Private and Strictly Confidential
OFFERING MEMORANDUM
40,786,131 Preferred Shares
of
WEG S.A.
This Supplemental Confidential Offering Memorandum supplements the Prospectus [date], and
must be read in conjunction with that document.
Pactual Capital Corporation
August, 2004
THE OFFERING OF THE PREFERRED SHARES (THE “SHARES”) OF WEG S.A. (THE “COMPANY”)
IS BEING MADE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION REQUIREMENTS
UNDER THE U.S. SECURITIES ACT OF 1933 (THE “SECURITIES ACT”) FOR AN OFFER AND SALE
OF SECURITIES WHICH DOES NOT INVOLVE A PUBLIC OFFERING. EACH PURCHASER OF
SHARES OFFERED HEREBY IN MAKING ITS PURCHASE WILL BE REQUIRED TO MAKE
CERTAIN ACKNOWLEDGMENTS, REPRESENTATIONS, WARRANTIES AND AGREEMENTS AS
SET FORTH UNDER “NOTICE TO INVESTORS”. THE SHARES HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OR ANY STATE SECURITIES LAWS AND, UNLESS SO
REGISTERED, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS.
THIS CONFIDENTIAL OFFERING MEMORANDUM (AND THE PROSPECTUS TO WHICH IT IS
ATTACHED) IS SUBMITTED ON A CONFIDENTIAL BASIS TO A LIMITED NUMBER OF
INSTITUTIONAL ACCREDITED INVESTORS FOR INFORMATIONAL USE ONLY IN CONNECTION
WITH THEIR CONSIDERATION OF THE PURCHASE OF THE SHARES. ITS USE FOR ANY OTHER
PURPOSE IS NOT AUTHORIZED. IT MAY NOT BE COPIED OR REPRODUCED IN WHOLE OR IN
PART NOR MAY IT BE DISTRIBUTED OR ANY OF ITS CONTENTS DISCLOSED TO ANYONE
OTHER THAN THE PROSPECTIVE INVESTORS TO WHOM IT IS SUBMITTED.
EACH
PROSPECTIVE INVESTOR, BY ACCEPTING DELIVERY OF THIS OFFERING MEMORANDUM,
AGREES TO BE BOUND BY THE FOREGOING RESTRICTIONS.
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR MAKE ANY
REPRESENTATION CONCERNING THE COMPANY OR THE SHARES NOT CONTAINED IN THIS
CONFIDENTIAL OFFERING MEMORANDUM AND, IF GIVEN OR MADE, SUCH INFORMATION
OR REPRESENTATION MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED.
NEITHER THE DELIVERY OF THIS OFFERING MEMORANDUM NOR THE OFFERING, SALE OR
DELIVERY OF ANY SHARE SHALL CREATE ANY IMPLICATION THAT THE INFORMATION
CONTAINED HEREIN IS CORRECT AT ANY TIME AFTER THE DATE HEREOF OR THAT THERE
HAS BEEN NO CHANGE IN THE BUSINESS, FINANCIAL CONDITION, RESULTS OF OPERATIONS
OR PROSPECTS OF THE COMPANY SINCE THE DATE HEREOF.
ALL INQUIRIES RELATING TO THIS CONFIDENTIAL OFFERING MEMORANDUM AND THE
OFFERING CONTEMPLATED HEREIN SHOULD BE DIRECTED TO THE COMPANY.
PROSPECTIVE INVESTORS MAY OBTAIN ADDITIONAL INFORMATION FROM THE COMPANY
WHICH THEY MAY REASONABLY REQUIRE IN CONNECTION WITH THEIR DECISION TO
PURCHASE ANY OF THE SHARES.
THE COMPANY RESERVES THE RIGHT TO REJECT ANY OFFER TO PURCHASE ANY OF THE
SHARES, IN WHOLE OR IN PART, OR TO SELL LESS THAN THE AMOUNT OF SHARES OFFERED
HEREBY OR FOR WHICH ANY PROSPECTIVE PURCHASER HAS SUBSCRIBED.
THE DISTRIBUTION OF THIS CONFIDENTIAL OFFERING MEMORANDUM AND THE OFFER,
SALE AND DELIVERY OF THE SHARES IN CERTAIN JURISDICTIONS MAY BE RESTRICTED BY
LAW. PERSONS INTO WHOSE POSSESSION THIS OFFERING MEMORANDUM COMES ARE
REQUIRED TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY SUCH RESTRICTIONS.
SEE “NOTICE TO INVESTORS” AND “SUBSCRIPTION AND SALE” FOR A DESCRIPTION OF
CERTAIN RESTRICTIONS ON OFFERS, SALES AND DELIVERIES OF THE SHARES AND ON
DISTRIBUTION OF THIS OFFERING MEMORANDUM AND OTHER OFFERING MATERIALS. THIS
CONFIDENTIAL OFFERING MEMORANDUM DOES NOT CONSTITUTE ANY OFFER TO SELL OR
THE SOLICITATION OF AN OFFER TO BUY THE SHARES IN ANY JURISDICTION IN WHICH
SUCH OFFER OR SOLICITATION IS UNLAWFUL.
1
NOTICE TO NEW HAMPSHIRE RESIDENTS
Neither the fact that a registration statement or an application for a license has been filed under
RSA 421-B with the state of New Hampshire nor the fact that a security is effectively registered or a
person is licensed in the state of New Hampshire constitutes a finding by the secretary of state that any
document filed under RSA 421-B is true, complete and not misleading. Neither any such fact nor the
fact that an exemption or exception is available for a security or a transaction means that the secretary
of state has passed in any way upon the merits or qualification of, or recommended or given approval
to, any person, security or transaction. It is unlawful to make or cause to be made to any prospective
purchaser, customer or client any representation inconsistent with the provisions of this paragraph.
2
THE OFFERING
Banco Bradesco S.A. is the local coordinator (the “Local Coordinator”) of the Public Offering (the
“Offering”) of WEG S/A in Brazil. Banco Pactual S.A. and BB Banco de Investimento S/A are the comanagers of the Offering (and together with the Local Coordinator, the “Joint Bookrunners”). The Offering
is being conducted in accordance with the Brazilian securities laws and regulations and is subject to
registration with the Brazilian Securities Commission (“CVM”).
Pactual Capital Corporation is offering shares to a limited number of institutional accredited investors in the
United States in a non-public offering, exempt from registration under the Securities Act. Prospective
Investors outside Brazil (including accredited investors located in the United States) who wish to acquire
shares must do so by way of the investment mechanisms set forth in National Monetary Council Resolution
No. 2,689, dated January 26, 2000 (“Resolution 2,689”). See “Share Purchase Mechanism.”
