Earnings Release
Jaraguá do Sul (SC), April 25th 2012: WEG S.A. (Bovespa: WEGE3, OTC WEGZY), one of the world’s largest manufacturer of electric-electronic equipment, with five main
product lines: Motors, Power, Transmission and Distribution, Automation and Coatings, announced today its results for the first quarter of 2012 (1Q12). The following financial
and operating data are presented in a consolidated basis, except when otherwise indicated, in thousands of Brazilian Reais (R$) according to the current Brazilian generally
accepted accounting principles, as put forward by the Brazilian applicable laws. All growth rates comparisons relate, except when otherwise indicated, to the same period of the
previous year.
Strong growth at the beginning of 2012
Net Revenues grew by 22% over 1Q11, with external markets growing faster
EBITDA of R$ 208.6 million, with 27% growth and 15.2% margin
Net Income of R$ 148.2 million, with 22% growth and 10.8% net margin
Highlights
Key
Figures
Net operating revenues in the first quarter of 2012
totaled R$ 1.369.8 million, with 22% growth over
1Q11 and decrease of 7% over the last quarter;
Net Income totaled R$ 148.2 million, with net margin of
EBITDA was of R$ 208.6 million, with 15.2% margin,
with increase of 27% in relation to the previous year
and decrease of 19% in relation the previous quarter;
Investments in fixed assets totaled R$ 58.7 million in the
first three months of 2012.
Net Operating Revenue
Domestic Market
External Markets
External Markets in US$
Gross Operating Profit
Gross Margin
10.8%. There was growth of 22% in comparison with
1Q11and decrease of 5% over 4Q11;
Q1 2012
1,369,762
714,268
655,494
Q4 2011
1,468,551
781,938
686,613
%
-6.7%
-8.7%
-4.5%
370,825
380,772
-2.6%
391,967
445,686 -12.1%
28.6%
30.3%
Net Income
148,247
156,248
Net Margin
10.8%
10.6%
EBITDA
208,638
15.2%
17.6%
EPS
0.2390
0.2518
Conference Call with simultaneous translation into English
April 26, Thursday 11 a.m. (Brasília official time)
Dial–in in the US: +1 888 700-0802
Webcasting (simultaneous translation into English): www.ccall.com.br/weg/1q12.htm
WEG S.A. | 2012 First Quarter Results
27.6%
-5.1%
121,564 21.9%
10.8%
258,210 -19.2%
EBITDA Margin
Q1 2011
%
1,126,117 21.6%
660,322 8.2%
465,795 40.7%
279,522 32.7%
310,662 26.2%
164,808 26.6%
14.6%
-5.1%
0.1958 22.0%
Figures in R$ Thousands
Earnings Release
Comments from Laurence Beltrão Gomes,
WEG’s Investor Relations Officer.
We began 2012 with the same strong growth pace that we ended 2011. In this 1Q12 net revenue growth 22% compared to 1Q11.
Growth in external markets the highlight at 32.7% clip when comparisons are made in US dollars. Organic growth in the external markets,
which excludes revenue growth provided by the acquisitions, was 21.2%. We emphasize that both EBITDA and net income also showed
robust growth rates, of 27% and 22%, respectively, over the 1Q11.
This performance was a result of our commercial strategy and of acquisitions and strategic partnerships established in 2011 and are
aligned with the corporate aspirations set out in our strategic planning WEG 2020, which aims to achieve annual revenues of R$ 20 billion
in 2020.
We hope in 2012 continue to growth robustly, with the development of solutions with higher technological content, incorporating our
products into complete solutions for mining and electrical rooms, more compact and efficient products for oil platforms and electrical
traction systems for supply boats and urban transportation. And we will continue leveraging our broad and unique distribution network,
which also provides technical assistance to the WEG products.
Current market conditions are still challenging, with greater presence of competitors in Brazil and still many uncertainties on the global
macroeconomic situation. However, there are many opportunities in Brazil and in international markets, where we have been expanding
our product portfolio and market share. Although the Brazilian industrial sector faces structural bottlenecks, we believe that recent
stimulus measures to increase competitiveness of the industrial sector within the “Brasil Maior” Program, will have positive impact for the
sector.
