Conference Call
2Q14
July 24, 2014
Disclamer
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 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.
2Q14 Conference Call
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July 24, 2014
Highlights
Quarterly 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)
Q2 2014
Q1 2014
%
Q2 2013
1.821.547
1.783.543
2,1%
1.699.639
900.348
921.198
895.446
888.097
0,5%
3,7%
873.354
826.285
413.147
577.325
31,7%
227.985
12,5%
311.500
17,1%
0,28265
375.677
570.421
32,0%
204.887
11,5%
299.643
16,8%
0,25403
10,0%
1,2%
399.171
557.996
32,8%
204.968
12,1%
312.547
18,4%
0,25413
11,3%
4,0%
11,3%
%
7,2%
3,1%
11,5%
3,5%
3,5%
11,2%
-0,3%
11,2%
Figures in R$ Thousand
2Q14 Conference Call
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July 24, 2014
Net Operating Revenue
Quarterly Evolution
In R$ million
External Market
Domestic Market
1.893
1.758
1.700
1.784
1.822
50%
51%
1.478
48%
52%
Q1
52%
50%
49%
51%
50%
48%
50%
49%
Q2
Q3
Q4
Q1
Q2
2014
2013
2Q14 Conference Call
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July 24, 2014
Business Area
Revenue breakdown
2Q14 Conference Call
Page 5
July 24, 2014
Costs of Goods Sold
Materials
63%
Materials
64%
2Q13
2Q14
Other Costs
9%
Depreciation
4%
2Q14 Conference Call
Labor
23%
Labor
23%
Others Costs
10%
Page 6
Depreciation
4%
July 24, 2014
Main impacts on EBITDA
66,0
(97,3)
55,9
(18,5)
FX Impact on
Revenues
312,5
Volumes,
Prices &
Product Mix
Changes
COGS (ex
depreciation)
Selling
Expenses
(0,8)
13,5
General and
Administrative
Expenses
Profit Sharing
Program
Other
Expenses
311,5
EBITDA Q2 14
EBITDA Q2 13
2Q14 Conference Call
(19,9)
Page 7
July 24, 2014
Working Capital
In % of Net Revenue
50,0%
40,0%
30,0%
Working Capital
20,0%
Clients
Inventories
10,0%
Advances
Suppliers
0,0%
2Q06
2Q07
2Q14 Conference Call
2Q08
2Q09
2Q10
Page 8
2Q11
2Q12
2Q13
2Q14
July 24, 2014
Capex Program
In R$ million
Outside Brazil
Brazil
94,0
63,9
15,6
61,1
13,1
64,3
8,4
56,8
6,0
61,3
11,8
50,7
49,5
48,3
48,0
55,9
Q1
Q2
Q3
Q4
Q1
2013
2Q14 Conference Call
23,5
70,6
Q2
2014
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July 24, 2014
Contacts
ƒ
ƒ
Sérgio Luiz Silva Schwartz
Investor Relations Officer
Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net
twitter.com/weg_ir
2Q14 Conference Call
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July 24, 2014