CORPORATE PRESENTATION. Caxias do Sul March, 2014.

Transcription

1 CORPORATE PRESENTATION Caxias do Sul March, 2014.

2 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.

3 OUTLINE Marcopolo Volare Business Bus Market Overview Operating & Financial Highlights Corporate Governance & Sustainability Marcopolo Corporation & Product Line

4 MARCOPOLO S PROFILE Founded in 1949, Marcopolo has more than 64 years in the business OVERVIEW Four factories in Brazil and twelve abroad Over 21,000 employees in Brazil and abroad 22.5% Return On Equity in 2013 HIGHLIGHTS 16.2% Return on Invested Capital in 2013 Economic 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 4

5 UNDERSTANDING OUR PRODUCT BUS BODY CHASSI (chassi manufacturers) VOLARE - COMPLETE VEHICLES 5

6 COMPETITIVE ADVANTAGES Image & Relationship - Reliable Brand - Financial and economic soundness - Sustainability & community - Respect and commitment to people - Global presence Hardiness & Durability (Under R66) Mechanical resistance of the structure and components Longer Useful Life Structural and components durability Active & Passive Safety - Emergency exit, standards of rollover, TILT TEST, frontal impact Customer Intimacy - Transparency - Reliability - Flexibility Lower Operating Cost/Lifetime Cost - Lower fuel consumption - Low frequency, cost and time of maintenance Processes & Services - Customization - Insourcing - Resale value - Own commercial network and outsourced (Volare) - Own and outsourced technical assistence - Spare parts 6

7 STRATEGIC POSITIONING CANADA RUSSIA (Commercial JV) MARCOPOLO S TOTAL PRODUCTION (new pattern) 2013 = 20, g = 20,850 MARCOPOLO S TOTAL PRODUCTION (previous pattern) 2013 = 30, g = 33,000 MEXICO 2013e = 1, g = 2,000 USA EGYPT 2013* = g = 1,700 INDIA 2013* = 11, g = 14,700 CHINA (components) COLOMBIA 2013* = 1, g = 2,000 ARGENTINA 2013* = 2, g = 2,100 BRAZIL 2013 = 18, g = 18,000 SOUTH AFRICA 2013 = g = 350 AUSTRALIA 2013 = g = 500 * = in accordance with the new accounting standard ( IFRS 10 & 11), these companies are no longer consolidated in Marcopolo s output. All figures are showing 100% of each business. g = year-end 2014 expectation according to the guidance published on December 16th 7

8 OUTLINE Marcopolo Volare Business Bus Market Overview Operating & Financial Highlights Corporate Governance & Sustainability Marcopolo Corporation & Product Line

9 ABOUT VOLARE Volare Production started in 1998 Production Capacity: 7,500 units/year 2013 Production: 5,480 units 2013 Net Revenue: R$ million New facility in São Mateus, Espírito Santo/Brazil, with initial annual capacity of 3,000 units/year is expected to go online in the second half of

10 VOLARE S PRODUCTION (Units) 5,070 4, % 4,665 5,480 3,623 3,896 2,988 2,879 2,855 3,

11 MARKET SHARE IN BRAZIL (%) 51.5% 51.3% +4.7pp 52.4% 50.2% 49.2% 47.5% 47.7% 43.7% * Source: ANFAVEA Volare s market share considers 6-10 tons units 11

12 OUTLINE Marcopolo Volare Business Bus Market Overview Operating & Financial Highlights Corporate Governance & Sustainability Marcopolo Corporation & Product Line

13 BRAZILIAN BUS BODY PRODUCTION (Units) 35,410 35, % 32,027 33,395 33,080 33,109 25,280 26,983 27,952 25, % 35.4% 34.1% 31.6% 28.9% 17.7% 15.3% 11.7% 13.5% 12.9% SOURCE: Fabus does not include Volare s production. Brazilian Production Exports 13

14 BRAZILIAN BUS FLEET Total Fleet & Average Age Total Fleet (thousand units) Average Fleet Age (years) SOURCE: Fenabrave 14

