The document summarizes WEG's 4Q08 results conference call. It discusses challenges faced in 2008 from cost increases and currency depreciation impacts not fully passed through. Gross and net revenues grew by 24.9% and 26.8% respectively over 4Q07. Margins declined due to specific temporary factors. The external market grew to 41% of revenues. Cost of goods was impacted by steel and copper prices. A capex program of R$457 million was carried out in 2008 to expand capacity.

1. Conference Call
Results 4Q08
February 18th, 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.
2 3Q08 Conference Call October 28th, 2008

3. General Comments on 4Q08
2008 was a challenging year but with good results
Expectations for the year were met:
Gross Revenues growth of 20% over 2007;
Both on the domestic and external markets;
Margins suffering from specific factors:
Cost increases (steel) and devaluation not passed-through;
Lower copper prices still not reflected into costs
Logistic problems with November strong rains
Financial expenses with additional FX depreciation impact
Change of accounting procedures makes net income comparisons
difficult
Fundamentals continue strong, but in 2009 we must go after:
New markets
New clients
New products
3 3Q08 Conference Call October 28th, 2008

4. Quarterly Highlights
4Q08 4Q07 Growth %
Gross Operating Revenue 1.551.639 1.242.204 24,9%
Domestic Market 917.041 831.899 10,2%
External Markets 634.598 410.305 54,7%
External Markets in US$ 277.605 229.760 20,8%
Net Operating Revenue 1.295.630 1.021.831 26,8%
Gross Operating Profit 420.669 359.357 17,1%
Gross Margin 32,5% 35,2%
Quarterly Net Income 97.658 138.105 -29,3%
Net Margin 7,5% 13,5%
EBITDA 268.974 231.879 16,0%
EBITDA Margin 20,8% 22,7%
Figures in R$ Thousands
4 3Q08 Conference Call October 28th, 2008

5. Consolidated Gross Revenues Growth
Evolution of Gross Revenues per Market
(in R$ million)
1.552
External Market
Domestic Market
1.242
Growth rate accelerating to 25% over
635
4Q07
410
962 Reached 20% growth rate in 2008, as
expected
759
721 Strong competitive position in terms of:
404
Operational Flexibility
299
292
Revenues diversification
917
832 Costs advantage
7,9%
Capital 1
Structure
558
460
429
Good comparative conditions to withstand
lower growth environment
4Q04 4Q05 4Q06 4Q07 4Q08
5 3Q08 Conference Call October 28th, 2008

6. Gross Revenues Growth
Evolution of Gross Revenues – Domestic Market
(in R$ million)
10%
Domestic Market continued
49%
growing, but a slower pace
7% 21%
Strong slowdown in Industrial
917,0
831,9
Production (Capital Goods +3%
557,6
during 4Q08 - IBGE)
459,8
429,1
Growth in all business areas but
motors for domestic use
4Q04 4Q05 4Q06 4Q07 4Q08
Evolution of Gross Revenues – External Market
(in US$ million)
2,7842
2,2860
2,2518 2,1524 1,7858
Diversification across markets /
External Market in US$
segments / clients is beneficial
21%
Quarterly Average FX
22%
FX starts to help growth rate
41%
27% 277,6
measured in $
229,8
187,9
Infrastructure maintains good
133,0
104,9
perspectives
4Q04 4Q05 4Q06 4Q07 4Q08
6 3Q08 Conference Call October 28th, 2008

7. WEG’s Global Presence
Gross Revenues Breakdown – 3Q08
12%
12%
Europe
North America
6%
59% Asia & Oceania
4%
7%
Brazil Africa
South & Central America
1.552
7%
5%
11%
1.242
6%
FX increases importance of external 962 32%
16%
market to 41% 6%
759 16%
721 21%
7%
Revenues spread across markets, 6% 16%
18%
20%
with no particular exposures 15%
11% 52%
56%
GTD continues strong and QoQ 62%
60%
63%
changes are characteristics
4Q04 4Q05 4Q06 4Q07 4Q08
Industrial Equipment GTD Domestic Use Paints & Varnishes
7 3Q08 Conference Call October 28th, 2008

8. Cost of Goods Sold
Steel prices increased towards year-end and lower cooper prices still not reflected into
lower costs
No pass-through of FX devaluation into domestic market prices
These effects are expected to be temporary
Steel & Coper
43%
Other Costs
Other Costs
28%
27%
4Q08 4Q07
Depreciation
Depreciation
Steel & Coper 5%
4%
43%
Other
Materials
24%
Other Materials
26%
8 3Q08 Conference Call October 28th, 2008

9. Profitability
39% 36% 35%
33% 32%
32%
23% 23%
21% 21%
19%
17%
269
232
191
421
359
298
122
104
210 99
199
182
4Q03 4Q04 4Q05 4Q06 4Q07 4Q08 4Q03 4Q04 4Q05 4Q06 4Q07 4Q08
EBITDA EBITDA Margin
Gross Profit Gross Margin
18% 16%
16% 15% 14%
8%
Gross Margin shows impacts from
exchange rate and commodities
Same impacts affecting EBITDA margin
138
133
Net income impacted by FX variations
98
97
96
86
(financial expenditures) and new
accounting of foreign subs.
4Q03 4Q04 4Q05 4Q06 4Q07 4Q08
Net Income Net Margin
9 3Q08 Conference Call October 28th, 2008

10. Financing Policies
December 2008 December 2007
CASH & EQUIVALENT 1,849,477 2,174,972
DEBT 2,161,216 1,731,740
- Current 1,314,098 1,077,487
- Long Term 847,118 654,253
NET CASH (DEBT) (311,739) 443,232
Changes on net cash position explained by
Capacity expansion program
Increases of working capital
Impact of devaluation over FX denominated debt
Maximum FX Exposure continues in place: equivalent to 3 months of exports
10 3Q08 Conference Call October 28th, 2008

11. Capacity Expansion Program
Outside Brazil 130,4 128,2
120,8
Brazil
20,5
24,8
24,0
87,6
R$ 457,2M capex for the year
77,8
9,6
70,3 Capex program was practically
11,8
accomplished at lower than
9,2
expected costs (FX outlays)
109,9 103,4
96,8 Expectation for 2009: R$ 375 M
78,0
Flexibility to adjust capacity
66,0
61,1
increases to demand
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08
11 3Q08 Conference Call October 28th, 2008

12. Investor Relations
Alidor Lueders
www.weg.net/ri
CFO and Investor Relations Officer
alidor@weg.net
Luís Fernando M. Oliveira
Investor Relations Manager
+55 (47) 3276-6973
luisfernando@weg.net
12 3Q08 Conference Call October 28th, 2008