EARNINGS RELEASE – 2Q08EARNINGS RELEASE – 2Q08
July, 2008
2
2Q08July, 2008
The material contained in this presentation is general background information about Iochpe-Maxion S.A. (Iochpe)
as of the date of the presentation. It is information in summary form and does not purport to be complete. It is
not intended to be relied upon as advice to potential investors. No representation or warranty, express or
implied, is made concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of the
information presented herein.
This presentation contains statements that are forward-looking within the meaning of Section 27A of the U.S.
Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking
statements are only predictions and are not guarantees of future performance. Investors are cautioned that any
such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and
factors relating to the operations and business environments of Iochpe and its subsidiaries that may cause the
actual results of the companies to be materially different from any future results expressed or implied in such
forward-looking statements.
Although Iochpe believes that the expectations and assumptions reflected in the forward-looking statements are
reasonably based on information currently available to Iochpe management, Iochpe cannot guarantee future
results or events. Iochpe expressly disclaims a duty to update any of the forward-looking statement.
This presentation does not constitute an offer, or invitation, or solicitation of an offer, to subscribe for or
purchase any securities. Neither this presentation nor anything contained herein shall form the basis of any
contract or commitment whatsoever.
DISCLAIMERDISCLAIMER
3
2Q08July, 2008
SIMPLIFIED CORPORATE STRUCTURE*SIMPLIFIED CORPORATE STRUCTURE*
50% 100%
IochpeIochpe--Maxion S.A.Maxion S.A.
AmstedAmsted--Maxion Fundição e Maxion Fundição e Equipamentos Ferroviários S.A.Equipamentos Ferroviários S.A.
Railway Freight Cars: R$ 95.9 million1 (22%)
Castings: R$ 30.1 million1 (7%)
Wheels: R$ 5.7 million1 (1%)
Wheels and Chassis DivisionWheels and Chassis DivisionAutomotive Components Automotive Components
DivisionDivision
Wheels: R$ 114.4 million1 (26%)
Chassis: R$ 163.1 million1 (37%)
R$ 32.9 million1 (7%)R$ 131.7 million1 (30%) R$ 277.5 million1 (63%)
100%
Structural Stamped Parts: R$ 6,6 million1 (2%)
Hand Brake Leaver and Pedal Sets: R$ 12.1 million1 (3%)
* Consider the grouping of Maxion Sistemas Automotivos by Iochpe-Maxion, approved in a Extraordinary Shareholders Meeting on 01/07/2008
1 Consolidated net revenue in the
second quarter of 2008
4
2Q08July, 2008
HIGHLIGHTS – 2Q08HIGHLIGHTS – 2Q08
� Consolidated net operating revenue of R$ 442.1 million, an increase of 38.6% over the same period of last year
� EBITDA(*) of R$ 71.9 million, an increase of 97.3% when compared with the same period of last year
� Net income of R$ 44.1 million, an increase of 217.5% over the same period of last year
� Net debt bank of R$ 198.9 million (R$ 164.0 million on Jun/07), or 0.9x EBITDA LTM(*) (1.2x on Jun/07).
(*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net financial expenses, plus depreciation and amortization, plus goodwill amortization.
