weg q1 2013 conference call

C f C llConference Call 1Q13April 25th, 2013

Disclamer

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.

1Q13 Conference Call April 25, 2013

HighlightsQuarterly Figures

Q1 2013 Q4 2012 % Q1 2012 %

Net Operating Revenue 1 477 577 1 662 258 11 1% 1 369 762 7 9%

Quarterly Figures

Net Operating Revenue 1,477,577 1,662,258 -11.1% 1,369,762 7.9%

Domestic Market 772,935 774,533 -0.2% 714,268 8.2% External Markets 704,642 887,725 -20.6% 655,494 7.5%

External Markets in US$ 353,077 431,141 -18.1% 370,825 -4.8%

Gross Operating Profit 463,635 528,641 -12.3% 391,967 18.3%

Gross Margin 31 4% 31 8% 28 6%Gross Margin 31.4% 31.8% 28.6%Net Income 172,299 183,157 -5.9% 148,247 16.2%

Net Margin 11.7% 11.0% 10.8%EBITDA 248,898 289,786 -14.1% 198,251 25.5%

EBITDA Margin 16.8% 17.4% 14.5%EPS 0.2777 0.2952 -5.9% 0.2390 16.2%EPS 0.2777 0.2952 5.9% 0.2390 16.2%

Figures in R$ Thousand


Net Operating RevenueQuarterly EvolutionQuarterly Evolution

In R$ million

Domestic Market

1,478 1,662 1,613

1,529 1 370

External Market

52%48% 50% 47%

52%

1,370

52%

48% 52% 50% 53% 48%

Q1 Q2 Q3 Q4 Q1


2012 2013

Business AreasRevenue breakdownRevenue breakdown

5% 8% 7% 7% 7%9%

17%13% 9% 11%

8% 7% 7% 7%

33%

30%

24%23% 20%

52%46%

57% 61% 62%


1Q09 1Q10 1Q11 1Q12 1Q13Industrial Equipment GTD Domestic Use Paints & Varnishes

Costs of Goods Sold

Materials

Materials64%

64%

1Q13 1Q121Q13Other Costs

1Q12

Depreciation4%

9%

Labor23%

Labor23%

Depreciation5%

Other Costs8%


Main impacts on EBITDA

Q1 2013 Q4 2012 % Q1 2012 %Q1 2013 Q4 2012 % Q1 2012 %Net Operating Revenues 1.477,6 1.662,3 -11,1% 1.369,8 7,9%

Consolidated Net Income for the Period 173,1 184,8 -6,4% 151,3 14,4%, , , , ,Net Margin 11,7% 11,1% 11,0%(+) Income taxes & Contributions 48,3 53,7 -9,9% 43,3 11,7%(+/-) Financial income (expenses) (24,7) (2,7) 826,4% (45,9) -46,3%( ) D i i & A i i(+) Depreciation & Amortization 52,1 54,0 -3,4% 49,6 5,2%EBITDA 248,9 289,8 -14,1% 198,3 25,5%EBITDA Margin 16,8% 17,4% 14,5%

Figures in R$ thousandsFigures in R$ thousands


Working Capital

In % of Net Revenue

50 0%

40,0%

50,0%

30,0% Working Capital

20,0% InventoriesClients

10,0%Suppliers

0,0%

1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13

ppAdvances


1Q06 1Q07 1Q08 1Q09 1Q10 1Q11 1Q12 1Q13

Capex Program

In R$ million

O

56 873.7

55 558 7

Outside Brazil

Brazil

64 56.0

9.3 5.1 3.7 5.0

56.8 50.4 55.5 58.7

53.7 51.9 45.464.5 50.8

2012 2013

Q1 Q2 Q3 Q4 Q1


2012 2013

Contacts

Laurence Beltrão GomesFinance and Investor 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