3
THE PROSPECTUS
This Confidential Offering Memorandum supplements the Prospectus dated [date], prepared in connection
with the Offering (the “Prospectus”). Prospective investors should read the Prospectus, which has been
prepared in accordance with Brazilian requirements. Brazilian disclosure differs in material respects from
disclosure usual in U.S. markets. In particular, financial statements are prepared in accordance with Brazilian
generally accepted accounting practices (“GAAP”), which differ from U.S. GAAP. The Prospectus is a free
translation from Portuguese. The attachments to the preliminary version of the Prospectus have not been
translated into English. Investors should bear this in mind in reviewing the Prospectus. The Portuguese is the
definitive version of the Prospectus. U.S. lawyers have not reviewed the Prospectus and will not be giving
any opinion with respect to its content.
Prospective investors that have questions about the disclosure in the Prospectus should contact the Company’s
Investors’ Relations Officer at the address below:
Mr. Alidor Lueders
Address: Rua Pref. Waldemar Grubba, 3300
Jaraguá do Sul, SC – Brazil
Telephone: (5547) 372-4000
Facsimile: (5547) 372-4201
Email: [email protected]
The information contained in the Prospectus was obtained from the Company and other sources believed by
the Company to be reliable, but no assurance can be given as to the accuracy or completeness of such
information. In making an investment decision, investors must rely on their own examination of the Company
and the terms of the offering, including the merits and risks involved. The contents of this Confidential
Offering Memorandum are not to be construed as legal, business or tax advice. Each prospective investor
should consult its own attorney, business advisor and tax advisor for legal, business and tax advice.
4
ADDITIONAL RISK FACTORS
In addition to the risk factors set forth in the Prospectus, prospective investors should take the following into
account:
Liquidity for the Company’s shares will be in Brazil. To the extent a market develops for the Shares, it
will not be in the United States. Any liquidity will be on the São Paulo Stock Exchange.
The price of the Shares obtained in U.S. dollars will be affected by the value of the Brazilian Real.
Investors that sell their Shares will receive the proceeds of that sale in Brazilian reais. Even if the value of the
Shares has increased in terms of reais, the U.S. dollar proceeds will depend upon the performance of the real
against the U.S. dollar.
Information about the Company will not be provided on an ongoing basis at the same level as in the
United States. Although Brazilian companies provide periodic information, it is not typically as extensive as
that provided in the United States, and is set out in a different format. Prospective investors should bear in
mind the availability of information in the future.
Brazilian accounting standards differ from those in the United States. Like all other Brazilian
companies, the Company prepares its financial statements in accordance with accounting practices adopted in
Brazil, which differs in certain significant respects from U.S. GAAP. Thus, the items appearing on the
financial statements of a company prepared in accordance with accounting practices adopted in Brazil may
not reflect its financial position or results of operations in the way they would be reflected had such financial
statements been prepared in accordance with U.S. GAAP. We have made no attempt to identify or quantify
the impact of those differences. In making an investment decision, investors must rely upon their own
examination of the Company, the terms of the offering and the financial information contained in the
Offering. Potential investors should consult their own professional advisors for an understanding of the
differences between accounting practices adopted in Brazil and U.S. GAAP, and how those differences might
effect the financial information presented in the Offering.
5
TAX ISSUES
This Preliminary Supplemental Confidential Offering Memorandum does not discuss the U.S. federal, state,
local or foreign income tax or other tax consequences that may be relevant to an investor acquiring, holding,
and disposing of the preferred shares of the Company. Investors are urged to consult their own tax advisors to
determine the specific tax consequences to them of investing in the Company's preferred shares, including the
applicable federal, state, local, and foreign tax consequences to them and the effect of possible changes in tax
laws.
Brazilian Taxation
The following discussion summarizes the principal Brazilian tax consequences of the acquisition, ownership
and disposition of preferred shares by a holder that is not domiciled in Brazil and that has registered the
investment as a U.S. dollar investment with the Central Bank (a “non-resident holder”). It is based on
Brazilian law as currently in effect. Any change in that law may change the consequences described below.
The following discussion summarizes the principal tax consequences applicable under Brazilian law to a nonresident holder of preferred shares in general and, therefore, does not specifically address all of the Brazilian
tax considerations applicable to any particular non-resident holder. Each non-resident holder should consult
its own tax adviser concerning the Brazilian tax consequences of an investment in preferred shares. The tax
consequences described below do not take into account tax treaties entered into by Brazil and other countries.
Nevertheless, please note that Brazil has not entered into any tax treaty with the United States.
Income tax
Dividends
Dividends paid by a Brazilian corporation, such as our company, including stock dividends and other
dividends paid to a non-resident holder of preferred shares, are currently not subject to withholding income
tax in Brazil, as far as such amounts are related to profits generated as of January 1, 1996.
Interest on Capital
Law No. 9,249, dated December 26, 1995, as amended, permits a Brazilian corporation, such as our company,
to make distributions to shareholders of interest on capital. These distributions may be paid in cash. This
interest is limited to the daily pro rata variation of the TJLP, as determined by the Central Bank from time to
time, and may not exceed the greater of:
50% of net income (after social contribution on profits and before corporate income tax, and taking into
consideration the deduction of the own interest amount attributable to shareholders) related to the period
in respect of which the payment is made; and
50% of the sum of retained profits and profit reserves as of the date of the beginning of the period in
respect of which the payment is made.
Payment of interest to a non-resident holder is subject to withholding income tax at the rate of 15%, or 25% if
the non-resident holder is domiciled in a tax haven — that is, a country or location that does not impose
income tax or where the income tax rate is lower than 20% or where the local legislation imposes restrictions
on disclosing the shareholding composition or the ownership of the investment (“tax haven residents”). These
payments may be included, at their net value, as part of any mandatory dividend. To the extent payment of
interest on capital is so included, the corporation is required to distribute to shareholders an additional amount
to ensure that the net amount received by them, after payment of the applicable withholding income tax, plus
the amount of declared dividends is at least equal to the mandatory dividend.
6
Capital gains
Brazilian law distinguishes between, on the one hand, direct foreign investments in Brazilian companies and,
on the other hand, foreign investments in securities issued by Brazilian companies through the Brazilian
capital markets. Under Resolution of the National Monetary Council No. 2,689, which became effective on
March 31, 2000, superseding previous regulations (Annex IV) that restricted such foreign investment
portfolios to institutional investors, foreign investors may invest directly in Brazilian financial markets, as
long as they meet certain requirements.
Gains realized by non-resident holders on the disposition of preferred shares in Brazil or in transactions with
Brazilian residents carried out in a stock exchange, if they observe the requirements of Resolution No. 2,689,
are exempted from withholding income tax, unless the foreign investor is located in a jurisdiction which does
not impose income tax or which has an income tax rate lower than 20%, in which case it will be subject to the
same general taxation rules applicable to Brazilian residents (withholding tax at a 20% rate).