5
2Q08July, 2008
� Growth of the Brazilian production of vehicles and agricultural machinery
� Recovery of domestic demand for railway freight cars
� Impact of the real appreciation (1.6362 – 2Q08 x 1.9630 – 2Q07) on net revenue of
exports (reduction of R$ 10.2 million)
� Reduction of exports: US$ 31.2 million on 2Q08 x US$ 33.8 million on 2Q07 (12% of net
revenue on 2Q08 x 21% on 2Q07)
2Q08 – MAIN DRIVERS2Q08 – MAIN DRIVERS
6
2Q08July, 2008
Abrasca (Brazilian Association of Public Companies) Award for Value Creation
� Iochpe-Maxion was awarded for the outstanding performance in Value Creation in 2007 among
the companies in the Machinery and Equipments sector, according to the Public Companies
Statistics Yearbook - 2008
� 1st place in value creation among public companies in 60 months, according to the Public
Companies Statistics Yearbook - 2008
AWARDAWARD
Industry Performance
8
2Q08July, 2008
216
318
366379
408
184
225
97
119
72
114
156 153144
68 64
38 34
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
Production Export
Source: Anfavea
Production
� ∆ 2Q08 – 07 = 21.8%
� ∆ 1H08 – 07 = 22.5%
� CAGR 2003 – 07 = 17.2%
Export
� ∆ 2Q08 – 07 = (10.6%)
� ∆ 1H08 – 07 = (6.2%)
� CAGR 2003 – 07 = 18.9%
LIGHT COMMERCIALS – BRAZIL (‘000 units)LIGHT COMMERCIALS – BRAZIL (‘000 units)
9
2Q08July, 2008
79
107
117
106
137
62
79
34
42
13
25
38 39 41
19 19
11 10
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
Production Export
Source: Anfavea
TRUCKS – BRAZIL (‘000 units)TRUCKS – BRAZIL (‘000 units)
Production
� ∆ 2Q08 – 07 = 22.2%
� ∆ 1H08 – 07 = 27.4%
� CAGR 2003 – 07 = 14.8%
Export
� ∆ 2Q08 – 07 = (4.7%)
� ∆ 1H08 – 07 = 0.1%
� CAGR 2003 – 07 = 33.3%
10
2Q08July, 2008
2729
3534
39
19
23
1113
9
13
19
1615
78
4 4
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
Production Export
Source: Anfavea
BUSES – BRAZIL (‘000 units)BUSES – BRAZIL (‘000 units)
Production
� ∆ 2Q08 – 07 = 16.6%
� ∆ 1H08 – 07 = 20.3%
� CAGR 2003 – 07 = 9.6%
Export
� ∆ 2Q08 – 07 = 6.3%
� ∆ 1H08 – 07 = 13.3%
� CAGR 2003 – 07 = 13.6%
11
2Q08July, 2008
59
69
53
46
65
29
40
17
2121
31 31
22
27
1215
7 8
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
Production Export
Source: Anfavea
Production
� ∆ 2Q08 – 07 = 25.9%
� ∆ 1H08 – 07 = 38.8%
� CAGR 2003 – 07 = 2.5%
Export
� ∆ 2Q08 – 07 = 16.6%
� ∆ 1H08 – 07 = 26.5%
� CAGR 2003 – 07 = 6.5%
AGRICULTURAL MACHINERY – BRAZIL (‘000 units)AGRICULTURAL MACHINERY – BRAZIL (‘000 units)
12
2Q08July, 2008
1,505
1,757
2,0092,092
2,389
1,119
1,353
585
721
440497
684 635 586
284 277143 139
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
Production Export
Source: Anfavea
PASSENGER CARS – BRAZIL (‘000 units)PASSENGER CARS – BRAZIL (‘000 units)
Production
� ∆ 2Q08 – 07 = 23.1%
� ∆ 1H08 – 07 = 20.9%
� CAGR 2003 – 07 = 12.2%
Export
� ∆ 2Q08 – 07 = (3.1%)
� ∆ 1H08 – 07 = (2.6%)
� CAGR 2003 – 07 = 7.4%
13
2Q08July, 2008
Source: Amsted Maxion estimate
2,459
5,642
7,270
3,668
1,249
238
2,692
98
1,439
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
Sales
Production
� ∆ 2Q08 – 07 = 1,368.4%
� ∆ 1H08 – 07 = 1,031.1%
� CAGR 2003 – 07 = (15.6%)
RAILWAY FREIGHT CARS – BRAZIL (units)RAILWAY FREIGHT CARS – BRAZIL (units)
14
2Q08July, 2008
MARKET SHARE – BRAZIL (1H08)MARKET SHARE – BRAZIL (1H08)
68%
20%
12%
Maxion
Dana
OEM
62%
33%
5%
Maxion
Borlem
Others
Maxion
Others
80%
20%
Maxion
Cruzaço
ChassisChassis
Source: Maxion Estimate
MaxionMaxion
1H071H0767%67% 62%62% 65%65% 80%80%
97%
3%
Commercial Vehicles Commercial Vehicles WheelsWheels
Railway Freight Railway Freight CarsCars
Railway Railway
CastingsCastings
Financial and Operating Performance
16
2Q08July, 2008
1,2891,248
1,494
843
319
442
605
676
1,099
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
Net Operating Revenue
� ∆ 2Q08 – 07 = 38.6%
� ∆ 1H08 – 07 = 39.3%
� CAGR 2003 – 07 = 17.5%
NET OPERATING REVENUE (R$ million)NET OPERATING REVENUE (R$ million)
17
2Q08July, 2008
97 114
163
27
3362
132
132
2Q07 2Q08
Wheels Chassis Automotive Comp. Amsted Maxion
253
391
51
66
2Q07 2Q08
Domestic Export
319
442
319
442
� Domestic: ∆ 2Q08 – 07 = 54.8%
� Export: ∆ 2T08 – 07 = (23.0%)
� Wheels: ∆ 2Q08 – 07 = 17.4%
� Chassis: ∆ 2T08 – 07 = 23.4%
� Automotive Comp.: ∆ 2Q08 – 07 = 20.7%
� Amsted Maxion: ∆ 2Q08 – 07 = 112.1%
NET OPERATING REVENUE (R$ million)NET OPERATING REVENUE (R$ million)
Revenue by Market Revenue by Division / Business
18
2Q08July, 2008
NET OPERATING REVENUENET OPERATING REVENUE
Revenue by Customer – 2Q07
Scania
6%
Volvo
2%
VW
16%MRS
2%
Export
20%
After Market
4%
Others
11%
Vale
2%
Caterpillar
1%
ALL
1%
Agricultural
Mach.
