Presentation used during the Deutsch Bank Industrials Conference event in Chicago, June 23, 2010.

1. Motors | Automation | Energy | Transmission & Distribution | Paints
June 2010
Deutsche Bank Industrials Conference

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. History of WEG
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4. Shareholding structure
Clear and strong control group that knows the business but is not
directly involved on day to day operations
Voigt Silva Werninghaus Controlling
33.3% 33.3% 33.3% Shareholders
WEG Founders’
Other
Participações e Families
Serviços S/A (directly) (Float)
50.9% 14.4% 34.7%
WEG S.A.
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5. Global Presence
Worldwide presence, with Brazil as the base of a truly global player
in electric capital goods
Factories in 5 countries Distributors & Agents in over 85 countries
Commercial branches in 23 countries Sales to over 110 countries
Over 1100 service centers in all 5 continents
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6. Business Units
Complete solutions that increase perceived value by the client
MOTORS AUTOMATION ENERGY
TRANSMISSION
COATINGS
& DISTRIBUTION
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7. WEG key facts
About WEG
Market leader in Latin America and among top 5 electric motor players in the
world
Over 21thousands employees (2.5 thousands outside Brazil)
Around 35% of business outside Brazil
Revenues CAGR of 19% over past 15 years
2009
Revenues: US$ 2.8 billion
19.537 employees worldwide
EBITDA: US$ 465 million
Net earnings: US$ 305 million
Strong balance sheet, unaffected by financial crisis
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8. Consistent and profitable growth
Product, client and industry exposures are diversified, strong and
clear focus on profitable opportunities
Gross Revenues (R$) EBITDA (R$)
5.471
1.026
5.111
923
4.551
837
CAGR 19%
CAGR 18%
3.527
666
2.978
504
2.603
487
435
2.015
327
291
1.535
1.269
207
963
146
106
135
753
632
430
458
574
80
84
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Net Earnings (R$) Return on Equity
575
47%
560
548
44%
503
38%
38%
37%
37%
CAGR 23%
33%
33%
403
31%
31%
379
25%
308
23%
22%
220
16%
176
14%
125
98
82
58
41
31
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
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9. Strong fundamental trends
Energy prices will continue to increase
Cheaper energies are becoming less available
Concerns about sustainability (climate change)
Cleaner energies are technologically intensive
Oil prices (US$)
100
90
80
70
60
50
40
30
20
10
‐
1970 1980 1990 2000 2010 Partial
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10. Strong fundamental trends
Increasing energy prices changes electric equipment
industry
Energy efficiency
Industrial electric
motors represent
around 25% of global Lower CO2
electricity consumption emissions
Most efficiency “bang” Increased economic
for the Capex “buck” viability of
alternative fuels
and sources of
energy
Cleaner Energy Sources
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11. Strong fundamental trends
Increasing energy prices changes electric equipment
industry
Energy efficiency
Industrial electric
motors represent
around 25% of global Lower CO2
electricity consumption emissions
Most efficiency “bang” Increased economic
for the Capex “buck” viability of
alternative fuels
and sources of
energy
Cleaner Energy Sources
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12. Electric motor is a “different” machine
Cost of ownership of an electric motor throughout its useful life
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 are very attractive
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13. WEG is Uniquely Positioned
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14. Scale and Customization
Customization is characteristic of the industry and specifications are
very diverse. Most production is built to order
Integrated and synergetic
Largest integrated motor site in the world 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 /
Cast Machine
Orders More than 2,500
Engineering
Wires
Manufacturing Assembly different types of
Line electric motors
Steel Shop
Paints & Varnishes monthly
Tooling
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15. Contacts
www.weg.net/ir
Laurence Beltrão Gomes
Finance & IR Officer
laurence@weg.net
Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276‐6973
twitter.com/weg_ir
luisfernando@weg.net
ri@weg.net
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16. Our Business
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17. Annex:
Recent Financial Information
