Motors | Automation | Energy | T&D | Paints




Q1 2010 Results Conference Call

April 29th, 2010
Disclaimer

The statements that may be made during this conference call relating to


expectations, as well as information...
General Comments on Q1 2010

    Quarter confirms that recovery is going to be gradual
    Economic dynamisms spreads fr...
Quarterly Highlights


                           Q1 2010        Q4 2009 Growth %          Q1 2009 Growth %
Gross Operatin...
Gross Operating Revenues

Evolution of Gross Revenues        Domestic Market
(in R$ million)
                             ...
Global Presence
Gross Revenues Breakdown        1Q10




                                           9%
                   ...
Business Areas
Gross Revenues Breakdown   1Q10




                                                     1.271
            ...
Cost of Goods Sold

       Successful cost containment, even below optimum capacity utilization
       Raw materials hav...
Profitability
    36%       37%           36%                   33%
                                        30%
          ...
Financing Policies


                  March 2010              December 2009   March 2009
CASH & EQUIVALENT  1.962.538    ...
Capacity Expansion Investments

                                                    Outside Brazil
                       ...
Contacts
                                               www.weg.net/ir
         Alidor Lueders
            IRO
          ...
Upcoming SlideShare
Loading in...5
×

WEG 1Q10 Conference Call Presentation

924

Published on

WEG Q1 2010 Earnings Conference Call Presentation, held on April 29, 2010

Published in: Investor Relations
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
924
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

WEG 1Q10 Conference Call Presentation

  1. 1. Motors | Automation | Energy | T&D | Paints Q1 2010 Results Conference Call April 29th, 2010
  2. 2. Disclaimer The statements that may be made during this conference call relating to 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 circumstances that may or may not be present. Investors should understand that the general economic conditions, future performance and lead to results that may differ materially from those expressed in such future considerations. Q1 010 Conference Call Page 2 April 29th, 2010
  3. 3. General Comments on Q1 2010  Quarter confirms that recovery is going to be gradual  Economic dynamisms spreads from the Brazilian consumer towards other segments:  Consumer goods continue strong, tied to fundamentals  Industrial products doing better the closer they are to the consumer  Longer cycle products is still in early stages of recovery  Other emerging countries faring better than mature economies  We are resuming some investment plans as demands picks up  Production of HT motors in India by 2H of 2010;  Production of commercial motors in Linhares by year end Q1 010 Conference Call Page 3 April 29th, 2010
  4. 4. Quarterly Highlights Q1 2010 Q4 2009 Growth % Q1 2009 Growth % Gross Operating Revenue 1.131.546 1.306.913 -13,4% 1.270.984 -11,0% Domestic Market 801.299 871.619 -8,1% 802.351 -0,1% External Markets 330.247 435.299 -24,1% 468.632 -29,5% External Markets in US$ 181.170 250.328 -27,6% 202.726 -10,6% Net Operating Revenue 931.907 1.076.969 -13,5% 1.048.241 -11,1% Gross Operating Profit 307.454 344.226 -10,7% 311.954 -1,4% Gross Margin 33,0% 32,0% 29,8% Quarterly Net Income 119.074 136.426 -12,7% 122.193 -2,6% Net Margin 12,8% 12,7% 11,7% EBITDA 181.750 228.548 -20,5% 181.112 0,4% EBITDA Margin 19,5% 21,2% 17,3% Figures in R$ Thousands Q1 010 Conference Call Page 4 April 29th, 2010
  5. 5. Gross Operating Revenues Evolution of Gross Revenues Domestic Market (in R$ million) 5% 0%  Gross Operating Revenues 22% decreasing by 11%. Net Revenues 23% down by 11.1% 761 802 801  FX appreciation of 27% negatively 623 507 impacts comparisons  Product mix continues to shift Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 towards short cycle products Evolution of Gross Revenues External Market (in US$ million)  Lower order intake during 2009 is External Market in US$ now apparent in revenues Quarterly Average FX  Recovery continues driven by the 2,1875 2,1066 2,3117 1,7354 1,8229 Brazilian consumer 18% -11%  Long cycle and external (mature) 30% 29% markets continue soft. 195,3 202,7 181,2 165,2 126,6 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 010 Conference Call Page 5 April 29th, 2010
  6. 6. Global Presence Gross Revenues Breakdown 1Q10 9% 10% Europe North America 3% 7% Asia & Oceania 71% 5% 2% Brazil Africa South & Central America Q1 010 Conference Call Page 6 April 29th, 2010
  7. 7. Business Areas Gross Revenues Breakdown 1Q10 1.271 5% 1.132 1.100 6% 9% 8% 971 784 6% 15% 17% 14% 33% 7% 21% 25% 17% 30% 7% 18% 59% 54% 52% 59% 46% 1Q06 1Q07 1Q08 1Q09 1Q10 Industrial Equipment GTD Domestic Use Paints & Varnishes Q1 010 Conference Call Page 7 April 29th, 2010
  8. 8. Cost of Goods Sold  Successful cost containment, even below optimum capacity utilization  Raw materials have been stable up to end of the quarter  Lower dilution of fixed costs, that continued to grow as percentage of total COGS Other Costs Other Costs 33% 29% Steel & Coper 45% Depreciation 6% Q1 10 Depreciation Q1 09 5% Other Materials Steel & Coper Other Materials 19% 42% 21% Q1 010 Conference Call Page 8 April 29th, 2010
  9. 9. Profitability 36% 37% 36% 33% 30% 22% 24% 23% 17% 20% 293 320 312 307 238 193 203 181 182 149 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Gross Profit Gross Margin EBITDA EBITDA Margin 18%  Gross margin improving, despite little 16% 14% 13% 12% help from top line growth  EBITDA margin trending towards the floor of the historical interval  Net margin showing more modest 118 129 126 122 119 improvement, benefiting from FX stability Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Net Income Net Margin Q1 010 Conference Call Page 9 April 29th, 2010
  10. 10. Financing Policies March 2010 December 2009 March 2009 CASH & EQUIVALENT 1.962.538 2.127.117 1.815.164 DEBT 1.782.466 1.872.533 2.099.941 - Current 814.274 895.885 1.171.587 - Long Term 968.192 976.648 928.354 NET CASH (DEBT) 180.072 254.584 (284.777)  Seasonal impact of dividend disbursement  Operating cash flow trends continue favorable  Capex program picking up where demand is stronger  Reduction on short term debt continues  Virtually no foreign currency exposure Q1 010 Conference Call Page 10 April 29th, 2010
  11. 11. Capacity Expansion Investments Outside Brazil Brazil 91,9 20,1 63,5 61,4 15,7 32,7 38,2 34,2 71,8 13,8 47,8 13,7 19,1 24,3 27,2 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q1 010 Conference Call Page 11 April 29th, 2010
  12. 12. Contacts www.weg.net/ir Alidor Lueders IRO alidor@weg.net  Luís Fernando M. Oliveira Investor Relations Manager +55 (47) 3276-6973 luisfernando@weg.net twitter.com/weg_ir ri@weg.net MSN Messenger luisfernando@weg.com.br Q1 010 Conference Call Page 12 April 29th, 2010
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×