POMO3

Marcopolo S.A. is a bus body manufacturer with a long track record in the passenger transportation sector. Founded on August 6, 1949, in Caxias do Sul (RS) under the name NICOLA & CIA. LTDA., the company went through several corporate and name changes until adopting its current name in 1992. Over the decades, it absorbed companies in the same industry, such as Eliziário S.A. – Carrocerias e Ônibus, and set up a specific holding company, Companhia Marcopolo de Participações, through a partial spin-off in 1991. Marcopolo’s shares, traded on B3 under the tickers POMO3 and POMO4, are registered, book-entry and without par value, and the company joined the Level 2 Corporate Governance segment of the then Bovespa in 2002, as well as the rules of the Market Arbitration Chamber.

Historically, Marcopolo has broadened its scope of operations through acquisitions, joint ventures and international expansion. As early as the 1990s and 2000s, it established a presence in Argentina (Marcopolo Latinoamerica), Mexico (Polomex), South Africa (Marcopolo South Africa), Colombia (Superpolo) and other markets. It also created support structures for its core business, such as Marcopolo Trading S.A., focused on foreign trade operations, and Banco Moneo S.A., specialized in financing the sale of products manufactured by the company itself and its subsidiaries. In parallel, it implemented corporate education programs such as CEMEC in partnership with Fundação Getúlio Vargas, seeking to train executives and successors for strategic roles.

Marcopolo’s business model is divided into two major fronts: the industrial segment, which accounts for around 98% of net revenue, and the financial segment, represented mainly by Banco Moneo’s operations, with around 2% of revenue. The industrial segment concentrates the manufacture of bus bodies and spare parts, including coaches, city buses and minibuses, as well as the development of components such as seats and structural parts. The financial segment focuses on credit operations for financing vehicles produced by the group, complementing the offering for customers and transport operators.

In the industrial sphere, Marcopolo’s production process is organized into two major stages: manufacture of parts and assembly in line on chassis, generally supplied by the customers themselves. Raw materials are cut, formed and welded to form subassemblies, which then make up the body structure in galvanized steel sheets and tubes. After assembly of the basic structure – base, sides, roof, front and rear – the vehicle undergoes anti-corrosion treatments, cladding, painting according to each customer’s specifications and, finally, finishing assembly, testing and release by quality control. This process is also replicated on the Volare line, dedicated to minibuses, in which the company purchases the chassis and manufactures the body. The machines used are conventional, with jigs and assembly fixtures developed in-house, representing proprietary know-how.

Marcopolo’s products are sold throughout Brazil via a network of sales representatives and branches, with revenue mostly billed directly to the end customer. Although it operates in every state, its main domestic markets are Rio Grande do Sul, São Paulo, Paraná, Espírito Santo, Minas Gerais and Rio de Janeiro. Abroad, the company directs its products mainly to South America, Africa and Central America, using local representatives to sell bus bodies and spare parts. The Volare minibus, in particular, has an exclusive distributor network and serves a customer profile often made up of individuals, which differentiates its commercial dynamics from those of other bus models.

In market terms, Marcopolo operates in a globally fragmented bus body industry made up of many smaller manufacturers. Brazil stands out as one of the world’s largest producers of coaches, city buses and minibuses, driven by its large population and the predominance of road transport. In this context, the company maintains a leading position in the Brazilian market, with a total share of 48.4% in 2024, considering coaches, city buses and minibuses. In minibuses, a segment in which the Volare model is included for calculation purposes, market share reached 64.2% in 2024, while in coaches it was 52.3% and in city buses 29.4%, according to data from FABUS and the company itself.

Marcopolo’s geographic presence is highly diversified. In Brazil, net revenue reached approximately 74% of the total in 2024, while international markets accounted for the remaining 26%. Among the countries with relevant revenue, Australia contributed around 10.7% of net revenue and Mexico approximately 8.3%, in addition to Argentina, Africa and China. The company operates through industrial subsidiaries abroad, such as Marcopolo South Africa, Metalsur in Argentina, Volgren in Australia, MAC in China and Polomex in Mexico, as well as associates such as Superpolo in Colombia. Marcopolo also holds an 8.1% stake in NFI Group Inc., a major manufacturer of city buses and coaches in the United States and Canada, with industrial operations in Europe and assembly in Asia and Oceania.

Marcopolo’s core activity – manufacture of bus and minibus bodies – is highly regulated in Brazil. The company is subject to resolutions of the National Traffic Council (CONTRAN), based on the Brazilian Traffic Code, which establish vehicle safety requirements, technical specifications, vehicle configurations and conditions for registration, licensing and circulation. In addition to traffic rules, the company must comply with environmental laws regarding pollutant and noise emissions, and it must obtain a Vehicle or Engine Configuration Use License (LCVM) from Ibama in order to sell vehicles. Marcopolo also maintains state environmental operating licenses, federal technical registration with Ibama, an operating license from the Federal Police and a registration certificate with the Army, due to the use of controlled and potentially hazardous chemical products in its production process.

In the environmental, social and governance (ESG) field, Marcopolo highlights the maintenance of relevant certifications such as ISO 9001 (Quality), ISO 14001 (Environment) and ISO 45001 (Health and Safety), showing an integrated management system for these topics. The company formalizes commitments in its Business Management Policy, such as providing mobility solutions in a sustainable way, protecting the environment by minimizing impacts and preventing pollution, ensuring safe and healthy working conditions, and encouraging employee participation in eliminating hazards and reducing risks. The company also states that it follows ethical standards aligned with its values and code of conduct, and that it does not make financial contributions to political parties, candidates or activities aimed at influencing public policy decisions. For investors who follow the POMO3 and POMO4 shares on B3, these elements help to contextualize Marcopolo’s operating and regulatory profile, as well as its positioning in the passenger transportation sector.