3q 2011 results conference call

3Q11 Results Conference Call October 26, 2011

3Q11 Results Conference Call

October 26, 2011

Motors | Energy | Transmission & Distribution | Automation | Caotings


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.


Highlights Third Quarter, 2011

Q3 2011 Q2 2011 Growth % Q3 2010 Growth %

Gross Operating Revenue 1.552.044 1.510.276 2,8% 1.419.160 9,4%

Domestic Market 953.515 936.061 1,9% 906.954 5,1%

External Markets 598.529 574.215 4,2% 512.207 16,9%

External Markets in US$ 364.730 360.639 1,1% 298.020 22,4%

Net Operating Revenue 1.317.483 1.277.258 3,1% 1.188.622 10,8%

Gross Operating Profit 418.266 381.437 9,7% 377.227 10,9%

Gross Margin 31,7% 29,9% 31,7%Net Income 154.567 154.557 0,0% 142.106 8,8%

Net Margin 11,7% 12,1% 12,0%EBITDA 243.743 215.579 13,1% 209.196 16,5%

EBITDA Margin 18,5% 16,9% 17,6%

EPS 0,2491 0,2491 0,0% 0,2289 8,9%

Figures in R$ Thousands


Gross Operating Revenues Domestic Market

in R$million

785

968889 907 954

23%-8%

2%5%

Q3 2007 Q3 2008 Q3 2009 Q3 2010 Q3 2011


Gross Operating Revenues External Market

In US$ million


Business Areas Gross Revenues Breakdown

7%

in R$ million

1.489

1.283

56%58%

46%60%

58%

25%

25%

35%22%

25%13%

13%

14%12%

11%

6%

5%

6%

7%6%

1.219

1.419

1.552

3Q 2007 3Q 2008 3Q 2009 3Q 2010 3Q 2011Industrial Equipment GTD Domestic Use Paints & Varnishes


Cost of Goods Sold 3rd

quarter of 2011

Depreciation5%

Other Costs33%

Steel & Coper44%

Other Materials

18%

3Q10Depreciation4%

Other Costs31%

Steel & Coper45%

Other Materials

21%

3Q11


Main impacts on EBITDA

in R$ million

209,2

161,2 28,3

4,0 88,3

8,0 4,4 2,4 243,7

Deductions on Gross

Revenues

General and Administrative

Expenses

EBITDA Q3 10 EBITDA Q3 11

Volumes, Prices & Product Mix

Changes

FX Impact on Gross

Revenues

COGS (ex depreciation) Selling

Expenses

Profit Sharing Program


Cash Flows

In R$ million

2.553,0290,8 319,7

562,4 3.086,6

Investing

Cash 4Q10 Cash 3Q11

Operating Financing

(*) Long term financial investments are considered under cash flows from investing activities.


Capacity Expansion Program

in R$ million

27,2 30,1 40,7 42,125,6

38,8 42,6

34,243,7 13,0 2,0

8,22,4

7,3

61,473,8

53,7

33,849,944,1 41,1

Q1 Q2 Q3 Q4 Q1 Q2 Q3

Outside BrazilBrazil

2010 2011


Contacts

Laurence Beltrão Gomes

Investor Relations Officer

[email protected]

Luís Fernando M. Oliveira

Investor Relations Manager

+55 (47) 3276-6973

[email protected]

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