Earnings Release
1Q 2015
Jaraguá do Sul (SC), April 29, 2015: WEG S.A. (BM&F Bovespa: WEGE3, OTC: WEGZY), one of the world’s largest manufacturer of electric-electronic equipment,
working mainly in capital goods in five main product lines: Motors, Power, Transmission and Distribution, Automation and Coatings, announced today its results for the first
quarter of 2015 (1Q15). The following financial and operating data are presented in a consolidated basis, except when otherwise indicated, in thousands of Brazilian Reais
(R$) according to accounting practices adopted in Brazil, including Brazilian Corporate Law and the convergence to IFRS international norms. The Growing rates and other
comparisons are, except when otherwise indicated, made in relation to the same period of the previous year.
POSITIVE START OF A CHALLENGING YEAR
NET OPERATING REVENUES GREW BY 19.4%
ƒ Net operating revenues in the first quarter of 2015 reached R$ 2,130.3 million, for 19.4% growth over the 1Q14 and decrease of 2.3%
over the 4Q14;
EBITDA GREW BY 16.3%
ƒ EBITDA reached R$ 348.4 million and EBITDA margin reached 16.4%. In relation to the same quarter last year EBITDA grew by 16.3%,
while compared to the previous quarter there was fall of 9.0%;
NET INCOME GREW BY 20.0%
ƒ Net Income totaled R$ 245.9 million, with net margin of 11.5% and growth of 20.0% over the 1Q14 and decrease of 6.6% over the
4Q14;
INVESTIMENTS OF R$ 120.1 MILLION IN THE QUARTER
ƒ Investments in fixed assets totaled R$ 120,1 million in the first three months of 2015, being 71% in industrial plants in Brazil and 29%
in expansion projects abroad.
KEY FIGURES
Net Operating Revenue
Domestic Market
External Markets
External Markets in US$
Gross Operating Profit
Gross Margin
Net Income
Net Margin
EBITDA
EBITDA Margin
EPS (adjusted for splits)
Q1 2015
Q4 2014
2,130,291
1,027,854
1,102,437
385,011
638,623
30.0%
245,859
11.5%
348,361
16.4%
0.15240
2,179,695
1,086,902
1,092,793
429,332
698,218
32.0%
263,285
12.1%
382,987
17.6%
0.16321
%
-2.3%
-5.4%
0.9%
-10.3%
-8.5%
-6.6%
-9.0%
-6.6%
Q1 2014
1,783,543
895,446
888,097
375,677
570,421
32.0%
204,887
11.5%
299,643
16.8%
0.12702
%
19.4%
14.8%
24.1%
2.5%
12.0%
20.0%
16.3%
20.0%
FIgures in R$ Thousands
CONFERENCE CALL (WITH SIMULTANEOUS TRANSLATION TO ENGLISH)
April 30, Thursday 11 a.m. (Brasilia official time)
Dial–in in the US: +1 786 924-6977
Webcasting (simultaneous translation into English): www.ccall.com.br/weg/1t15.htm
PAGE 1
Earnings Release
1Q 2015
ECONOMIC ACTIVITY AND INDUSTRIAL PRODUCTION
The beginning of 2015 showed little change in the landscape of the global economic activity recovery, which remained low and
relatively uneven across the world. Industrial activity, as measured by the purchasing manager indexes (PMI) showed continued
recovery in the US, albeit at a slower pace, a movement that had already been noted at the end of 2014. In Europe, Germany’s PMI
continued to show consistent expansion, diminishing fears of a possible slowdown or recession. In China, the indicator contunied to
oscillate around neutral readings, in line with the slower pace of economic expansion.
March 2015
51.5
52.8
49.6
Manufacturing ISM Report on Business ® (USA)
Markit/BME Germany Manufacturing PMI®
HSBC China Manufacturing PMI™
February 2015
52.9
51.1
50.7
January 2015
53.5
50.9
49.7
In Brazil, after a year with virtually no GDP growth, we observed further loss of dynamism and forecasts of around 1% fall in GDP in
2015. Industrial activity in the first two months of 2015 showed strong slowdown, with the industrial production showing 7.1% drop
in the period, according the survey by the Instituto Brasileiro de Geografia e Estatística (IBGE).
