WEG held its Q3 2010 conference call on October 28th, 2010 to discuss financial results and business updates. Key highlights included consolidation of recent acquisitions, 30% growth in foreign markets despite currency appreciation, and optimism around recent renewable energy auctions in Brazil. Gross revenue grew 15.6% year-over-year to R$1.419 billion, with net income up 22.2% to R$141.9 million. Management noted the company's long-term attractiveness in emerging markets, energy efficiency, and smart grid technologies.

1. Motors | Automation | Energy | Transmission & Distribution | Paints
Q3 2010 Results Conference Call
October 28th, 2010
Q3 2010 Conference Call October 28th, 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.
Q3 2010 Conference Call Page 2 October 28th, 2010

3. General Comments on Q3 2010
Important aspects:
Consolidation of acquisitions (ZEST, South Africa, and Voltran, Mexico)
Growth in foreign markets, despite the appreciation of the Real.
Late cycle business
Investment in capacity expansion occurs after the resumption of
consumption
More evident in areas such as GTD.
Recent renewable energies auction has left us optimistic with wind energy in
Brazil
Long-term attractiveness:
Emerging markets growth, with specific demands;
Energy efficiency regulation, increasing the market for high-performance
products;
New, more intelligent and efficient forms to produce, process and use
energy ("smart grid“)
Brazil specific events, such as FIFA World Cup and Olympic Games
Q3 2010 Conference Call Page 3 October 28th, 2010

4. Quarterly Highlights
Q3 2010 Q2 2010 Growth % Q3 2009 Growth %
Gross Operating Revenue 1.419.161 1.227.421 15,6% 1.282.506 10,7%
Domestic Market 906.954 831.210 9,1% 889.302 2,0%
External Markets 512.207 396.211 29,3% 393.200 30,3%
External Markets in US$ 298.020 221.100 34,8% 210.840 41,3%
Net Operating Revenue 1.188.622 1.013.015 17,3% 1.055.465 12,6%
Gross Operating Profit 373.497 309.158 20,8% 402.210 -7,1%
Gross Margin 31,4% 30,5% 38,1%
Quarterly Net Income 141.952 116.138 22,2% 160.103 -11,3%
Net Margin 11,9% 11,5% 15,2%
EBITDA 209.196 174.015 20,2% 254.840 -17,9%
EBITDA Margin 17,6% 17,2% 24,1%
Figures in R$ Thousands
Q3 2010 Conference Call Page 4 October 28th, 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$
-8%
Quarterly Average FX
2% 2,1702
23% 1,9142 1,6819 1,8649 1,7187
42%
37% -32% 41%
968 907 34%
889
785 309,9 298,0
553 226,4 210,8
168,6
Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2006 Q3 2007 Q3 2008 Q3 2009 Q3 2010
Q3 2010 Conference Call Page 5 October 28th, 2010

6. Global Presence
Gross Revenues Breakdown – Q3 2010
8%
13%
Europe
North America
4%
7% Asia & Oceania
64%
5% 6%
Africa
South & Central America Brazil
Q3 2010 Conference Call Page 6 October 28th, 2010

7. Business Areas
Gross Revenues Breakdown – Q3 2010
1.489 1.419
5%
1.283 7%
1.219 13%
6% 12%
6%
25% 14%
918 13% 22%
5% 25%
35%
15%
19% 58%
56% 60%
61%
46%
3T06 3T07 3T08 3T09 3T10
Industrial Equipment GTD Domestic Use Paints & Varnishes
Q3 2010 Conference Call Page 7 October 28th, 2010

8. Cost of Goods Sold
Other Costs Other Costs
33% 29%
Depreciation Q3 10 Depreciation
Q3 09
5% 5%
Other Steel & Steel &
Other
Materials Coper Coper
18% Materials 42%
44% 24%
Q3 2010 Conference Call Page 8 October 28th, 2010

9. Main changes on EBITDA
180,2 (43,6)
(3,5) (161,4)
FXImpacto on
Impact Deduction on
Deduction on
Deduction on
Cambial sobre
Gross Gross
Gross
Gross
Revenues
receita bruta Revenues
Revenues
Revenues
254,8
Aumento de
Volumes, (20,6) (0,1)
Prices &
volumes &
3,4 209,2
CPV
COGS
Product Mix
preços e mix (ex Selling Profit Sharing
Changes General and
de produtos Expenses Program
depreciação) Administrative
Expenses
EBITDA Q3 09 EBITDA Q3 10
Q3 2010 Conference Call October 28th, 2010

10. Cash Flows
Accumulated 9 months 2010
(336 )
420
189
273
Fluxo Operacional Fluxo de Fluxo de Variação do Caixa
Investimentos Financiamento no Período
Q3 2010 Conference Call October 28th, 2010

11. Financing Policies
September 2010 December 2009 September 2009
CASH & EQUIVALENT 2.399.773 2.127.117 2.003.241
- Current 2.399.773 2.127.117 2.003.241
- Long Term - - -
DEBT 2.345.147 1.872.533 1.932.624
- Current 841.311 895.885 943.532
- Long Term 1.503.836 976.648 989.092
NET CASH (DEBT) 54.626 254.584 70.617
Q3 2010 Conference Call Page 12 October 28th, 2010

12. Capacity Expansion Investments
Outside Brazil
Brazil
91,9
20,1 73,8
63,5 61,4
53,7
15,7 43,7
32,7 38,2 34,2 13,0
71,8 13,8
47,8 13,7
30,1 40,7
19,1 24,3 27,2
Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10
2009 2010
Q3 2010 Conference Call Page 13 October 28th, 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
Q3 2010 Conference Call Page 14 October 28th, 2010