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April, 2008. José Rubens de la Rosa - CEO Carlos Zignani - Investor’s Relations Director João Luiz Borsoi - Investor’s Relations Manager NON-DEAL ROAD.

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Presentation on theme: "April, 2008. José Rubens de la Rosa - CEO Carlos Zignani - Investor’s Relations Director João Luiz Borsoi - Investor’s Relations Manager NON-DEAL ROAD."— Presentation transcript:

1 April, 2008. José Rubens de la Rosa - CEO Carlos Zignani - Investor’s Relations Director João Luiz Borsoi - Investor’s Relations Manager NON-DEAL ROAD SHOW

2 Founded in 1949 Total area of facilities Brazil and Abroad 238,000 m² Total Area Brazil and Abroad 1,888,000 m² Production Capacity Brazil75 units/day (without TMML & Russia) Brazil and Abroad110 units/day No. of employees Brazil9,923 Brazil and Abroad12,311 Brazil and Abroad12,311 No. of plants Brazil3 Abroad10 Abroad10 Net Revenues 2007 R$ millions2,129.2 Net Profit 2007R$ millions132,3 Dividends 2007R$ millions75,0 (56.7% Net Profit) 2 continue... WHAT IS MARCOPOLO...

3 One of the world’s largest bus body manufacturers One of the world’s largest bus body manufacturers Leadership position in Brazil with 40% market share Leadership position in Brazil with 40% market share One of the most recognized brands in the global bus industry One of the most recognized brands in the global bus industry State of the art production technology State of the art production technology Integrated production of nearly all parts used in manufacturing Integrated production of nearly all parts used in manufacturing Complete product line: coaches, city buses, midi, micro and minibuses Complete product line: coaches, city buses, midi, micro and minibuses 3 WHAT IS MARCOPOLO...

4 COMPANY’sORGANIZATIONALSTRUCTURE

5 Fiscal Council ShareholdersShareholders Heir´s Council Service Providers Businesses CEOCEO Board of Administration Executive HR and Ethic Committees Internal Audit Statutory Audit Estrategy Audit and Risk CORPORATION LCV Business Financial Services CFOCFO AdministrativeDirectorAdministrativeDirector Plastics Business International Operations (China / India / Russia) (China / India / Russia) International Operations (China / India / Russia) (China / India / Russia) Bus Business (Caxias, Ciferal, Colômbia, México, South Africa) Estrategy, New Markets & Marketing Direct. 5

6 Loma Hermosa - Argentina Rio de Janeiro - Brasil Cota - Colombia Monterrey - Mexico Coimbra - Portugal Johannesburg - South Africa Changzhou - China (components) Golitsino & Pavlov - Russia Dharward & Lucknow - India WORLDWIDE PRESENCE … 6 Caxias do Sul - Brasil (Planalto & Ana Rech)

7 7 WORLDWIDE PRESENCE …

8 THE CHASSI UNDERSTANDING MARCOPOLO PRODUCT... 8

9 BUS BODY THE PRODUCT... 9

10 Sales/Distribution LogisticSales/Distribution Logistic Global Presence: market diversification Global Presence: market diversification Custom-made products Custom-made products Competitive costs Competitive costs Verticalization & Global Sourcing Verticalization & Global Sourcing Economies of scale/Large Volumes Economies of scale/Large Volumes Human Resources/trainning/motivation Human Resources/trainning/motivation TechnologyTechnology Broad product line Broad product line Unique manufacturing systems & processes Unique manufacturing systems & processes Technologycal autonomy (slide eleven) Technologycal autonomy (slide eleven) 10 continue... STRONG POINTS...

11 11 TECHNOLOGY TRANSFERS...

12 ProfitabilityProfitability Economic value added philosophy Economic value added philosophy Corporate Governance Corporate Governance Bovespa Level II Bovespa Level II Board of Directors Board of Directors Board of Directors Committees Board of Directors Committees Fiscal Council Fiscal Council Heir’s Council Heir’s Council Code of Conduct Code of Conduct Profitability: (2003/2007) Profitability: (2003/2007) Increase in net profits: 1.6 times Increase in net profits: 1.6 times Increase in revenues: 1.7 times Increase in revenues: 1.7 times Increase in production:1.3 times Increase in production:1.3 times Shares price appreciation and market value: 3.0 times Shares price appreciation and market value: 3.0 times 12 STRONG POINTS...

13 To achieve higher rates of revenue growthTo achieve higher rates of revenue growth To be present in highly populous/developing countriesTo be present in highly populous/developing countries Markets diversification, to minimize effects from fluctuations in demand and from economic and political risksMarkets diversification, to minimize effects from fluctuations in demand and from economic and political risks Extend the geographic range of manufacturing and supply centersExtend the geographic range of manufacturing and supply centers Benefit from economies os scaleBenefit from economies os scale GROWTH STRATEGIES... WHY INTERNATIONAL EXPANSION 13

14 14 RUSSIAN BUSSES MARCO - HIGHLIGHTS...

15 15 TATA MARCOPOLO MOTORS LIMITED - HIGHLIGHTS...