Industrial Indicators in Brazil According to Large Economic Categories
Change (%)
Categories of Use
Acummulated
Feb 15 / Jan 15* Feb 15 / Feb 14
Capital Goods
Intermediary Goods
Consumer Goods
Durable Goods
Semi-durable and non-durable
General Industry
-4.1
-0.1
-0.4
-0.4
-0.5
-0.9
-25.7
-4.0
-13.4
-25.8
-8.9
-9.1
On Year
12 months
-21.1
-3.2
-10.3
-20.1
-6.9
-7.1
-13.5
-3.0
-4.6
-13.4
-1.7
-4.5
Source: IBGE, Research Office, Industry Coordination
(*) Series with sessonal adjustments
Although the data show deacreses in industrial production in all major economic categories, the data is heavily influenced by the
automobile industry production and do not necessarily reflect the conditions in other segments. For example, capital goods category
fell by 21.1% in the period, which was determined by heavy vehicles production. This performance, however, did not seem
representative of neither the performance we observed in our own product line or that of our customers, which are influenced by
factors different from those of that influence the automotive market.
NET OPERATING REVENUES
Net Operating Revenues totaled R$ 2,130.3 million in the first quarter of 2015 (1Q15), for 19.4% growth over the first quarter of 2014
(1Q14) and 2.3% decrease over the fourth quarter of 2014 (4Q14). Adjusting net revenues for transactions occurred in the period,
organic growth was of 14.5% over 1Q14.
Net Operating Revenue per Market (R$ Million)
2,180
2,130
52%
50%
52%
2,056
1,784
1,822
50%
51%
50%
49%
48%
50%
48%
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15
Brazilian Market
External Market
The first quarter is traditionally a period of slower activity, due to the lower number of working days and market behavior. Nevertheless,
we maintained healthy growth in the quarter, showing that the diversification and expansion investments allow us to find and discover
opportunities even under unfavorable macroeconomic scenarios. In Brazil, we continue to see growing momentum in the energy
generation, transmission and distribution equipment markets, offsetting the poor performance of investments in expansion of industrial
PAGE 2
Earnings Release
1Q 2015
capacity and of consumer goods. Outside Brazil we continued to execute our strategy to expand the product line and our presence,
with good results. The consolidation of the WEG brand among leading capital goods manufacturers and consumers in the world
allows us to increase the scope of our offering of goods and services and provide increasingly integrated systems.
Net Operating Revenue in 1Q15 breakdowns as follows:
ƒ Brazilian Market: R$ 1,027.9 million, representing 48% of Net Operating Revenue, with 14.8% growth over 1Q14 and decrease of
5.4% over 4Q14. Organic growth in the Brazilian market, excluding the transaction in the last 12 months, was 14.4% over 1Q14;
ƒ External Markets: R$ 1,102.4 million, equivalent 52% of Net Operating Revenue. The comparison in Brazilian Reais shows growth
of 24.1% over the same period last year and of 0.9% over the previous quarter. Considering the average US dollar for the quarter,
comparison shows growth of 2.5% compared to 1Q14 and considering the local currency of each market, the comparison shows
growth of 16.8% over 1Q14. Organic growth in the external markets was 14.7% over 1Q14.
