Motors | Energy | Transmission & Distribution | Automation | Caotings
2Q11 Results Conference Call
July 22, 2011
2Q11 Results Conference Call
July 22, 2011
Disclaimer
The statements that may 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 of the industry and other operating factors may affect
WEG’s future performance and lead to results that may differ
materially from those expressed in such future considerations.
2Q11 Results Conference Call
Page 2
July 22, 2011
Highlights
Second Quarter, 2011
Gross Operating Revenue
Domestic Market
External Markets
External Markets in US$
Net Operating Revenue
Gross Operating Profit
Gross Margin
Quarterly Net Income
Net Margin
EBITDA
EBITDA Margin
Q2 2011
1,510,276
936,061
574,215
360,639
1,277,258
381,437
Q1 2010 Growth % Q2 2010 Growth %
1,343,137 12.4% 1,227,421 23.0%
862,863
831,210 12.6%
8.5%
480,274 19.6%
396,211 44.9%
288,211 25.1%
221,100 63.1%
1,126,117 13.4% 1,013,015 26.1%
310,662 22.8%
309,812 23.1%
29.9%
27.6%
154,557
121,564
12.1%
10.8%
215,579
164,808
16.9%
14.6%
30.6%
27.1%
116,522
32.6%
11.5%
30.8%
174,015
23.9%
17.2%
Figures in R$ Thousands
2Q11 Results Conference Call
Page 3
July 22, 2011
Highlights
First semester of 2011
Gross Operating Revenue
Domestic Market
External Markets
External Markets in US$
Net Operating Revenue
Gross Operating Profit
Gross Margin
Quarterly Net Income
Net Margin
EBITDA
EBITDA Margin
06M11
2,853,413
1,798,924
1,054,489
648,850
2,403,375
692,099
06M10
Growth %
2,358,967
21.0%
1,632,509
10.2%
726,458
45.2%
402,270 61.3%
1,944,922
23.6%
618,425
11.9%
28.8%
31.8%
276,121
236,167
11.5%
12.1%
380,387
355,765
15.8%
18.3%
16.9%
6.9%
Figures in R$ Thousands
2Q11 Results Conference Call
Page 4
July 22, 2011
Gross Operating Revenues
Domestic Market
in R$million
-13%
32%
925
701
2T07
2Q11 Results Conference Call
2T08
13%
3%
808
831
2T09
2T10
Page 5
936
2T11
July 22, 2011
Gross Operating Revenues
External Market
In US$ million
External Market in US$
1,9807
2,0705
1,6529
Quarterly Average FX
1,7920
1,5922
63%
-13%
17%
4%
361
211
Q2 2007
2Q11 Results Conference Call
246
213
221
Q2 2008
Q2 2009
Q2 2010
Page 6
Q2 2011
July 22, 2011
Business Areas
Gross Revenues Breakdown
in R$ million
1.510
1.119
5%
12%
24%
7%
58%
2Q 2007
1.331
5%
12%
1.227
7%
17%
35%
25%
26%
57%
2Q 2008
Industrial Equipment
2Q11 Results Conference Call
1.250
6%
11%
6%
11%
23%
60%
48%
51%
2Q 2009
2Q 2010
GTD
Domestic Use
Page 7
2Q 2011
Paints & Varnishes
July 22, 2011
Cost of Goods Sold
2nd quarter of 2011
Other Costs
31%
Depreciation
5%
Other Costs
34%
Steel &
Coper
43%
2Q11
Depreciation
6%
Other
Materials
21%
2Q11 Results Conference Call
Other
Materials
17%
Page 8
2Q10
Steel &
Coper
43%
July 22, 2011
Main impacts on EBITDA
in R$ million
326,1
43,3
18,6
FX Impact
on Gross
Revenues
190,3
Deduction
on Gross
Revenues
21,7
1,4
COGS
Selling
Expenses
174,0
Volumes,
Prices &
Product Mix
Changes
EBITDA Q2 10
2Q11 Results Conference Call
General and
Administrative
Expenses
9,3
215,6
Profit Sharing
Program
EBITDA Q2 11
Page 9
July 22, 2011
Cash Flows
In R$ million
2.553,0
356,6
Operating
325,3
90,3
Investing
Financing
Cash 4Q10
2.674,6
Cash 2Q11
(*) R$ 226,1 million in long term securities that are considered at the cash flow from
investing activities
2Q11 Results Conference Call
Page 10
July 22, 2011
Capacity Expansion Program
in R$ million
Outside Brazil
Brazil
61,4
34,2
73,8
43,7
53,7
44,1
13,0
2,0
27,2
30,1
40,7
42,1
Q1
Q2
Q3
Q4
2010
2Q11 Results Conference Call
41,1
33,8
2,4
8,2
38,8
25,6
Q1
Q2
2011
Page 11
July 22, 2011
Contacts
www.weg.net/ri
ƒLaurence Beltrão Gomes
Investor Relations Officer
laurence@weg.net
ƒ Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net
twitter.com/weg_ir
2Q11 Results Conference Call
Page 12
July 22, 2011