Any gains realized by a non-resident holders upon the redemption of preferred shares will be treated as gains
from the disposition of such preferred shares to a Brazilian resident occurring off of a stock exchange and will
accordingly be subject to tax at a rate of 20%, except for gains realized by a non-resident located in a
jurisdiction which does not impose income taxes or which has an income tax rate lower than 20%, in which
case such gain will be subject to tax at a rate of 25%.
Gain is measured by the difference between the amount in Brazilian currency realized on the sale or exchange
and the acquisition cost of the shares sold, measured in Brazilian currency without any correction for
inflation; the acquisition cost of shares registered as an investment with the Central Bank of Brazil is
calculated on the basis of the foreign currency amount registered with the Central Bank of Brazil.
There can be no assurance that the current preferential treatment for non-resident holders of preferred shares
under Resolution No. 2,689 will be maintained.
Any exercise of preemptive rights relating to our preferred shares will not be subject to Brazilian taxation.
Gains on the sale or assignment of preemptive rights relating to our preferred shares will be treated differently
for Brazilian tax purposes depending on (a) whether the sale or assignment is made by you, and (b) whether
the transaction takes place on a Brazilian stock exchange. Gains on sales or assignments made on a Brazilian
stock exchange are not taxed in Brazil, but gains on other sales or assignments may be subject to tax at rates
up to 20%.
In case of direct foreign investments in Brazil (i.e., investments in Brazil that are not made through
Resolution No. 2,689), according to Law No. 10,833 dated December 29, 2003, the gain in the disposition of
assets located in Brazil by nonresident holders, whether to other Nonresidents or Brazilian residents and
whether made within or outside Brazil, is subject to taxation in Brazil at a rate of 15% or 25%, if the
nonresident holder is domiciled in a country that does not tax income or that taxes it at a maximum rate of
20%.
Tax on foreign exchange and financial transactions (“IOF Tax”)
Foreign exchange transactions
Brazilian law imposes a Tax on Foreign Exchange Transactions, or IOF/Exchange Tax, on the conversion of
reais into foreign currency and on the conversion of foreign currency into reais. Although the current
applicable rate for almost all foreign currency exchange transactions is zero, the Ministry of Finance is
permitted to increase the rate at any time up to 25%. However, any increase in rates may only apply to future
transactions.
7
Tax on transactions involving bonds and securities
Brazilian law imposes a Tax on Transactions Involving Bonds and Securities, or IOF/Bonds Tax, due on
transactions involving bonds and securities, including those carried out on a Brazilian stock exchange. The
rate of IOF applicable to transactions involving stocks is currently zero, although the Minister of Finance is
permitted to increase such rate at any time up to 1.5% per day, but only in respect of future transactions.
Temporary contribution on financial transactions (“CPMF Tax”)
Any transaction carried out by a holder of securities in Brazil that results in the transfer of reais from an
account maintained by such holder (or its custodian) with a Brazilian financial institution is subject to the
CPMF tax at the rate of 0.38%. The CPMF will be in effect until December 31, 2007.
Currently, the funds transferred for the acquisition of shares on BOVESPA are exempted from the CPMF
Tax. On the other hand, when a non-resident remits abroad the proceeds earned from the disposition of stocks
in Brazil by means of a currency exchange transaction, the CPMF tax is imposed on the amount in reais to be
remitted abroad.
When applicable, the CPMF tax must be withheld from the amounts transferred from such account and must
be collected in favor of the Brazilian government by the financial institution that carries out the relevant
financial transaction.
Other Brazilian taxes
There are no Brazilian inheritance, gift or succession taxes applicable to the ownership, transfer or disposition
of stocks, except for gift and inheritance taxes imposed by some Brazilian states on gifts or bequests by
individuals or entities not domiciled or residing in Brazil to individuals or entities domiciled or residing
within such states. There are no Brazilian stamp, issue, registration, or similar taxes or duties payable by
holders of shares.
8
SHARE PURCHASE MECHANISM
Investors residing outside Brazil, including institutional investors, are authorized to purchase equity
instruments, including the Shares on the BOVESPA, provided that they comply with the registration
requirements set forth in Resolution No. 2,689 and Instruction CVM No. 325.
With certain limited exceptions, Resolution 2,689 investors are permitted to carry out any type of transaction
in the Brazilian financial capital market involving a security traded on a stock, future, or organized over-thecounter market. Investments and remittances outside Brazil of gains, dividends, profits, or other payments
under the shares are made through the commercial rate exchange market.
In order to become a Resolution 2,689 investor, an investor residing outside Brazil must:
•
appoint a representative in Brazil with powers to take actions relating to the investment;
•
appoint an authorized custodian in Brazil for the investments, which must be a financial institution duly
authorized by the Central Bank of Brazil and the CVM; and
•
through its representative, register itself as a foreign investor with the CVM and the investment with the
Central Bank of Brazil.
9
NOTICE TO INVESTORS
The Shares have not been registered under the Securities Act, and they may not be offered or sold within the
United States or to, or for the account of, U.S. Persons except pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act.
Accordingly, the Shares offered hereby are being offered and sold only to a limited number of institutional
“accredited investors” (as defined in Rule 501(a)(1), (2), (3) or (7) in Regulation D (“Regulation D”) under
the Securities Act) that prior to their purchase of Shares, deliver to the Company a letter containing certain
representations and agreements substantially in the form of the Investor Letter, the text of which is set forth in
“Form of Investor Letter”. As used below, the terms “United States” and “U.S. Person” have the respective
meanings given to them in Regulation S under the Securities Act (“Regulation S”).
Each purchaser of Shares will be required to represent and agree with the Company, by executing the Investor
Letter, that it is an institutional accredited investor, purchasing the Shares for its own account or an account
with respect to which it exercises sole investment discretion, in each case, investment and not with a view to,
or for offer or sale in connection with, any distribution thereof in violation of the Securities Act. It will
acknowledge that the Shares have not been registered under the Securities Act and that none of the Shares
may be offered or sold within the United States or to, or for the account of, U.S. Persons except as set forth
below; that it has had the opportunity to ask questions of, and receive answers from, the Company concerning
the Company, its business and financial condition and the Shares; that it has sufficient business and financial
experience and expertise to make an informed investment decision with respect to the Shares and investment
in equity securities in Brazil. It will agree to offer, sell or otherwise transfer any of such Shares only
(A) pursuant to a registration statement which has been declared effective under the Securities Act, (B)
pursuant to Rule 144A under the Securities Act, to a person it reasonably believes is a “qualified institutional
buyer” or (C) in Brazil in a transaction on the Sao Paulo Stock Exchange - BOVESPA.
10
FORM OF INVESTOR LETTER
WEG S.A.