Economic Activity
and Industrial
Production
Industrial production in Brazil started 2012 at a weak pace, continuing the accommodation movement
started the second half of 2011. In general, the same situation of weak recovery and slowdown in
economic conditions can be seen both in other emerging countries as in some mature markets.
A clear indication in this direction is provided by purchasing manager indexes (PMI), used as indicators of
economic conditions and industrial activity in some of our major markets. Indexes above 50 indicate
industrial expansion and below 50 signal industrial contractions.
March 2012
December 2011
Manufacturing ISM
USA
53.4
53.9
Markit/BME Germany Purchasing Managers’ Index (PMI)
Germany
48.4
48.4
HSBC China Manufacturing PMI™
China
48.3
48.7
In Brazil, industrial activity fell by 3.4% on the two months up to February in comparison the same period of
the previous year. The drop in production accumulated in the 12 months until February is smaller, of 1%
compared to 2011. This demonstrates that the activity slowdown observed during the second half of 2011
is losing momentum and can be reversed soon. This seems to be the expectation of the financial markets,
as captured in the Brazilian Central Bank’s Focus report, that in early April estimated industry output in
growth in 2012 to be around 2%.
Industrial Indicators According to Categories of Use in Brazil
Change (%)
Categories of Use
Acummulated
Feb/Jan* Feb 12 / Feb 11
On Year
12 months
Capital Goods
5.70
Intermediary Goods
2.30
Consumer Goods
-0.20
Durable Goods
-4.30
Semi-durable and non-durable
1.10
General Industry
1.30
Source: IBGE, Research office, Industry Coordination
(*) Series with seasonal adjustments
-16.00
0.40
-5.40
-22.10
0.50
-3.90
-14.60
-1.10
-3.00
-15.40
1.20
-3.40
-1.00
-0.30
-1.80
-6.10
-0.50
-1.00
The production of capital goods, which was the positive highlight of industrial production data throughout
2011, showed decrease. It should be noted that data on industrial production of capital goods are
influenced by the poor performance in heavy vehicles production, as the production of durable consumer
goods was negatively influenced by the drop in light vehicle production.
2 | WEG S.A. | 2012 First Quarter Results
Earnings Release
Net Operating
Revenue
Net Operating Revenue (NOR) reached R$ 1,369.8 million in the first quarter of 2012 (1Q12), corresponding
to an increase of 21.6% in relation to first quarter of 2011 (1Q11) and decrease of 6.7% in relation to fourth
quarter of 2011 (4Q11). Revenue growth in this quarter was helped by the addition of R$ 75.8 million due of
consolidation of net revenues from Watt Drive (Austria), Electric Machinery (USA) and WEG-Cestari, the
partnership established to develop, manufacture and distribute power transmission systems (gearboxes,
electric motors and frequency inverters) in the Brazilian market. Adjusted for the consolidation of
acquisitions, growth of net revenues would have been 14.9% in the 1Q12 over 1Q11.
Net Operating Revenue per Market (R$ million)
External Market
Domestic Market
1,469
1,370
1,277
1,317
43%
44%
47%
48%
59%
57%
56%
53%
52%
Q1
Q2
Q3
Q4
Q1
1,126
41%
2011
2012
Net operating revenue breakdown according to destination market is the following:
ƒ Domestic Market: R$ 714.3 million, representing 52% of Net Operating Revenues, with growth of 8.2%
over 1Q11 and decrease of 8.7% compared to 4Q11. Figures incorporate the consolidation of revenues
of WEG-Cestari. Adjusted for this, growth over 1Q11 would have been 5.3%.
ƒ External Market: R$ 655.5 million, equivalent to 48% of Net Operating Revenues, with growth of 40,7%
over the same period of last year and decrease of 4.5% over the previous quarter. Considering the
average US dollar/Brazilian Real exchange rate of quarter, the NOR of external market in US dollar
reached US$ 370.8 million, which represents growth of 32.7% over 1Q11 and decrease of 2.6% over
4Q11. Adjusting for the consolidation of revenues of Watt Drive and Electric Machinery, growth over
1Q11 would have been of 28.6% when measured in Brazilian Reais and of 21,2% in US dollars.