Evolution of Net Revenue according to Geographic Market (R$ Million)
Q1 2015
Net Operating Revenues
- Brazilian Market
- External Markets
- External Markets in US$
Q4 2014
%
Q1 2014
%
2,130.3
2,179.7
-2.3%
1,783.5
19.4%
1,027.9
1,102.4
385.0
1,086.9
1,092.8
429.3
-5.4%
0.9%
-10.3%
895.4
888.1
375.7
14.8%
24.1%
2.5%
External Market – Distribution of Net Revenue according to Geographic Market
North America
South and Central America
Europe
Africa
Australasia
Q1 2015
Q4 2014
%
Q1 2014
35.8%
17.7%
24.7%
10.5%
11.3%
38.7%
13.7%
24.6%
11.4%
11.6%
-2.9 pp
4.0 pp
0.1 pp
-0.9 pp
-0.3 pp
36.0%
15.5%
26.5%
13.1%
8.9%
%
-0.2 pp
2.2 pp
-1.8 pp
-2.6 pp
2.4 pp
Distribution of Net Revenue per Business Area
Q1 2015
Q4 2014
%
Q1 2014
%
Electro-electronic Industrial Equipments
52.1%
59.5%
-7.4 pp
57.7%
-5.7 pp
Domestic Market
18.5%
24.0%
-5.5 pp
23.0%
-4.5 pp
External Market
33.5%
35.4%
-1.9 pp
34.7%
-1.2 pp
Energy Generation , Transmission and Distribution
29.0%
21.5%
7.4 pp
23.5%
5.4 pp
Domestic Market
18.4%
13.8%
4.6 pp
12.8%
5.6 pp
External Market
10.6%
7.8%
2.8 pp
10.8%
-0.2 pp
Electric Motors for Domestic Use
13.7%
14.1%
-0.4 pp
12.4%
1.4 pp
6.7%
7.7%
-0.9 pp
8.8%
-2.1 pp
Domestic Market
External Market
7.0%
6.4%
0.6 pp
3.6%
3.5 pp
Paints and Varnishes
5.2%
4.9%
0.4 pp
6.4%
-1.1 pp
Domestic Market
4.6%
4.4%
0.2 pp
5.6%
-1 pp
External Market
0.6%
0.5%
0.2 pp
0.7%
-0.1 pp
BUSINESS AREAS
The Industrial Electro-Electronic Equipment area showed a slight increase in net operating revenue, with the performance in external
markets being the highlight. The domestic market has been characterized by slow growth, driven primarily by investments in capacity
maintenance, with the few relevant projects of capacity expansion concentrated in specific segments. The depreciation of the Brazilian
Real improves the competitive conditions in less value added activities, but has little short-term impact on the competitiveness of
higher added value manufactured products.
We strive to maintain our competitiveness regardless of the exchange rate levels and other macroeconomic variables that are not
under our control. Still, the recent Brazilian Real devaluation offers us, even if temporarily, favorable conditions to execute our
expansion strategy abroad. Besides the production platform expansion outside Brazil, with new units for the electric motors production
in Mexico and China, we have increased sales efforts (personnel, services, infrastructure, etc.). With this, we seek to convert the
temporary increase of competitiveness in a structurally stronger position. The result is that we have managed to grow in almost all
PAGE 3
Earnings Release
1Q 2015
markets in which we operate, including those where the market itself is not expanding. It is important to note that in some cases, due
to currency fluctuations, the growth in local currency does not translate into US dollars denominated growth.
The Energy Generation, Transmission and Distribution (GTD) business area continues to expand at accelerated pace. The
successful introduction of our wind generation product, as well as the better pricing conditions for electricity sales in the regulated
auctions, with impacts on generation systems such as small hydroelectric plants (PCH), has been instrumental in this performance.
In transmission and distribution (T&D) the demand conditions remained favorable, although competition remains fierce. But the
prospects in this area are positive, with the execution of the current order book and the expectation of new businesses, both in
generation with PCH, wind, solar and return of investments in biomass, as with the additional demand that the new generation creates
for T&D.
In the Motors for Domestic Use area we see strong growth due almost entirely to the consolidation of revenues from the Sinya /
CMM acquisition in China. The Brazilian market performance was weak, with worsening on credit supply and disposable income for
consumption. The electricity rates increases should, in this market, have additional negative impact on demand, with consumers
avoiding new electricity consumption sources. On the other hand, we advanced in the internationalization and we have a complete
portfolio of products, able to serve our customers in all major global markets.
Finally, the Paints and Varnishes business area continued to weather the weak performance of Brazilian industrial sector and showed
negative performance. With operational structure adjusted to market conditions, the strategy in this business area remains to diversify
and leverage cross-selling opportunities.
