Motors | Automation | Energy | Transmission & Distribution | Paints
Q4 2010 Results Conference Call
February 24, 2011
Q4 2010 Conference Call
Page 1
February 24, 2011
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.
Q4 2010 Conference Call
Page 2
February 24, 2011
Quarterly Highlights
Gross Operating Revenue
Domestic Market
External Markets
External Markets in US$
Net Operating Revenue
Gross Operating Profit
Gross Margin
Quarterly Net Income
Net Margin
EBITDA
EBITDA Margin
Q4 2010
1,504,610
964,472
540,138
315,241
1,258,429
391,300
Q4 2009 Growth % 12M10
1,306,913 15.1% 5,282,737
871,618 10.7%
3,503,934
435,295 24.1%
1,778,803
250,328 25.9%
1,015,532
1,076,969 16.8% 4,391,973
345,185 13.4% 1,386,952
31.1%
32.1%
141,508
137,162
11.2%
12.7%
224,149
228,547
17.8%
21.2%
3.2%
-1.9%
12M09
Growth %
5,110,596
3.4%
3,371,627
3.9%
1,738,969
2.3%
877,290 15.8%
4,210,620
4.3%
1,356,401
2.3%
31.6%
32.2%
519,782
550,543
11.8%
13.1%
789,110
837,424
18.0%
19.9%
-5.6%
-5.8%
Figures in R$ Thousands
Q4 2010 Conference Call
Page 3
February 24, 2011
Gross Operating Revenues
Evolution of Gross Revenues – Domestic Market
(in R$ million)
Evolution of Gross Revenues – External Market
(in US$ million)
Mercado Externo em US$
11%
-5%
10%
2,1524
2,2860
1,7858
1,7389
Dólar Médio Trimestre
1,7134
49%
832
917
872
964
22%
558
188
4T06
4T07
Q4 2010 Conference Call
4T08
4T09
26%
-10%
21%
4T10
4T06
Page 4
230
4T07
278
250
4T08
4T09
315
4T10
February 24, 2011
Global Presence
Gross Revenues Breakdown – Q4 2010
8%
11%
Europe
North America
4%
7%
64%
Asia & Oceania
6%
7%
South & Central America
Q4 2010 Conference Call
Brazil
Africa
Page 5
February 24, 2011
Business Areas
Gross Revenues Breakdown (in R$ million)
962
1.552
5%
11%
1.242
6%
16%
32%
1.505
1.307
6%
15%
25%
6%
16%
16%
21%
62%
56%
52%
47%
4Q 2006
4Q 2007
4Q 2008
4Q 2009
Industrial Equipment
Q4 2010 Conference Call
7%
14%
31%
GTD
Domestic Use
Page 6
54%
4Q 2010
Paints & Varnishes
February 24, 2011
Cost of Goods Sold
Other Costs
31%
Depreciation
5%
Other Costs
30%
Steel &
Coper
41%
4Q10
Depreciation
6%
Other
Materials
23%
Q4 2010 Conference Call
Other
Materials
23%
Page 7
4Q09
Steel &
Coper
41%
February 24, 2011
Main changes on EBITDA
205,7
8,0
FX Impact on
Gross
Revenues
Impacto Cambial sobre receita bruta
16,2
139,4
Deduction
on Gross
Revenues
14,8
COGS
228,5
Volumes,
Aumento Prices &
de volumes Product Mix
& preços e Changes
mix de produtos CPV (ex depreciação)
EBITDA Q4 09
Selling
Expenses
21,1
10,6
General and
Administrative
Expenses
224,1
EBITDA Q4 10
(in R$ million)
Q4 2010 Conference Call
Page 8
February 24, 2011
Cash Flows
Accumulated 2010
(392)
204
615
426
Fluxo Operacional
Fluxo de
Investimentos
Fluxo de
Financiamento
Variação do Caixa
no Período
(in R$ million)
Q4 2010 Conference Call
Page 9
February 24, 2011
Capacity Expansion Investments
Outside Brazil
Brazil
91,9
20,1
73,8
63,5
61,4
15,7
32,7
71,8
47,8
Q1
Q2
13,7
38,2
34,2
43,7
53,7
13,0
44,1
2,0
13,8
19,1
24,3
27,2
Q3
2009
Q4
Q1
30,1
Q2
40,7
42,1
Q3
2010
Q4
(in R$ million)
Q4 2010 Conference Call
Page 10
February 24, 2011
Final Comments
„
Economic recovery is clear and spreading
„
Medium and long term opportunities remain attractive
„
Growth in emerging markets, with specific demands;
„
Energy efficiency increasing the market for highperformance products and bringing competition to a
different level;
„
New forms, more intelligent and efficient, of generating,
distributing and using electricity ("smart grid“)
„
Events in Brazil, such as the World Cup and Olympics
„
New products, focused on efficiency, reliability and features
„
More integrated solutions and systems
„
Access to new markets and new technologies
Q4 2010 Conference Call
Page 11
February 24, 2011
Contacts
www.weg.net/ir
ƒLaurence Beltrão Gomes
IRO
laurence@weg.net
ƒ Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net
MSN Messenger
luisfernando@weg.com.br
Q4 2010 Conference Call
twitter.com/weg_ir
Page 12
February 24, 2011