iochpe-maxion - 3q04 presentation

2004 Third QuarterResults

2

Iochpe-Maxion: Fundamentals

Strong organic growth of revenues

Steady operational margins

Growing cash flow generation

Solid capital structure – debt / EBITDA ratio

Focus on equipments related to the logistics industry

Local market leadership

Capital expenditures aiming at a strong competitive position – entry barriers

Growing exports

Capacity expansion in line with demand growth

3

Iochpe-Maxion: Capital Markets and Governance

Public company since 1984

Investor relationshipQuarterly meetings

Website – exclusive IR content

Annual Reports, press releases, etc.

Dividend payout – 37% of net income and an additional 10% for non voting shares

StockGrowing liquidity and float

Board with 2 independent members and no executive officer

Audit Board (“Conselho Fiscal”) with 1 representative of the non-controlling shareholders

4

Shareholder Composition – Sept. 04

Outstanding Shares

Voting 921,429,894 34.62%Non-voting 1,740,185,376 65.38%

Total 2,661,615,270 100.00%

Iochpe FamilyVoting 75.6%Non-voting 0.5%Total 26.5%

Iochpe-Maxion S.A.

Iochpe-Maxion

BNDES ParticipaçõesVoting 21.8%Non-voting 62.2%Total 48.2%

OtherVoting 2.6%Non-voting 37.3%Total 25.3%

Other – Sept. 03Voting 3.1%Non-voting 26.6%Total 18.5%

Shareholder Agreement

5

Corporate Structure – Sept. 04

Wheels andChassis Division

(2.974 Employees)

AutomotiveComp. Division

(1.294 Employees)

Maxion SistemasAutomotivos S.A.

Maxion ComponentesEstruturais Ltda.

Amsted Maxion Fund. eEquip. Ferroviários S.A.

(3.370 Empoyees)

Iochpe-Maxion S.A.(11 Employees)

Consolidated = 5.969 Employees

7.22%

AmstedIndustries

Tecob Repr.Cobr. Ltda(3 Employees)

Iochpe Holdings, LLC(2 Employees)

100% 100%

50%

50%99.99%

92.64%

6

Net sales breakdown by company %

9M04 - R$ 786.8 MM 9M03 - R$ 494.9 MM

3 0 %

1 3 %

5 7 %

Amsted Maxion (*)

2 4 %

1 6 %

6 0 %


Amsted Maxion (*)

AutomotiveComp. Division Automotive

Comp. Division


(*) Consolidated figures take into consideration 50% of the net sales of Amsted Maxion

7

Automotive Industry – Brazilian Output Thousand units

3Q04 3Q03 Chg.% 9M04 9M03 Chg.%

Cars 468.7 350.4 33.8% 1,302.6 1,104.9 17.9%

Light Commercials 83.0 55.4 49.8% 223.7 153.5 45.7%

Trucks 29.1 19.6 48.5% 79.1 58.3 35.6%

Buses 7.7 7.0 10.6% 21.4 20.0 7.4%

Total Vehicles 588.6 432.4 36.1% 1,626.9 1,336.7 21.7%

Agricultural Machinery 18.9 17.5 7.7% 51.1 44.1 15.8%

Source : Anfavea

8

Automotive Industry - Export Thousand units

3Q04 3Q03 Chg.% 9M04 9M03 Chg.%

Cars 147.1 104.8 40.3% 361.3 333.9 8.2%

Light Commercials 28.5 20.1 41.8% 74.5 48.8 52.7%

Trucks 7.3 3.7 98.0% 19.0 8.4 126.2%

Buses 3.3 2.5 28.4% 8.1 6.5 23.9%

Total Vehicles 186.3 131.2 41.9% 462.9 397.7 16.4%

AgriculturalMachinery 8.5 6.3 34.5% 23.2 14.9 55.5%

Source : Anfavea

57%

WHEEL AND CHASSIS DIVISION (*)

(*) Division of

10

WHEELS AND CHASSIS DIVISION

Chassis and Siderails - 51% of net sales

SiderailsStamped Parts

Chassis

StructuralPats

Heavy Medium Light

11


Wheels for Vehicles - 49% of net sales

12

WHEELS AND CHASSIS DIVISION R$ MM

1 1 2

1 7 42 0 8

2 4 1

3 9 7

5 5 2

2 9 5

4 5 0

1 1 3

1 7 3

0 0

2 0 0

4 0 0

6 0 0Net Sales

CAGR = 39.9% a.a.