Evolution and Distribution of Net Revenues according to Geographic Market
(R$ Million)
Q1 2012
Net Operating Revenues
- Domestic Market
- External Markets
- External Markets in US$
North America
South and Central America
Europe
Africa
Australasia
1,369.8
714.3
655.5
370.8
35.8%
14.6%
27.8%
12.7%
9.1%
Q4 2011
1,468.6
781.9
686.6
380.8
34.3%
15.1%
25.5%
14.8%
10.3%
Change
-6.7%
-8.7%
-4.5%
-2.6%
1.5 pp
-0.5 pp
2.3 pp
-2.1 pp
-1.2 pp
Q1 2011
1,126.1
660.3
465.8
279.5
35.0%
14.0%
25.0%
16.0%
10.0%
Change
21.6%
8.2%
40.7%
32.7%
0.8 pp
0.6 pp
2.8 pp
-3.3 pp
-0.9 pp
WEG S.A. | 2012 First Quarter Results | 3
Earnings Release
Distribution of Net Revenues per Business Area
Electro-electronic Industrial Equipments
Domestic Market
External Market
Energy Generation , Transmission and Distribution
Domestic Market
External Market
Electric Motors for Domestic Use
Domestic Market
External Market
Paints and Varnishes
Domestic Market
External Market
Business Areas
Q1 2012
Q4 2011
%
Q1 2011
%
63.5%
28.8%
34.7%
22.8%
12.1%
10.7%
8.1%
6.2%
1.9%
5.6%
5.1%
0.5%
64.0%
26.0%
37.9%
22.0%
15.4%
6.6%
8.9%
6.9%
2.0%
5.1%
5.0%
0.2%
-0.5 pp
2.7 pp
-3.2 pp
0.8 pp
-3.3 pp
4.1 pp
-0.8 pp
-0.7 pp
-0.1 pp
0.5 pp
0.2 pp
0.3 pp
60.7%
30.0%
30.7%
22.5%
14.2%
8.3%
11.3%
9.2%
2.2%
5.5%
5.4%
0.2%
2.8 pp
-1.2 pp
4 pp
0.3 pp
-2.1 pp
2.4 pp
-3.2 pp
-3 pp
-0.2 pp
0.1 pp
-0.2 pp
0.3 pp
Performance of the business areas continues to follow the same trends as we have noted throughout 2011.
In the industrial electrical-electronic equipment we continue to benefit from the expansion of investment in
some specific segments in Brazil, such as oil & gas, shipbuilding, mining and cement. Growth continued to
be more pronounced in the external markets, both in fast-growing markets, such as China and India, where
our presence is still relatively small, as in markets where we have a more established presence and have
archived a level of brand recognition, as in the Americas and Europe.
In the business area GTD there was growth of the importance of the external markets as a result of the
consolidation of revenues of Electric Machinery. Even with low demand at this moment in Transmission &
Distribution (T&D) and strong pricing pressure, we continue to invest to strength our market position by
expanding into segments such as large hydroelectric, wind energy and increasing business in power
substations. Moreover, we have taken steps to expand our North American businesses, including our
transformer manufacturing plant in Mexico, where we still have spare capacity.
In electric motors for domestic use business are, the stimulus measures announced in December 2011,
including the temporary reduction of IPI federal excise taxes, did not produced positive impacts on our
market, which normally experiences seasonal weakness in the first quarter.
Finally, the relative area participation of paints and varnishes business are did not change significantly, given
our focus on cross-selling for the same customers in others areas.
