3Q12 C
Conference
f
C
Call
ll
October 25th, 2012
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
d in
i such
h ffuture
t
considerations.
id ti
3Q12 Conference Call
Page 2
October 25, 2012
Highlights
Quarterly Figures
Q3 2012
1 613 067
1,613,067
798,626
814,441
Q2 2012
1 528 791
1,528,791
729,235
799,556
%
5 5%
5.5%
9.5%
1.9%
401 460
401,460
406 915
406,915
-1.3%
498,587
461,661
8.0%
30.9%
30.2%
Net Income
184,756
139,819
Net Margin
11.5%
9.1%
284,276
,
260,028
,
EBITDA Margin
17.6%
17.0%
EPS
0.2978
0.2254
Net Operating Revenue
Domestic Market
External Markets
External Markets in US$$
Gross Operating Profit
Gross Margin
EBITDA
3Q12 Conference Call
Page 3
Q3 2011
1 317 483
1,317,483
737,350
580,133
%
22 4%
22.4%
8.3%
40.4%
353 520 13.6%
353,520
418,266
19.2%
31.7%
32.1%
154,567
19.5%
11.7%
9.3%
243,743
,
16.6%
18.5%
32.1%
0.2491 19.5%
Figures in R$ Thousand
October 25, 2012
Net Operating Revenue
Domestic Market
in R$ million
8%
717
676
Q3 2008
Q3 2009
3Q12 Conference Call
7%
2%
-6%
6%
690
737
799
Q3 2010
Q3 2011
Q3 2012
Page 4
October 25, 2012
Net Operating Revenue
External Market
in US$ million
External Market in US$
1.6819
1.8649
1.7187
Quarterly Average FX
1.6410
2 0287
2.0287
14%
22%
-32%
32%
42%
301
290
354
401
204
Q3 2008
3Q12 Conference Call
Q3 2009
Q3 2010
Page 5
Q3 2011
Q3 2012
October 25, 2012
Business Areas
Net Revenue breakdown
in R$ million
1,613
0.8%
6%
1 317
1,317
1,189
5%
8%
0.3%
5%
0.1%
10%
14%
7%
4%
2%
2%
7%
3%
6%
16%
17%
37%
34%
34%
28%
27%
23%
3Q 2010
3Q 2011
3Q 2012
Industrial Equipment DM
GTD DM
Domestic Use DM
Paints & Varnishes DM
3Q12 Conference Call
Industrial Equipment EM
GTD EM
Domestic Use EM
Paints & Varnishes EM
Page 6
October 25, 2012
Cost of Goods Sold
Other
O
e Costs
Cos s
9%
Depreciation
4%
Other Costs
9%
Depreciation
4%
Labor
23%
3Q12
3Q11
Labor
22%
Materials
64%
3Q12 Conference Call
Page 7
Materials
65%
October 25, 2012
Main impacts on EBITDA
in R$ million
155.6
208.5
139.9
FX Impact
on
Revenues
26.3
COGS (ex
depreciation)
243.7
Volumes,
Prices &
Product Mix
Changes
EBITDA Q3 11
3Q12 Conference Call
16 1
16.1
Selling
Expenses
General and
Administrative
p
Expenses
4.1
284.3
Profit Sharing
Program
EBITDA Q3 12
Page 8
October 25, 2012
Sources and Uses of Cash
in R$ million
Sources
Decrease in Cash
25%
Other / Adjustments
3%
Increase in Accounts
Payable
5%
Long-term investments
1%
New Financing
32%
3Q12 Conference Call
Dividends/interest on
equity capital
12%
Uses
Profit Sharing Paid
4%
Increase in Accounts
Receivable
10%
R$ 2,646
million
R$ 2,646
million
Increase in Inventories
1%
Capex
C
6%
Other accounts payable
5%
Depreciation and
amortization
6%
Amortization of
Financing
54%
Acquisition
8%
Income Taxes Paid
6%
Pre-tax income
24%
Page 9
October 25, 2012
Capex Program
in R$ million
Outside Brazil
Brazil
63.1
33.8
8.2
49.9
41.1
58.7
55.5
50.4
50
5.0
3.7
5.1
62.1
53.7
51.9
45.4
Q4 11
Q1 12
Q2 12
Q3 12
1.0
7.3
2.4
25 6
25.6
38.8
42.6
Q1 11
Q2 11
Q3 11
2011
3Q12 Conference Call
2012
Page 10
October 25, 2012
Contacts
ƒLaurence Beltrão Gomes
Finance and Investor Relations Officer
laurence@weg.net
ƒ Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
l i f
luisfernando@weg.net
d @
t
twitter.com/weg_ir
www.weg.net/ri
3Q12 Conference Call
Page 11
October 25, 2012