Conference Call
2013 and 4Q13
February 27th, 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.
4Q13 Conference Call
Page 2
February 27, 2014
Highlights
Quarterly Figures
Q4 2013
1.893.299
913.388
979.911
Q3 2013
1.758.381
872.363
886.018
7,7%
4,7%
10,6%
Q4 2012
%
1.662.258 13,9%
774.533 17,9%
887.725 10,4%
428.229
387.197
10,6%
431.141 -0,7%
615.847
599.253
2,8%
528.641 16,5%
32,5%
34,1%
Net Income
237.439
228.761
Net Margin
12,5%
13,0%
341.653
326.934
EBITDA Margin
18,0%
18,6%
EPS
0,3827
0,3687
Net Operating Revenue
Domestic Market
External Markets
External Markets in US$
Gross Operating Profit
Gross Margin
EBITDA
%
31,8%
3,8%
183.157 29,6%
11,0%
4,5%
289.786 17,9%
17,4%
3,8%
0,2952 29,6%
Figures in R$ Thousand
4Q13 Conference Call
Page 3
February 27, 2014
Net Operating Revenue
Quarterly Evolution
In R$ million
External Market
1.893
Domestic Market
1.529
1.613
1.662
1.700
1.758
49%
50%
52%
1.478
1.370
52%
50%
53%
48%
52%
48%
50%
47%
52%
51%
50%
48%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
48%
2012
4Q13 Conference Call
2013
Page 4
February 27, 2014
Highlights
Yearly Figures
2013
Net Operating Revenue
Domestic Market
External Markets
2012
%
2011
%
6.828.896
3.432.040
3.396.856
6.173.878 10,6%
3.016.662 13,8%
3.157.216 7,6%
5.189.409 19,0%
2.902.958 3,9%
2.286.451 38,1%
External Markets in US$ 1.569.891
1.610.330 -2,5%
1.361.689 18,3%
1.880.856 18,9%
1.556.051 20,9%
Gross Operating Profit
Gross Margin
Quarterly Net Income
Net Margin
EBITDA
2.236.766
32,8%
30,5%
843.467
30,0%
655.979 28,6%
12,4%
10,6%
1.230.032
586.936 11,8%
11,3%
1.016.748 21,0%
851.155 19,5%
EBITDA Margin
18,0%
16,5%
16,4%
EPS
1,3595
1,0573 28,6%
0,9461 11,8%
Figures in R$ Thousands
4Q13 Conference Call
Page 5
February 27, 2014
Net Operating Revenue
Yearly Evolution
In R$ million
Domestic Market
11%
External Market
19%
6.174
5.189
3.397
18%
4.211
4%
4.392
6.829
3.157
2.286
1.684
1.722
2.526
2.670
2.903
2009
2010
2011
4Q13 Conference Call
Page 6
3.017
3.432
2012
2013
February 27, 2014
Business Areas
Revenue breakdown
4Q13 Conference Call
Page 7
February 27, 2014
Costs of Goods Sold
Materials
65%
Materials
64%
2012
2013
Other Costs
10%
Depreciation
4%
4Q13 Conference Call
Labor
21%
Labor
22%
Other Costs
10%
Page 8
Depreciation
4%
February 27, 2014
Main impacts on EBITDA
Q4 2013
Q3 2013
1.893,3
1.758,4
7,7%
1.662,3
13,9%
Consolidated Net Income for the Period
237,3
230,2
3,1%
184,8
28,4%
Net Margin
12,5%
13,1%
(+) Income taxes & Contributions
(+/-) Financial income (expenses)
(+) Depreciation & Amortization
EBITDA
72,0
(24,4)
56,8
341,7
67,5
(26,5)
55,8
326,9
EBITDA Margin
18,0%
18,6%
Net Operating Revenues
%
Q4 2012
%
11,1%
6,7%
-8,1%
1,8%
4,5%
53,7
(2,7)
54,0
289,8
34,2%
n.a.
5,2%
17,9%
17,4%
Figures in R$ Million
4Q13 Conference Call
Page 9
February 27, 2014
Working Capital
In % of Net Revenue
50,0%
40,0%
Working Capital
30,0%
Clients
Inventories
20,0%
10,0%
Advances from Clients
Suppliers
0,0%
4Q06
4Q07
4Q13 Conference Call
4Q08
4Q09
4Q10
Page 10
4Q11
4Q12
4Q13
February 27, 2014
Capex Program
In R$ million
10,2%
Capex
% of Net Revenues
9,3%
8,1%
5,8%
5,4%
457
5,3%
3,6% 3,9%
3,7%
3,6%
305
226
206
238
244
2012
2013
188
146
2004
233
2005
4Q13 Conference Call
111
2006
2007
2008
2009
Page 11
2010
2011
February 27, 2014
Strategic Planning WEG 2020
Aspirations and strategic direction
20.000
6.829
6.174
19%
5.189
4.392
18%
11%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
4Q13 Conference Call
Page 12
February 27, 2014
Contacts
ƒSérgio Luiz Silva Schwartz
Investor Relations Officer
ƒ Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net
twitter.com/weg_ir
4Q13 Conference Call
Page 13
February 27, 2014