Q1 2012
Net Operating Revenues
Cost of Goods Sold
Gross Operating Profit
Q4 2011
1,369.8
(977.8)
392.0
1,468.6
(1,022.9)
445.7
Gross Margin
28.6%
30.3%
(-) Selling Expenses
(-) General & Administrative
(-) Profit Sharing
Result from Activities
(+) Depreciation & Amortization
EBITDA
(142.2)
(67.8)
(22.9)
159.1
49.6
208.6
(140.7)
(70.2)
(25.2)
209.6
48.6
258.2
EBITDA Margin
15.2%
17.6%
%
-6.7%
-4.4%
-12.1%
Q1 2011
1,126.1
(815.5)
310.7
%
21.6%
19.9%
26.2%
27.6%
1.1%
-3.5%
-8.9%
-24.1%
1.9%
-19.2%
(116.0)
(58.5)
(18.8)
117.3
47.5
164.8
22.6%
15.9%
21.8%
35.6%
4.4%
26.6%
14.6%
Cost of Goods
Sold
Cost of Goods Sold (COGS) totaled R$ 977.8 million in 1Q12, increasing 20% over 1Q11 and decreasing
by 4% over 4Q11. Gross margin was 28.6%, 1 percentage point higher than in the 1Q11 and 1.7
percentage point lower than in the 4Q11.
Gross Margin
Given the number of working days and market dynamics, revenues and margins are seasonally lower at the
first quarter of every year. In this first quarter we observed an increase of one percentage point in gross
margin, to 28.6%, the result of the expansion of activities, both as a response to market growth as because
of production ramp-up in the greenfield units in India and Linhares, with consequent partial dilution of
manufacturing costs. It is important to notice that gross margin was negatively affected by the
4 | WEG S.A. | 2012 First Quarter Results
Earnings Release
consolidation of the recently acquired operations, which still do not present the same patterns of WEG’s
other operations.
Cost of Raw
Materials
Average on the London Metal Exchange (LME) spot copper prices fell by 14% in the 1Q12 compared to the
average of 1Q11 and rose by 10% compared to the 4Q11 average. According to the CRUspiGlobal índex,
steel prices in the international markets showed decline of 9% over 1Q11 and increase of 1.4% over 4Q11.
Our selling prices are recalculated according to the characteristics of each order and tend to reflect the
current market conditions, naturally and gradually incorporating increases in input costs. In addition, prices
of key raw materials such as steel and copper tend to be the same or at least follow similar trends in the
various global markets.
Selling, General
and
Administrative
Expenses
Consolidated selling, general and administrative expenses (SG&A) represented 15.3% of net operating
revenues in the 1Q12, which compares to 15.5% in 1Q11 and 14.4% in 4Q11. The comparison of absolute
figures shows operating expense growth of 20.3% over 1Q11 and decline of 0.5% over the previous
quarter, attesting the success of the efforts to increase rationalization and productivity.
EBITDA and
EBITDA Margin
As a result of the aforementioned effects, the EBITDA in 1Q12 (calculated according to the methodology
defined by CVM Ofício Circular 01/07) totaled R$ 208.6 million, an increase of 26.6% over 1Q11 and
decrease of 19.2% over the previous quarter. The EBITDA margin reached 15.2%, 0.6 percentage point
higher compared to the 1Q11 and 2.4 percentage points lower compared to the 4Q11.
Main impacts on EBITDA
37,6
206,1
FX Impact
on
Revenues
158,9
26,0
10,8
COGS (ex
depreciation)
4,1
208,6
Selling
Expenses
164,8
Volumes,
Prices &
Product Mix
Changes
EBITDA Q1 11
General and
Administrative
Expenses
Profit Sharing
Program
EBITDA Q1 12
Net Financial
Results
Financial revenues totaled R$ 127.8 million in 1Q12 (R$ 140.2 million in 4Q11 and R$ 96.5 million in 1Q11).
Financial expenses totaled R$ 81.9 million (R$ 111.2 million in 4Q11 and R$ 53.7 million in 1Q11). In this
quarter, net financial income was positive in R$ 45.9 million (positive in R$ 29.0 million in 4Q11 and positive
in R$ 39.8 million in 1Q11).
