Presentation used for the CS Brazil Equity Ideas 2010 Conference at the Grand Hyatt Hotel in São Paulo, January 27th - January 29th, 2010

1. Presentation
CS Equity Ideas Conference 2010
Motors | Automation | Energy | Paints

2. Disclaimer
The information contained herein has been prepared by WEG S.A. (“WEG” or the “Company”) solely for meetings held with investors
and/or potential investors. This material does not constitute offering material in whole or part, and you must obtain further information
before making an investment decision in respect of the common shares of the Company.
This material has been prepared solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any
securities and should not be treated as giving investment advice. It is not targeted to the specific investment objectives, financial situation
or particular needs of any recipient. No representation or warranty, either express or implied, is made as to the accuracy, completeness or
reliability of the information contained herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment.
Any opinions expressed in this material are subject to change without notice and WEG is not under obligation to update or keep current the
information contained herein. In addition, WEG has been informed that their affiliates, agents, directors, partners and employees may
make purchases and/or sales as principals or may act as market makers or provide investment banking or other services to the Company.
The Company and their respective affiliates, agents, directors, partners and employees accept no liability whatsoever for any loss or
damage of any kind arising out of the use of all or any part of this material.
You should consult your own legal, regulatory, tax, business, investment, financial and accounting advisers to the extent that you deem
necessary, and you must make your own investment, hedging or trading decision based upon your own judgment and advice from such
advisers as you deem necessary and not upon any view expressed in this material.
This material includes forward-looking statements subject to risks and uncertainties, which are based on current expectations and
projections about future events and trends that may affect the Company’s business. These statements include projections of economic
growth and energy demand and supply, as well as information about competitive position, the regulatory environment, potential
opportunities for growth and other matters. Several factors may adversely affect the estimates and assumptions on which these
statements are based, many of which are beyond our control.
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3. Diversification as Core Value
Services
Energy Electronic Energy
Generation Components Substations
Motor Transformer
Electric Distribution
Components Panel
Generator
Motor
Control
Panel
Industrial Process
Automation
Industrial Application
Paints and Varnishes
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4. Business areas
Electro-Electronic Generation, Motors for Industrial
Industrial Transmission Domestic Use Paints and
Equipments and Distribution Varnishes
Focus Global Americas Latin America Brazil
Hydro, thermal
Low and medium (natural gas, biomass Liquid and
tension electric and other) and wind powdered
Products motors, industrial generators, Single phase electric paints, electro-
automation transformers, control motors isolating
equipments and panels, automation varnishes
services services
Capital goods OEMs Generation, General
(pumps, transmission and “White goods” OEMs industrial and
Consumer compressors, distribution (washing machines, specialty
machines) and end- concessionaries, co- HVAC*), water applications
Markets users (steel, mining, pumps, lawn (shipbuilding,
generation, industrial mowers, etc aggressive
pulp & paper, oil & clients
gas, ethanol) environments)
Industrial Production
Performance growth and Growing investments Disposable income, Brazilian GDP
Investments in Fixed in energy generation supply of credit and growth
Drivers level of interest rates
Capital (capex)
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5. Revenues breakdown
5.471
5%
4.551 12%
6%
3.920 3.804
3.527 14% 27% 5% 6%
6% 13% 11%
2.978 23%
6% 15%
2.603
25% 34%
6% 18% 18%
21% 14%
10%
55% 57% 49%
61% 57%
62%
63%
2004 2005 2006 2007 2008 09M08 09M09
Industrial Equipment GTD Domestic Use Paints & Varnishes
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6. Consistent and profitable growth
Gross Revenues (R$) EBITDA (R$)
1.026
5.471
923
4.551
CAGR 22%
CAGR 20%
666
3.527
2.978
504
487
2.603
435
2.015
327
291
1.535
1.269
207
963
146
135
753
106
632
430
458
574
80
84
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Net Earnings (R$) 575
Return on Equity
560
47%
44%
503
38%
38%
37%
37%
403
33%
33%
379
CAGR 25%
31%
31%
308
23%
22%
220
16%
176
14%
125
98
82
58
41
31
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
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7. Shareholding structure
Voigt Silva Werninghaus Controlling
33.3% 33.3% 33.3% Shareholders
Founders’ WEG
Families Participações Management Free Float
(directly) e Serviços S/A
14.5% 51.1% 2.7% 31.7%
WEG S.A.
