3rd Quarter 2004 Presentation

1. 2004 Third Quarter
Results

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
2

3. Iochpe-Maxion: Capital Markets and Governance
Public company since 1984
Investor relationship
Quarterly meetings
Website – exclusive IR content
Annual Reports, press releases, etc.
Dividend payout – 37% of net income and an additional 10% for non
voting shares
Stock
Growing liquidity and float
Board with 2 independent members and no executive officer
Audit Board (“Conselho Fiscal”) with 1 representative of the non-
controlling shareholders
3

4. Shareholder Composition – Sept. 04
Shareholder Agreement
Iochpe Family BNDES Participações Other Other – Sept. 03
Voting 75.6% Voting 21.8% Voting 2.6% Voting 3.1%
Non-voting 0.5% Non-voting 62.2% Non-voting 37.3% Non-voting 26.6%
Total 26.5% Total 48.2% Total 25.3% Total 18.5%
Iochpe-Maxion
Iochpe-Maxion S.A.
Outstanding Shares
Voting 921,429,894 34.62%
Non-voting 1,740,185,376 65.38%
Total 2,661,615,270 100.00%
4

5. Corporate Structure – Sept. 04
Iochpe-Maxion S.A.
(11 Employees)
Consolidated = 5.969 Employees
Tecob Repr.Cobr. Ltda 100% 100% Iochpe Holdings, LLC
(3 Employees) (2 Employees)
99.99% 50%
Maxion Componentes Amsted Maxion Fund. e
Estruturais Ltda. Equip. Ferroviários S.A.
(3.370 Empoyees)
92.64%
7.22% Maxion Sistemas 50%
Automotivos S.A. Amsted
Industries
Wheels and Automotive
Chassis Division Comp. Division
(2.974 Employees) (1.294 Employees)
5

6. Net sales breakdown by company %
9M04 - R$ 786.8 MM 9M03 - R$ 494.9 MM
Automotive Automotive
Comp. Division Comp. Division
13%
16%
57% 60%
30%
Amsted 2 4 %
Amsted Maxion (*)
Maxion (*)
Wheels and Wheels and
Chassis Division Chassis Division
(*) Consolidated figures take into consideration 50% of the net sales of Amsted Maxion
6

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
7

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%
Agricultural
Machinery 8.5 6.3 34.5% 23.2 14.9 55.5%
Source : Anfavea
8

9. WHEEL AND CHASSIS DIVISION (*)
57%
(*) Division of

10. WHEELS AND CHASSIS DIVISION
Chassis and Siderails - 51% of net sales
Heavy Medium Light
Stamped Parts Structural
Siderails Pats
Chassis
10

11. WHEELS AND CHASSIS DIVISION
Wheels for Vehicles - 49% of net sales
11

12. WHEELS AND CHASSIS DIVISION R$ MM
Net Sales
600 552 .3%
. = 52
a.a
.9% h g.% 450
9 C
=3 397
400
GR %
C A 3.7
=5
295
241 g .%
208 Ch 173
200 174
113
112
00
1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04
LTM = Last 12 months / CAGR = Compounded Annually Growth Rate
12

13. WHEELS AND CHASSIS DIVISION
Chassis – Market Share %
9M04 9M03
74% 74%
OEMs OEMs
11% 10%
15% 16%
Dana Dana
Maxion Maxion
13

14. WHEELS AND CHASSIS DIVISION
Chassis – Net sales breakdown by customer %
9M04 – R$ 229.8 MM 9M03 – R$ 153.0 MM
Volks- Volks-
wagen General General
Motors wagen
22% Motors
13% 26% 16%
5% Ford
9% Ford
28% 9%
7% Export
Export 22%
5% 3%
Scania
16% Scania Daimler 19%
Daimler Chrysler
Chrysler Other Other
14

