WEG 2Q09 Earnings Conference Call Presentation, held on July 27, 2009

1. Conference Call
Results 2Q09
July 27th, 2009

2. 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.
2Q09 Conference Call Page 2 July 27th, 2009

3. General Comments on 2Q09
Very difficult market conditions
Revenue growth for the semester, but quarterly comparison
shows decline:
“White goods” with strong rebound
Industrial equipment with no recovery
GTD with order backlog
Gross margin impacted by:
Lower capacity occupancy
Revenue mix
Pricing pressures
Remaining effect of raw materials costs
Growth estimates seem out of reach
Positive highlights
Administrative expenses control
Working capital and cash management
2Q09 Conference Call Page 3 July 27th, 2009

4. Quarterly Highlights
2Q09 2Q08 Growth %
Gross Operating Revenue 1,250,193 1,331,012 -6.1%
Domestic Market 808,355 924,701 -12.6%
External Markets 441,838 406,311 8.7%
External Markets in US$ 213,396 245,822 -13.2%
Net Operating Revenue 1,029,945 1,095,815 -6.0%
Gross Operating Profit 294,175 392,025 -25.0%
Gross Margin 28.6% 35.8%
Quarterly Net Income 129,670 169,855 -23.7%
Net Margin 12.6% 15.5%
EBITDA 172,925 253,729 -31.8%
EBITDA Margin 16.8% 23.2%
Figures in R$ Thousands
2Q09 Conference Call Page 4 July 27th, 2009

5. Gross Operating Revenues
Evolution of Gross Revenues – Domestic Market
(in R$ million)
-13%
32%
Gross and Net Operating Revenues
34% decreasing by 6%
9% Quarter had a stronger comparison base,
924,7
808,4 without the distortions of the 1T08
701,0
481,1 525,1 FX favors R$ denominated growth
comparisons
2Q05 2Q06 2Q07 2Q08 2Q09
Industrial production slowing down and
capital goods production slowing even
Evolution of Gross Revenues – External Market faster
(in US$ million)
Global crises impacts across all markets
2,4774 2,1902 1,9807 2,0705 Diversification across markets /
1,6529
External Market in US$ segments / clients minimizes but does
17% -13%
Quarterly Average FX not eliminate recession
37%
33%
245,8
210,8 213,4
154,2
115,9
2Q05 2Q06 2Q07 2Q08 2Q09
2Q09 Conference Call Page 5 July 27th, 2009

6. Global Presence and Business Areas
Gross Revenues Breakdown – 2Q09
12%
10% Europe
North America
5%
65%
Asia & Oceania
5% 4%
Brazil Africa
South & Central America
7% 1.119
1.331
5%
863 5%
12% 9%
6%
Domestic market grew in importance 768 13% 25%
629 6% 33%
again, despite FX rate (end of strong R$ 21%
6% 17%
distortion) 21% 18%
12% 57%
Rest of the World grows faster than North 58%
62% 48%
America and Europe 61%
GTD continues strong with order backlog.
Industrial equipment impacted by crises 2Q05 2Q06 2Q07 2Q08 2Q09
Industrial Equipment GTD Domestic Use Paints & Varnishes
2Q09 Conference Call Page 6 July 27th, 2009

7. Cost of Goods Sold
Lower capacity occupancy
Revenue mix
Pricing pressures
Remaining effect of raw materials costs
Other Costs
Other Costs 31%
29% Steel & Coper
45%
2T09 2T08
Depreciation Depreciation
5% 6%
Steel & Coper
46% Other Materials
18%
Other Materials
20%
2Q09 Conference Call Page 7 July 27th, 2009

8. Profitability
26% 23%
40% 21%
35% 36% 18% 17%
31% 29%
254
238
173
392 154
368
294 118
254
200
2Q05 2Q06 2Q07 2Q08 2Q09 2Q05 2Q06 2Q07 2Q08 2Q09
Gross Profit Gross Margin EBITDA EBITDA Margin
16% 16% 16%
12% 13%
Lower gross margin with lower
occupancy, product mix, pricing
170
pressures and raw material costs
151
120
130 EBITDA margin shows smaller decline
79 Net income benefits from more stable
FX rate
2Q05 2Q06 2Q07 2Q08 2Q09
Net Income Net Margin
2Q09 Conference Call Page 8 July 27th, 2009

9. Financing Policies
June 2009 December 2008 June 2008
CASH & EQUIVALENT 1,806,997 1,849,477 1,802,142
DEBT 1,811,906 2,161,216 1,634,459
- Current 1,044,633 1,314,098 1,009,095
- Long Term 767,273 847,118 625,364
NET CASH (DEBT) (4,909) (311,739) 167,683
Working capital shows improving trend
Operating cash flow generation being used to pay down short term debt
Foreign currency exposure nearly eliminated (below maximum limit of 3
months of exports equivalent)
2Q09 Conference Call Page 9 July 27th, 2009

10. Capacity Expansion Investments
Outside Brazil
Brazil
130.4 128.2
120.8
20.5 24.8
24.0
91.9
77.8
20.1
11.8 63.5
109.9 103.4 15.7
96.8
66.0 71.8
47.8
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
2Q09 Conference Call Page 10 July 27th, 2009

11. Contacts
www.weg.net/ir
Alidor Lueders
CFO & IRO
alidor@weg.net
Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net twitter.com/weg_ir
ri@weg.net
MSN Messenger
luisfernando@weg.com.br
2Q09 Conference Call Page 11 July 27th, 2009