Address: Rua Pref. Waldemar Grubba, 3300
Jaraguá do Sul, SC – Brazil
Attn: Mr. Alidor Lueders
Re:
Purchase of Preferred Shares of WEG S.A.
Dear Sirs:
In connection with our purchase of [number] of Preferred Shares (the “Shares”) of WEG S.A. (the
“Company”) we hereby advise you and confirm as follows:
1.
The undersigned is an institutional “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7)
under the Securities Act of 1933 (the “Securities Act.”). It is purchasing the Shares for its own account or an
account with respect to which it exercises sole investment discretion, in each case, not with a view to, or for
offer or sale in connection with, any distribution thereof in violation of the Securities Act.
2.
It acknowledges that the Shares have not been registered under the Securities Act and that none of
the Shares may be offered or sold within the United States or to, or for the account of, U.S. Persons except as
set forth below.
3.
It acknowledges that (i) it has read the Prospectus and the Confidential Offering Memorandum
relating to the Shares; (ii) it has had the opportunity to ask questions of, and receive answers from, the
Company concerning the Company, its business and financial condition and the Shares to be acquired from it
and (iii) the Company has made available to it all documents and information requested by it or on its behalf
relating to an investment in the Shares. In evaluating the suitability of an investment in the Shares, it has not
relied and will not rely on any other representation or information (whether oral or written) made by or on
behalf of the Company other than as contemplated in the preceding sentence and this Confidential Offering
Memorandum.
4.
It acknowledges that it has sufficient business and financial experience and expertise to make an
informed investment decision with respect to the Shares and investment in equity securities in Brazil
generally, including, without limitation, the evaluation of financial statements prepared in accordance with
Brazilian generally accepted accounting principles.
5.
It understands that the Shares will be held in Resolution 2,689 account in Brazil and understands the
manner in which such account will be administered; understands and accepts the risks, burdens and costs
involved in this method of holding Shares.
6.
It agrees on its own behalf and on behalf of any investor account for which it is purchasing the
Shares, and each subsequent holder of the Shares by its acceptance thereof will agree, to offer, sell or
otherwise transfer any of such Shares prior to the date which is two years after the later of the date of original
issuance of the Shares and the last date on which the Company or any affiliate of the Company was the owner
of such Shares (the “Resale Restriction Termination Date”) only (A) pursuant to a registration statement
which has been declared effective under the Securities Act, (B) for so long as the Shares are eligible for resale
pursuant to Rule 144A under the Securities Act, to a person it reasonably believes is a “qualified institutional
buyer” (as defined under Rule 144A)(“QIBs’”) that purchases for such QIB’s own account or for the account
of a QIB and to whom notice is given that the transfer is being made in reliance on Rule 144A, or (C) in
Brazil in a transaction on the Sao Paulo Stock Exchange - BOVESPA. The foregoing restrictions on resale
will not apply subsequent to the Resale Restriction Termination Date.
7.
It agrees that it will give to each Person to whom it transfers the Shares notice of any restrictions on
transfer of such Shares.
11
The undersigned understands and acknowledges that WEG S.A. is relying, and will rely, on the
representations and agreements made in this letter, which form part of the consideration provided by the
undersigned for the opportunity to participate in the purchase of the Shares.
Very truly yours,
[INVESTOR]
________________________________
By:
Name:
Title:
12
EXCHANGE RATE INFORMATION
There are two legal foreign exchange markets in Brazil:
the commercial rate exchange market; and
the floating rate exchange market.
Each of these markets is separately regulated. Most trade and financial foreign-exchange transactions are
carried out on the commercial rate exchange market. These transactions include the purchase and sale of
ordinary shares and the payment of dividends and other distributions with respect to them.
Foreign currencies may be purchased only through a Brazilian bank authorized to operate in these markets. In
1999, the Brazilian government unified operational limits imposed on Brazilian banks with respect to both
markets, which caused a reduction in the difference between their respective rates. In both markets, rates are
still freely negotiated but may be strongly influenced by Central Bank intervention.
From March 1995 through January 1999, the Central Bank allowed the gradual devaluation of the real against
the U.S. dollar under an exchange rate policy that established a band within which the real/U.S. dollar
exchange rate could fluctuate. Responding to pressure on the real, on January 13, 1999, the Central Bank
widened the foreign exchange rate band. Because the pressure did not ease, on January 15, 1999, the Central
Bank abolished the band system and allowed the real to float freely.
Since the beginning of 2001, the Brazilian exchange market has been increasingly volatile, and, until early
2003, the value of the real declined relative to the U.S. dollar, primarily due to financial and political
instability in Brazil and Argentina. Although the Central Bank has intervened occasionally to control unstable
movements in the foreign exchange rates, the exchange market may continue to be volatile as a result of this
instability or other factors, and, therefore, the real may substantially decline or appreciate in value in relation
to the U.S. dollar in the future.
The tables below show the commercial selling rates in reais for U.S. dollars for the periods indicated, as
published by the Central Bank.
Year ended December 31,
1999 ........................................................................................
2000 ........................................................................................
2001 ........................................................................................
2002 ........................................................................................
2003 ........................................................................................
2004 (through May ●, 2004) ..................................................
Reais per US$1.00
Average (1)
High
1.8169
2.1647
1.8295
1.9847
2.3522
2.8007
2.9309
3.9552
3.0715
3.6623
●
●
Low
1.2095
1.7234
1.9357
2.2709
2.8219
●
Last six months
February 2004 .........................................................................
March 2004 .............................................................................
April 2004 ...............................................................................
May 2004…………………………………………………
June 2004…………………………………………………
July 2004…………………………………………………
Reais per US$1.00
Average (1)
High
2.9303
2.9878
2.9055
2.9410
2.9059
2.9522
3.1004
3.2051
3.1291
3.1651
3.0367
3.0747
Low
2.9042
2.8752
2.8743
2.9569
3.103
2.9939
Source: U.S. dollar selling rate as published by the Central Bank on its electronic information system,
SISBACEN, using
transaction PTAX 800 Option 5.
(1) The average of the exchange rates during the period.
13
ENFORCEMENT OF JUDGMENTS
We are incorporated under the laws of Brazil. All of our directors and officers named in this offering
memorandum reside in Brazil. Substantially all our assets and those of these other persons are located in
Brazil. As a result, you may not be able to effect service of process upon us or these other persons within the
United States or to enforce against us or these other persons judgments obtained in U.S. courts predicated
upon the civil liability provisions of the federal securities laws of the United States.