15. WHEELS AND CHASSIS DIVISION
Chassis – New Orders: R$ 19.2 MM per year
P ro d u c t / C u s to m e r C o u n try S ta r tin g D a te A n n u a l S a le s
R$ MM
L ig h t S ta m p in g s - A r v in M e r ito r B r a z il M a y .0 5 9 .6
M e d iu m S ta m p in g s - D a im le r C h r y s le r B r a z il A u g .0 4 3 .1
C h a s s is - V o lk s w a g e n (C K D - M e x ic o ) B r a z il M a r .0 4 2 .3
C h a s s is - V o lk s w a g e n B r a z il A p r .0 4 2 .2
L ig h t S ta m p in g s - D a im le r C h r y s le r B r a z il J u n .0 4 1 .3
M e d iu m S ta m p in g s - P e u g e o t C itr o e n B r a z il O c t.0 4 0 .4
S id e r a il R e in fo r c e m e n t - D a im le r C h r y s le r B r a z il M a y .0 4 0 .3
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16. WHEELS AND CHASSIS DIVISION
Wheels - Market Share %
9M04 9M03
Other Other
10% 10%
39% 39%
51% 51%
Borlem Borlem
Maxion Maxion
16

17. WHEELS AND CHASSIS DIVISION
Wheels – Net sales breakdown by customer %
9M04 – R$ 220.0 MM 9M03 – R$ 142.3 MM
Volks- Volks-
wagen Scania
wagen Scania
Volvo
After 11% 6% 12% Volvo
After 6%
market 6% market 1 2 % 4%
Outros
16% Other
11% 11%
28%
Export 2 4 % 26% Export 27% Tractors
Tractors
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18. WHEELS AND CHASSIS DIVISION
WHEELS – NEW ORDERS: R$ 17.4 MM per year
CUST O M ER C o u n tr y S t a r t in g D a t e A n n u a l S a le s
R$ M M
W o rk h o rs e USA J u n .0 5 6 .5
Jo h n D eere B r a z il N o v .0 4 3 .2
S t ip T u n is M a y .0 4 2 .3
D u n lo p S o u t h A f r ic a J u n .0 4 1 .5
K u rt L e y s e r C o rp . S o u t h A f r ic a A p r .0 4 1 .5
M AAP M o ro cco M a y .0 4 1 .0
B r id g e s t o n e S p a in F e b .0 4 0 .8
K r is t a n a s S p ir o s G re e c e J u l.0 4 0 .6
18

19. AUTOMOTIVE COMPONENTS DIVISION (*)
14%
(*) Division of

20. Automotive Components Division
Partial Divestiture – Sept.10 , 2004
Assets related to the window raiser mechanism
Buyer: Brose do Brasil Ltda. – subsidiary of Brose International GmbH
Amount: R$ 17.8 million
Asset transfer in 180 days
Window raiser mechanisms business represents:
7% of the consolidated net sales
51% of the net sales to the passenger car segment
20

21. Automotive Components Division
HANDBRAKE PEDAL
JACKS
LEVERS SETS
21

22. Automotive Components Division R$ MM
Net Sales
150 0% a.a. 138 %
R = 9. = 28.9
CAG hg.
%
114 C 105
99 98
100 92 94
82
%
= 38.6
%
C hg.
50 37
27
0
1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04
LTM = Last 12 months / CAGR = Compounded Annually Growth Rate
22

23. Automotive Components Division
Market Share % 9M04 9M03
W indow raiser m echanism 42% 43%
H and break lever 43% 46%
Pedal Set 27% 27%
Jack 20% 15%
Latch 9% 10%
K nob / K ey / C ylinder 7% 10%
23

24. Automotive Components Division
Net sales breakdown by customer %
9M04 – R$ 105.3 MM 9M03 – R$ 81.7 MM
General General
Motors Motors
25% 23%
Volks-
Volks- 19% wagen
15% wagen
31%
29%
14% Fiat 12%
SAS SAS
Fiat 4% 7%
4% 2% 8% 7%
Other After Ford Other After
Ford
Market Market
24

25. Automotive Components Division
New Orders: R$ 1,2 MM per year (*)
M o d e l - C u s to m e r s P ro d u c t S t a r t in g A n n u a l S a le s
D a te R$ M M
Fox - VW Jack O c t .0 3 0 .9
P ic k - u p M o n t a n a - G M L a tc h N o v .0 3 0 .3
(*) Does not include new orders of window raiser mechanisms, due to the disposal of this business
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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
26