1999 2000 2001 2002 2003 3Q04 LTMLTM = Last 12 months / CAGR = Compounded Annually Growth Rate

Chg.% = 52.3%

9M03 9M04

Chg.% = 53.7%

3Q03 3Q04

13


Chassis – Market Share %9M04 9M03

1 5 %

1 1 %7 4 %

Maxion

Dana

OEMs

1 6 %

7 4 %

Maxion

1 0 %

Dana

OEMs

14


Chassis – Net sales breakdown by customer %9M04 – R$ 229.8 MM 9M03 – R$ 153.0 MM

2 8 %

2 2 %

9 %

7 %5 %

1 6 %

1 3 %

OtherDaimlerChrysler

Volks-wagen General

Motors

Export

Ford

Scania

2 2 %

2 6 %

5 %

9 %3 %

1 9 %

1 6 %

Volks-wagen

DaimlerChrysler Other

Scania

Ford

Export

GeneralMotors

15


Chassis – New Orders: R$ 19.2 MM per year

P r o d u c t / C u s t o m e r C o u n t r y S t a r t i n g D a t e A n n u a l S a l e s R $ M M

L i g h t S t a m p i n g s - A r v i n M e r i t o r B r a z i l M a y . 0 5 9 . 6

M e d i u m S t a m p i n g s - D a i m l e r C h r y s l e r B r a z i l A u g . 0 4 3 . 1

C h a s s i s - V o l k s w a g e n ( C K D - M e x i c o ) B r a z i l M a r . 0 4 2 . 3

C h a s s i s - V o l k s w a g e n B r a z i l A p r . 0 4 2 . 2

L i g h t S t a m p i n g s - D a i m l e r C h r y s l e r B r a z i l J u n . 0 4 1 . 3

M e d i u m S t a m p i n g s - P e u g e o t C i t r o e n B r a z i l O c t . 0 4 0 . 4

S i d e r a i l R e i n f o r c e m e n t - D a i m l e r C h r y s l e r B r a z i l M a y . 0 4 0 . 3

16


Wheels - Market Share %9M04 9M03

3 9 %

1 0 %

5 1 %

MaxionBorlem

Other

3 9

Borlem

%

1 0 %

5 1 %

Maxion

Other

17


Wheels – Net sales breakdown by customer %9M04 – R$ 220.0 MM 9M03 – R$ 142.3 MM

2 6 %2 4 %

1 1 % 6 %6 %

1 1 %1 6 % Outros

ExportTractors

Volks-wagen Scania

Volvo

2 7 %2 8 %

1 2 % 6 %4 %

1 1 %1 2 %

Aftermarket

Volks-wagen Scania

Volvo

Other

Export Tractors

Aftermarket

18


WHEELS – NEW ORDERS: R$ 17.4 MM per year

C U S T O M E R C o u n t r y S t a r t i n g D a t e A n n u a l S a l e s R $ M M

W o r k h o r s e U S A J u n . 0 5 6 . 5J o h n D e e r e B r a z i l N o v . 0 4 3 . 2S t i p T u n i s M a y . 0 4 2 . 3D u n l o p S o u t h A f r i c a J u n . 0 4 1 . 5K u r t L e y s e r C o r p . S o u t h A f r i c a A p r . 0 4 1 . 5M A A P M o r o c c o M a y . 0 4 1 . 0B r i d g e s t o n e S p a i n F e b . 0 4 0 . 8K r i s t a n a s S p i r o s G r e e c e J u l . 0 4 0 . 6

14%

AUTOMOTIVE COMPONENTS DIVISION (*)

(*) Division of

20

Automotive Components Division

Partial Divestiture – Sept.10 , 2004

Assets related to the window raiser mechanismBuyer: Brose do Brasil Ltda. – subsidiary of Brose International GmbHAmount: R$ 17.8 millionAsset transfer in 180 daysWindow raiser mechanisms business represents:

7% of the consolidated net sales51% of the net sales to the passenger car segment

21


HANDBRAKELEVERS

PEDALSETS

JACKS

22

Automotive Components Division R$ MM

9 29 9

9 4 9 8

1 1 4

1 3 8

8 2

1 0 5

2 73 7

0

5 0

1 0 0

1 5 0

Net Sales

CAGR = 9.0% a.a.