Income Tax and
Social
Contribution
The Income Tax and Social Contribution Tax on Net Profit provision in 1Q12 was R$ 48.4 million (R$ 46.6
million in 4Q11 and R$ 40.1 million in 1Q11). Additionally, R$ 5.2 million were recorded as “Deferred
Income Tax” (R$ -1.7 million in 4Q11 and R$ 2.5 million in 1Q11).
Net Income
As a result of the previously discussed impacts, net income for 1Q12 was R$ 148.2 million, an increase of
22% compared to 1Q11 and a decline of 5% over the previous quarter. The net margin of the quarter was
10.8%, without changes compared to 1Q11 and 0.2 percentage point higher over the 4Q11.
WEG S.A. | 2012 First Quarter Results | 5
Earnings Release
Operating cash
flow
Cash flow from operating activities in 1Q12 totaled R$ 219.0 million, to an increase of 16% in comparison
to 1Q11, mainly as a result from growth in operating activities and the relative improvement of efficiency in
the use of working capital.
Cash flow from
investing
activities
Investing activities consumed R$ 190.7 million in cash in 1Q12, with strong increase in comparison previous
year. The reasons are the re-acceleration of investments in expansion and modernization of productive
capacity and consolidation of WEG-Cestari operations, which cause increase in the balance of fixed and
intangible assets.
Cash flow from
financing
activities
Financing activities consumed R$ 396.1 million, with payment of loans and financing, which resulted in a
decrease of the gross debt. In comparison the previous year, the cash used in financing activities increased
by 80%.
Cash Flows
219,0
190,7
2.931,6
396,1
2.563,9
Investing
Operating
Financing
Cash 4Q11
Capex
Cash 1Q12
Investments in fixed assets for expansion and modernization of production capacity amounted to R$ 58.7
million in the first three months of 2012, being 92% directed to industrial units and other facilities in Brazil
and the remaining to production units and other subsidiaries abroad.
As previously announced, we shall observe a gradual acceleration in investment over 2012 in comparison
to 2011, when efforts were concentrated in ramping up capacity utilization in the new manufacturing plants
in Hosur, India, and Linhares (ES). It is expected that investments in 2012 will reach approximately R$ 300
million.
Investments in Fixed Assets (R$ million)
Outside Brazil
Brazil
63,1
33,8
8,2
49,9
41,1
7,3
2,4
25,6
38,8
42,6
1T
2T
3T
2011
6 | WEG S.A. | 2012 First Quarter Results
1,0
58,7
5,0
62,1
53,7
4T
1T
2012
Earnings Release
Debt and Cash
Position
Debt and Cash Position (R$ Thousand)
March 2012
December 2011
March 2011
CASH & EQUIVALENT
- Current
- Long Term
2,851,862
2,563,889
287,973
3,212,250
2,931,615
280,635
2,487,136
2,487,136
-
DEBT
- Current
3,233,726
1,464,198
3,457,728
1,701,435
2,356,004
1,104,366
- In Brazilian Reais
- In other currencies
- Long Term
509,861
954,336
1,769,528
585,687
1,115,748
1,756,293
538,068
566,297
1,251,638
- In Brazilian Reais
- In other currencies
NET CASH (DEBT)
1,543,720
225,810
(381,864)
1,560,712
195,581
(245,478)
1,110,127
141,511
131,132
As of March 31, 2012, cash (cash, cash equivalents and short and long term financial investments) totaled
R$ 2,851.9 million and gross financial debt totaled R$ 3,233.7 million, resulting in a net debt position of R$
381.9 million (net cash of R$ 131.1 million in March 31, 2011 and net debt of R$ 245.5 million in December
31, 2011). Cash is invested mainly in Brazilian currency denominated financial instruments referenced to the
Interbank Deposit Certificate (CDI), in first-tier Banks.
According to the maturity, gross debt is divided between:
ƒ Short-term debt, totaling R$ 1,464.2 million (45% of total), represented by short-term portion of loans
from BNDES and other development agencies, mostly in local currency, and trade finance related
transactions denominated in foreign currencies and for working capital financing of subsidiaries abroad,
denominated in the respective currencies of each country.
