Motors | Automation | Energy | Transmission & Distribution | Paints
Q2 2010 Results Conference Call
July 29th, 2010
Q2 2010 Conference Call
July 29th, 2010
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.
Q2 2010 Conference Call
Page 2
July 29th, 2010
General Comments on Q2 2010
„
„
Quarter market by new events on innternationalization strategy:
„
Aditional stake in Voltran (Mexico)
„
Acquisition of control of ZEST (South Africa)
„
Acquisition of Instrutech (Brazil)
Energy efficency and renewable and distributed energy
generation continue to be the main growth opportnities
Q2 2010 Conference Call
Page 3
July 29th, 2010
Quarterly 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
Q2 2010
1.227.421
Q1 2010
1.131.546
Growth %
8,5%
831.200
396.200
221.100
801.299
330.247
181.170
3,7%
20,0%
22,0%
808.355
441.838
213.396
2,8%
-10,3%
3,6%
1.013.015
309.158
30,5%
116.138
11,5%
174.015
17,2%
931.907
307.454
33,0%
119.074
12,8%
181.750
19,5%
8,7%
0,6%
1.029.945
294.175
28,6%
129.670
12,6%
172.925
16,8%
-1,6%
5,1%
-2,5%
-4,3%
Q2 2009 Growth %
1.250.193
-1,8%
-10,4%
0,6%
Figures in R$ Thousands
Q2 2010 Conference Call
Page 4
July 29th, 2010
Gross Operating Revenues
Evolution of Gross Revenues – Domestic Market
(in R$ million)
Evolution of Gross Revenues – External Market
(in US$ million)
External Market in US$
Quarterly Average FX
2,1902
-13%
32%
1,9807
1,6529
1,7919
3%
4%
-13%
17%
34%
37%
925
701
808
831
210,8
525
Q2 2006
2,0705
245,8
213,4
221,1
Q2 2009
Q2 2010
154,2
Q2 2007
Q2 2010 Conference Call
Q2 2008
Q2 2009
Q2 2010
Q2 2006
Page 5
Q2 2007
Q2 2008
July 29th, 2010
Global Presence
Gross Revenues Breakdown – 2Q10
8%
13%
Europe
North America
3%
7%
Asia & Oceania
68%
3%
6%
South & Central America
Q2 2010 Conference Call
Africa
Brazil
Page 6
July 29th, 2010
Business Areas
Gross Revenues Breakdown – 2Q10
863
6%
13%
19%
1.331
5%
12%
1.119
5%
12%
24%
7%
6%
11%
17%
35%
25%
57%
62%
51%
48%
Q2 07
Industrial Equipment
Q2 2010 Conference Call
1.250
26%
58%
Q2 06
1.307
Q2 08
GTD
Q2 09
Domestic Use
Page 7
Q2 10
Paints & Varnishes
July 29th, 2010
Cost of Goods Sold
Other Costs
34%
Depreciation
6%
Other
Materials
17%
Q2 2010 Conference Call
Other Costs
29%
Q2 10
Depreciation
5%
Other
Materials
20%
Steel &
Coper
43%
Page 8
Q2 09
Steel &
Coper
46%
July 29th, 2010
Main changes on EBITDA
172,9
38,8
Volumes,
Prices &
Product Mix
changes
EBITDA 2T09
1,2
- 61,6
5,8
FX impact on
Gross
Revenues
Deduction on
Gross
Revenues
29,9
COGS (1)
Salling
Expoenses
(1)
-18,2
General &
Administr.
Expenses (1)
5,1
174,0
Profit
Sharing
Program
EBITDA 2T10
(1) Ex depreciation
Q2 2010 Conference Call
July 29th, 2010
Cash Flows
Accumulated 6 months 2010
- 248
432
Cash Flow from
Operating
Activities
Q2 2010 Conference Call
152
336
Cash Flow From
Investment
Activities
Cash Flow From
Financing
Activities
Change in Cash
Position
July 29th, 2010
Financing Policies
CASH & EQUIVALENT
DEBT
- Current
- Long Term
NET CASH (DEBT)
Q2 2010 Conference Call
June 2010
2.463.531
2.187.124
741.233
1.445.891
276.407
December 2009
2.127.117
1.872.533
895.885
976.648
254.584
Page 12
June 2009
1.806.997
1.811.906
1.044.633
767.273
(4.909)
July 29th, 2010
Capacity Expansion Investments
Outside Brazil
Brazil
91,9
20,1
73,8
63,5
61,4
15,7
71,8
47,8
Q1
Q2
32,7
13,7
19,1
13,8
24,3
27,2
30,1
Q3
Q4
Q1
Q2
34,2
2010
2009
Q2 2010 Conference Call
43,7
38,2
Page 13
July 29th, 2010
Contacts
www.weg.net/ir
ƒLaurence Beltrão Gomes
IRO
laurence@weg.net
ƒ Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net
MSN Messenger
luisfernando@weg.com.br
ƒDaniel Segalin
Investor Relations Analyst
+55 (47) 3276-6106
ri@weg.net
Q2 2010 Conference Call
twitter.com/weg_ir
Page 14
July 29th, 2010