2Q12 C
Conference
f
C
Call
ll
July 26th, 2012
Disclaimer
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
2Q12 Conference Call
Page 2
July 26, 2012
Highlights
Quarterly Figures
Q2 2012
1 528 791
1.528.791
729.235
799.556
Q1 2012
1 369 762
1.369.762
714.268
655.494
%
11 6%
11,6%
2,1%
22,0%
406 915
406.915
370 825
370.825
9,7%
461.661
391.967
17,8%
30,2%
28,6%
Net Income
139.819
148.247
Net Margin
9,1%
10,8%
260.028
208.638
EBITDA Margin
17,0%
15,2%
EPS
0,2254
0,2390
Net Operating Revenue
Domestic Market
External Markets
External Markets in US$$
Gross Operating Profit
Gross Margin
EBITDA
2Q12 Conference Call
Page 3
Q2 2011
1 277 258
1.277.258
723.348
553.910
%
19 7%
19,7%
0,8%
44,3%
347 886 17,0%
347.886
381.437
21,0%
29,9%
-5,7%
154.557
-9,5%
12,1%
24,6%
215.579
20,6%
16,9%
-5,7%
0,2491 -9,5%
Figures in R$ Thousand
July 26, 2012
Net Operating Revenue
Domestic Market
in R$ million
-14%
14%
702
Q2 2008
2Q12 Conference Call
5%
1%
15%
601
629
Q2 2009
Q2 2010
Page 4
723
729
Q2 2011
Q2 2012
July 26, 2012
Net Operating Revenue
External Market
in US$ million
External Market in US$
2,0705
1 6529
1,6529
1 7920
1,7920
Quarterly Average FX
1 5922
1,5922
1,9649
,
17%
62%
-13%
13%
3%
348
238
207
214
Q2 2008
Q2 2009
Q2 2010
2Q12 Conference Call
Page 5
Q2 2011
407
Q2 2012
July 26, 2012
Business Areas
Net Revenue breakdown
in R$ million
1.529
1.277
5%
7%
7%
1 011
1.011
6%
10%
6%
0,2%
2,8%
0,2%
5%
5%
8%
0 6%
0,6%
2,4%
2,4%
13%
15%
41%
19%
34%
7%
29%
27%
29%
25%
2Q 2010
2Q 2011
2Q 2012
Industrial Equipment DM
GTD DM
Domestic Use DM
Paints & Varnishes DM
2Q12 Conference Call
Page 6
Industrial Equipment EM
GTD EM
Domestic Use EM
Paints & Varnishes EM
July 26, 2012
Cost of Goods Sold
Other Costs
9%
Depreciation
4%
Other Costs
Depreciation 9%
5%
Materials
64%
Labor
23%
2Q11
Q
2Q12
Labor
22%
Materials
64%
2Q12 Conference Call
Page 7
July 26, 2012
Main effects on EBITDA
in R$
$ million
79,4
165,8
172,2
FX Impact
on
Revenues
32,0
COGS (ex
depreciation)
215,6
Volumes,
Prices &
Product Mix
Changes
EBITDA Q2 11
2Q12 Conference Call
11,3
Selling
Expenses
General and
Administrative
Expenses
,
2,0
260,0
Profit Sharing
Program
EBITDA Q2 12
Page 8
July 26, 2012
Sources and Uses of Cash
in R$ million
Sources
Decrease in Cash
18%
Long-term investments
2%
New Financing
34%
Amortization of
Financing
46%
Dividends/interest on
equity capital
10%
Profit Sharing Paid
4%
Increase in Accounts
Receivable
10%
Other / Adjustments
4%
Increase in Accounts
Payable
9%
R$ 1,694
million
R$ 1,694
million
Increase in Inventories
6%
Other accounts payable
5%
Depreciation and
amortization
6%
2Q12 Conference Call
Uses
Capex
7%
Pre-tax income
23%
Income Taxes Paid
6%
Page 9
Acquisition
12%
July 26, 2012
Capex Program
Outside Brazil
Brazil
63,1
33,8
8,2
49 9
49,9
41,1
10
1,0
5,0
3,7
62,1
53,7
51,9
Q4
Q
Q1
Q
Q2
Q
7,3
2,4
25 6
25,6
38 8
38,8
42,6
,6
Q1
Q
Q2
Q
Q3
Q
2011
55,5
58,7
2012
in R$ million
2Q12 Conference Call
Page 10
July 26, 2012
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
www.weg.net/ri
2Q12 Conference Call
Page 11
July 26, 2012