Chg. % = 28.9%

Chg. % = 38.6%

1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04LTM = Last 12 months / CAGR = Compounded Annually Growth Rate

23


Market Share % 9M04 9M03

W indow raiser mechanism

42% 43%

Hand break lever 43% 46%

Pedal Set 27% 27%

Jack 20% 15%

Latch 9% 10%

Knob / Key / Cylinder 7% 10%

24


Net sales breakdown by customer %9M04 – R$ 105.3 MM 9M03 – R$ 81.7 MM

3 1 %

2 5 %

1 4 %

7 %4 %

4 %

1 5 %

Fiat

Volks-wagen

GeneralMotors

SAS

FordAfter

Market

2 9 %

2 3 %

1 2 %

7 %8 %2 %

1 9 %

SAS

GeneralMotors

Fiat

AfterMarket

Ford

Volks-wagen

OtherOther

25


New Orders: R$ 1,2 MM per year (*)

M o d e l - C u s t o m e r s P r o d u c t S t a r t i n g D a t e

A n n u a l S a l e s R $ M M

F o x - V W J a c k O c t . 0 3 0 . 9P i c k - u p M o n t a n a - G M L a t c h N o v . 0 3 0 . 3

(*) Does not include new orders of window raiser mechanisms, due to the disposal of this business

26

Brazilian market of railroad equipment

Sale 3Q04 3Q03 Chg.% 9M04 9M03 Chg.%

Railroad freight cars – units 1,579 511 209% 4,195 1,339 213%

Railroad wheels – thous. units 13.6 8.9 53% 30.4 27.0 13%

Railroad castings – thous. tons 0.7 0.7 0% 2.7 1.6 69%

Does not include wheels and castings used in the assembly of new freight cars

AMSTED MAXION FUNDIÇÃO E EQUIPAMENTOS FERROVIÁRIOS

30%

Subsidiaries :

28

Amsted Maxion

RAILROADWHEELS

RAILROADFREIGHT CARS

BOOGIES

29

Amsted Maxion R$ MM

9 51 2 2 1 1 0 1 2 0

3 2 8

5 5 6

2 3 6

4 6 4

8 9

1 8 9

0

2 0 0

4 0 0

6 0 0

Net Sales (*)

CAGR = 45.2% a.a.

1999 2000 2001 2002 2003 3Q04 LTM

Chg. % = 96.5%

9M03 9M04

Chg. % = 111.5%

3Q03 3Q04

(*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s salesLTM = Last 12 months / CAGR = Compounded Annually Growth Rate

30

Amsted Maxion

Market Share % 9M04 9M03

R a i l r o a d F r e ig h t C a r s 7 5 %

1 0 0 %

R a i l r o a d W h e e ls

4 0 %

6 0 %

R a i l r o a d C a s t in g s

8 0 %

8 0 %

In d u s t r ia l C a s t in g s

5 0 %

6 0 %

31

Amsted Maxion

Net sales breakdown by customer %9M04 – R$ 231,8 MM(*) 9M03 – R$ 118,0 MM(*)

5 7 %1 4 %

7 %3 %3 %

4 %

1 2 %

Other Ferronorte

CVRD

Export

MRS

6 8 %

2 %

5 % 3 %2 2 %

Caterpillar

CVRD

Export

MRS

FCAFCA

Caterpillar

(*) Accounts for 50% of the net sales of Amsted Maxion

32

Amsted Maxion

Spot Orders 2004 : R$ 580.0 MM (*)

CVRD / FCA – 2,878 cars

MRS - 630 cars

ADM - 140 cars

Mineração Serra do Sossego - 42 cars

MRS / ALL - 50 boxes

MRC (Mitsui) – 150 cars

Total = 3,840 cars and 50 boxes

Delivered

As of Sept. 30 – 3,116 carsand 30 boxes

Still in 2004 – 724 cars and 20 boxes

(*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales

33

Amsted Maxion

Spot Orders 2005 : R$ 130.0 MM (*)

