.0
302.4
12.0%7.2% 8.9% 10.2% 7.9%
4Q11 3Q12 4Q12 2011 2012
+36.0%
-12.1%
FINANCIAL HIGHLIGHTS (R$ Milllion)
Net Equity & ROE
ROIC (%)
36.0%29.9%
26.0%
36.0%
26.0%
4Q11 3Q12 4Q12 2011 2012
+11.9% +1.9%
1,162.1 1,276.1 1,299.9 1,299.9
1,162.1
23.4
18.9
17.017.0
23.4
4Q11 3Q12 4Q12 2011 2012
-6.4pp
-1.9pp
FINANCIAL HIGHLIGHTS (R$ Milllion)
2008 2009 2010 2011 2012
Investments
Net Indebtedness
Net Debt (Industrial
Segment)/LMT EBITDA
*E = expected 4Q11 3Q12 4Q12 2011 2012 2013 E
+271.1%
+309.9%
200.0
74.7
17.1
70.1
11.6
277.2
+74.9%
745.7
508.4
811.3
1.7x 0.5x
= Financial Segment = Industrial Segment
709.6
1.1x - -
463.9
FINANCIAL HIGHLIGHTS (R$ Milllion)
Marcopolo as a Leading Player
Bus Market Overview
Corporate Governance
Operating & Financial Highlights
Sustainability
Marcopolo Corporation
Product Line
OUTLINE
Volare Business
SHAREHOLDERS
FISCAL COUNCIL
IR DIRECTOR
EXECUTIVE COMMITTEE
CEO
BOARD OF DIRECTORS
INTERNAL AUDIT
EXTERNAL AUDIT
COMMITTEE OF:
• HR AND ETHICS
• STRATEGY AND INNOVATION
• AUDIT ANS RISK
ORGANIZATION CHART
26
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
Marcopolo adopts corporate governance best practices, following the principles of transparency,
accountability, social responsibility and equitable treatment of shareholders.
CORPORATE GOVERNANCE
27
Preferred Shares
As of December 31st, 2012.
53.0%
23.2%
5.6%
16.2%1.1% 0.9%
SHAREHOLDING DISTRIBUTION
29
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
CORPORATE STRUTURE
30
12/29/2011 3/29/2012 6/29/2012 9/29/2012 12/29/2012
Marcopolo PN x Ibovespa - Base 100
POMO4: +81.9%
IBOV: +7.4%
STOCK PERFORMANCE
31
R$ 7.09
56,754 pts
R$ 12.90
60,952 pts
0
1000
2000
3000
4000
5000
6000
7000
-
5,0
10,0
15,0
20,0
25,0
30,0
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
Ma
rke
t C
ap
(R
$ M
illio
n)
Av
era
ge
Da
ily V
olu
me
(R
$ M
illio
n)
Average Daily Volume (R$ MM) Market Cap (R$ MM)
Marcopolo PN - POMO4
SHARE LIQUIDITY & VALUATION
32
120.5
146.5
134.4 136.5
295.8
344.0
302.4
50.4
75.0
52.171.8
150.0
166.1
143.1
42%
51%
39%
53%51%
48% 47%
2006 2007 2008 2009 2010* 2011* 2012*
Net Profit (Company) Dividends Pay Out (in%)
AVERAGE PAY OUT: 47%
* 2012 until 2010 Net Profit according to IFRS standards.
SHAREHOLDER REMUNERATION
33
Marcopolo as a Leading Player
Bus Market Overview
Corporate Governance
Operating & Financial Highlights
Sustainability
Marcopolo Corporation
Product Line
OUTLINE
Volare Business
Marcopolo as a Leading Player
Bus Market Overview
Corporate Governance
Operating & Financial Highlights
Sustainability
Marcopolo Corporation
Product Line
OUTLINE
Volare Business
BUS BUSINESS UNITS
38
Ana Rech – Caxias do Sul-RS
Planalto – Caxias do Sul-RS
Neobus – Caxias do Sul-RS
Ciferal – Duque de Caxias - RJ
Marcopolo Auto Components C.O.LTD.
Superpolo – Cota
Polomex – Monterrey
Metalsur – Santa Fe
Metalpar – Lama Hermosa
Volgren – Newcastle - Australia
Volgren – Perth - Australia
Tata Marcopolo Motors LMTD
Dharward - India
Tata Marcopolo Motors LMTD
Lucknow - India
Volgren – Melbourne - Australia
Volgren – Brisbane - Australia
GB Polo – Suez - Egypt
Headquarters/Winnipeg
St. Cloud
TCB Enterprises, LLC
Crookston MASA – Johannesburg
South Africa
Marcopolo as a Leading Player
Bus Market Overview
Corporate Governance
Operating & Financial Highlights
Sustainability
Marcopolo Corporation
Product Line
OUTLINE
Volare Business
PRODUCT FAMILY
40
Carlos Zignani
Investor Relations Director
Tel: +55 (54) 2101.4115
Thiago A. Deiro
Investor Relations Manager
Tel: +55 (54) 2101.4660
www.marcopolo.com.br/ir
INVESTOR RELATIONS CONTACTS