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8. Corporate Governance Practices
Strong accountability and transparency culture
Ingrained into Company’s core values, beliefs and mission
Practices are “all that matter.” Formalization comes afterwards
Early adopter of best practices formalizations and codes
“Novo Mercado” conversion of PN shares at 1:1 ratio
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9. Strong fundamental trends
Energy efficiency
Industrial electric
motors represent
around 25% of
global electricity
consumption Lower CO2
Most efficiency emissions
“bang” for the Economic viable
Capex “buck” alternatives fuels
Cleaner Energy Sources
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10. Opportunity: Installed Base
40 – 100 100 – 250 Above 250
SEGMENT Up to 10 Hp 10 – 40 Hp
Hp Hp Hp
# of Motors 596 695 297 194 64
Average Load
(%)
31,1% 43,0% 63,5% 54,2% 67,6%
Food Average hours of
use (%)
86,7% 82,0% 81,3% 88,4% 86,8%
Average Age
(years)
19 15 22 17 12
# of Motors 563 210 154 57 5
Average Load 15,2% 47,2% 53,5% 61,8% 73,1%
Petro
Average hours of
Chemicals use (yearly)
95,5% 94,5% 95,5% 96,9% 100,0%
Average Age
(years)
24 23 24 25 31
Source: WEG Service database
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11. WEG is Uniquely Positioned
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12. Diversified and Synergistic Offering
Product diversification increases …while reduces costs and diversify risks
competitiveness and added value…
From the client’s perspective From WEG’s perspective
One Supplier,
Several Client
Products
Several Suppliers, one Several Several Products,
product each Products, One Markets, Industries and
Salesperson Clients
One-stop shop (largest electric motor line
Greater synergy and efficiency of sales effort
from a single manufacturer)
Strong worldwide after sales support Reduced risk exposure (product, segment
(services and parts) and client)
Product integration in systems and solutions
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13. Technological Innovation Capabilities
Technology advances at fast pace, with WEG at the forefront
Consistent R&D spending
2,5% 2,5%
2,3%
2,4%
2,3% Partnerships with best engineering
2,0%
1,7% 1,6%
1,8%
1,5%
schools in Brazil and in the world
86 89
73
Technical Committee meets semi-
63 annually to review latest
developments in electrical theory and
30 34
21
applications
16 18 18
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
R&D Spending % Net Revenues
More than 1.000 engineers developing products, such as Wmagnet
Innovative use of technology for general purpose motors
Higher energy efficiency (lower consumption per output)
+ Lower working temperature and noise levels
Smaller size (lower material consumption)
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14. Global Presence
Gross Revenues Breakdown (9M09)
12%
10% Europa
América do Norte
5%
66%
Ásia e Oceania
5% 3%
Brasil África
América do Sul e Central
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15. Global Presence
External Markets Revenues (US$ M) Production Facilities
Service fast growing
regional markets
Mexico, Portugal, Argentina
1029
Sales Subsidiaries and China
Own commercial and
distribution structures in
large and growing markets
US, Chile, Colombia,
Local Reps and Venezuela; England, France,
Distributors Belgium, Germany, Italy,
Develop market Spain, Sweden, Australia,
knowledge India, Japan, Singapore,
UAE and Russia
Exports to more than 100 120
countries: Canada, South
Africa
27
1980 1989 1998 2008
2007
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16. Unique Product Characteristics
Hours of Daily Use 12 16 24 24