Judgments of United States courts for civil liabilities based on the federal securities laws of the United States
may, subject to the requirements described below, be enforced in Brazil. A judgment obtained outside Brazil
against us or our directors and officers named in this offering memorandum will be enforceable in Brazil
without reconsideration of the merits upon confirmation of that judgment by the Brazilian Federal Supreme
Court. That confirmation will occur if the foreign judgment:
fulfills all formalities required for its enforceability under the laws of the country where the foreign
judgment is granted;
is for a payment of a certain sum of money;
is issued by a competent court after proper service of process is made or after sufficient evidence of the
party’s absence has been given in accordance with Brazilian law;
is not subject to appeal;
is authenticated by a Brazilian consular office in the country where the foreign judgment is issued and is
accompanied by a sworn translation into Portuguese; and
is not contrary to Brazilian national sovereignty, public policy or public morality.
Notwithstanding the foregoing, we cannot assure you that confirmation will be obtained, that the process
described above will be conducted in a timely manner or that Brazilian courts will enforce a monetary
judgment for violation of the U.S. securities laws with respect to our preferred shares.
In addition:
original actions based on the federal securities laws of the United States may be brought in Brazilian
courts and, subject to applicable law, Brazilian courts may enforce liabilities in such actions against us,
our directors and our executive officers named in this offering memorandum; and
the ability of a judgment creditor to satisfy a judgment by attaching certain assets of ours is limited by
provisions of Brazilian law.
A plaintiff, whether Brazilian or non-Brazilian, who resides outside Brazil during the course of litigation in
Brazil must provide a bond to guarantee court costs and legal fees if the plaintiff owns no real property in
Brazil that could secure that payment. The bond must have a value sufficient to satisfy the payment of court
fees and the defendant’s attorneys’ fees, as determined by a Brazilian judge.
14
Private and Strictly Confidential
PRELIMINARY PROSPECTUS
Subject to completion, dated August __th, 2004
40,786,131 Preferred Shares
Offer Price R$ _____per Preferred Share
WEG S/A
A company organized under the laws of Brazil
The Offerors are offering, to the public in Brazil and to a limited number of institutional accredited investors in the United States and
elsewhere, a total of 40,786,131 preferred shares of WEG S/A (the “Company”), a sociedade por ações organized under the laws of
Brazil.
We have registered this offering with the Comissão de Valores Mobiliários (the Brazilian Securities Commission, or CVM). The
Company has adhered to the “Differentiated Corporate Governance Practices” of the São Paulo Stock Exchange, or BOVESPA and is
known as a Level 1 company. The preferred shares of WEG are traded under symbol “WEGE4”. The CVM has not approved or
disapproved of these securities or determined if this offering memorandum (or the Portuguese language prospectus used in connection
with the offering of our preferred shares in Brazil) is truthful or complete.
The Company, FVL and Previ have granted the Joint Bookrunners an option for a period of 30 days to place up to an additional
3.572.869 preferred shares, to cover over-allotments.
Investors residing outside Brazil, including institutional accredited investors, may purchase our preferred shares if they comply
with registration requirements of CVM Instruction No. 325, dated January 27, 2000, and Resolution No. 2,689, dated January 26,
2000, of the Brazilian National Monetary Council.
Investing in our preferred shares involves risks. See “Risk Factors” beginning on page 23 for a
discussion of the factors you should consider before investing in our preferred shares.
The price per share will be determined by the Joint Bookrunners, see Section “Plan of Distribution” for a discussion of the factors that
will be considered in determining the offer price.
Price in R$
Por Ação
Total
Maximum Fees in R$
[-]
[-]
Net Resources in R$
[-]
[-]
Payment for our preferred shares will be required to be made to the Offerors through the facility of the Companhia Brasileira de
Liquidação e Custódia – CBLC (the Brazilian Settlment and Custodial Company, or CBLC), and the Offerors expect to deliver our
preferred shares through the facility of the CBLC on or about [DATE]. See “Trading, settlement and cleareance”
Joint Bookrunners
The date of this prospectus is__ , 2004
This Page Intentionally Left Blank
TABLE OF CONTENTS
DEFINITIONS...........................................................................................................................................................................
3
THE OFFERING .......................................................................................................................................................................
5
PLAN OF DISTRIBUTION ......................................................................................................................................................
8
SUMMARY OF THE WEG GROUP........................................................................................................................................
10
INFORMATION AND EXPLANATIONS ...............................................................................................................................
17
DESCRIPTION OF BOOKRUNNERS.....................................................................................................................................
19
RISK FACTORS ........................................................................................................................................................................
21
INFORMATION ABOUT OUR FUTURE ...............................................................................................................................
33
PURPOSE OF THE OFFERING AND USE OF PROCEEDS .................................................................................................
34
SELECTED FINANCIAL INFORMATION ............................................................................................................................
35
CAPITALIZATION ...................................................................................................................................................................
37
MANAGEMENT DISCUSSION AND ANALYSIS ON THE FINANCIAL CONDITION AND
OPERATING INCOME.............................................................................................................................................................
38
THE ELECTRICAL-ELECTRONIC SECTOR IN BRAZIL...................................................................................................
56
THE WEG GROUP....................................................................................................................................................................
65
OUR GROUP’S MANAGEMENT............................................................................................................................................
112
DESCRIPTION OF CAPITAL STOCK AND RIGHTS INHERENT TO SHARES...............................................................
125
MAIN SHAREHOLDERS ........................................................................................................................................................
140
INFORMATION ON ISSUED BONDS AND SECURITIES ..................................................................................................
145
MATERIAL CONTRACTS.......................................................................................................................................................
148
JUDICIAL AND ADMINISTRATIVE CONTINGENCIES....................................................................................................
153
TRANSACTIONS WITH RELATED PARTIES ......................................................................................................................
156
TRANSACTIONS WITH BOARD MEMBERS AND EXECUTIVE OFFICERS OF THE
WEG GROUP COMPANIES AND THEIR SUBSIDIARIES AND WITH THE OFFERORS ..............................................
158
TRANSACTIONS WITH BOOKRUNNERS...........................................................................................................................
159
RELATIONSHIP BETWEEN THE OFFERORS AND THE LOCAL COORDINATOR.......................................................
161
APPENDICES DESCRIPTION
APPENDIX A
WEG’s Bylaws....................................................................................................................................
163
APPENDIX B
Annual Information for fiscal year-end December 31, 2003
(only information not included in the Prospectus) .............................................................................
173
The Issuer’s Financial Statements for fiscal year-end December 31, 2002,
and Report by Independent Auditors..................................................................................................
175
APPENDIX D
The Issuer’s Financial Statements for fiscal year-end December 31, 2003,
and Report by Independent Auditors..................................................................................................
211
APPENDIX E
Quarterly report for the period ended on June 31, 2004.....................................................................
251
APPENDIX C
This Page Intentionally Left Blank
2
DEFINITIONS
Unless the context otherwise indicates, references in this offering memorandum to the
following terms have the following meanings:
ABINEE
Brazilian Association of the Electrical and Electronic
Industry
ANBID
National Association of Investment Banks.