15 MARKET SHARE IN BRAZIL (%) 50% 44.7% 43.0% 41.7% 46.3% 45.7% 45.2% 45.0% 40% 41.5% 39.2% 36.7% 41.0% 40.9% 39.5% 39.8% (*) 30% 20% 10% (**) (**) Irizar, Metalbus. 0% SOURCE: Fabus/Simefre. (*) According to the new accounting standard IFRS 10 & 11 Marcopolo s stake in Neobus is no longer considered. 15

16 OUTLOOK Events in Brazil 2014 FIFA World Cup / Federal and State level elections / Interstate lines bidding 2016 Olympic and Paralympic Games / Municipal Elections Growth Drivers / Opportunities GDP Growth; Demand for BRTs units in the order book; Lots of school buses from the "Road to School" program; Volare: Additional 1,540 school buses for the state of São Paulo; Extension of FINAME PSI: interest rate at 6.0% (until 2014); Strong demand from the tourism segment to attend the World Cup in 2014; Global Sourcing; School Bus program for urban areas; Pay roll tax cut (until December 2014); Favorable exchange rates to exports. 16

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 in Brazil Regional airlines Trains/subways Cars/motorcycles 17

18 OUTLINE Marcopolo Volare Business Bus Market Overview Operating & Financial Highlights Corporate Governance & Sustainability Marcopolo Corporation & Product Line

19 MARCOPOLO S TOTAL PRODUCTION (Units) Previous accounting standard -2.7% 19,384 27,580 39% 31,526 31,296 40% 46% 30,442 41% 33,000 40% Consolidated Production % 63% 61% 60% 54% 59% 60% New accounting standard IFRS 10 & % 20,643 20% 20,850 14% 21,811 80% 19,384 86% 27, % 31,526 31,296 5,486 4,785 23% 30% 77% 70% E 4Q12 4Q13 *E = expected Domestic Market External Market 19

20 MARCOPOLO S TOTAL NET SALES (R$ Million) Previous accounting standard 2, % 2, % 3, % 3, % +9.4% 4, % 4, % 70% 73% 64% 64% Consolidated Net Sales E New accounting standard IFRS 10 & % 3, , % 21,811 19,384 27,580 31, % 31, % 46% 69% 69% 54% E 4Q12 4Q13 *E = expected Domestic Market External Market 20

21 FINANCIAL HIGHLIGHTS (R$ Million) (*) Gross Profit and Margin +5.4% % % 20.9% 20.6% 20.0% 4Q12 4Q EBITDA and Margin +5.4% % % 12.3% 11.9% 4Q12 4Q (*) All figures in accordance with the new accounting standard IFRS 10 & 11.

22 FINANCIAL HIGHLIGHTS (R$ Million) (*) Net Profit and Margin -3.4% % % 8.2% 9.0 % 8.0 % 4Q12 4Q , % 1,515.9 Net Equity & ROE 1, % 1, % 22.5% 26.0% 22.5% 3Q13 4Q (*) All figures in accordance with the new accounting standard IFRS 10 & 11.

23 FINANCIAL HIGHLIGHTS (R$ Million) (*) Investments +33.7% E *E = expected Net Indebtedness +44.7% 1, = Financial Segment = Industrial Segment - 0.3x 0.9x Net Debt (Industrial Segment)/LTM EBITDA (*) All figures in accordance with the new accounting standard IFRS 10 & 11.

24 OUTLINE Marcopolo Volare Business Bus Market Overview Operating & Financial Highlights Corporate Governance & Sustainability Marcopolo Corporation & Product Line

25 ORGANIZATION CHART SHAREHOLDERS FISCAL COUNCIL BOARD OF DIRECTORS COMMITTEE OF: EXECUTIVE COMMITTEE INTERNAL AUDIT HR AND ETHICS STRATEGY AND INNOVATION AUDIT ANS RISK EXTERNAL AUDIT IR DIRECTOR CEO 25