ƒ Long-term debt, totaling R$ 1,769.5 million (55% of total), mainly represented by financing from BNDES
and other development agencies, mostly in local currency, and, to a smaller extent, by working capital
financing of subsidiaries abroad in respective currency of each country. The duration of the long-term
debt is 26.7 months.
According to the reference currencies, the total debt can be divided into:
ƒ Denominated in Brazilian Reais, totaling R$ 2,053.6 million (64% of total), mainly represented by
financing from BNDES and other development agencies. The weight average cost of debt denominated
in Reais is approximately 6.8% per year. Floating rate contracts are indexed mainly by the Long-Term
Interest Rate (TLJP). The duration of the portion denominated in Reais is 18 months.
ƒ Denominated in US dollars, Euros and other currencies, totaling R$ 1,180.1 million (36% of total),
represented by working capital loans contracted by subsidiaries abroad in local currencies and trade
finance transactions (advances on foreign exchange contracts or ACC), in Brazil. The duration of the
portion in foreign currencies is 10,9 months.
Dividends
On March 20 the Board of Directors approved the payment to shareholders, as interest on stockholders’
equity (JCP), totaling R$ 47.4 million. Shareholders on March 20, 2012 will be entitled to payment of R$
0.076470590 per share (before deduction of income tax at source), payable on August 15, 2012.
We maintain our policy to declare interest on stockholders equity quarterly and declare dividends based on
profit earned each semester. Thus, we reported six different earnings each year.
WEG S.A. | 2012 First Quarter Results | 7
Earnings Release
WEGE3 Share
Performance
At the end of the last trading of March 2012 at BM&F Bovespa, the common shares issued by WEG, traded
under the code WEGE3, were quoted at R$ 19.80 with a nominal increase of 5.4% in the year. Considering
the dividends and interest on stockholders equity declared in this first quarter, the total return for the
shareholders was of 6.6% in 2012.
The average daily volume traded in 1Q12 was R$ 6.2 million, 29% lower than 1Q11. Throughout the
quarter 42,664 stock trades were carried out (50,599 stock trades in 1Q11), involving 19.6 million shares
(26.1 million shares in 1Q11) and totaling R$ 383.7 million (R$ 534.9 million in 1Q11).
Share Price Performance and Traded Volume
30,00
3.000
Shares Traded (thousands)
WEGE3
25,00
WEGE3 share prices
2.000
15,00
10,00
1.000
5,00
0,00
Traded shares (thousands)
20,00
0
10
nJa
0
r-1
Ap
0
l-1
Ju
O
10
ct-
nJa
11
Ap
1
r-1
1
l-1
Ju
1
t-1
Oc
12
nJa
Dividend adjusted performance (dividend and interest on stockholders equity)
Results
Conference Call
WEG will hold, on April 26 2012 (Thursday), conference call and webcast to discuss the results. The call will
be conducted in Portuguese with simultaneous translation in English, following scheduled time:
11 am – Brasília (BRT)
10 am - New York (EDT)
03 pm – London (BST)
Connecting phone numbers:
Dial–in for connecting from Brazil:
Dial–in for connecting from the USA:
Toll-free for connecting from the USA:
Code:
+55 11 4688-6361
+1 786 924-6977
+1 888 700-0802
WEG
Access to the webcast:
Slides and Portuguese audio:
Slides and English translation:
www.ccall.com.br/weg/1t12.htm
www.ccall.com.br/weg/1q12.htm
The presentation will be available in the Investor Relations page of WEG website (www.weg.net/ri). Please
call approximately 10 minutes before the call is scheduled to star.
8 | WEG S.A. | 2012 First Quarter Results
Earnings Release
Industrial ElectroElectronic
Equipment
The industrial electrical-electronic equipment are includes low and medium voltage electric motors, drives &
controls, industrial automation equipment and services, and maintenance services and parts. We compete
in all major markets with our products and solutions. Electric motors and other related equipment find
applications in practically all industrial segments, in equipment such as compressors, pumps and fans, for
example.