27. Subsidiaries :
AMSTED MAXION FUNDIÇÃO E EQUIPAMENTOS FERROVIÁRIOS
30%

28. Amsted Maxion
RAILROAD RAILROAD
BOOGIES
WHEELS FREIGHT CARS
28

29. Amsted Maxion R$ MM
Net Sales (*) %
6.5
=9
600 556
a.a. %
g. 4 6 4
C h
.2%
= 45
GR
400
%
CA
328
1.5
= 11
236 . %
C hg 189
200
122 110 120
95 89
0
1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04
LTM = Last 12 months / CAGR = Compounded Annually Growth Rate
(*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales
29

30. Amsted Maxion
Market Share % 9M04 9M03
R a ilr o a d F r e ig h t C a r s 75% 100%
R a ilr o a d W h e e ls 40% 60%
R a ilr o a d C a s tin g s 80% 80%
In d u s tr ia l C a s tin g s 50% 60%
30

31. Amsted Maxion
Net sales breakdown by customer %
9M04 – R$ 231,8 MM(*) 9M03 – R$ 118,0 MM(*)
CVRD CVRD
68%
57%
14% MRS
2% MRS
12% Export 22%
3% Export
3% 7% 3%
5%
4% FCA
Other Ferronorte Caterpillar FCA
Caterpillar
(*) Accounts for 50% of the net sales of Amsted Maxion
31

32. Amsted Maxion
Spot Orders 2004 : R$ 580.0 MM (*)
CVRD / FCA – 2,878 cars
MRS - 630 cars
Delivered
ADM - 140 cars
As of Sept. 30 – 3,116 cars
Mineração Serra
and 30 boxes
do Sossego - 42 cars
Still in 2004 – 724 cars
MRS / ALL - 50 boxes
and 20 boxes
MRC (Mitsui) – 150 cars
Total = 3,840 cars and 50 boxes
(*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales
32

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
(*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales
33

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
(*) Amsted Maxion’s net sales. Consolidated figures take into consideration 50% of Amsted Maxion’s sales
34

35. CONSOLIDATED
FIGURES

36. Consolidated
Net sales breakdown by customer %
9M04 – R$ 786.8 MM 9M03 – R$ 494.9 MMM
Daimler
Volks- Chrysler Volks- Daimler
General wagen Chrysler
wagen Motors
9% 15% 10%
12% 7% General
Tractors
7% 8% Motors
Export 1 3 % Export
After 16%
5% Market 8% Tractors
4% Fiat
4% 5 % After
17% MRS 16% 5% Market
1%
CVRD 22% CVRD 16% Fiat
MRS
Other Other
36

37. Consolidated – Net sales breakdown by segment %
Customer Segment 9M04 9M03
OEMs producing in the country 61% 65%
- Bus, truck and light commercial 48% 49%
- Passanger cars 13% 16%
Brazilian railroad operators 26% 19%
Export 13% 16%
37

38. Consolidated – Export by product segment %
9M04 – US$ 33.6 MM / R$ 99.5 MM 9M03 – US$ 24.9 MM / R$ 80.6 MM
Automotive Automotive
Wheels Wheels
Chassis
Chassis 18%
53% 17% 52%
29% 28%
1% 2%
Railroad
Automotive Railroad Automotive Equipment
Comp. Equipment Comp.
Import 9M04 Import 9M03
US$ 8.0MM / R$ 23.6MM (*) US$ 6.6MM / R$ 20.9MM
(*) includes US$ 3.4MM / R$ 10.0MM of machineryand equipment 38

39. Consolidated – Export by destination %
9M04 – US$ 33.6 MM / R$ 99.5 MM 9M03 – US$ 24.9 MM / R$ 80.6 MM
Canada
Canada 17% Mexico
10% 2%
South
53% Mexico America
3% 15%
USA 38%
3% Asia /
19% USA
South 8% Oceania
America
1% Europe
7% 7% 17%
Asia /
Oceania
Africa / Europe Africa /
Middle East Middle East
39

40. Consolidated R$ MM
Net Sales
.a.
a 968 .0%
1000
.3% = 59
41 %
Disposals = g. 787
GR C h
750 CA 6 7 5 ,7
6 1 5 ,4 6 2 4 ,0
%
495 5.6
500 =6
g.%
4 1 1 ,2
3 7 3 ,7
C h 305
250 184
0
1999 2000 2001 2002 2003 3Q04 LTM 9M03 9M04 3Q03 3Q04
LTM = Last 12 months / CAGR = Compounded Annually Growth Rate
40

