Presentation for the 1Q 2011 results conference call

1. Motors | Energy | Transmission & Distribuition | Automation | Coatings
1Q11 Results Conference Call
April 28, 2011
Q1 2011 Results Conference Call April 28, 2011

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.
Q1 2011 Results Conference Call Página 2 April 28, 2011

3. Q1 2011 Highlights
Q1 2011 Q1 2010 Growth % Q4 2010 Growth %
Gross Operating Revenue 1,343,137 1,131,546 18.7% 1,504,610 -10.7%
Domestic Market 862,863 801,299 7.7% 964,471 -10.5%
External Markets 480,274 330,247 45.4% 540,200 -11.1%
External Markets in US$ 288,211 181,170 59.1% 315,278 -8.6%
Net Operating Revenue 1,126,117 931,907 20.8% 1,258,429 -10.5%
Gross Operating Profit 310,662 308,613 0.7% 391,300 -20.6%
Gross Margin 27.6% 33.1% 31.1%
Quarterly Net Income 121,564 119,645 1.6% 141,508 -14.1%
Net Margin 10.8% 12.8% 11.2%
EBITDA 164,808 181,750 -9.3% 224,149 -26.5%
EBITDA Margin 14.6% 19.5% 17.8%
Figures in R$ Thousands
Q1 2011 Results Conference Call Página 3 April 28, 2011

4. Gross Operating Revenues
Domestic Market
R$ million
5% 8%
0%
22%
802 801 863
761
623
1T07 1T08 1T09 1T10 1T11
Q1 2011 Results Conference Call Página 4 April 28, 2011

5. Gross Operating Revenues
External Markets
External Market in US$ Quarterly Average FX
US$ million
2,1066 2,3117
1,7354 1,8229 1,6664
59%
4% -11%
18%
288
195 203 181
165
Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2011
Q1 2011 Results Conference Call Página 5 April 28, 2011

6. Business Areas
Gross Revenues Breakdown
1.343
1.271
1.132 7%
1.100 5%
971 9% 8% 13%
6%
6% 15% 17% 24%
14% 33%
25% 30%
21%
7%
59% 54% 52% 57%
46%
1Q 2007 1Q 2008 1Q 2009 1Q 2010 1Q 2011
Industrial Equipment GTD Domestic Use Paints & Varnishes
R$ million
Q1 2011 Results Conference Call Página 6 April 28, 2011

7. Cost of Goods Sold
Other Costs
Steel & 33%
Other Costs Coper
31% 44%
Depreciation 1Q11 Depreciation 1Q10
5% 6%
Other Other
Materials Steel &
Materials Coper
20% 19% 42%
Q1 2011 Results Conference Call Página 7 April 28, 2011

8. Main impacts on EBITDA
256,7 45,1
17,4
189,6
FX Impact on
Gross
Revenues
Deduction
on Gross
Revenues
181,8 22,1
0,7 1,2 164,8
Volumes, COGS
Prices & Selling
Product Mix Expenses General and
Changes Administrative
Expenses
EBITDA Q1 10 EBITDA Q1 11
R$ million
Q1 2011 Results Conference Call Página 8 April 28, 2011

9. Cash Flow
2.553,0 189,2
2.487,1
34,6
220,5
Operating Investing
Financing
Cash 4Q10 Cash 1Q11
R$ million
Q1 2011 Results Conference Call Página 9 April 28, 2011

10. Capex Program
Outside Brazil
Brazil
73,8
61,4
53,7 44,1
43,7 13,0
34,2 2,0 33,8
8,2
40,7 42,1
27,2 30,1 25,6
Q1 Q2 Q3 Q4 Q1
2010 2011
R$ million
Q1 2011 Results Conference Call Página 10 April 28, 2011

11. Final Remarks
Growth is robust and increasingly diversified :
Products
Segments
Geographies
Unfavorable scenario has a short term impact, but it can be
minimized over the next quarters
2010 acquisitions underwent profound changes when
incorporated into WEG
We are working to maximize returns on recent investments on
new capacity
Medium and long term opportunities continue to be very
attractive
Q1 2011 Results Conference Call Página 11 April 28, 2011

12. Contacts
www.weg.net/ri
Laurence Beltrão Gomes
Investor Relations Officer
laurence@weg.net
Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net
twitter.com/weg_ir
Q1 2011 Results Conference Call Página 12 April 28, 2011