Energy
Generation,
Transmission and
Distribution (GTD)
Products and services included in this area are electric generators for hydraulic and thermal power plants
(biomass), hydro turbines (small hydroelectric plants or PCH), transformers, substations, control panels and
system integration services. In the GTD area in general and specifically in power generation, investment
maturing terms are longer, with slower investment decisions and longer project and manufacturing lead
times. As such, new orders are only recognized as revenue after a few months, upon effective delivery to
buyers.
Motors for
Domestic Use
In this business area, our operations are mainly focused in Brazil, where we hold a significant share in the
market of single-phase Motors for durable consumer goods, such as washing machines, air conditioners,
water pumps, among others. This is a short cycle business and variations in consumer demand are rapidly
transferred to the industry, with almost immediate impacts on production and revenue.
Paints and
Varnishes
In this area, including liquid paints, powder paints and electro-insulating varnishes, we have very clear focus
on industrial applications in Brazil, and are expanding to Latin America. Our strategy in this area is cross
selling to customers from other operating areas. The target markets ranging from shipbuilding industry to
the manufacturers of white line home appliances. We seek to maximize the scale of production and efforts
to developed new products and new segments..
The information contained in this report relating to WEG’s business perspectives, the projections and results and to the company’s growth
potential should be considered as only estimates and were based on the management expectations relating to the future of the company.
These expectations are highly influenced by the market conditions and the general economic performance of the country and of the
foreign markets which may be subject to sudden change.
WEG S.A. | 2012 First Quarter Results | 9
Earnings Release
Annex I
Consolidated Income Statement - Quarterly
Figures in R$ Thousands
1T12
31
1st Quarter
2012
R$
AV%
GROSS REVENUES
Taxes and Deductions
Net Revenues
Cost of Goods Sold
Gross Profit
Sales Expenses
Administrative Expenses
Financial Revenues
Financial Expenses
Other Operating Income
Other Operating Expenses
Earnings from Subs (Equity Method)
EARNINGS BEFORE TAXES
Income Taxes & Contributions
Deferred Taxes
Minorities
NET EARNINGS
EBITDA
EPS
10 | WEG S.A. | 2012 First Quarter Results
4T11
28
4th Quarter
2011
R$
AV%
1T11
22
1st Quarter
2011
R$
AV%
1,607,331
(237,569)
1,369,762
(977,795)
391,967
(142,191)
(67,767)
127,801
(81,916)
4,958
(38,289)
194,563
(48,453)
5,165
(3,028)
148,247
117%
-17%
100%
-71%
29%
-10%
-5%
9%
-6%
0%
-3%
0%
14%
-4%
0%
0%
11%
1,724,834
(256,283)
1,468,551
(1,022,865)
445,686
(140,682)
(70,249)
140,243
(111,212)
5,927
(57,662)
212,051
(46,558)
(1,713)
7,532
156,248
117%
-17%
100%
-70%
30%
-10%
-5%
10%
-8%
0%
-4%
0%
14%
-3%
0%
1%
11%
1,343,137
(217,020)
1,126,117
(815,455)
310,662
(116,019)
(58,490)
93,543
(53,697)
8,671
(22,787)
161,883
(40,104)
2,480
2,695
121,564
119%
-19%
100%
-72%
28%
-10%
-5%
8%
-5%
1%
-2%
0%
14%
-4%
0%
0%
11%
208,638
15%
258,210
18%
164,808
15%
0.2390
0.2518
0.1958
Changes %
Q1 12
Q1 12
Q4 11
Q1 11
-7%
-7%
-7%
-4%
-12%
1%
-4%
-9%
-26%
-16%
-34%
-5%
20%
9%
22%
20%
26%
23%
16%
37%
53%
-43%
68%
n.m.
20%
21%
108%
n.m
22%
-19%
27%
-5%
22%
n.m.