COST OF GOODS SOLD
Cost of Goods Sold (COGS) totaled R$ 1,491.7 million in 1Q15, 23.0% above 1Q14 and 0.7% above 4Q14. Gross margin reached
30.0%, with reduction of 2.0 precentage points over 1Q14, and reduction of 2.1 precentage points over 4Q14.
The impacts on gross margin were: (i) cost increses on raw material denominated in or referenced to the US dollar , and; (ii) change
in product mix, with relative increase of wind generation systems that incorporate subsystems that are not manufactured by WEG
and therefore have lower operating margins. It is important to remember that these lower margins in wind generation systems are
offset by lower capital intensity. From the point of view of return on capital, this is an attractive business for WEG.
COGS Breakdown
Labor
21%
Q1 15
Other Costs
8%
Depreciation
4%
Depreciation
4%
Other Costs
9%
Q1 14
Labor
23%
Materials
65%
Materials
65%
Average London Metal Exchange (LME) spot copper prices fell by 17.0% in 1Q15 compared to the average of 1Q14 and fell by 12.0%
compared to the average of 4Q14. Steel prices in the international markets also continue to fall, 23% lower compared to 1Q14 and
8.3% lower compared to 4Q14. These variations values are denominated in US dollars, which means that prices in Brazilian Reais
incorporate 21% devaluation over 1Q14 and 13% devaluation over 4Q14, i.e., Brazilian Reais denominated prices continued to rise.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Consolidated selling, general and administrative expenses (SG&A) totaled R$ 313.2 million in 1Q15, 9.7% growth over the 1Q14 and
fall by 5.2% over the previous quarter. As a percentage of Net Operating Revenue, operating expenses represented 14.7% in 1Q15,
1.3 percentage points lower than 16.0% of the 1Q14 and 0.5 percentage points lower than 15.2% of the 4Q14.
PAGE 4
Earnings Release
1Q 2015
EBITDA AND EBITDA MARGIN
In this 1Q15, EBITDA (according to the Instruction CVM 527/2012) totaled R$ 348.4 million, 16.3% growth over the 1Q14 and fall by
9.0% over the 4Q14. EBITDA margin reached 16.4%, 0.4 percentage points lower than 1Q14 and 1.2 percentage points lower than
4Q14.
Q1 2015
Net Operating Revenues
Net Income before Minorities
Net Margin
(+) Income taxes & Contributions
(+/-) Financial income (expenses)
(+) Depreciation & Amortization
EBITDA
EBITDA Margin
2,130.3
250.8
11.8%
64.9
-41.7
74.3
348.4
16.4%
192.3
Q4 2014
%
Q1 2014
2,179.7 -2.3%
264.3 -5.1%
12.1%
82.0 -20.8%
-31.2 33.7%
9.6%
67.8
383.0 -9.0%
17.6%
%
1,783.5 19.4%
207.3 21.0%
11.6%
4.8%
62.0
-28.5 46.3%
58.8 26.3%
299.6 16.3%
16.8%
Figures in R$ Million
(264.2)
154.5
(10.0)
FX Impact on
Revenues
299.6
COGS (ex
depreciation)
Volumes,
Prices &
Product Mix
Changes
EBITDA Q1 14
Selling
Expenses
(16.6)
(1.7)
5.5
General and
Administrative
Expenses
Profit Sharing
Program
Other
Expenses
348.4
EBITDA Q1 15
Figures in R$ Million
NET FINANCIAL RESULTS
In this quarter, net financial result was positive in R$ 41.7 million (positive result of R$ 28.5 million and R$ 31.2 million in 1Q14 and
4Q14, respectively). Financial revenues totaled R$ 519.6 million in 1Q15 (R$ 152.8 million and R$ 282.2 million, respectively), while,
financial expenses totaled R$ 477.9 million (R$ 124.4 million and R$ 251.1 million). The absolute growth of both financial revenues
and expenses is the result of the exchange rate variations on trade finance transactions, with are denominated in other currencies
and swaps into Brazilian Reais. Net financial result growth of 46.3% over the previous year is a result of increase in interest rates on
financial instruments in Brazilian maket due to the good credit rating of WEG.
