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
2Q12 Conference Call Page 2 July 26, 2012
4. Net Operating Revenue
Domestic Market
in R$ million
1%
-14%
14% 15%
5%
702 723 729
601 629
Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012
2Q12 Conference Call Page 4 July 26, 2012
5. Net Operating Revenue
External Market
in US$ million External Market in US$ Quarterly Average FX
2,0705 1,7920
1 7920 1,9649
,
1,6529
1 6529 1,5922
1 5922
17%
62%
-13%
13% 3%
407
348
238 207 214
Q2 2008 Q2 2009 Q2 2010 Q2 2011 Q2 2012
2Q12 Conference Call Page 5 July 26, 2012
6. Business Areas
Net Revenue breakdown
in R$ million
1.529
0,6%
0 6%
5%
2,4%
1.277 5%
0,2%
5% 8%
2,4%
1.011
1 011 7% 13%
0,2% 7%
6%
2,8%
10% 15%
6%
19% 41%
7%
34%
29%
29% 25%
27%
2Q 2010 2Q 2011 2Q 2012
Industrial Equipment DM Industrial Equipment EM
GTD DM GTD EM
Domestic Use DM Domestic Use EM
Paints & Varnishes DM Paints & Varnishes EM
2Q12 Conference Call Page 6 July 26, 2012
7. Cost of Goods Sold
Other Costs Other Costs
9% Materials
Depreciation Depreciation 9%
5% 64%
4%
Labor
23%
2Q12 2Q11
Q
Labor
Materials 22%
64%
2Q12 Conference Call Page 7 July 26, 2012
8. Main effects on EBITDA
in R$ million
$
79,4 165,8
172,2
FX Impact
on
Revenues
32,0
COGS (ex 11,3 ,
2,0
depreciation) 260,0
Selling
General and Profit Sharing
215,6 Expenses
Administrative Program
Volumes, Expenses
Prices &
Product Mix
Changes
EBITDA Q2 11 EBITDA Q2 12
2Q12 Conference Call Page 8 July 26, 2012
9. Sources and Uses of Cash
in R$ million
Dividends/interest on
Sources
Long-term investments
2%
Amortization of equity capital Uses
Financing 10%
New Financing
Decrease in Cash 46%
34% Profit Sharing Paid
18% 4%
Other / Adjustments Increase in Accounts
4% Receivable
10%
Increase in Accounts R$ 1,694 R$ 1,694
Payable
9%
million million Increase in Inventories
6%
Other accounts payable Capex
5% 7%
Depreciation and
amortization Acquisition
6% Pre-tax income 12%
23% Income Taxes Paid
6%
2Q12 Conference Call Page 9 July 26, 2012
10. Capex Program
Outside Brazil
Brazil
63,1 55,5
49,9
49 9 58,7
1,0
10
41,1 5,0 3,7
33,8 2,4
7,3
8,2 62,1 53,7 51,9
38,8
38 8 42,6
,6
25,6
25 6
Q
Q1 Q
Q2 Q
Q3 Q
Q4 Q
Q1 Q
Q2
2011 2012
in R$ million
2Q12 Conference Call Page 10 July 26, 2012
11. Contacts
Laurence Beltrão Gomes
Finance and 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
2Q12 Conference Call Page 11 July 26, 2012