BNDES
National Bank for Economic and Social Development.
BOVESPA
São Paulo Stock Exchange.
Bradesco or the Local
Coordinator or Joint
Bookrunner
Banco Bradesco S.A.
Brazilian Corporation Law
Federal Law nº 6,404 dated December 15, as amended.
CDI
Interbank Certificate of Deposit.
COFINS
Contribution for the Financing of Social Security.
Company
WEG S.A.
CSLL
Social Contribution on Net Profits.
CVM Instruction 400
Instruction nº 400 issued by CVM on December 29, 2003.
DI Rate
Interest rate, which corresponds to 100% (one hundred
percent) of the average overnight Interbank Deposit rate.
Dollar
United States Dollar
Federal Government
Government of the Federative Republic of Brazil.
ICMS
Tax on Sales
IGP-DI
General Price Index – Domestic Availability, calculated by
Fundação Getúlio Vargas.
IGP-M
General Market Price Index.
Income Tax
Tax on Income.
INPI
National Institute for Industrial Property.
INSS
National Institute for Social Security.
IPI
Tax on Manufactured Goods.
3
Joint Bookrunners
Banco Bradesco S.A., BB Banco de Investimento S.A. and
Banco Pactual S.A.
MVA
Mega Volt Ampere (unit of power).
Offerors
WEG S.A., Fundo Bradesco Templeton Valor e Liquidez –
Fundo de Investimento em Ações, PREVI – Caixa de
Previdência dos Funcionários do Banco do Brasil, and
Banco Nacional de Desenvolvimento Econômico e Social –
BNDES, in its role as manager of Fundo de Participação
Social – FPS.
PIS
Contribution to the Social Integration Program.
SELIC
The economy’s basic interest rate disclosed monthly by the
Central Bank’s Monetary Policy Committee.
Shares
40,786,131 Preferred Shares issued by WEG S.A.
The WEG Group
WEG S.A. and its direct and indirect subsidiaries.
TJLP
Long-term Interest Rate.
Units
Each of WEG Indústrias’ six business units, i.e.: (i) motors,
(ii) machines, (iii) switches, (iv) industrial automation, (v)
transformers and (vi) chemicals.
WEG Exportadora
WEG Exportadora S.A.
WEG Group Covenant
Covenant regulating the relationships among the companies
which form the WEG Group and that appears in this
Prospectus’ Appendix C.
WEG Indústrias
WEG Indústrias S.A.
WEG Participações
WEG Participações e Serviços S.A.
4
THE OFFERING
Securities offered……………………………… A total of 40,786,131 preferred shares
representing 12.4% of the preferred capital and
6.6% of the total corporate capital are being
offered by the Offerors to:
- the public in Brazil in reliance on Regulation S;
- institutions and investors outside the United
States and Brazil, in reliance on Regulation S; and
- institutional accredited investors in the United
States in reliance of Regulation D.
Offerors………………………………........…… 9,341,059 preferred shares held in treasury by
WEG S/A
11,722,536 preferred shares held by Fundo
Bradesco Templeton Valor e Liquidez – Fundo
de Investimento em Ações (“FVL”)
11,722,536 preferred shares held by PREVI –
Caixa de Previdência dos Funcionários do Banco
do Brasil (“PREVI”)
8,000,000 preferred shares held by Fundo de
Participação Social – FPS managed by Banco
Nacional de Desenvolvimento Econômico e
Social – BNDES (“BNDES”)
Our capital Stock and Shares outstanding
after the offering…………………………....…. Our capital stock is divided into 288,000,000
common shares and 329,955,200 preferred shares.
The total number of outstanding shares issued by
our Company as of June 31, 2004, was
218,240,415 shares, being 8,826,406 common
shares that represented 3.06% of the total common
shares, and 209,414,009 preferred shares. Our
common shares and preferred shares currently
outstanding represent 35.31% of our total capital.
Features of the Preferred Shares…………. - Tag-Along of 80% of price paid to the
controlling shareholders; - priority in
reimbursement of capital in case of liquidation
of our Company’s activities; and
- the right, under similar conditions granted to
the other shares, to receive dividends, bonuses
arising from capital surpluses, revaluation of
assets, capitalization of retained earnings, or
through the use any other resources.
Voting Rights
The preferred shares do not grant voting rights to
their holders.
5
Trading, Settlement and clearance………....… The Joint Bookrunners have informed us that
payment for our preferred shares will be required
to be made in reais and that they expect our
preferred shares to be delivered via book entry on
[--], the third business day after [--], the date of
publication of the offering in Brazil, or the
Settlement Date. Trades in our preferred shares in
BOVESPA will settle through the facility of
CBLC.
Over-allotment option………………………… 3,572,869 preferred shares, upon decision of
Banco Bradesco S/A, BB Banco de Investimento
S/A and Banco Pactual S/A through Pactual at
any time for 30 days from the date of the
publication in Brazil of the initial public offering
announcement
Option to increase number of preferred
shares Offered………………………….……… In addition to over-allotment option, the Offerors
have an option to increase by up to 20% the
number of preferred shares offered.
Transfer Restrictions….………………….…… Our preferred shares have not been registered
under the Securities Act and are subject to U.S.
restrictions on transfers described in “Notice to
investors”. Transfer of preferred shares, including
by and between residents of jurisdictions outside
Brazil, may produce effects only in Brazil.
Lock-up agreement……………………..……… The Offerors have agreed, subject to certain
exceptions, not to issue, sell or transfer any shares
of the capital stock of the Company, for 90 days
counted from the Settlement Date.
Use of proceeds………………………………… The net proceeds we expect to receive from the
offering will be used to modernize and expand our
facilities. We will not receive any proceeds from
the sale of the preferred shares by the Offerors.
Dividends………………………………….……. The investors will be entitled to receive dividends
related to the fiscal year starting on January 1,
2004 and any other rights declared by our
Company as of the Settlement Date.
Risk Factors……………………………………. See “Risk Factors” beginning on page 23 and the
other information included in this offering
memorandum for a discussion of factors you
should consider before deciding to invest in our
preferred shares.
6
Trading of the Preferred Shares……….……… Our preferred shares are accepted for trading on
the BOVESPA under code “WEGE4”. Our
company is listed as a Level 1 Company of the
“Differentiated Corporate Governance Practices”
of BOVESPA.
Please read this Prospectus before accepting the Offering.
7
PLAN OF DISTRIBUTION
General
The Offering is a secondary public distribution in the Brazilian unorganized over-the-counter market, pursuant
to CVM Instruction 400, and with selling efforts in the international market, based on the registration
exemptions set forth in the Securities Act of 1933 of the United States of America (as amended, the “Securities
Act”) Regulation D and Regulation S.
