Download - 2Q 2011 Results Conference Call
2Q11 Results Conference Call July 22, 2011
2Q11 Results Conference Call
July 22, 2011
Motors | Energy | Transmission & Distribution | Automation | Caotings
2Q11 Results Conference Call July 22, 2011
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.
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2Q11 Results Conference Call July 22, 2011
Highlights Second Quarter, 2011
Q2 2011 Q1 2010 Growth % Q2 2010 Growth %
Gross Operating Revenue 1,510,276 1,343,137 12.4% 1,227,421 23.0%
Domestic Market 936,061 862,863 8.5% 831,210 12.6%
External Markets 574,215 480,274 19.6% 396,211 44.9%
External Markets in US$ 360,639 288,211 25.1% 221,100 63.1%
Net Operating Revenue 1,277,258 1,126,117 13.4% 1,013,015 26.1%
Gross Operating Profit 381,437 310,662 22.8% 309,812 23.1%
Gross Margin 29.9% 27.6% 30.6%Quarterly Net Income 154,557 121,564 27.1% 116,522 32.6%
Net Margin 12.1% 10.8% 11.5%EBITDA 215,579 164,808 30.8% 174,015 23.9%
EBITDA Margin 16.9% 14.6% 17.2%
Figures in R$ Thousands
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2Q11 Results Conference Call July 22, 2011
Highlights First semester of 2011
06M11 06M10 Growth %
Gross Operating Revenue 2,853,413 2,358,967 21.0%
Domestic Market 1,798,924 1,632,509 10.2%
External Markets 1,054,489 726,458 45.2%
External Markets in US$ 648,850 402,270 61.3%
Net Operating Revenue 2,403,375 1,944,922 23.6%
Gross Operating Profit 692,099 618,425 11.9%
Gross Margin 28.8% 31.8%Quarterly Net Income 276,121 236,167 16.9%
Net Margin 11.5% 12.1%EBITDA 380,387 355,765 6.9%
EBITDA Margin 15.8% 18.3%
Figures in R$ Thousands
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2Q11 Results Conference Call July 22, 2011
Gross Operating Revenues Domestic Market
in R$million
701
925808 831
936
32%-13% 3%
13%
2T07 2T08 2T09 2T10 2T11
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2Q11 Results Conference Call July 22, 2011
Gross Operating Revenues External Market
In US$ million
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211246 213 221
361
17% -13% 4%
63%
1,9807 1,65292,0705 1,7920 1,5922
Q2 2007 Q2 2008 Q2 2009 Q2 2010 Q2 2011
External Market in US$ Quarterly Average FX
2Q11 Results Conference Call July 22, 2011
Business Areas Gross Revenues Breakdown
7%
in R$ million
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58%57%
48% 51%
60%
24%
26%
35% 25%
23%12%
12%11%
17%
11%
5%
5%6% 7%
6%
1.119
1.331 1.250 1.227
1.510
2Q 2007 2Q 2008 2Q 2009 2Q 2010 2Q 2011
Industrial Equipment GTD Domestic Use Paints & Varnishes
2Q11 Results Conference Call July 22, 2011
Cost of Goods Sold 2nd
quarter of 2011
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Depreciation5%
Other Costs31%
Steel & Coper43%
Other Materials
21%
2Q11Depreciation
6%
Other Costs34%
Steel & Coper43%
Other Materials
17%
2Q10
2Q11 Results Conference Call July 22, 2011
Main impacts on EBITDA
in R$ million
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174,0
326,1 43,3
18,6190,3
21,7
1,49,3 215,6
Deduction on Gross Revenues
General and Administrative
Expenses
EBITDA Q2 10 EBITDA Q2 11
Volumes, Prices &
Product Mix Changes
FX Impact on Gross Revenues
COGS
Selling Expenses
Profit Sharing Program
2Q11 Results Conference Call July 22, 2011
Cash Flows
In R$ million
(*) R$ 226,1 million in long term securities that are considered at the cash flow from investing activities
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2.553,0356,6
325,3 90,3 2.674,6
Investing
Cash 4Q10 Cash 2Q11
Operating Financing
2Q11 Results Conference Call July 22, 2011
Capacity Expansion Program
in R$ million
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27,2 30,1 40,7 42,125,6
38,8
34,2 43,7 13,0 2,0
8,2 2,4
61,4 73,8
53,7 44,1 33,8
41,1
Q1 Q2 Q3 Q4 Q1 Q2
Outside Brazil
Brazil
2010 2011
2Q11 Results Conference Call July 22, 2011
Contacts
Laurence Beltrão Gomes
Investor Relations Officer
Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
twitter.com/weg_ir
www.weg.net/ri
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