WEG 3Q09 Earnings Conference Call Presentation, held on October 27, 2009

1. Conference Call
Q3 2009 Results
October 27th, 2009

2. Disclaimer
The statements that may be made during this conference call relating to
WEG’s business perspectives, projections and operating and financial goals
and to WEG’s potential future growth are management beliefs 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 circumstances that
may or may not be present.
Investors should understand that the general economic conditions,
conditions of the industry and other operating factors may affect WEG’s
future performance and lead to results that may differ materially from those
expressed in such future considerations.
Q3 09 Conference Call Page 2 October 27th, 2009

3. General Comments on Q3 2009
One year into the global financial crisis, testing our business
model
Downturn was swift, but recovery is gradual
Greater visibility into the future
Gross revenues down by 14% Q309/Q308:
”White goods” continued strong
Industrial equipments stable to slight recovery
GTD fulfilling orders backlog
Margin recovery happening faster :
Improved capacity occupancy;
Lower raw material costs
Improved sales mix
Impacts from cost and expense control actions
Q3 09 Conference Call Page 3 October 27th, 2009

4. Quarterly Highlights
3Q09 3Q08 Growth %
Gross Operating Revenue 1.282.506 1.488.671 -13,8%
Domestic Market 889.302 967.507 -8,1%
External Markets 393.200 521.164 -24,6%
External Markets in US$ 210.840 309.874 -32,0%
Net Operating Revenue 1.055.465 1.223.272 -13,7%
Gross Operating Profit 402.210 435.670 -7,7%
Gross Margin 38,1% 35,6%
Quarterly Net Income 160.103 167.130 -4,2%
Net Margin 15,2% 13,7%
EBITDA 254.840 300.150 -15,1%
EBITDA Margin 24,1% 24,5%
Figures in R$ Thousands
Q3 09 Conference Call Page 4 October 27th, 2009

5. Gross Operating Revenues
Evolution of Gross Revenues – Domestic Market
(in R$ million)
-8%
23% Gross and Net Operating Revenues
42% decreasing by 14%
16%
967,5
Stronger comparison base,
889,3
785,3 strongest market before the crisis
552,5
478,2 struck
Minimal contribution from FX for
3Q05 3Q06 3Q07 3Q08 3Q09 growth comparisons
Evolution of Gross Revenues – External Market Industrial production and capital
(in US$ million) goods production with marginal
2,3419
recovery
2,1702 1,9142 1,8649
1,6819
External Market in US$ Global crises impacts across all
37%
Quarterly Average FX -32% markets, but recovery is going to be
34%
gradual
40%
309,9
226,4 210,8
Brazilian market showing better
168,6
120,3 performance. Diversification did not
completely protected from recession
3Q05 3Q06 3Q07 3Q08 3Q09
Q3 09 Conference Call Page 5 October 27th, 2009

6. Global Presence and Business Areas
Gross Revenues Breakdown – 3Q09
11%
9% Europe
North America
5%
69% Asia & Oceania
5% 2%
Brazil Africa 1.489
South & Central America
7% 5%
13% 1.283
1.219 6%
Domestic market grew in importance once 6%
14%
13%
again, as R$ strengthened further 918 25%
760 5%
Emerging markets being less impacted by 15% 25% 35%
7%
downturn than North America and Western 18% 19%
Europe 14%
58%
Same trends from previous quarter: GTD 56% 46%
62% 61%
continues to grow, industrial equipment
impacted by crises, domestic use becomes
more important 3Q05 3Q06 3Q07 3Q08 3Q09
Industrial Equipment GTD Domestic Use Paints & Varnishes
Q3 09 Conference Call Page 6 October 27th, 2009

7. Cost of Goods Sold
Consistent improvement of capacity occupancy
Lower raw material costs
Improving product mix
Positive impacts from all cost containment actions
Other Costs
Other Costs Steel & Coper
30%
30% 40%
Depreciation Q3 09 Q3 08
Depreciation
5% 5%
Steel & Coper
42%
Other Materials Other Materials
23% 25%
Q3 09 Conference Call Page 7 October 27th, 2009

8. Profitability
37% 36% 38%
33% 34%
26% 25% 24%
20% 22%
300
261 255
436
402 173
375
273 131
212
3Q05 3Q06 3Q07 3Q08 3Q09 3Q05 3Q06 3Q07 3Q08 3Q09
Gross Profit Gross Margin EBITDA EBITDA Margin
16% 17% 16% 15%
14%
Gross margin in recovery, returning to
the pre-crises levels
157
167 160
EBITDA margin also shows recovery,
132 despite non-recurring items
100
Net income also returned to historical
levels , benefiting from lower FX
3Q05 3Q06 3Q07 3Q08 3Q09 volatility
Net Income Net Margin
Q3 09 Conference Call Page 8 October 27th, 2009

9. Financing Policies
September 2009 December 2008 September 2008
CASH & EQUIVALENT 2.003.241 1.849.477 1.820.203
- Current 2.003.241 1.849.477 1.820.203
- Long Term - - -
DEBT 1.932.624 2.161.216 1.883.178
- Current 943.532 1.314.098 1.238.442
- Long Term 989.092 847.118 644.736
NET CASH (DEBT) 70.617 (311.739) (62.975)
Strong operating cash flow generation
Strict control of capex program to avoid idle capacity and maximize ROIC
Reduction on short term debt
Foreign currency exposure contained and below policy limits
Q3 09 Conference Call Page 9 October 27th, 2009

10. Capacity Expansion Investments
Outside Brazil
Brazil
130,4 128,2
120,8
20,5 24,8
24,0
91,9
20,1
63,5
109,9 103,4 15,7
96,8
32,7
71,8
47,8 13,7
19,1
2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
Q3 09 Conference Call Page 10 October 27th, 2009

11. Contacts
www.weg.net/ir
Alidor Lueders
CFO & 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
Q3 09 Conference Call Page 11 October 27th, 2009