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18. Profitability
Net Earnings (R$ million) EBITDA (R$ million)
25%
23% 23%
22% 22%
1026
20% 20%
923
18% 18%
837
17% 15%
15%
12% 13% 666
575 560 548
503 487 504
403 394
375
308
03
04
05
06
07
08
09
03
04
05
06
07
08
09
20
20
20
20
20
20
20
20
20
20
20
20
20
20
Net Income Net Margin EBITDA EBITDA Margin
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19. General Comments on Q1 2010
Quarter confirms that recovery is going to be gradual
Economic dynamisms spreads from the Brazilian consumer towards other
segments:
Consumer goods continue strong, tied to fundamentals
Industrial products doing better the closer they are to the consumer
Longer cycle products is still in early stages of recovery
Other emerging countries faring better than mature economies
We are resuming some investment plans as demands picks up
Production of HT motors in India by 2H of 2010;
Production of commercial motors in Linhares by year end
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20. Quarterly Highlights
Q1 2010 Q4 2009 Growth % Q1 2009 Growth %
Gross Operating Revenue 1.131.546 1.306.913 -13,4% 1.270.984 -11,0%
Domestic Market 801.299 871.619 -8,1% 802.351 -0,1%
External Markets 330.247 435.299 -24,1% 468.632 -29,5%
External Markets in US$ 181.170 250.328 -27,6% 202.726 -10,6%
Net Operating Revenue 931.907 1.076.969 -13,5% 1.048.241 -11,1%
Gross Operating Profit 307.454 344.226 -10,7% 311.954 -1,4%
Gross Margin 33,0% 32,0% 29,8%
Quarterly Net Income 119.074 136.426 -12,7% 122.193 -2,6%
Net Margin 12,8% 12,7% 11,7%
EBITDA 181.750 228.548 -20,5% 181.112 0,4%
EBITDA Margin 19,5% 21,2% 17,3%
Figures in R$ Thousands
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21. Financing Policies
March 2010 December 2009 March 2009
CASH & EQUIVALENT 1.962.538 2.127.117 1.815.164
DEBT 1.782.466 1.872.533 2.099.941
- Current 814.274 895.885 1.171.587
- Long Term 968.192 976.648 928.354
NET CASH (DEBT) 180.072 254.584 (284.777)
Operating cash flow trends continue favorable
Capex program picking up where demand is stronger
Strong capital structure allows access to low cost sources of funding
BNDES (Brazilian development bank) is the main partner
Negotiating first transaction with IFC
Trade finance at very attractive terms
Foreign subs financed locally but considering consolidated balance
sheet
Virtually no net foreign currency exposure
Extending average maturities of debt at lower costs
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22. Gross Operating Revenues
Evolution of Gross Revenues – Domestic Market
(in R$ million)
5% 0% Gross Operating Revenues
22% decreasing by 11%. Net Revenues
23%
down by 11.1%
761 802 801 FX appreciation of 27% negatively
623
507 impacts comparisons
Product mix continues to shift
Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 towards short cycle products
Evolution of Gross Revenues – External Market
(in US$ million) Lower order intake during 2009 is
External Market in US$ now apparent in revenues
Quarterly Average FX
Recovery continues driven by the
2,1875 2,1066 2,3117
1,7354 1,8229
Brazilian consumer
30%
18% -11% Long cycle and external (mature)
29% markets continue soft.
195,3 202,7 181,2
165,2
126,6
Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010
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23. Global Presence
Gross Revenues Breakdown: Q1 2010
9%
10%
Europe
North America
3%
7%
Asia & Oceania
71%
5% 2%
Brazil Africa
South & Central America
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24. Profitability
36% 37% 36% 33%
30%
22% 24% 23%
17% 20%
293 320 312 307
238 193 203 181 182
149
Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010 Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010
Gross Profit Gross Margin EBITDA EBITDA Margin
18% 16%
Gross margin improving, despite little
14% 12% 13%
help from top line growth
EBITDA margin trending towards the
floor of the historical interval
Net margin showing more modest
118 129 126 122 119 improvement, benefiting from FX
stability
Q1 2006 Q1 2007 Q1 2008 Q1 2009 Q1 2010
Net Income Net Margin
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25. Growth and Margin Analysis
Revenues Growth (CAGR) Profitability (EBITDA Margins)
30,0%
30%
23,9% 2004‐2009 2009‐2012E
25,0%
25%
20,0%
20%
15,0% 12,6%
9,6% 10,1% 15%
10,0%
6,0%6,6%
5,1% 10%
5,0% 2,6% 2,6%
5%
0,0%
0%
‐5,0%
‐4,2% 2004 2005 2006 2007 2008 2009
‐10,0%
WEG SIEMENS EMERSON ABB SCHNEIDER WEG SIEMENS EMERSON ABB SCHNEIDER
Financial Leverage (Net Debt / EBITDA 2009)
1,50
1,10
1,00
1,00 0,80
0,50
‐
‐0,50 ‐0,30
‐1,00
‐1,50
‐1,50
‐2,00
WEG SIEMENS EMERSON ABB SCHNEIDER
Source: Morgan Stanley
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