MRC (Mitsui) – 350 cars

C.V.G. Ferrominera Orinoco - (Venezuela) - 225 cars

Comilog S.A. (Gabon) - 76 cars

CBG – Compagnie des Bauxites de Guinee (Guinee) - 24 cars

Total = 675 cars


34

Amsted Maxion

Recurring Orders : R$ 132.2 MM per year (*)

Caterpillar (Brazil and USA) – tractor parts - R$ 54.0MM

ASF-Amsted (USA) – railroad castings – R$ 44.7MM

C.V.G. Ferrominera Orinoco (Venezuela) – railroad castings – R$ 10.1MM

Truck OEMs (Brazil) – fifth-wheels – R$ 8.5MM

ConMet-Amsted (USA) – fifth-wheels components - R$ 7.7MM

Metso (France) – industrial castings - R$ 3.6MM

Komatsu / CNH (USA and Italy) – industrial castings - R$ 3.6MM


CONSOLIDATEDFIGURES

36

Consolidated

Net sales breakdown by customer %9M04 – R$ 786.8 MM 9M03 – R$ 494.9 MMM

1 7 %

1 3 %

9 %7 %

7 %5 %4 %

4 %

2 2 %

1 2 %

CVRD

Volks-wagen

DaimlerChrysler

Fiat

Other

Export

GeneralMotors

Tractors

AfterMarket

1 6 %

1 6 %

1 0 %8 %

8 %

5 %5 %1 %

1 6 %

1 5 %

CVRD

Volks-wagen

DaimlerChrysler

Fiat

Other

Export

GeneralMotors

Tractors

AfterMarketMRS

MRS

37

Consolidated – Net sales breakdown by segment %

Customer Segment 9M04 9M03

OEMs producing in the country

- Bus, truck and light commercial - Passanger cars

61%

48% 13%

65%

49% 16%

Brazilian railroad operators 26% 19%

Export 13% 16%

38

Consolidated – Export by product segment %

9M04 – US$ 33.6 MM / R$ 99.5 MM 9M03 – US$ 24.9 MM / R$ 80.6 MM

5 3 % 1 7 %

1 % 2 9 %

5 2 %

AutomotiveComp.

Chassis

RailroadEquipment

AutomotiveWheels

AutomotiveComp.

AutomotiveWheels

1 8 %

2 %2 8 %

Chassis

RailroadEquipment

Import 9M04

US$ 8.0MM / R$ 23.6MM (*)

Import 9M03

US$ 6.6MM / R$ 20.9MM(*) includes US$ 3.4MM / R$ 10.0MM of machineryand equipment

39

Consolidated – Export by destination %

9M04 – US$ 33.6 MM / R$ 99.5 MM 9M03 – US$ 24.9 MM / R$ 80.6 MM

5 3 %1 0 %

1 9 %

1 %7 %7 %

3 %3 8 %

1 7 %

1 5 %

3 %8 %

1 7 %

2 %Mexico

USA

Canada

SouthAmerica

Asia /Oceania

Europe

Africa / Middle East

Mexico

USA

Canada

SouthAmerica

Asia /Oceania

EuropeAfrica / Middle East

40

Consolidated R$ MM

1999 2000 2001 2002 2003 3Q04 LTM

6 1 5 , 4 6 2 4 , 0

3 7 3 , 7 4 1 1 , 2

6 7 5 , 7

9 6 8

4 9 5

7 8 7

1 8 4

3 0 5

0

2 5 0

5 0 0

7 5 0

1 0 0 0

Net Sales

CAGR = 41.3% a.a.

Disposals

Chg.% = 59.0%

Chg.% = 65.6%

9M03 9M04 3Q03 3Q04

LTM = Last 12 months / CAGR = Compounded Annually Growth Rate

41

Consolidated - First Nine Months % net sales

1 9 %2 1 % 2 2 % 2 2 %

8 %

- 2 %

2 3 %

1 7 %1 5 %1 5 % 1 5 %

1 6 %

9 %7 %

1 0 %1 3 %

4 %

- 5 %

- 1 %

1 0 %

G r o s s P r o f i t E B I T D A E B I T O p e r a t i o n R e s u lt

9M00 9M01 9M02 9M03 9M04

Operational Margins

42

Consolidated - First Nine Months R$ MM

8 5 , 3

6 2 , 6

1 0 7 , 3

1 7 4 , 6

3 6 , 1

( 1 0 , 1 )

6 8 , 2

5 0 , 8 4 5 , 1

6 7 , 4 7 3 , 7

1 2 6 , 4

2 7 , 62 0 , 7

4 9 , 3

1 0 4 , 1

( 3 , 4 )

2 0 , 2

( 1 4 , 8 )

7 7 , 7

G r o s s P r o f i t E B I T D A E B I T O p e r a t i o n R e s u lt

9M00 9M01 9M02 9M03 9M04

Operational Margins

43

R$ thous.