INCOME TAX
Income Tax and Social Contribution on Net Profit provision in 1Q15 reached R$ 76.3 million (R$ 70.7 million and R$ 70.1 millin in
1Q14 and 4Q14, respectively). Additionally, R$ 11.4 million were recorded as “Deferred Income Tax / social contribution” debt (debt
of R$ 8.7 million and credit of R$ 11.9 million, respectively). The effective tax rate on income remained within the usual standards.
NET INCOME
As a result of aforementioned impacts, net income for 1Q15 was R$ 245.9 million, an increase of 20.0% over 1Q14 and fall by 6.6%
over the previous quarter. Net margin for the quarter was 11.5%, virtually unchanged from the same period 2014.
CASH FLOW
In the first three months of 2015, cash flow operating activities was negative in R$ 10.0 million, reversing the positive cash generation
observed in 2014. This movement is explained by the impact of exchange rate changes on working capital accounts (inventories,
accounts payable and receivable). This larger apparent consumption of cash was partially offset by increased operating cash
generation.
On the other hand, the accounting of exchange rate changes as "Cumulative translation adjustment" generated cash in investing
activities, despite the acceleration of investments in new industrial plants in China and Mexico. Thus, we generated R$ 67.2 million in
investing activities, reversing the cash consumption observed in 2014.
PAGE 5
Earnings Release
1Q 2015
Financing activities generated R$ 402.4 million in the period, with R$ 905.6 million in financing raised in attractive terms and interest
rates, and R$ 187.5 million in amortization of financing (net increase R$ 718.2 million), and R$ 267.2 million in paid dividends and
interest on stockholders’ capital reffering to the second half of 2014.
402.4
(10.0)
67.2
Operating
Investing
3,328.0
3,787.6
Financing
Cash March 2015
Cash December 2014
INVESTIMENTS
Outside Brazil
Brazil
132.3
94.0
64.3
8.4
55.9
Q1 14
60.5
134.1
120.1
47.9
34.3
23.5
70.6
71.8
Q2 14
Q3 14
86.2
85.8
Q4 14
Q1 15
Figures in R$ Thousands
The new cycle of investments in capacity expansion and modernization, started in 2014, with new electric motors production units in
Mexico and China, continued to run at full speed in the first quarter. In addition to these, we continue to execute other investments in
industrial plants and other installations in Brazil, which consumed 71% of the R$ 120.1 million invested in the first three months of the
year. In addition, we incorporate R$ 1.4 million in fixed assets resulting from Efacec acquisition, which was consolidated this year.
Our program for 2015 foresees investments of R$ 477.6 million in capacity expansion and modernization. As always point out, we
have flexibility in implementing these investments, which are planned and carried out in modular increments of capacity, responding
to incresead demand and to maximizing the return on Invested capital.
DEBT AND CASH POSITION
On March 31, 2015 cash, cash equivalents and financial investments totaled R$ 4,672.3 million, entirely in fixed income instruments
linked to the CDI, in short-term and invested in Brazilian currency in first-tier banks. Gross financial debt totaled R$ 4,809.1 million,
being 42% in short-term and 58% in long-term.
PAGE 6
Earnings Release
1Q 2015
March 2015
December 2014
March 2014
Cash & Financial instruments
4,672,310
4,194,224
3,249,472
- Current
- Long Term
4,671,192
1,118
4,193,177
1,047
3,247,375
2,097
Debt
4,809,092
100%
4,092,150
100%
3,106,557
100%
- Current
1,998,692
42%
1,466,752
36%
914,246
29%
- In Brazilian Reais
1,181,347
- In other currencies
779,146
817,345
- Long Term
2,810,400
503,749
687,606
58%
2,625,398
410,497
64%
2,192,311
- In Brazilian Reais
1,342,978
1,701,408
1,976,524
- In other currencies
1,467,422
923,990
215,787
(136,782)
102,074
142,915
Net Cash (Debt)
71%
Figures in R$ Thousands
At the end of the 1Q15, WEG had R$ 136.8 million net debt, reversing the net cash position of R$ 102.1 million on December 31,
2014. We continue to take advantage of existing attractive market conditions for companies with our credit profile to attract new
funding. The characteristics of the debt are:
ƒ The total duration debt is 23.8 months and the long-term portion is 37.2 months. Duration portion denominated in Brazilian Reais
is 18.1 months and for the portion in foreign currencies is 30 months.