16 16 2008 MAIN OBJECTIVES... Speed up local manufacture of parts by foreign subsidiariesSpeed up local manufacture of parts by foreign subsidiaries Establish parts mfg centers in low cost countriesEstablish parts mfg centers in low cost countries Increase market effort directed to most profitable and differentiated productsIncrease market effort directed to most profitable and differentiated products Exploit new market niche (School Bus)Exploit new market niche (School Bus) Increase EBITDA and stockholders returnsIncrease EBITDA and stockholders returns Foster training and continuing development of employeesFoster training and continuing development of employees

17 BRAZILIAN BUS BODY PRODUCTION & MARKET SHARE

18 Source: Simefre 18 BRAZILIAN BUS BODY PRODUCTION (units) & EXPORTS (%)... +14.6%

19 Source: Simefre (*) Irizar, Maxibus. 19 MARKET SHARE (%)...

20 MARCOPOLO SUMMARY OF RESULTS

21 GLOBAL PRODUCTION (units)... DM EM Global Production 20,000 14,824 15,509 17,807 13,624 2007 Global Product Breakdown 21 15,105 +12.3% 2008E = Forecast

22 CONSOLIDATED REVENUES (R$ Million)... DM EM 2,300.0 1,709.1 1,750.3 1,605.4 2007 Net Revenues BreakdownConsolidated Revenues 22 2,129.2 1,288.5 +8.0% US$ 2.892.65 2.34 2.141.771.80 2008E = Forecast

23 GROSS PROFIT, NET PROFIT (R$ Million) AND MARGINS (%)... Gross Profit and Margin 23 +9.9% Net Profit and Margin +9.5% 132.3 US$ 2.89 2.65 2.34 2.141.77

24 ROE (%), EBITDA ADJUSTED (R$ Million) AND MARGIN (%)... Return on Equity (ROE) EBITDA Adjusted and Margin 24 -1.3pp +11.1% US$ 2.89 2.65 2.34 2.141.77

25 TSR - TOTAL SHAREHOLDERS RETURN (%)... 25 112.2 TSR Annual Average = 40.1%

26 TSR or Total Shareholders Return reflects the capital gains plus dividend paid within the period. TSR 2007 Dividends + capital gains Share price at begining of period 0.3353 + (7.20 – 5.95) 5.95 = TSR = = 26.6% TSR - TOTAL SHAREHOLDERS RETURN... 26

27 CAPITAL EXPENDITURES AND NET INDEBTDENESS (R$ Million)... Net IndebtdenessCapital Expenditures 86.5 Note: = Financial Segment = Industrial Segment 27 324.0 2008E = Forecast

28 28 CAPITAL EXPENDITURES FORECAST 2008...

29 CONSOLIDATED RESULTS (R$ Milion)... 29

30 CONTROLING SHAREHOLDERS: in 12/31/2007 VOTING SHARES OWNERSHIP... 30

31 CONTROLING SHAREHOLDERS: PREFERED SHARES OWNERSHIP... 31 in 12/31/2007

32 Marcopolo vs Ibovespa 32 STOCK PERFORMANCE...

33 33 MARKET VALUE (R$ Million)... +21.0% Note: The figures were updated to reflect the 100% bonus granted after the Board Meeting held on August 25, 2006.

34 (Company) AVERAGE PAY OUT: 49.5% NET PROFIT & DIVIDENS PAY OUT (R$ million)... 34

35 STOCK PERFORMANCE... Number of Transactions and Total of Traded Shares (quantity) Amount of Transactions and Co. Market Value (R$ million) 35

36 COMPANY PLANTS

37 CAXIAS DO SUL/RS - BRAZIL ANA RECH 37

38 CAXIAS DO SUL/RS - BRAZIL PLANALTO 38

39 DUQUE DE CAXIAS/RJ - BRAZIL CIFERAL IND. DE ÔNIBUS LTDA. 39

40 COIMBRA - PORTUGAL MARCOPOLO INDÚSTRIA DE CARROÇARIAS LTDA. 40

41 SUPERPOLO S/A - NEW PLANT 41 COTA - COLOMBIA

42 JOHANNESBURG – SOUTH AFRICA MARCOPOLO SOUTH ÁFRICA (PTY) LTD. 42

43 MONTERREY - MEXICO POLOMEX S.A. DE C.V. 43

44 GOLITSINO - RUSSIA RUSSIAN BUSES MARCO 44

45 LUCKNOW - INDIA TATA MARCOPOLO MOTORS LMTD. 45

46 CAXIAS DO SUL/RS - BRAZIL NEOBUS – SAN MARINO ÔNIBUS E IMPLEMENTOS LTDA. 46

47 LOMA HERMOSA - ARGENTINA METALPAR 47

48 Carlos Zignani Investor’s Relations Director carlos.zignani@marcopolo.com.br Phone: (55) 54 2101.4115 João Luiz Borsoi Investor’s Relations Manager joao.borsoi@marcopolo.com.br Phone: (55) 54 2101.4660 www.marcopolo.com.br 48 INVESTOR’s RELATIONS...

49 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. 49 OBSERVATION...


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