Conference Call
2Q13
August 01st, 2013
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.
2Q13 Conference Call
Page 2
August 01, 2013
Highlights
Quarterly Figures
Q2 2013
1,699,639
873,354
826,285
Q1 2013
1,477,577
772,935
704,642
15.0%
13.0%
17.3%
Q2 2012
%
1,528,791 11.2%
729,235 19.8%
799,556 3.3%
399,171
353,077
13.1%
406,915 -1.9%
558,031
463,635
20.4%
461,661 20.9%
32.8%
31.4%
Net Income
204,968
172,299
Net Margin
12.1%
11.7%
312,547
248,898
EBITDA Margin
18.4%
16.8%
EPS
0.3304
0.2777
Net Operating Revenue
Domestic Market
External Markets
External Markets in US$
Gross Operating Profit
Gross Margin
EBITDA
%
30.2%
19.0%
139,819 46.6%
9.1%
25.6%
253,972 23.1%
16.6%
19.0%
0.2254 46.6%
Figures in R$ Thousand
2Q13 Conference Call
Page 3
August 01, 2013
Net Operating Revenue
Quarterly Evolution
In R$ million
External Market
Domestic Market
1,529
1,478
1,370
52%
50%
48%
50%
Q2
Q3
53%
Q1
47%
Q4
2012
2Q13 Conference Call
49%
48%
48%
52%
1,700
1,662
1,613
51%
52%
Q1
Q2
2013
Page 4
August 01, 2013
Business Areas
Revenue breakdown
2Q13 Conference Call
Page 5
August 01, 2013
Costs of Goods Sold
Materials
63%
Materials
63%
2Q12
2Q13
Other Costs
10%
Depreciation
4%
2Q13 Conference Call
Labor
23%
Labor
23%
Other Costs
10%
Page 6
Depreciation
4%
August 01, 2013
Main impacts on EBITDA
Q2 2013
Net Operating Revenues
Q1 2013
%
Q2 2012
%
1,699.6
1,477.6
15.0%
1,528.8
11.2%
Consolidated Net Income for the Period
204.8
173.1
18.3%
141.8
44.4%
Net Margin
12.0%
11.7%
(+) Income taxes & Contributions
(+/-) Financial income (expenses)
(+) Depreciation & Amortization
EBITDA
51.7
2.5
53.6
312.5
48.3
(24.7)
52.1
248.9
EBITDA Margin
18.4%
16.8%
9.3%
6.9%
n.a.
2.8%
25.6%
46.5
13.5
52.2
254.0
11.2%
-81.6%
2.8%
23.1%
16.6%
Figures in R$ Million
2Q13 Conference Call
Page 7
August 01, 2013
Working Capital
In % of Net Revenue
50,0%
40,0%
Working Capital
30,0%
Clients
20,0%
Inventories
10,0%
Advances
Suppliers
0,0%
2Q06
2Q13 Conference Call
2Q07
2Q08
2Q09
2Q10
Page 8
2Q11
2Q12
2Q13
August 01, 2013
Capex Program
In R$ million
Outside Brazil
Brazil
58.7
73.7
55.5
9.3
50.4
5.0
3.7
53.7
51.9
45.4
Q1
Q2
Q3
5.1
64.5
Q4
2012
2Q13 Conference Call
56.8
61.3
6.0
11.8
50.8
49.5
Q1
Q2
2013
Page 9
August 01, 2013
Contacts
ƒLaurence Beltrão Gomes
Finance and Investor Relations Officer
laurence@weg.net
ƒ Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net
twitter.com/weg_ir
2Q13 Conference Call
Page 10
August 01, 2013