Conference
C
f
C
Call
ll
1Q13
April 25th, 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
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
d in
i such
h ffuture
t
considerations.
id ti
1Q13 Conference Call
Page 2
April 25, 2013
Highlights
Quarterly Figures
Q1 2012
%
-11.1%
11 1%
-0.2%
-20.6%
11,369,762
369 762
714,268
655,494
77.9%
9%
8.2%
7.5%
431,141
-18.1%
370,825
-4.8%
463,635
528,641
-12.3%
391,967
18.3%
31 4%
31.4%
31 8%
31.8%
Net Income
172,299
183,157
Net Margin
11.7%
11.0%
248,898
289,786
EBITDA Margin
16.8%
17.4%
EPS
0.2777
0.2952
Net Operating Revenue
Domestic Market
External Markets
External Markets in US$
Gross Operating Profit
Gross Margin
EBITDA
Q1 2013
Q4 2012
11,477,577
477 577
772,935
704,642
11,662,258
662 258
774,533
887,725
353,077
%
28 6%
28.6%
-5.9%
148,247
16.2%
10.8%
-14.1%
198,251
25.5%
14.5%
-5.9%
5.9%
0.2390
16.2%
Figures in R$ Thousand
1Q13 Conference Call
Page 3
April 25, 2013
Net Operating Revenue
Quarterly Evolution
In R$ million
Domestic Market
External Market
1,613
1,529
1,662
1,478
1 370
1,370
48%
50%
47%
52%
50%
53%
48%
Q2
Q3
Q4
Q1
52%
52%
48%
Q1
2012
1Q13 Conference Call
2013
Page 4
April 25, 2013
Business Areas
Revenue breakdown
5%
8%
9%
17%
33%
7%
7%
7%
13%
9%
11%
23%
20%
61%
62%
24%
30%
52%
1Q09
Industrial Equipment
1Q13 Conference Call
57%
46%
1Q10
GTD
1Q11
Page 5
Domestic Use
1Q12
1Q13
Paints & Varnishes
April 25, 2013
Costs of Goods Sold
Materials
64%
Materials
64%
1Q12
1Q13
Other Costs
9%
Labor
23%
Depreciation
4%
Labor
23%
1Q13 Conference Call
Other Costs
8%
Page 6
Depreciation
5%
April 25, 2013
Main impacts on EBITDA
Q1 2013
Net Operating Revenues
Q4 2012
%
Q1 2012
%
1.477,6
1.662,3
-11,1%
1.369,8
7,9%
Consolidated Net Income for the Period
173,1
,
184,8
,
-6,4%
,
151,3
,
14,4%
,
Net Margin
11,7%
11,1%
(+) Income taxes & Contributions
(+/-) Financial income (expenses)
( )D
(+)
Depreciation
i i &A
Amortization
i i
EBITDA
48,3
(24,7)
52,1
248,9
53,7
(2,7)
54,0
289,8
EBITDA Margin
16,8%
17,4%
11,0%
-9,9%
826,4%
-3,4%
-14,1%
43,3
(45,9)
49,6
198,3
11,7%
-46,3%
5,2%
25,5%
14,5%
Figures in R$ thousands
1Q13 Conference Call
Page 7
April 25, 2013
Working Capital
In % of Net Revenue
50 0%
50,0%
40,0%
Working Capital
30,0%
Clients
Inventories
20,0%
10,0%
pp
Suppliers
Advances
0,0%
1Q06
1Q07
1Q13 Conference Call
1Q08
1Q09
1Q10
Page 8
1Q11
1Q12
1Q13
April 25, 2013
Capex Program
In R$ million
O
Outside
Brazil
Brazil
58 7
58.7
73.7
55 5
55.5
50.4
5.0
3.7
5.1
53.7
51.9
45.4
Q1
Q2
Q3
2012
1Q13 Conference Call
56 8
56.8
9.3
6.0
64 5
64.5
50.8
Q4
Q1
2013
Page 9
April 25, 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
l i f
luisfernando@weg.net
d @
t
twitter.com/weg_ir
1Q13 Conference Call
Page 10
April 25, 2013