7%
Daimler
14%
GMB
6%
Ford
4%Fiat
4%Fiat
5% Ford
4%GMB
5%
Daimler
12%
Scania
5%Volvo
3%
VW
14%ALL
1%
MRS
10%
Vale
11%
Caterpillar
1%
Export
12%
Others
7%
After Market
3%
Agricultural
Mach.
7%
Revenue by Customer – 2Q08
19
2Q08July, 2008
3134
6364
120119
33
96
47
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
EXPORTS (USD million)EXPORTS (USD million)
Exports
� ∆ 2Q08 – 07 = (7.5%)
� ∆ 1H08 – 07 = (1.4%)
� CAGR 2003 – 07 = 38.1%
20
2Q08July, 2008
10 11
600
18 13
5
2Q07 2Q08
Whees Chassis Automotive Comp. Amsted Maxion
R$ thousand
20 19
10
0 0
36
22
10
2Q07 2Q08
Wheels Chassis Automotive Comp. Amsted Maxion
66
51
US$ thousand
3431
Variation 2Q8 - 07 = (23%)
� Wheels = (4.8%)
� Chassis = 3.0%
� Automotive Comp. = (13.8%)
� Amsted Maxion: = (40.0%)
Variation 2Q8 - 07 = (8%)
� Wheels = 14.3%
� Chassis = 23.0%
� Automotive Comp. = 4.3%
� Amsted Maxion: = (27,8%)
EXPORTS BY DIVISION / BUSINESSEXPORTS BY DIVISION / BUSINESS
21
2Q08July, 2008
GROSS PROFIT (R$ million)GROSS PROFIT (R$ million)
137
228
170
5890
289
112219
236
20%18%
20%19%19%
21%20%18% 18%
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
Gross Profit %NOR
Gross Profit
� ∆ 2Q08 – 07 = 55.8%
� ∆ 1H08 – 07 = 51.6%
� CAGR 2003 – 07 = 14.6%
22
2Q08July, 2008
29
63
135136
58
178
117
58
127
10%11%
9%
12% 12%10%
14%
9%
14%
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
EBIT % NOR
Operating Income
� ∆ 2Q08 – 07 = 119.9%
� ∆ 1H08 – 07 = 101.3%
� CAGR 2003 – 07 = 23.5%
OPERATING INCOME – EBIT (R$ million)OPERATING INCOME – EBIT (R$ million)
23
2Q08July, 2008
89
36
72133
165163
73
205
156
13%13%13%14% 14%
12%
16%
11%
16%
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
EBITDA % NOR
EBITDA
� ∆ 2Q08 – 07 = 97.3%
� ∆ 1H08 – 07 = 82.8%
� CAGR 2003 – 07 = 16.7%
EBITDA* (R$ million) EBITDA* (R$ million)
(*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net
financial expenses, plus depreciation and amortization, plus goodwill amortization.