26 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 BM&FBovespa IBrX, IGC, SMLL, INDX, IGCT, IBRA, ITAG indexes and MSCI Heirs Succession Plan and Senior Management Succession 26

27 SHAREHOLDING DISTRIBUTION Common Shares 12.1% O ther Shareholders 3.8% M arc opolo Foundation 3.0% N orges Bank 15.2% Fund. Bc o. C entral - C E NTRUS 65.9% C ontrolling Shareholders As of February 28 th,

28 SHAREHOLDING DISTRIBUTION Preferred Shares 16.9% Fundo P etrobras Seg. Soc. - P etros 5.1% Jos e A ntonio F. M artins 1.2% M arc opolo Foundation 0.9% C ontroling Shareholders 23.0% O ther Shareholders in Brazil 52.9% Foreign Shareholders As of February 28 th,

29 CORPORATE STRUCTURE 896,900,084 Total Shares 555,274,340 PN Shares 341,625,744 ON Shares Free Float: 74.2% (outstanding shares) Market cap on February 28 th, 2014 R$ 4.2 billion 29

30 STOCK PERFORMANCE Marcopolo PN x Ibovespa - Base 100 POMO4: -28.2% IBOV: -18.0% R$ ,424 pts 47,094 pts R$ /28/2013 5/31/2013 8/31/ /30/2013 2/28/

31 Average Daily Volume (R$ Million) Market Cap (R$ Million) SHARE LIQUIDITY & VALUATION Marcopolo PN - POMO4 25, , , , , Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 0 Average Daily Volume (R$ MM) Market Cap (R$ MM) 31

32 SHAREHOLDER REMUNERATION (R$ Million) AVERAGE PAY OUT: 47% % 53% 51% 48% 47% 44% 39% , * 2011* 2012* 2013* Net Profit Dividends Pay Out (%) * Net Profit according to IFRS standards. 32

33 SUSTAINABILITY Sustainability Committee: Marcopolo has a Sustainability Committee, comprised of representatives from the Financial, Environmental and Social areas, whose goal is to promote the development of the theme Sustainability on the agenda of the company's business through discussions, stakeholder engagement and actions in the internal environment and external. Benefits for Employees: MarcoSaúde; PSP (Profit Sharing Program); Pension plan and other benefits; In addition to the benefits offered by Marcopolo, employees participate in social programs sponsored by Marcopolo Foundation. Programs for the Community: Schools Project; Volunteer Joy; Allocation of Taxes - Marcopolo passes 1% income tax to the Municipal Fund of the Rights of Children and Adolescents in the cities of Caxias do Sul and Duque de Caxias. 33

34 CO 2 EMISSION COMPARISON Source: ABRATI e ANAC.

35 BRT SYSTEM IN RIO DE JANEIRO 35

36 OUTLINE Marcopolo Volare Business Bus Market Overview Operating & Financial Highlights Corporate Governance & Sustainability Marcopolo Corporation & Product Line

37 BUS BUSINESS UNITS Ana Rech Caxias do Sul-RS Superpolo Cota Marcopolo Auto Components C.O.LTD. Volgren Melbourne - Australia Planalto Caxias do Sul-RS Polomex Monterrey Volgren Perth - Australia Volgren Brisbane - Australia Neobus Caxias do Sul-RS Metalsur Santa Fe Tata Marcopolo Motors LMTD Dharward - India GB Polo Suez - Egypt Ciferal Duque de Caxias - RJ Metalpar Loma Hermosa Tata Marcopolo Motors LMTD Lucknow - India MASA Johannesburg South Africa 37

38 PRODUCT LINE 38

39 INVESTOR RELATIONS CONTACTS Carlos Zignani Investor Relations Director Tel: + 55 (54) Thiago A. Deiro Investor Relations Manager thiago.deiro@marcopolo.com.br Tel: + 55 (54) Rafael L. Ritter Investor Relations Analyst rafael.ritter@marcopolo.com.br Tel: +55 (54) Varleida C. P. Perin Investor Relations Analyst varleida.perin@marcopolo.com.br Tel: +55 (54) ri@marcopolo.com.br