1Q12 C
Conference
f
C
Call
ll
April 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
1Q12 Conference Call
Page 2
April 26, 2012
Highlights
Quarterly Figures
Q1 2012
1.369.762
714.268
655.494
Q4 2011
1.468.551
781.938
686.613
%
-6,7%
-8,7%
-44,5%
5%
370.825
380.772
-2,6%
279.522 32,7%
391.967
445.686
-12,1%
310.662
28 6%
28,6%
30 3%
30,3%
Net Income
148.247
156.248
Net Margin
10,8%
10,6%
208 638
208.638
258 210
258.210
EBITDA Margin
15,2%
17,6%
EPS
0,2390
0,2518
Net Operating Revenue
Domestic Market
External Markets
External Markets in US$
Gross Operating Profit
Gross Margin
EBITDA
1Q12 Conference Call
Page 3
Q1 2011
1.126.117
660.322
465.795
%
21,6%
8,2%
40 7%
40,7%
26,2%
27 6%
27,6%
-5,1%
121.564
21,9%
10,8%
-19,2%
19 2%
164 808
164.808
26 6%
26,6%
14,6%
-5,1%
0,1958 22,0%
Figures in R$ Thousands
April 26, 2012
Net Operating Revenue
Domestic Market
in R$ million
8%
7%
3%
6%
562
595
615
660
Q1 2008
Q1 2009
Q1 2010
Q1 2011
1Q12 Conference Call
Page 4
714
Q1 2012
April 26, 2012
Net Operating Revenue
External Market
in US$ million
External Market in US$
2,3117
1 7354
1,7354
1 8229
1,8229
Quarterly Average FX
1 6664
1,6664
1 7677
1,7677
33%
61%
5%
-11%
371
280
188
196
174
Q1 2008
Q1 2009
Q1 2010
1Q12 Conference Call
Page 5
Q1 2011
Q1 2012
April 26, 2012
Business Areas
Net Revenue breakdown
in R$ million
1.363
5%
1,9%
1.124
5%
930
6%
12%
0,2%
2,2%
11%
12%
14%
5%
7%
6%
9%
8%
0,2%
2,0%
0,5%
35%
21%
31%
27%
27%
30%
1Q 2010
1Q 2011
Industrial Equipment DM
GTD DM
Domestic Use DM
Paints & Varnishes DM
1Q12 Conference Call
29%
1Q 2012
Industrial Equipment EM
GTD EM
Domestic Use EM
Paints & Varnishes EM
Page 6
April 26, 2012
Cost of Goods Sold
Other Costs
8%
Depreciação
5%
Other Costs
9%
Depreciation
5%
Materials
64%
Labor
23%
1Q12
1Q11
Labor
22%
Materiais
64%
1Q12 Conference Call
Page 7
April 26, 2012
Main effects on EBITDA
in R$
$ million
37,6
158,9
206,1
FX Impact
on
Revenues
26,0
10,8
COGS (ex
depreciation)
4,1
208 6
208,6
Selling
Expenses
164,8
General and
Administrative
E penses
Expenses
Volumes,
Prices &
Product Mix
Changes
EBITDA Q1 11
1Q12 Conference Call
Profit Sharing
Program
EBITDA Q1 12
Page 8
April 26, 2012
Sources and Uses of Cash
in R$ million
Decrease in Working
Capital
6%
Other accounts payable
4%
Other / Adjustments
1%
Dividends/interest on
equity capital
20%
Sources
Amortization of
Financing
45%
Depreciation and
amortization
6%
Increase in Working
Capital
1%
Income Taxes Paid
6%
R$ 881
million
R$ 881
million
Uses
Profit Sharing Paid
7%
Capex
7%
Pre-tax income
22%
Decrease in Cash
42%
Acquisition
q
15%
Long-term investments
1%
New Financing
20%
1Q12 Conference Call
Page 9
April 26, 2012
Capex Program
Outside Brazil
Brazil
a
63,1
33,8
8,2
49 9
49,9
41,1
10
1,0
7,3
2,4
25,6
38 8
38,8
42 6
42,6
Q1
Q2
Q3
2011
58,7
5,0
62,1
53,7
Q4
Q1
2012
in R$ million
1Q12 Conference Call
Page 10
April 26, 2012
Contacts
ƒLaurence Beltrão Gomes
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
1Q12 Conference Call
Page 11
April 26, 2012