1Q 2012 conference call Apr 26 2012
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  • 1. 1Q12 C f Conference C ll CallApril 26th, 2012
  • 2. DisclaimerThe statements that may eventually be made during this conference callrelating to WEG’s business perspectives, projections and operating andfinancial goals and to WEG’s potential future growth are managementbeliefs and expectations, as well as information that are currently available.These statements involve risks, uncertainties and the use of assumptions,as they relate to future events and, as such, depend on circumstancesthat may or may not be present.Investors should understand that the general economic conditions, conditionsconditions of the industry and other operating factors may affect WEG’sfuture performance and lead to results that may differ materially from thoseexpressed in such f t di h future considerations. id ti1Q12 Conference Call Page 2 April 26, 2012
  • 3. HighlightsQuarterly Figures Q1 2012 Q4 2011 % Q1 2011 %Net Operating Revenue 1.369.762 1.468.551 -6,7% 1.126.117 21,6% Domestic Market 714.268 781.938 -8,7% 660.322 8,2% External Markets 655.494 686.613 -4 5% 4,5% 465.795 40,7% 40 7% External Markets in US$ 370.825 380.772 -2,6% 279.522 32,7%Gross Operating Profit 391.967 445.686 -12,1% 310.662 26,2%Gross Margin 28,6% 28 6% 30,3% 30 3% 27,6% 27 6%Net Income 148.247 156.248 -5,1% 121.564 21,9%Net Margin 10,8% 10,6% 10,8%EBITDA 208.638 208 638 258.210 258 210 -19,2% 19 2% 164.808 164 808 26,6% 26 6%EBITDA Margin 15,2% 17,6% 14,6%EPS 0,2390 0,2518 -5,1% 0,1958 22,0% Figures in R$ Thousands1Q12 Conference Call Page 3 April 26, 2012
  • 4. Net Operating RevenueDomestic Market in R$ million 8% 6% 3% 7% 660 714 562 595 615Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 20121Q12 Conference Call Page 4 April 26, 2012
  • 5. Net Operating RevenueExternal Market in US$ million External Market in US$ Quarterly Average FX 2,3117 1,7354 1 7354 1,8229 1 8229 1,6664 1 6664 1,7677 1 7677 33% 61% 5% -11% 371 280 188 196 174 Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 20121Q12 Conference Call Page 5 April 26, 2012
  • 6. Business AreasNet Revenue breakdownin R$ million 1.363 0,5% 5% 1,9% 1.124 6% 0,2% 5% 11% 930 2,2% 9% 6% 0,2% 8% 12% 2,0% 12% 14% 5% 21% 35% 7% 31% 27% 29% 27% 30% 1Q 2010 1Q 2011 1Q 2012 Industrial Equipment DM Industrial Equipment EM GTD DM GTD EM Domestic Use DM Domestic Use EM Paints & Varnishes DM Paints & Varnishes EM1Q12 Conference Call Page 6 April 26, 2012
  • 7. Cost of Goods Sold Other Costs Other Costs 8% 9% Materials Depreciação Depreciation 5% 64% 5% Labor 23% 1Q12 1Q11 Labor 22% Materiais 64%1Q12 Conference Call Page 7 April 26, 2012
  • 8. Main effects on EBITDAin R$ million $ 37,6 158,9 206,1 FX Impact on Revenues 26,0 COGS (ex 10,8 depreciation) 4,1 208,6 208 6 Selling Expenses 164,8 General and Profit Sharing Volumes, Administrative Program Prices & Expenses E penses Product Mix Changes EBITDA Q1 11 EBITDA Q1 121Q12 Conference Call Page 8 April 26, 2012
  • 9. Sources and Uses of Cash in R$ million Dividends/interest on Decrease in Working Other / Adjustments 1% Sources equity capital Uses Capital 20% 6% Amortization of Increase in WorkingOther accounts payable Financing Capital 4% 45% 1% Depreciation and Income Taxes Paid amortization 6% 6% R$ 881 Profit Sharing Paid R$ 881 million 7% million Capex 7% Pre-tax income Decrease in Cash 22% 42% Acquisition q 15% Long-term investments New Financing 1% 20% 1Q12 Conference Call Page 9 April 26, 2012
  • 10. Capex Program Outside Brazil Brazil a 63,1 49,9 49 9 58,7 1,0 10 41,1 5,0 33,8 2,4 7,3 8,2 62,1 53,7 38,8 38 8 42,6 42 6 25,6 Q1 Q2 Q3 Q4 Q1 2011 2012 in R$ million1Q12 Conference Call Page 10 April 26, 2012
  • 11. Contacts Laurence Beltrão Gomes Investor Relations Officer laurence@weg.net Luís Fernando M. Oliveira Investor Relations Manager +55 (47) 3276-6973 lluisfernando@weg.net i f d @ t twitter.com/weg_irwww.weg.net/ri1Q12 Conference Call Page 11 April 26, 2012