2. Disclaimer
The statements that may eventually 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
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 f t
di h future considerations.
id ti
1Q12 Conference Call Page 2 April 26, 2012
4. Net Operating Revenue
Domestic Market
in R$ million
8%
6% 3% 7%
660 714
562 595 615
Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012
1Q12 Conference Call Page 4 April 26, 2012
5. Net Operating Revenue
External 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 2012
1Q12 Conference Call Page 5 April 26, 2012
6. Business Areas
Net Revenue breakdown
in 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 EM
1Q12 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 EBITDA
in 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 12
1Q12 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 Working
Other 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$ million
1Q12 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_ir
www.weg.net/ri
1Q12 Conference Call Page 11 April 26, 2012