Under an underwriting agreement dated [---], 2004, Banco Bradesco S/A, BB Banco de Investimento S.A. and
Banco Pactual S/A, have severally agreed to place the numbers of the preferred shares set forth below:
Bookrunners
Number of Shares
Bradesco
[--]
BB-BI
[--]
Pactual
[--]
TOTAL
40,786,131
According to the underwriting agreement, the offering of our preferred shares will be made in the unorganized
over-the-counter market by the Joint Bookrunners in Brazil according to the Instruction CVM 400 and Banco
Pactual S/A will make the selling efforts outside Brazil through its registered broker dealer Pactual Capital
Corporation to a limited number of accredited institutional investors in United States and to non-U.S. persons
in transactions meeting the requirements of Regulation S under the Securities Act. See “The Offering” in page
7 for more details.
The underwriting agreement provides that the obligation of the Joint Bookrunners to place the preferred shares
is subject to, among other conditions, the delivery of certain legal opinions by our and their legal counsel and
comfort letters from our auditors. The underwriting agreement also provides that, if any preferred shares are
not placed, the Joint Bookrunners are obligated to purchase them on a firm commitment basis on the settlement
date, subject to certain conditions and exceptions. The preferred shares will initially be offered by the Joint
Bookrunners at the price indicated on the cover page of this prospectus. After initial offering of the preferred
shares, the offering price and other selling terms may from time to time be varied by the Joint Bookrunners.
The expenses of the offering, not including the commissions, are estimated to be R$[---] and are payable by [--].
The underwriting agreement requires the Joint Bookrunners to offer priority to investors in this offering that are
non-institutional investors as defined in the underwriting agreement during the period beginning on August 17
and ending on August 30, 2004. During this period, non-institutional investors may submit reserve requests to
purchase up to 30% in the aggregate of the preferred shares offered in this offering. Non-institutional investors
who are members of management of our company and their relatives and certain other non-institutional
investors must submit any such reserve requests during the period between August 17 and August 20, 2004.
Over-allotment Option
The Company, FVL and Previ have granted to the Joint Bookrunners an option exercisable within 30 days after
the publication of the initial offering announcement of the Offering to place up to an aggregate amount of
3,572,869 additional preferred shares to cover over-allotments, being (i) 1,017,941 preferred shares held by the
Company, (ii) 1,277,464 preferred shares held by FVL; and (iii) 1,277,464 preferred shares held by Previ.
8
Price Stabilization
In connection to this offering, Banco Pactual S/A, acting through Pactual Corretora de Títulos e Valores
Mobiliários S/A, on behalf of the Joint Bookrunners, may engage in transactions that stabilize, maintain or
otherwise affect the price of the preferred shares, and the Joint Bookrunners have agreed to engage in
stabilization activity for a period of up to 30 days after the date of announcement in Brazil in accordance to the
“Rendering of Services of Stabilization of the Shares Price” executed among the Offerors, Banco Pactual S/A
and Pactual Corretora de Títulos e Valores Mobiliários S/A on [----] previously approved by BOVESPA and
CVM, and pursuant to the terms of Article 23, paragraph 3 of Instruction CVM 400, copies of which are
available at the sites of Bradesco, BB-BI, Pactual, CVM and BOVESPA. Reports on stabilization activity are
required to be furnished to the CVM.
Other Relationship
Please see this Prospectus’ Section “Transactions with Intervening Institution” for further information on the
relations between the Company and the Bookrunners, as well as Section “Relevant Agreements” for
information on the contracts entered into by the Company with the Bookrunners.
Sale Price
The sale price for the Shares shall be reported in the Definitive Prospectus.
The Sale Price for the Shares shall be set by the Bookrunners, by mutual agreement with the Offerors, after (a)
the end of the period offered priority to the non-institutional investors as defined in the underwriting agreement
and (b) the conclusion by the Joint Bookrunners of the bookbuilding process, based on the institutional
investors’ intent to invest and taking into consideration the price of the Company’s shares traded at BOVESPA
on the relevant date.
Indemnification
According to the underwriting agreement, the Offerors and the Company will indemnify the Joint Bookrunners
and their respective senior management, employees and agents against certain liabilities as established in the
Underwriting Agreement.
United Kingdom
The preferred shares will not be offered or sold to persons in the United Kingdom, except to persons whose
ordinary activities involve them acquiring, holding, managing or disposing of investments (as principal or
agent) for the purposes of their businesses or otherwise in circumstances which have not resulted and will not
result in an offer to the public in the United Kingdom within the meaning of the Public Offers of Securities
Regulations 1995. This offering memorandum may only be communicated in connection with the issue or sale
of the common shares in circumstances in which section 21(1) of the Financial Services and Markets Act 2000
does not apply to us.
Resale Restrictions
The preferred shares have not been registered under the Securities Act and will be subject to significant resale
restrictions.
This Offering is conditioned to registration with CVM.
9
SUMMARY OF THE WEG GROUP
References in this section to “we” or “our” should be construed as references to our
Company and its direct pr indirect subsidiaries.
The WEG Group
We believe that our Group is currently the largest manufacturers of electric motors in Latin
America. We estimate our domestic market share of electric motors ranges between 75% and
89%, depending on the type of motor and market segment. We produce on average 40,000
motors per day and 25,000 different types of motors annually. Our operating revenue in
2003 totaled R$ 2.02 billion.
We employ in our companies approximately 12,100 people, of which 1,000 are abroad. Our
operating activities are centered in the city of Jaraguá do Sul, in the State of Santa Catarina,
where we have our main industrial facilities, and laboratories for product research and
development We also have industrial plants in Blumenau and Guaramirim, in Santa
Catarina, and in Guarulhos, in São Paulo. We are active throughout the country by means of
our commercial representatives, distributors, and a wide range of technical assistance.
We are also strong in the international scenario, through factories in Argentina, Mexico, and
Portugal, and distribution and marketing subsidiaries in the United States, Venezuela,
Germany, England, Belgium, France, Spain, Italy, Sweden, Australia, Japan, Chile,
Colombia and India. Our products are present in roughly 100 countries of every continent.
Below follow our key consolidated operating and financial information for the periods
indicated:
In R$ thousands, except percentages
Average
variation
(%)
Fiscal Year-end as of
December 31 of the year:
2001
Gross Operating
Revenue
Net Operating
Revenue
Net Profit
EBITDA *
2002
2003
2001-2003
Semester ended on
June 30 of the year:
2003
2004
Variation
(%)
1st Semester
2003-2004
1,268,873 1,534,903 2,015,111
26.0
944,453 1.181.271
25,1
1,065,936 1,282,035
175,683
220,326
280,351
326,817
26.1
32.4
23.8
795,534
139,376
207,904
25,5
44,1
40,2
1,694,16
307,809
429,981
998,329
200,845
291,525
* For calculation of EBITDA, we consider: (+) Gross Earnings (-) general and administrative expenses (-) other operating revenues and
expenses (not including participation in the results from shareholdings of R$ 44.5 million in 2003 and R$ 30.2 million in 2002, R$ 23,9
million in 2001 and R$ 31,6 million in the first semester of 2004 and R$ 17,8 million in the first semester of 2003) (+) depreciation and
amortization.
