Conference
C
f
C
Call
ll
2012 and 4Q12
February 28th, 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
4Q12 Conference Call
Page 2
February 28, 2013
Agenda
„
Sérgio Schwartz – Executive Vice President
Highlights
„ Revenues growth and performance
„
„
Laurence Beltrão Gomes – Finance and Investor Relations Officer.
Costs, Expenses, EBITDA
„ Cash Flow
„ Capex
„
„
Sérgio Schwartz – Executive Vice President
„
„
Outlook and final remarks
Questions and answers
4Q12 Conference Call
Page 3
February 28, 2013
Highlights
Yearly Figures
Net Operating Revenue
Domestic Market
External Markets
External Markets in US$
Gross Operating Profit
Gross Margin
Quarterly Net Income
Net Margin
EBITDA
EBITDA Margin
EPS
2012
6,173,878
3,016,662
3 157 216
3,157,216
1,609,721
1,880,856
30.5%
655,979
10 6%
10.6%
1,053,545
17.1%
1 0573
1.0573
2011
5,189,409
2,902,958
2 286 451
2,286,451
1,361,689
1,556,051
30.0%
586,936
11 3%
11.3%
882,340
17.0%
0 9461
0.9461
%
19.0%
3.9%
38 1%
38.1%
18.2%
20.9%
11.8%
19.4%
11.8%
2010
4,391,973
2,670,443
1 721 530
1,721,530
982,835
1,386,952
31.6%
519,782
11 8%
11.8%
789,110
18.0%
0 8371
0.8371
%
18.2%
8.7%
32 8%
32.8%
38.5%
12.2%
12.9%
11.8%
13.0%
Figures in R$ Thousands
4Q12 Conference Call
Page 4
February 28, 2013
Net Operating Revenue
Annual Evolution
In US$ million
External Market
6 174
6,174
19%
Domestic Market
4,502
4,211
5,189
4%
4,392
18%
3,157
2 286
2,286
-6%
6%
1,842
1,684
1,722
2 660
2,660
2 526
2,526
2 670
2,670
2,903
,
3,017
2008
2009
2010
2011
2012
4Q12 Conference Call
Page 5
February 28, 2013
Highlights
Quarterly Figures
Q4 2012
1,662,258
774,533
887 725
887,725
Q3 2012
1,613,067
798,626
814 441
814,441
%
3.0%
-3.0%
9 0%
9.0%
431,141
401,460
7.4%
528,641
498,587
6.0%
31.8%
30.9%
Net Income
183,157
184,756
Net Margin
11 0%
11.0%
11 5%
11.5%
300,603
284,276
EBITDA Margin
18.1%
17.6%
EPS
0 29 2
0.2952
0 29 8
0.2978
Net Operating Revenue
Domestic Market
External Markets
External Markets in US$
Gross Operating Profit
Gross Margin
EBITDA
4Q12 Conference Call
Page 6
Q4 2011
%
1,468,551 13.2%
781,938 -0.9%
686 613 29.3%
686,613
29 3%
380,772 13.2%
445,686 18.6%
30.3%
-0.9%
156,248 17.2%
10 6%
10.6%
5.7%
258,210 16.4%
17.6%
-0.9%
00.2518
2 18 17.2%
Figures in R$ Thousand
February 28, 2013
Net Operating Revenue
Quarterly Evolution
In US$ million
External Market
Domestic Market
1,662
52%
50%
53%
1,529
1,469
1,277
1,613
1 370
1,370
1 317
1,317
1,126
47%
48%
43%
44%
59%
57%
56%
53%
52%
48%
50%
47%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
41%
2011
4Q12 Conference Call
2012
Page 7
February 28, 2013
Business Areas
Revenue breakdown
In R$ million
7%
6%
6%
6%
7%
6%
8%
7%
13%
11%
11%
10%
9%
9%
10%
10%
23%
25%
24%
23%
22%
25%
27%
60%
58%
60%
61%
63%
57%
55%
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
24%
57%
1Q11
Industrial Equipment
4Q12 Conference Call
GTD
Domestic Use
Page 8
Paints & Varnishes
February 28, 2013
Costs of Goods Sold
Materials
66%
Materials
65%
2012
2011
Others C
Oth
Costs
t
10%
Depreciation
4%
4Q12 Conference Call
Labor
21%
Other Costs
9%
Labor
21%
Page 9
Depreciation
4%
February 28, 2013
Main impacts on EBITDA
in R$ million
454.3
638.3
530.2
FX Impact on
Revenues
109.5
COGS
(ex depreciation)
882.3
50.4
Selling
Expenses
Volumes,
Pi
Prices
&
Product Mix
Changes
EBITDA 2011
4Q12 Conference Call
General and
Administrative
Expenses
15 1
15.1
1 053 5
1,053.5
Profit Sharing
Program
EBITDA 2012
Page 10
February 28, 2013
Working Capital
In % of Net Revenue
50,0%
40,0%
Working Capital
30,0%
Clients
20 0%
20,0%
I
Inventories
t i
10 0%
10,0%
Advances from
Clients
Suppliers
0,0%
,
4Q05
4Q12 Conference Call
4Q06
4Q07
4Q08
4Q09
Page 11
4Q10
4Q11
4Q12
February 28, 2013
Capex Program
10.2%
In R$ million
Capex
% Net Revenue
9.3%
8.1%
7.4%
5.8%
457
3.7%
146
2003
2004
4Q12 Conference Call
2005
5.3%
3.6%
305
206
126
5.4%
226
233
2009
2010
3.9%
238
188
111
2006
2007
2008
Page 12
2011
2012
February 28, 2013
Strategic Planning WEG 2020
Aspirations and strategic direction
20.000
0
6.174
5.189
4.392
18%
19%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
4Q12 Conference Call
Page 13
February 28, 2013
Contacts
ƒLaurence Beltrão Gomes
www.weg.net/ir
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
4Q12 Conference Call
Page 14
February 28, 2013