46

Consolidated – Bank Debt Breakdown – Sept. 04

4 7 %

2 2 %

3 % 1 3 %

1 5 %Dollar

TJLP(equipment

line)

INPC(consumerInflation)CDI

(interbank)IGPM(generalInflation)

47

Consolidated – Foreign currency Exposure – Sept. 04

US$ MMB a l a n c e S h e e t

A s s e t s d e n o m i n a t e d i n f o r e i g n c u r r e n c y. M a r k e t a b l e S e c u r i t ie s / In v e s t m e n t s 1 . 8. A c c o u n t s R e c e iv a b l e 9 . 9

1 1 . 7

L i a b i l i t i e s d e n o m i n a t e d i n f o r e i g n c u r r e n c y. B a n k D e b t ( E x p o r t L in e s / O t h e r ) ( 2 8 . 5 ). A c c o u n t s P a y a b l e ( 2 . 6 )

( 3 1 . 1 )

N e t P o s i t i o n ( 1 9 . 4 )

48

Stock Performance

49

Consolidated – Social Report

W h e e ls a n d A u t o m o t iv e A m s t e d C o r p o r a t e a n dC h a s s is C o m p o n e n t s M a x io n O t h e r S e p t . 2 0 0 4 S e p t . 2 0 0 3

E m p lo y e e s 2 ,9 7 4 1 ,2 9 4 3 ,3 7 0 1 6 5 ,9 6 9 4 ,1 4 0

P r o d u c t iv i t y ( * )R $ t h o u s . / E m p lo y e e 1 8 5 .5 1 0 6 .6 1 6 4 .9 - 1 6 2 .1 1 4 5 .9

C o n s o l id a t e d ( * * )

(*) Last 12 months sales /Number of employees at the end of the period

(**) Consolidated ficgures take into consideration 50% of Amsted Maxion

BENCHMARK

51

Benchmark – Gross Profit % net sales

Fonte: Companies releases2004 first nine months of each company, except for Strattec with 3 months result and Johnson Controls with 12 months results

V i s t e o n

I o c h p e - M a x i o nS t r a t t e c

G e n t e x

T o w e r

M a r c o p o l o

E a t o n

F e d e r a l M o g u l

D a n a

T e n n e c o

S t o n e r i d g e

V a l e o

T i t a n

A m e r i c a n A x l e

D u r aS u p e r i o r

L e a r

D e l p h i

C u m m i n s

B o r g W a r n e r

J o h n s o n C o n t r o l sA u t o l i v

0 % 1 0 % 2 0 % 3 0 % 4 0 %

3 Q 0 4 3 Q 0 3

A v e r a g e = 1 6 %

52

Benchmark – EBIT % net sales

S t r a t t e cG e n t e x

A u t o l i v

A m e r i c a n A x l eS t o n e r i d g e

I o c h p e - M a x i o n

B o r g W a r n e rM a r c o p o l oE a t o n

T i t a n

S u p e r i o rT e n n e c oV a l e o

J o h n s o n C o n t r o l sC u m m i n s

D u r aD a n a

L e a rT o w e rF e d e r a l M o g u l

D e l p h iV i s t e o n

- 5 % 5 % 1 5 % 2 5 % 3 5 %

3 Q 0 4 3 Q 0 3

A v e r a g e = 7 %


53

Benchmark – EBITDA % net sales

G e n t e x

I o c h p e - M a x i o nS t r a t t e c

B o r g W a r n e r

M a r c o p o l oT i t a n

A u t o l i vA m e r i c a n A x l e

T e n n e c oF e d e r a l M o g u lD u r a

D a n aC u m m i n sT o w e r

J o h n s o n C o n t r o l sL e a r

D e l p h i

0 % 1 0 % 2 0 % 3 0 % 4 0 %

3 Q 0 4 3 Q 0 3

A v e r a g e = 1 1 %

Visteon


54

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