1. Motors | Automation | Energy | Transmission & Distribution | Paints
Q2 2010 Results Conference Call
July 29th, 2010
Q2 2010 Conference Call July 29th, 2010

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.
Q2 2010 Conference Call Page 2 July 29th, 2010

3. General Comments on Q2 2010
Quarter market by new events on innternationalization strategy:
Aditional stake in Voltran (Mexico)
Acquisition of control of ZEST (South Africa)
Acquisition of Instrutech (Brazil)
Energy efficency and renewable and distributed energy
generation continue to be the main growth opportnities
Q2 2010 Conference Call Page 3 July 29th, 2010

4. Quarterly Highlights
Q2 2010 Q1 2010 Growth % Q2 2009 Growth %
Gross Operating Revenue 1.227.421 1.131.546 8,5% 1.250.193 -1,8%
Domestic Market 831.200 801.299 3,7% 808.355 2,8%
External Markets 396.200 330.247 20,0% 441.838 -10,3%
External Markets in US$ 221.100 181.170 22,0% 213.396 3,6%
Net Operating Revenue 1.013.015 931.907 8,7% 1.029.945 -1,6%
Gross Operating Profit 309.158 307.454 0,6% 294.175 5,1%
Gross Margin 30,5% 33,0% 28,6%
Quarterly Net Income 116.138 119.074 -2,5% 129.670 -10,4%
Net Margin 11,5% 12,8% 12,6%
EBITDA 174.015 181.750 -4,3% 172.925 0,6%
EBITDA Margin 17,2% 19,5% 16,8%
Figures in R$ Thousands
Q2 2010 Conference Call Page 4 July 29th, 2010

5. Gross Operating Revenues
Evolution of Gross Revenues – Domestic Market Evolution of Gross Revenues – External Market
(in R$ million) (in US$ million)
External Market in US$
Quarterly Average FX
2,1902 1,9807 2,0705 1,7919
-13%
1,6529
32% 3%
17% -13% 4%
34%
37%
925
808 831 245,8
701 210,8 213,4 221,1
525 154,2
Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2006 Q2 2007 Q2 2008 Q2 2009 Q2 2010
Q2 2010 Conference Call Page 5 July 29th, 2010

6. Global Presence
Gross Revenues Breakdown – 2Q10
8%
13%
Europe
North America
3%
7%
Asia & Oceania
68%
6% 3%
South & Central America Africa
Brazil
Q2 2010 Conference Call Page 6 July 29th, 2010

7. Business Areas
Gross Revenues Breakdown – 2Q10
1.331 1.307
1.250
5% 7%
1.119 12% 6%
5% 11% 17%
863 12% 26%
6% 24% 35% 25%
13%
19%
57%
58% 51%
62%
48%
Q2 06 Q2 07 Q2 08 Q2 09 Q2 10
Industrial Equipment GTD Domestic Use Paints & Varnishes
Q2 2010 Conference Call Page 7 July 29th, 2010

8. Cost of Goods Sold
Other Costs Other Costs
34% 29%
Depreciation Q2 10 Depreciation
Q2 09
6% 5%
Other Other Steel &
Steel &
Materials Materials Coper
17% Coper
43% 20% 46%
Q2 2010 Conference Call Page 8 July 29th, 2010

9. Main changes on EBITDA
38,8 1,2
172,9 - 61,6 -18,2 5,1 174,0
Salling
29,9 Expoenses
Volumes, 5,8 (1) General &
Profit
Sharing
Prices &
COGS (1) Administr. Program
Product Mix FX impact on Deduction on Expenses (1)
changes Gross Gross
Revenues Revenues
EBITDA 2T09 EBITDA 2T10
(1) Ex depreciation
Q2 2010 Conference Call July 29th, 2010

10. Cash Flows
Accumulated 6 months 2010
- 248
152
432
336
Cash Flow from Cash Flow From Cash Flow From Change in Cash
Operating Investment Financing Position
Activities Activities Activities
Q2 2010 Conference Call July 29th, 2010

11. Financing Policies
June 2010 December 2009 June 2009
CASH & EQUIVALENT 2.463.531 2.127.117 1.806.997
DEBT 2.187.124 1.872.533 1.811.906
- Current 741.233 895.885 1.044.633
- Long Term 1.445.891 976.648 767.273
NET CASH (DEBT) 276.407 254.584 (4.909)
Q2 2010 Conference Call Page 12 July 29th, 2010

12. Capacity Expansion Investments
Outside Brazil
Brazil
91,9
20,1 73,8
63,5 61,4
15,7 43,7
32,7 38,2 34,2
71,8 13,8
47,8 13,7
24,3 27,2 30,1
19,1
Q1 Q2 Q3 Q4 Q1 Q2
2009 2010
Q2 2010 Conference Call Page 13 July 29th, 2010

13. Contacts
www.weg.net/ir
Laurence Beltrão Gomes
IRO
laurence@weg.net
Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net
twitter.com/weg_ir
MSN Messenger
luisfernando@weg.com.br
Daniel Segalin
Investor Relations Analyst
+55 (47) 3276-6106
ri@weg.net
Q2 2010 Conference Call Page 14 July 29th, 2010