ƒ The weighted average cost of fixed-rate denominated in Brazilian Reais is approximately 6.2% per year. Floating rate contracts are
indexed mainly by Brazilian long-term interest rate (TJLP).
DIVIDENDS
On March 24, 2015, the Board of Directors approved the payment to shareholders, as interest on stockholders’ equity (JCP), totaling
R$ 67.4 million before deduction of income tax at source, payable on August 12, 2015.
Our policy is to declare interest on stockholders equity quarterly and declare dividends based on profit earned each semestre, thus,
we reported six diferent earnings each year, which is paid semiannualy.
WEGE3 SHARE PERFORMANCE
The common shares issued by WEG, traded under the code WEGE3 at BM&F Bovespa, ended the last trading session on March
2015 quoted at R$ 31.80, with nominal gain of 3.9% in the year and gain of 4.9% considering the dividends and interest on
stockholders equity declared in the period. At the Ordinary and Extraordinary General Shareholders Meeting held on March 31, 2015
approved the stock split the ratio of two shares for each existing share, from April 1, 2015 the shares were traded ex-split.
3.500
18,00
Shares Traded (thousands)
WEGE3
16,00
3.000
14,00
WEGE3 share prices
10,00
2.000
8,00
1.500
6,00
Traded shares (thousands)
2.500
12,00
1.000
4,00
500
2,00
0,00
0
PAGE 7
Earnings Release
1Q 2015
The average daily traded volume in 1Q15 was R$ 21.8 million, (R$ 15.6 million in 1Q14). Throughout the quarter 167,244 stock trades
were carried out (133,501 stock trades in 1Q14), involving 42.1 million shares and moving R$ 1,330.5 million (R$ 938.6 million in
1Q14).
PAGE 8
Earnings Release
1Q 2015
RESULTS CONFERENCE CALL
WEG will hold, on April 30, 2015 (Thursday), conference call and webcast to discuss the results. The call will be conducted in
Portuguese with simultaneous translation in English, following scheduled time:
11 a.m.
10 a.m.
3 p.m.
– Brasília time
– New York (EDT)
– London (BST)
Connecting phone numbers:
Dial–in for connecting from Brazil:
Dial–in for connecting from USA:
Toll-free for connecting from USA:
Code:
(11) 3193-1001 / (11) 2820-4001
+1 786 924-6977
+1 888 700-0802
WEG
Access to the webcast:
Slides and Portuguese audio:
Slides and English translation:
www.ccall.com.br/weg/1t15.htm
www.ccall.com.br/weg/1q15.htm
The presentation will be available in Investor Relations page of WEG website (www.weg.net/ri). Please, call approximately 10 minutes
before the call is scheduled to start.
PAGE 9
Earnings Release
1Q 2015
BUSINESS AREA
Industrial Electro-Electronic Equipment
The industrial electrical-electronic equipment area includes low and medium voltage electric motors, drives & controls, industrial
automation equipment and services, and maintenance services and parts. We compete in all major markets with our products and
solutions. Electric motors and other related equipment find applications in practically all industrial segments, in equipment such as
compressors, pumps and fans, for example.
Energy Generation, Transmission and Distribution (GTD)
Products and services included in this area are electric generators for hydraulic and thermal power plants (biomass), hydro turbines
(small hydroelectric plants or PCH), wind turbines, transformers, substations, control panels and system integration services. In the
GTD area in general and specifically in power generation, investment maturing terms are longer, with slower investment decisions and
longer project and manufacturing lead times. As such, new orders are recorded as revenue after a few months, upon effective delivery
to buyers.
Motors for Domestic Use
In this business area, our operations have traditionally focused in Brazil, where we hold a significant share in the market of single
phase motors for durable consumer goods, such as washing machines, air conditioners, water pumps, among others. In 2014 we
started the internationalization of this area, with an acquisition in China. This is a short cycle business and variations in consumer
demand are rapidly transferred to the industry, with almost immediate impacts on production and revenue.