-8%
4%
n.m
n.m
Earnings Release
Annex II
Consolidated Balance Sheet
Figures in R$ Thousands
March 2012
R$
AV%
25
December 2011
R$
AV%
22
March 2011
R$
AV%
16
CURRENT ASSETS
5,478,846
62%
5,867,061
64%
4,731,859
64%
Cash & cash equivalents
Receivables
Inventories
Other current assets
LONG TERM ASSETS
Long term securities
Deferred taxes
Other non-current assets
FIXED ASSETS
2,563,889
1,263,963
1,371,264
279,730
447,124
287,973
115,265
43,886
2,949,257
29%
14%
15%
3%
5%
3%
1%
0%
33%
2,931,615
1,307,692
1,362,314
265,440
432,469
280,635
111,488
40,346
2,806,331
32%
14%
15%
3%
5%
3%
1%
0%
31%
2,487,136
1,026,094
1,019,551
199,078
127,146
86,060
41,086
2,565,383
33%
14%
14%
3%
2%
0%
1%
1%
35%
Investment in Subs
349
0%
349
0%
2,199
0%
2,478,938
28%
2,445,760
27%
2,383,215
32%
Intangibles
TOTAL ASSETS
469,970
8,875,227
5%
100%
360,222
9,105,861
4%
100%
179,969
7,424,388
2%
100%
CURRENT LIABILITIES
2,529,609
29%
2,752,960
30%
2,013,822
27%
Property, Plant & Equipment
Social and Labor Liabilities
161,850
2%
161,436
2%
134,958
2%
Suppliers
329,571
4%
298,195
3%
259,762
3%
84,450
1%
88,473
1%
68,362
1%
1,464,198
16%
1,701,435
19%
1,104,366
15%
44,428
235,309
29,758
180,045
2,535,185
1%
3%
0%
2%
29%
2,804
285,843
26,314
188,459
2,446,312
0%
3%
0%
2%
27%
39,575
278,978
24,380
103,441
1,882,071
1%
4%
0%
1%
25%
Fiscal and Tax Liabilities
Short Term Debt
Dividends Payable
Advances from Clients
Profit Sharring
Other Short Term Liabilities
LONG TERM LIABILITIES
Long Term Debt
1,769,528
20%
1,756,293
19%
1,251,638
17%
Other Long Term Liabilities
188,847
2%
122,485
1%
89,435
1%
Deferred Taxes
424,223
5%
421,918
5%
415,682
6%
Contingencies Provisions
152,587
2%
145,616
2%
125,316
2%
80,757
1%
106,477
1%
93,487
1%
STOCKHOLDERS' EQUITY
MINORITIES
3,729,676
42%
3,800,112
42%
3,435,008
46%
TOTAL LIABILITIES
8,875,227
100%
9,105,861
100%
7,424,388
100%
11 | WEG S.A. | 2012 First Quarter Results
Earnings Release
Annex III
Consolidated Cash Flow Statement
Figures in R$ Thousands
3 Months
2012
14
3 Months
2011
10
Operating Activities
Net Earnings before Taxes
Depreciation and Amortization
Provisions:
Changes in Assets & Liabilities
194,563
49,573
36,951
(62,061)
161,883
47,499
13,367
(33,545)
Cash Flow from Operating Activities
219,026
189,204
Investment Activities
Fixed Assets
Intagible Assets
Goodwill in Capital Transactions
Asset Write Downs
Accumulated Conversion Adjustment
Long term securities bought
(73,424)
(63,348)
(51,107)
2,136
2,382
(7,337)
(33,800)
(3,365)
177
2,413
-
(190,698)
(34,575)
Dividends & Intesrest on Stockholders Equity Paid
172,478
(352,546)
(43,934)
(172,052)
195,845
(223,158)
(31,823)
(161,353)
Cash Flow From Financing Activities
(396,054)
(220,489)
Change in Cash Position
Cash & Cash Equivalents
(367,726)
(65,860)
Beginning of Period
2,931,615
2,552,996
End of Period
2,563,889
2,487,136
Cash Flow From Investment Activities
Financing Activities
Working Capital Financing
Long Term Financing
12 | WEG S.A. | 2012 First Quarter Results