Costs during useful life
Days of Monthly Use 22 22 22 30
Nominal Power Hp 50,0 50,0 50,0 50,0
97,0%
Nominal Power kilowatts 37,3 37,3 37,3 37,3
Energy Efficiency % 92,5% 92,5% 92,5% 92,5%
Energy Consumption Kilowatts 40,3 40,3 40,3 40,3
Monthly Use Hours 264 352 528 720
Monthly Energy Consumption kW/h / month 10.641 14.188 21.283 29.022
Cost of Electricity R$ / kW/h 0,15 0,15 0,15 0,15
Energy Operating Cost R$ per Month 1.596 2.128 3.192 4.353
List Price R$ 5.358 5.358 5.358 5.358 1,4% 1,6%
Price / Operating Cost Ratio Months 3,36 2,52 1,68 1,23 Acquisition Maintenance Energy
Consuption
Specifications must be exact. Everything affects energy efficiency
“Similar” motors are not economical, even if much cheaper
Becomes more evident when energy prices go up
Returns on energy efficiency investments are very attractive
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17. Scale and Customization
Customization is characteristic of the industry and specifications
are very diverse
Largest integrated motor site in the world
Integrated and synergetic
production allows for large scale
of production, with:
Lower costs
Higher operating efficiency
Vertical integration allows for:
Customized products
Main Manufacturing Plant in Jaraguá do Sul, SC
Fastest to the market
Incoming Foundry /
Orders Cast Machine
More than 2,500
Engineering
Wires
Manufacturing Assembly different types of
Line
Steel Shop electric motors
Paints & Varnishes monthly
Tooling
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18. Third Quarter 2009 Highlights
3Q09 2Q09 Growth % 3Q08 Growth %
Gross Operating Revenue 1.282.506 1.250.193 2,6% 1.488.671 -13,8%
Domestic Market 889.302 808.355 10,0% 967.507 -8,1%
External Markets 393.200 441.838 -11,0% 521.164 -24,6%
External Markets in US$ 210.840 213.396 -1,2% 309.874 -32,0%
Net Operating Revenue 1.055.465 1.029.945 2,5% 1.223.272 -13,7%
Gross Operating Profit 402.210 294.175 36,7% 435.670 -7,7%
Gross Margin 38,1% 28,6% 35,6%
Quarterly Net Income 160.103 129.670 23,5% 167.130 -4,2%
Net Margin 15,2% 12,6% 13,7%
EBITDA 254.840 172.925 47,4% 300.150 -15,1%
EBITDA Margin 24,1% 16,8% 24,5%
Figures in R$ Thousands
September 2009 December 2008 September 2008
CASH & EQUIVALENT 2.003.241 1.849.477 1.820.203
DEBT 1.932.624 2.161.216 1.883.178
- Current 943.532 1.314.098 1.238.442
- Long Term 989.092 847.118 644.736
NET CASH (DEBT) 70.617 (311.739) (62.975)
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19. Profitability
Net Earnings (R$ million) EBITDA (R$ million)
25%
23% 24%
23%
22% 22%
1026 19%
20%
18% 18% 923
17%
15% 15%
757
14%
12% 666
13% 609
575 560
503
463 487 504
403 375 412
394
308
07
08
03
04
05
06
08
09
03
04
05
06
07
08
09 8
09
0
20
20
20
20
20
20
M
M
20
20
20
20
20
20
M
M
09
09
09
Net Income Net Margin EBITDA EBITDA Margin
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20. Capacity Expansion Program
Capex and Depreciation (R$ million) 457
Capex
Depreciation
318
206 206
188
146 157 146
126
111 105
96
56 67
2003 2004 2005 2006 2007 2008 09M09
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21. Dividend Pay-out Policy
Net Earnings and Dividends (R$ million) 54% 53%
52%
45%
43% 44%
40% 40%
39% 575
37% 560
35%
503
403
375
308 299 301
252
220 229
176 173 165
125 124 133
82 29 89
46 68
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 06M09
Net Earnings Dividends Pay-out (%)
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22. Contacts
www.weg.net/ir
Alidor Lueders
CFO & IRO
alidor@weg.net
Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net twitter.com/weg_ir
ri@weg.net
MSN Messenger
luisfernando@weg.com.br
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