Paints and Varnishes
In this area, including liquid paints, powder paints and electro-insulating varnishes, we have very clear focus on industrial applications
in Brazil, and are expanding to Latin America. Our strategy in this area is cross selling to customers from other operating areas. The
target markets ranging from shipbuilding industry to the manufacturers of white line home appliances. We seek to maximize the scale
of production and efforts to developed new products and new segments of production and efforts to developed new products and
new segments.
The information contained in this report relating to WEG’s business perspectives, the projections and results and to the company’s
growth potential should be considered as only estimates and were based on the management expectations relating to the future of
the company. These expectations are highly influenced by the market conditions and the general economic performance of the
country and of the foreign markets which may be subject to sudden change.
PAGE 10
Earnings Release
1Q 2015
Annex I
Consolidated Income Statement - Quarterly
Figures in R$ Thousands
1T15
#######
1st Quarter
2015
R$
VA%
Net Operating Revenues
Cost of Goods Sold
Gross Profit
Sales Expenses
Administrative Expenses
Financial Revenues
Financial Expenses
Other Operating Income
Other Operating Expenses
EARNINGS BEFORE TAXES
Income Taxes & Contributions
Deferred Taxes
Minorities
NET EARNINGS
4T14
#######
4th Quarter
2014
R$
VA%
1T14
#######
1st Quarter
2014
R$
VA%
Changes %
Q1 2015
Q1 2015
Q4 2014
Q1 2014
2,130,291
(1,491,668)
638,623
(206,835)
(106,341)
519,628
(477,949)
3,511
(54,896)
315,741
(76,322)
11,378
4,938
245,859
100%
-70%
30%
-10%
-5%
24%
-22%
0%
-3%
15%
-4%
1%
0%
12%
2,179,695
(1,481,477)
698,218
(226,955)
(103,443)
282,237
(251,071)
10,245
(62,888)
346,343
(70,152)
(11,897)
1,009
263,285
100%
-68%
32%
-10%
-5%
13%
-12%
0%
-3%
16%
-3%
-1%
0%
12%
1,783,543
(1,213,122)
570,421
(196,661)
(88,703)
152,842
(124,363)
1,846
(46,065)
269,317
(70,669)
8,683
2,444
204,887
100%
-68%
32%
-11%
-5%
9%
-7%
0%
-3%
15%
-4%
0%
0%
11%
-2.3%
0.7%
-8.5%
-8.9%
2.8%
84.1%
90.4%
-65.7%
-12.7%
-8.8%
8.8%
n.m
389.4%
-6.6%
19.4%
23.0%
12.0%
5.2%
19.9%
240.0%
284.3%
90.2%
19.2%
17.2%
8.0%
31.0%
102.0%
20.0%
EBITDA
348,361
16.4%
382,987
17.6%
299,643
16.8%
-9.0%
16.3%
EPS (adjusted for splits)
0.15240
-6.6%
20.0%
0.16321
0.12702
PAGE 11
Earnings Release
1Q 2015
Annex II
Consolidated Balance Sheet
Figures in R$ Thousands
CURRENT ASSETS
Cash & cash equivalents
Receivables
Inventories
Other current assets
LONG TERM ASSETS
Long term securities
Deferred taxes
Other non-current assets
FIXED ASSETS
Investment in Subs
Property, Plant & Equipment
Intangibles
TOTAL ASSETS
March 2015
December 2014
(A)
(B)
R$
%
R$
%
9,046,596
70% 8,098,187
69%
4,671,192
36% 4,193,177
36%
2,054,676
16% 1,867,864
16%
1,909,593
15% 1,704,919
14%
411,135
3%
332,227
3%
155,231
1%
126,670
1%
1,118
0%
1,047
0%
68,602
1%
55,864
0%
85,511
1%
69,759
1%
3,749,478
29% 3,557,773
30%
8,222
0%
8,224