24
2Q08July, 2008
-8 -6
4
38
33
37
8
21
10-1%
1%
-1%
1%2%
3%
6%
2%
1%
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
Financial Exp. % NOR
Net Financial Expenses
� ∆ 2Q08 – 07 = (260.6)%
� ∆ 1H08 – 07 = (194.0%)
� CAGR 2003 – 07 = (28.4)%
NET FINANCIAL EXPENSES (R$ million)NET FINANCIAL EXPENSES (R$ million)
25
2Q08July, 2008
14
44
-5
78
51
72
25
58
72
10%
4%
9%
4%
5%5%
-1%
5%6%
2003 2004 2005 2006 2007 1S07 1S08 2T07 2T08
Lucro Líquido % ROL
Net Income
� ∆ 2Q08 – 07 = 217.5%
� ∆ 1H08 – 07 = 209.2%
� CAGR 2003 – 07 * = 196.2%
* Consider the absolute variation in the period
NET INCOME (R$ million)NET INCOME (R$ million)
26
2Q08July, 2008
115128
199
102125
132
164
0.6
1.31.2
0.80.8
0.6
0.9
2003 2004 2005 2006 2007 1H07 1H08
Net Debt x EBITDA*
NET BANK DEBT (R$ million)NET BANK DEBT (R$ million)
(*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net financial expenses, plus depreciation and amortization, plus goodwill amortization
EBITDA LTM
27
2Q08July, 2008
77.2%
2.3%1.8%
18.6%
TJLP Dollar CDI YUAN
� At the end of Jun/08, the company had consolidated contracts for US$ 53.7 million of Non Deliverable Forwards
(NDFs) at R$ 1,8078 per USD average FX rate, for the period of Jul 08 to Jun 09
� If the such NDFs were expired on June 30, 2008, the company would have posted a gain of R$ 8.3 million,
which was accounted as a temporary Equity Reserve, according to the recent Brazilian law 11,638/07
Debt Indexation
INDEBTEDNESS – JUN/08 (R$ million)INDEBTEDNESS – JUN/08 (R$ million)
LINES SHORT TERMLONG
TERMTOTAL
Trade Finance / Export 28.3 48.2 76.5
Equipment Finance / EXIM 140.0 30.1 170.1
Local Currency 6.7 - 6.7
175.1 78.2 253.3
(-) Cash & Marketable Securities 54.4 - 54.4
Net Debt 120.7 78.2 198.9
Indexation Average Cost
Index in Reais 83% CDI
Index by Dollar in US$ 6,3% per year
28
2Q08July, 2008
54
84
6868
35
44
12
28
73
2003 2004 2005 2006 2007 1H07 1H08 2Q07 2Q08
CAPEX (R$ million)CAPEX (R$ million)
Capital Market
30
2Q08July, 2008
14.98%
10.73%
10.45%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08
MYPK3 IBOV IBX-100
� Closing price of the last day of the month
� Jul/08 – closing price of 30 (R$ 34.00)
� Due to the low liquidity of MYPK3 before the conversion of the shares, was considered the price of MYPK4 before the conversion (02/26/08)
SHARES PERFORMANCE - LTMSHARES PERFORMANCE - LTM
31
2Q08July, 2008
� Jul/08 – volume and trades until the 30th
� Due to the low liquidity of MYPK3 before the conversion of the shares, was considered the volume and trade of
MYPK4 before the conversion (02/26/08)
1,377
3,723
4,114
5,577
2,5982,952
1,4131,747 1,671
3,3702,978
1,924
65
8174
43
91 89
110
56 55
3743
37
Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08
Volume Trades
AVERAGE DAILY TRADE VOLUME – R$ thousandAVERAGE DAILY TRADE VOLUME – R$ thousand
32
2Q08July, 2008
OUTLOOKOUTLOOK
� Continued upside on domestic demand for vehicles and agriculture machinery
� Continued upside on domestic demand for railway freight cars
� Increase of production of commercial vehicle wheels plant in China in the third quarter of 2008
33
2Q08July, 2008
� An Extraordinary Shareholders Meeting held on July 1, 2008, approved the grouping of the subsidiary Maxion
Sistemas Automotivos by Iochpe-Maxion, based on its book value
� This restructuring aims to simplify the company’s operational and corporate structure, by concentrating all its
main Brazilian operations, except for the subsidiary Amsted Maxion Equipamentos Ferroviarios S.A., in a single
company, which will generate a non-recurring gain of approximately R$76 million, upon the conclusion of such
restructuring, foreseen for the third quarter
RESTRUCTURINGRESTRUCTURING
Additional Information
35
2Q08July, 2008
INCOME STATEMENT (R$ thousand)INCOME STATEMENT (R$ thousand)
(*) EBITDA, throughout this presentation means: net income plus income tax and social contribution, plus non-operating result, plus net financial expenses, plus depreciation and amortization, plus goodwill amortization.