41. Consolidated - First Nine Months % net sales
Operational Margins
23% 22%
22%
21%
19%
17% 16%
15% 15% 15%
13%
9% 10% 10%
8%
7%
4%
-1%
-5%
-2%
G r o s s P r o f it E B ITD A E B IT O p e r a ti o n R e s u lt
9M00 9M01 9M02 9M03 9M04
41

42. Consolidated - First Nine Months R$ MM
Operational Margins 1 7 4 ,6
1 2 6 ,4
1 0 7 ,3
1 0 4 ,1
8 5 ,3
7 3 ,7 7 7 ,7
6 7 ,4 6 8 ,2 6 2 ,6
5 0 ,8 4 9 ,3
3 6 ,1 4 5 ,1
2 7 ,6
2 0 ,7 2 0 ,2
(3 ,4 )
(1 4 ,8 )
(1 0 ,1 ) G r o s s P r o fit E B ITD A E B IT O p e r a tio n R e s u lt
9M00 9M01 9M02 9M03 9M04
42

43. R$ thous.
43

44. 44

45. 45

46. Consolidated – Bank Debt Breakdown – Sept. 04
TJLP
22% (equipment
line)
47%
Dollar
15%
3% INPC
13% (consumer
Inflation)
IGPM CDI
(general (interbank)
Inflation)
46

47. Consolidated – Foreign currency Exposure – Sept. 04
B a la n c e S h e e t US$ MM
A s s e ts d e n o m in a te d in fo re ig n c u rre n c y
. M a r k e t a b l e S e c u r it 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 ia b ilitie s d e n o m in a te d in fo re ig n c u rre 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 ts P a y a b le (2 .6 )
(3 1 .1 )
N e t P o s itio n (1 9 .4 )
47

48. Stock Performance
48

49. Consolidated – Social Report
W h e e ls a n d A u t o m o t iv e A m s te d C o rp o ra te a n d C o n s o lid a t e d ( * * )
C h a s s is C o m p o n e n t s M a x io n O th 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 16 5 ,9 6 9 4 ,1 4 0
P r o d u c t iv it 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
(*) Last 12 months sales /Number of employees at the end of the period
(**) Consolidated ficgures take into consideration 50% of Amsted Maxion
49

50. BENCHMARK

51. Benchmark – Gross Profit % net sales
G e n te x
S t o n e r id g e
E a to n
S tra tte c
Io c h p e - M a x io n
F e d e ral M o g u l
M a r c o p o lo
B o rg W arn e r
V a le o
C u m m in s
T it a n
Te n n e co
A m e r ic a n A x le
A u t o liv
J o h n s o n C o n t r o ls
D u ra
S u p e r io r
Dana
Le ar
To w e r 3Q 04 3Q 03
D e lp h i
V is t e o n
0% 10% 20% 30% 40%
Av e rag e = 16%
Fonte: Companies releases
2004 first nine months of each company, except for Strattec with 3 months result and Johnson Controls with 12 months results
51

52. Benchmark – EBIT % net sales
G e n te x
S tra tte c
Io c h p e - M a x io n
S t o n e r id g e
A m e r ic a n A x le
B o rg W arn e r
M a r c o p o lo
E a to n
T it a n
A u t o liv
S u p e r io r
T e nne co
V a le o
J o h n s o n C o n t r o ls
C u m m in s
D u ra
D ana
Le ar
T ower
F e d e ral M o g u l
D e lp h i 3Q 04 3Q 03
V is t e o n
-5 % 5% 15% 25% 35%
A v e ra g e = 7 %
Fonte: Companies releases
2004 first nine months of each company, except for Strattec with 3 months result and Johnson Controls with 12 months results
52

53. Benchmark – EBITDA % net sales
G e n te x
S tra tte c
Io c h p e - M a x io n
B o rg W arn e r
A m e r ic a n A x le
A u t o liv
T it a n
M a r c o p o lo
Te n n e co
F e d e ral M o g u l
D u ra
Dana
C u m m in s
To w e r
J o h n s o n C o n t r o ls
Le ar
D e lp h i 3Q 04 3Q 03
Visteon
0% 10% 20% 30% 40%
Av e rag e = 11%
Fonte: Companies releases
2004 first nine months of each company, except for Strattec with 3 months result and Johnson Controls with 12 months results
53

54. www.iochpe-maxion.com.br/
54