1q 2012 conference call apr 26 2012
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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, 2012Page 2
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
1Q12 Conference Call April 26, 2012Page 3
Net Operating RevenueDomestic MarketDomestic Market
in R$ million
7%8%
6% 3% 7%
562 595 615 660 714562 595 615 660
1Q12 Conference Call April 26, 2012Page 4
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
1Q12 Conference Call April 26, 2012Page 5
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
1Q12 Conference Call April 26, 2012Page 6
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%
1Q12 Conference Call April 26, 2012Page 7
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
1Q12 Conference Call April 26, 2012Page 8
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%
1Q12 Conference Call April 26, 2012Page 9
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
1Q12 Conference Call April 26, 2012Page 10
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
1Q12 Conference Call April 26, 2012Page 11