0%
3,037,608
23% 2,877,942
24%
703,648
5%
671,607
6%
12,951,305
100% 11,782,630
100%
March 2014
(C)
R$
%
(A)/(B) (A)/(C)
6,602,879
67% 12%
37%
3,247,375
33% 11%
44%
1,576,829
16% 10%
30%
1,461,766
15% 12%
31%
316,909
3% 24%
30%
134,326
1% 23%
16%
2,097
0% -47%
68,870
1% 23%
0%
63,359
1% 23%
35%
3,161,488
32%
5%
19%
8,091
0%
0%
2%
2,605,834
26%
6%
17%
547,563
6%
5%
29%
9,898,693
100% 10%
31%
CURRENT LIABILITIES
Social and Labor Liabilities
Suppliers
Fiscal and Tax Liabilities
Short Term Debt
Dividends Payable
Advances from Clients
Profit Sharring
Other Short Term Liabilities
LONG TERM LIABILITIES
Long Term Debt
Other Long Term Liabilities
Deferred Taxes
Contingencies Provisions
MINORITIES
STOCKHOLDERS' EQUITY
TOTAL LIABILITIES
4,085,760
231,686
594,308
163,946
1,998,692
69,707
564,522
55,185
407,714
3,467,515
2,810,400
109,262
275,698
272,155
95,369
5,302,661
12,951,305
2,506,714
199,637
379,952
137,847
914,246
47,016
469,261
44,201
314,554
2,822,456
2,192,311
98,307
292,073
239,765
77,959
4,491,564
9,898,693
32% 3,380,459
2%
173,382
5%
445,577
1%
148,335
15% 1,466,752
1%
111,351
4%
590,815
0%
111,173
3%
333,074
27% 3,262,552
22% 2,625,398
1%
95,316
2%
282,989
2%
258,849
1%
83,234
41% 5,056,385
100% 11,782,630
29%
1%
4%
1%
12%
1%
5%
1%
3%
28%
22%
1%
2%
2%
1%
43%
100%
25% 21%
2% 34%
4% 33%
1% 11%
9% 36%
0% -37%
5% -4%
0% -50%
3% 22%
29%
6%
22%
7%
1% 15%
3% -3%
2%
5%
1% 15%
45%
5%
100% 10%
63%
16%
56%
19%
119%
48%
20%
25%
30%
23%
28%
11%
-6%
14%
22%
18%
31%
PAGE 12
Earnings Release
1Q 2015
Annex III
Consolidated Cash Flow Statement
Figures in R$ Thousands
03M15
03M14
3 Months
2015
3 Months
2014
Operating Activities
Net Earnings before Taxes
Depreciation and Amortization
Provisions:
Changes in Assets & Liabilities
(Increase) / Reduction of Accounts Receivable
Increase / (Reduction) of Accounts Payable
(Increase) / Reduction of Investories
Income Tax and Social Contribution on Net Earnings
Profit Sharing Paid
Cash Flow from Operating Activities
315,741
74,298
117,491
(517,568)
(412,496)
257,608
(196,376)
(72,419)
(93,885)
(10,038)
269,317
58,805
88,495
(12,641)
118,511
50,259
(10,915)
(81,448)
(89,048)
403,976
Investment Activities
Fixed Assets
Intagible Assets
Results of sales of fixed assets
Accumulated Conversion Adjustment
Long term securities bought
Goodwill in Capital Transactions
Acquisition of Stakes of non-controlling shareholders
Aquisition of Subsidiaries
Cash Flow From Investment Activities
(120,293)
(9,098)
11,306
235,015
(18,494)
(34,576)
67,249
(64,284)
(3,208)
490
(53,618)
132
(2,699)
(5,947)
(13,229)
(142,363)
Financing Activities
Working Capital Financing
Long Term Financing
Interest paid on loans and financing
Treasury Shares
Dividends & Intesrest on Stockholders Equity Paid
Cash Flow From Financing Activities
905,632
(187,469)
(48,565)
30
(267,247)
402,381
16,382
(112,601)
(43,588)
(248,230)
(388,037)
Change in Cash Position
459,592
(126,424)
Cash & Cash Equivalents
Beginning of Period
End of Period
3,328,015
3,787,607
3,373,799
3,247,375
PAGE 13