1q 2012 conference call apr 26 2012

1Q12 C f C ll1Q12 Conference CallApril 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 conditionsInvestors 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

d i h f t id tiexpressed in such future considerations.

1Q12 Conference Call April 26, 2012

HighlightsQuarterly FiguresQuarterly Figures

Q1 2012 Q4 2011 % Q1 2011 %Net Operating Revenue 1.369.762 1.468.551 -6,7% 1.126.117 21,6% Domestic Market 714.268 781.938 -8,7% 660.322 8,2%External Markets 655.494 686.613 -4 5% 465.795 40 7% External Markets 655.494 686.613 4,5% 465.795 40,7%

External Markets in US$ 370.825 380.772 -2,6% 279.522 32,7%Gross Operating Profit 391.967 445.686 -12,1% 310.662 26,2%Gross Margin 28 6% 30 3% 27 6%Gross Margin 28,6% 30,3% 27,6%Net Income 148.247 156.248 -5,1% 121.564 21,9%Net Margin 10,8% 10,6% 10,8%EBITDA 208 638 258 210 19 2% 164 808 26 6%EBITDA 208.638 258.210 -19,2% 164.808 26,6%EBITDA Margin 15,2% 17,6% 14,6%EPS 0,2390 0,2518 -5,1% 0,1958 22,0%

Figures in R$ Thousands


Net Operating RevenueDomestic MarketDomestic Market

in R$ million

7%8%

6% 3% 7%

562 595 615 660 714562 595 615 660


Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012

Net Operating RevenueExternal MarketExternal Market

in US$ million

1 73542,3117

1 8229 1 6664 1 7677

External Market in US$ Quarterly Average FX

33%

1,7354 1,8229 1,6664 1,7677

61%

33%

280371

5% -11%61%

188 196 174

280

Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012


Q1 2008 Q1 2009 Q1 2010 Q1 2011 Q1 2012

Business AreasNet Revenue breakdownNet Revenue breakdownin R$ million 1.363

5%0,5%

930

1.12411%

9%

6%

2,2%

1,9%

5%

5%

0,2%

12%

14%5%

8%12%

9%

2,0%6% 0,2%

7%35%

27%

31%21%

29%27% 30%

27%

1Q 2010 1Q 2011 1Q 2012Industrial Equipment DM Industrial Equipment EMGTD DM GTD EM


GTD DM GTD EMDomestic Use DM Domestic Use EMPaints & Varnishes DM Paints & Varnishes EM

Cost of Goods Sold

Materials64%

Depreciation5%

Other Costs9%Depreciação

5%

Other Costs8%

Labor23%

1Q111Q12Labor22%

Materiais64%64%


Main effects on EBITDA$in R$ million

206,137,6 158,9

FX Impact on

Revenues

26,0

10,84,1 208 6

COGS (ex depreciation)

164,8

208,6

General and Administrative

E pensesVolumes,

depreciation)Selling

ExpensesProfit Sharing

ProgramExpensesPrices &

Product Mix Changes

EBITDA Q1 11 EBITDA Q1 12


Sources and Uses of Cash

in R$ million

Uses Dividends/interest on equity capital

20%Decrease in Working

Capital

Other / Adjustments1% Sources

Increase in Working Capital

1%

Income Taxes Paid6%

Amortization of Financing45%

Depreciation and amortization

Other accounts payable4%

Capital6%

6%

Profit Sharing Paid7%

R$ 881 million

amortization6%

R$ 881 million

Capex7%

Acquisition

Pre-tax income22%

Decrease in Cash42%

q15%

Long-term investments1%New Financing

20%


Capex Program

Outside BrazilBrazil

1 049 963,1

58,7

a

38 8 42 662,1 53,78,2

2,4 7,31,0 5,0

33,841,1

49,9

25,6 38,8 42,6

Q1 Q2 Q3 Q4 Q1Q1 Q2 Q3 Q4 Q1

in R$ million

2011 2012


Contacts

Laurence Beltrão GomesInvestor Relations Officer [email protected]

Luís Fernando M. OliveiraLuís Fernando M. OliveiraInvestor Relations Manager +55 (47) 3276-6973 l i f d @ [email protected]/weg_ir

www.weg.net/ri