Consolidated Income Statement R$
thousand2Q08 N.O.R 2Q07 N.O.R 1H08 N.O.R 1H07 N.O.R
Net Operating Revenue 442,120 100.0% 318,963 100.0% 842,730 100.0% 605,117 100.0%
Cost of Goods Sold (352,194) 79.7% (261,247) 81.9% (673,224) 79.9% (493,307) 81.5%
Gross Profit 89,926 20.3% 57,716 18.1% 169,506 20.1% 111,810 18.5%
Operating Expenses
General and Administrative (12,110) 2.7% (10,831) 3.4% (23,902) 2.8% (23,256) 3.8%
Commercial (15,259) 3.5% (15,669) 4.9% (30,411) 3.6% (29,099) 4.8%
Others 803 -0.2% (2,400) 0.8% 1,379 -0.2% (1,537) 0.3%
(26,566) 6.0% (28,900) 9.1% (52,934) 6.3% (53,892) 8.9%
Operating Income (EBIT) 63,360 14.3% 28,816 9.0% 116,572 13.8% 57,919 9.6%
Financial Results
Financial Revenue 17,233 3.9% 9,034 2.8% 26,512 3.1% 13,778 2.3%
Financial Expenses (11,402) 2.6% (12,665) 4.0% (18,746) 2.2% (22,039) 3.6%
5,831 -1.3% (3,631) 1.1% 7,766 -0.9% (8,261) 1.4%
Earnings After Financial Income 69,191 15.6% 25,185 7.9% 124,338 14.8% 49,657 8.2%
Non Operating Results (761) 0.2% (2,605) 0.8% (2,030) 0.2% (6,873) 1.1%
Earnings Before Taxes 68,430 15.5% 22,580 7.1% 122,308 14.5% 42,784 7.1%
Income Taxes (24,340) 5.5% (8,693) 2.7% (44,085) 5.2% (17,483) 2.9%
Net Income 44,090 10.0% 13,887 4.4% 78,223 9.3% 25,301 4.2%
EBITDA* 71,848 16.3% 36,417 11.4% 133,110 15.8% 72,807 12.0%
36
2Q08July, 2008
ASSETS LIABILITIES
Jun-08 Jun-07 Jun-08 Jun-07
CURRENT CURRENT
Cash 54,378 46,457 Loans 175,060 83,451
Receivables 227,558 156,345 Payables 98,206 72,322
Inventory 220,105 146,990 Customers Advance 18,691 15,885
Recoverable Taxes 18,599 21,685 Wage and Charges 53,312 39,093
Others 19,149 18,240 Taxes 12,853 5,663
539,789 389,717 Dividends 172 153
Others 21,954 21,817
380,248 238,384
LONG TERM LONG TERM
Receivable 690 932 Loans 78,243 127,062
Deferred Income Taxes 19,367 24,958 Provisions 58,426 58,226
Others 21,935 24,278 Others 6,199 12,226
41,992 50,168 142,868 197,514
MINORITY - -
PERMANENT EQUITY
Intangible 4,090
Investments 359 359 Capital 261,463 161,463
Plants, Property and Equipment 329,418 284,842 Capital Reserves 56,156 103,472
Deferred Items 3,310 1,048 Retained Earnings 78,223 25,301
337,177 286,249 395,842 290,236
TOTAL ASSETS 918,958 726,134 TOTAL LIABILITIES 918,958 726,134
BALANCE SHEET (R$ thousand)BALANCE SHEET (R$ thousand)
37
2Q08July, 2008
SHAREHOLDERS STRUCTURESHAREHOLDERS STRUCTURE
Shareholders Structure on 6/30/2008
Shareholder Shares %
IOSCHPE FAMILY 13,942,006 29.4%
BNDESPAR 11,593,401 24.4%
CONTROLLING SHAREHOLDERS 25,535,407 53.8%
OTHER 21,896,279 46.2%
TOTAL 47,431,686 100.0%
EARNINGS RELEASE – 2Q08EARNINGS RELEASE – 2Q08
July, 2008