Motors | Energy | Transmission & Distribuition | Automation | Coatings
1Q11 Results Conference Call
April 28, 2011
Q1 2011 Results Conference Call
April 28, 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.
Q1 2011 Results Conference Call
Página 2
April 28, 2011
Q1 2011 Highlights
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
Q1 2011
1,343,137
862,863
480,274
288,211
1,126,117
310,662
Q1 2010 Growth % Q4 2010 Growth %
1,131,546 18.7% 1,504,610 -10.7%
801,299
964,471 -10.5%
7.7%
330,247 45.4%
540,200 -11.1%
181,170 59.1%
315,278 -8.6%
931,907 20.8% 1,258,429 -10.5%
308,613
391,300 -20.6%
0.7%
27.6%
33.1%
121,564
119,645
10.8%
12.8%
164,808
181,750
14.6%
19.5%
31.1%
1.6%
141,508 -14.1%
11.2%
-9.3%
224,149 -26.5%
17.8%
Figures in R$ Thousands
Q1 2011 Results Conference Call
Página 3
April 28, 2011
Gross Operating Revenues
Domestic Market
R$ million
5%
8%
0%
22%
623
1T07
Q1 2011 Results Conference Call
761
802
801
863
1T08
1T09
1T10
1T11
Página 4
April 28, 2011
Gross Operating Revenues
External Markets
US$ million
2,1066
External Market in US$
2,3117
1,7354
Quarterly Average FX
1,8229
1,6664
59%
-11%
4%
18%
288
165
195
203
181
Q1 2007
Q1 2008
Q1 2009
Q1 2010
Q1 2011 Results Conference Call
Página 5
Q1 2011
April 28, 2011
Business Areas
Gross Revenues Breakdown
1.343
971
6%
14%
21%
1.271
5%
9%
1.100
6%
15%
33%
25%
1.132
8%
17%
24%
30%
7%
59%
7%
13%
57%
52%
54%
46%
1Q 2007
1Q 2008
Industrial Equipment
1Q 2009
GTD
1Q 2010
Domestic Use
1Q 2011
Paints & Varnishes
R$ million
Q1 2011 Results Conference Call
Página 6
April 28, 2011
Cost of Goods Sold
Other Costs
31%
Depreciation
5%
Other Costs
33%
Steel &
Coper
44%
1Q11
Depreciation
6%
Other
Materials
20%
Q1 2011 Results Conference Call
Other
Materials
19%
Página 7
1Q10
Steel &
Coper
42%
April 28, 2011
Main impacts on EBITDA
256,7
45,1
17,4
189,6
FX Impact on
Gross
Revenues
Deduction
on Gross
Revenues
22,1
181,8
0,7
Volumes,
Prices &
Product Mix
Changes
COGS
Selling
Expenses
1,2
164,8
General and
Administrative
Expenses
EBITDA Q1 11
EBITDA Q1 10
R$ million
Q1 2011 Results Conference Call
Página 8
April 28, 2011
Cash Flow
2.553,0
189,2
34,6
Operating
Investing
Cash 4Q10
2.487,1
220,5
Financing
Cash 1Q11
R$ million
Q1 2011 Results Conference Call
Página 9
April 28, 2011
Capex Program
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
33,8
8,2
25,6
Q1
2011
R$ million
Q1 2011 Results Conference Call
Página 10
April 28, 2011
Final Remarks
„
„
„
„
„
Growth is robust and increasingly diversified :
„ Products
„ Segments
„ Geographies
Unfavorable scenario has a short term impact, but it can be
minimized over the next quarters
2010 acquisitions underwent profound changes when
incorporated into WEG
We are working to maximize returns on recent investments on
new capacity
Medium and long term opportunities continue to be very
attractive
Q1 2011 Results Conference Call
Página 11
April 28, 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
Q1 2011 Results Conference Call
Página 12
April 28, 2011