Conference Call
1Q14
April 25, 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.
1Q14 Conference Call
Page 2
April 25, 2014
Highlights
Quarterly Figures
Q1 2014
Q4 2013
1.783.543
1.893.299
-5,8%
1.477.577
Domestic Market
895.446
913.388
-2,0%
772.935
External Markets
888.097
979.911
-9,4%
704.642
375.677
570.421
32,0%
204.887
11,5%
299.643
16,8%
428.229
615.847
32,5%
237.439
12,5%
341.653
18,0%
-12,3%
-7,4%
353.077
463.604
31,4%
172.299
11,7%
248.898
16,8%
0,33023
0,38270
Net Operating Revenue
External Markets in US$
Gross Operating Profit
Gross Margin
Net Income
Net Margin
EBITDA
EBITDA Margin
EPS
%
-13,7%
-12,3%
-13,7%
Q1 2013
0,27772
%
20,7%
15,9%
26,0%
6,4%
23,0%
18,9%
20,4%
18,9%
Figures in R$ Thousand
1Q14 Conference Call
Page 3
April 25, 2014
Net Operating Revenue
Quarterly Evolution
In R$ million
External Market
Domestic Market
1.758
1.700
1.893
1.784
1.478
48%
52%
Q1
50%
52%
50%
51%
50%
48%
50%
Q2
Q3
Q4
Q1
49%
2013
1Q14 Conference Call
2014
Page 4
April 25, 2014
Business Area
Revenue breakdown
1Q14 Conference Call
Page 5
April 25, 2014
Costs of Goods Sold
Materials
64%
Materials
65%
1Q13
1Q14
Other Costs
8%
Labor
23%
Depreciation
4%
Labor
23%
1Q14 Conference Call
Other Costs
9%
Page 6
Depreciation
4%
April 25, 2014
Main impacts on EBITDA
138,4
(193,7)
167,6
FX Impact on
Revenues
(39,3)
(14,5)
COGS (ex
depreciation)
248,9
Selling
Expenses
Volumes,
Prices &
Product Mix
Changes
Profit Sharing
Program
(0,9)
299,6
Other
Expenses
EBITDA Q1 14
EBITDA Q1 13
1Q14 Conference Call
General and
Administrative
Expenses
(6,8)
Page 7
April 25, 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%
1Q06
1Q14 Conference Call
1Q07
1Q08
1Q09
1Q10
Page 8
1Q11
1Q12
1Q13
1Q14
April 25, 2014
Capex Program
In R$ million
Outside Brazil
Brazil
61,3
63,9
56,8
6,0
61,1
11,8
15,6
13,1
50,7
49,5
48,3
48,0
Q1
Q2
Q3
Q4
2013
1Q14 Conference Call
64,3
8,4
55,9
Q1
2014
Page 9
April 25, 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
1Q14 Conference Call
Page 10
April 25, 2014