WEG 1Q09 Earnings Conference Call Presentation, held on April 28, 2009

1. Conference Call
Results 1Q09
April 28th, 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.
2 1Q09 Conference Call April 28th, 2009

3. General Comments on 1Q09
1T09 was one of the toughest quarters in many years
Growth was possible because:
Favorable average exchange rate;
Diversification of clients, products and market segments;
Gross margin impacted by:
Cost increases from 2S08 not passed-through into prices;
Lower demand increasing manufacturing costs
Economic conditions at the beginning of 2009 are different from
what we considered for the budget
We continue to believe in top line growth but we may not reach our
targets
Competitive position remains strong, establishing the basis for future
performance recovery
3 1Q09 Conference Call April 28th, 2009

4. Quarterly Highlights
1Q09 4Q08 Growth % 1Q08 Growth %
Gross Operating Revenue 1.270.984 1.551.639 -18,1% 1.099.871 15,6%
Domestic Market 802.351 917.041 -12,5% 760.882 5,5%
External Markets 468.632 634.598 -26,2% 338.989 38,2%
External Markets in US$ 202.726 277.605 -27,0% 195.337 3,8%
Net Operating Revenue 1.048.241 1.295.630 -19,1% 887.324 18,1%
Gross Operating Profit 311.954 420.669 -25,8% 319.747 -2,4%
Gross Margin 29,8% 32,5% 36,0%
Quarterly Net Income 122.193 97.658 25,1% 125.758 -2,8%
Net Margin 11,7% 7,5% 14,2%
EBITDA 181.112 268.974 -32,7% 203.241 -10,9%
EBITDA Margin 17,3% 20,8% 22,9%
Figures in R$ Thousands
4 1Q09 Conference Call April 28th, 2009

5. Consolidated Gross Revenues Growth
Evolution of Gross Revenues per Market
(in R$ million)
External Market
Domestic Market
1.271 Gross Revenues growth of 16% and Net
Revenues growth of 18%;
1.100
FX and 1T08 comparison basis are
971 469
favorable;
339
Competitive position continues strong,
784
348
but…
691
277 … Markets are the toughest in several
261 years;
,9%
17
802 Good comparative conditions to withstand
761
623 global financial crises
507
430
1Q05 1Q06 1Q07 1Q08 1Q09
5 1Q09 Conference Call April 28th, 2009

6. Gross Revenues Growth
Evolution of Gross Revenues – Domestic Market
(in R$ million)
5%
Domestic Market maintained growth
22%
with order backlog
23%
18%
Industrial Production continues
802,4
760,9
weak (Capital Goods slows down
623,1
506,9
429,7 faster)
GTD, a long term business,
continues to grow
1Q05 1Q06 1Q07 1Q08 1Q09
Evolution of Gross Revenues – External Market
(in US$ million)
Diversification across markets /
2,6674 2,3117
2,1875 2,1066
segments / clients protects but
1,7354
does not completely shields from
External Market in US$
slow down
Quarterly Average FX
4%
18%
30%
Global crises impacts across all
markets
29%
202,7
195,3
165,2 FX favors R$ denominated growth
126,6
97,9
comparisons
1Q05 1Q06 1Q07 1Q08 1Q09
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7. WEG’s Global Presence
Gross Revenues Breakdown – 1Q09
11%
10% Europe
North America
5%
63% Asia & Oceania
5%
6%
Brazil Africa
South & Central America
7% 1.100
6%
971
9%
Domestic / External markets breakdown 784 6%
near standard (strong R$ distorted ratio) 7% 14% 33%
691 17%
553 6% 25%
Rest of the World grows faster than North 21%
17%
7%
21%
America and Europe 18%
12%
GTD continues strong with order backlog. 54% 52%
59%
59%
Industrial equipment already impacted 65%
Domestic use to benefit from IPI tax
1Q05 1Q06 1Q07 1Q08 1Q09
rebates
Industrial Equipment GTD Domestic Use Paints & Varnishes
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8. Cost of Goods Sold
Steel, copper and Other Materials have US$ denominated prices
Cost increases not passed-through into domestic market prices
Lower capacity occupancy at some lines decreases productivity
Other Costs
32%
Other Costs
29%
Steel & Coper
44%
1Q08
1Q09
Depreciation
Depreciation
7%
5%
Other
Steel & Coper
Materials
46%
17%
Other
Materials
20%
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9. Profitability
37% 37% 36%
36% 24%
23% 23%
22%
30%
17%
203
193
181
149
320 312 132
293
238
214
1Q05 1Q06 1Q07 1Q08 1Q09 1Q05 1Q06 1Q07 1Q08 1Q09
Gross Profit Gross Margin EBITDA EBITDA Margin
18%
17% 16% 14% 12%
Gross Margin suffers with impacts from
exchange rate and low occupancy
Same impacts are reflected into
EBITDA margin
129 126 122
118
Net income benefits from net financial
99
result (lower FX changes during the
quarter)
1Q05 1Q06 1Q07 1Q08 1Q09
Net Income Net Margin
9 1Q09 Conference Call April 28th, 2009

10. Financing Policies
March 2009 December 2008
CASH & EQUIVALENT 1.815.164 1.849.477
DEBT 2.099.941 2.161.216
- Current 1.171.587 1.314.098
- Long Term 928.354 847.118
NET CASH (DEBT) (284.777) (311.739)
Working capital shows improving trend and operating cash flows
used to:
Capacity expansion program
Pay down short term debt
FX Exposure continues below maximum limits of 3 months of
exports equivalent
10 1Q09 Conference Call April 28th, 2009

11. Capacity Expansion Program
Outside Brazil 130,4 128,2
Brazil 120,8
20,5
24,8
24,0
91,9
87,6
77,8 Total of R$ 92M during the
9,6 20,1
quarter
11,8
Flexibility is the key word
109,9 103,4
Capacity increases is a
96,8
reflection of observed demand
78,0 71,8
66,0
4Q07 1Q08 2Q08 3Q08 4Q08 1Q09
11 1Q09 Conference Call April 28th, 2009

12. Investor Relations
Alidor Lueders
www.weg.net/ri
CFO and Investor Relations Officer
alidor@weg.net
Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net
12 1Q09 Conference Call April 28th, 2009