10
The Group’s Structure
Our Company is a holding company and leader of the Weg Group, a group of companies
organized according to the Brazilian Corporation Law, the purpose of which is to compound
resources and efforts in order to achieve the objectives of the member corporations. We hold
the direct control of WEG Indústrias and WEG Exportadora, and indirectly control the
subsidiaries of these companies located overseas.
Our Company plays a well-defined role in the Group’s structure, jointly with WEG
Indústrias and WEG Exportadora.
•
We are responsible for defining policy and strategy, management and control of our
Group’s companies, as well as for assessing new investments and business.
•
WEG Indústrias – centers our Group’s entire manufacturing activities in Brazil, in charge
of development, manufacturing, and marketing of WEG products in the domestic market.
•
WEG Exportadora – is in charge of our Group’s overseas activities, exporting and
promoting WEG products overseas. WEG Exportadora is also the holding company for
WEG Group companies with overseas commercial and/or manufacturing activities (with
the exception of Japan, controlled by WEG Indústrias).
11
Organization of Industrial Activities in Brazil
Our industrial activities in Brazil are concentrated in WEG Indústrias and organized in six
business units (i) Weg Motors, (ii) Weg Machinery, (iii) Weg Switches, (iv) Weg
Automation, (v) Weg Transformers, and (vi) Weg Chemicals.
Though our business units are considered for a number of reasons as independent
companies, with their own management, personnel, and structure, each one generates great
synergies with the others, enabling us to offer a progressively more comprehensive package
of products, services, and solutions to our customers. This type of organization is a result of
our culture of continuously investing in business and activities that add synergies to the
existing businesses.
Gross Operating Revenues for 2003
Weg Máquinas
12%
Weg Acionamentos
6%
Weg Motores
56%
R$ 2.015 billion
13%
Weg Automação
7%
6%
Weg Transformadores
Weg Química
WEG Motores
Weg Motores is our largest business unit. This unit is responsible for the development and
production of a great variety of electric motors, including motors for use with compressors,
oil wells, centrifugal and fuel pumps, fans, and machinery and equipment for industrial
activities, in addition to appliance motors designed for the major home appliance
manufacturers and used in washing machines, dryers and air conditioners, among others.
WEG Automação
WEG Automação is active in potency electronics, industrial facilities, automation and
control of industrial processes, and makes available electrical packages including control
panels, control centers for motors, and control supervision systems. Weg Automação caters
to major corporations in mining, steel, paper and pulp, sanitation, cement, and foodstuffs,
among others.
12
WEG Máquinas
Weg Máquinas develops and produces high-voltage industrial generators and electric
motors. This unit’s customers are manufacturing industries that require specific solutions
such as in mining, petrochemicals, steel, and paper and pulp. The unit also produces
generators for small and medium power mills and employed in the generation of hydroelectricity, thermo-electricity, jointly with windmills, and for co-generation.
WEG Transformadores
Weg Transformadores centers its activities in producing heavy-duty transformers, such as
power, industrial and dry transformers. The unit is also active in constructing electricity substations of up to 100 MVA. Activities range from structuring and project implementation,
from installation to start-up. Key customers of Weg Transformers are electricity carriers,
power generators, and industry in general.
WEG Acionadores
Weg Acionadores focuses on production of a broad variety of industrial electric components
such as contacts, thermal relays, circuit breakers, starting switches, timers and electronic
protectors, among others. These products are employed by a diversified range of
manufacturing industries in order to control and protect electric motors and electrical
facilities in general. The unit is also currently devoted to developing electrical systems to
protect motors.
WEG Química
Weg Química is made up of the producers of liquid and powdered paints, insulating
varnishes, and resins. These products are employed by businesses in the field of consumer
durables and capital goods in general, in order to paint and protect components and products.
The unit’s main customers are metal working firms, car body assemblers, equipment and
tool manufacturers, and the furniture industry, among others.
13
Organization of Our Industrial Foreign Industrial Activities
We own companies with factories in Argentina, Mexico and Portugal and we are
endeavoring efforts to the acquisition of a factory in China.
Our factories in Argentina produce electric motors fro washing machines and clothes dryers
and circuit breakers in molded boxes for use in electrical installations in general. Our
Argentine subsidiary had revenues of approximately US$ 25 million in 2003.
Our factory in Mexico produces low-voltage electric motors (up to 100 HP) for use in
industrial machinery and equipment. We are making capital outlays of about US$ 15 million
to modernize and increase capacity. Our revenues in Mexico were approximately US 35
million in 2003.
Our factory in Portugal, acquired in May 2002, produces electric motors with output above
50 HP, made to order for capital goods industries, steel mills, pulp and paper mills and
others.. The company serves the entire European preferred market and had revenues of
approximately US# 9 million in 2003.
Key Strategies
Our goals for the coming years are: (i) to become the largest world manufacturer of lowtension industrial electric motors; (ii) to lead in Brazil and become a benchmark in the
international market for high-tension, motors, generators, drives, and small motors; (iii) to
become the Latin American benchmark for transformers and low-tension electrical equipment;
(iv) to become the Mercosul benchmark for industrial electronic systems for power generation;
and (v) to lead the Brazilian market for electrical isolating material and industrial paints.
In order to meet these goals our key strategies will be:
•
Internationalization. Intensify our internationalization process by means of: (a)
broadening our relations with our partners in those countries where we have
representatives or distributors; (b) open new branches and establish new partnerships in
those countries where we are not present; and (c) build or purchase new industrial plants
overseas, with priority to strategic markets with good growth prospects, such as in Asia
or eastern Europe.
•
Intensification of Synergies. Provide an ever-growing amount of products and services to
our international customers and obtain more and more significant market shares in each
of the fields in which we are present, taking advantage of the existing sales structure
(representatives, distributors, and overseas subsidiaries). Intensify integrated sales of
goods and services.
•
Strengthen the Weg Brand in Brazil and Overseas. Strengthen (a) direct action with
leading consumers and major engineering companies; (b) relationship marketing in the
search for customer loyalty; and (c) our image as suppliers of a broad product line, of
electro-electronic systems and paints.
14
•
Continuous Technological Innovation. Maintain programs for technological innovation,
working with our own research teams and through cooperation agreements with the most
well known Brazilian and overseas universities. Intensify programs for standardizing
products and processes.
•
Creation of New Businesses. We intend to create a new business unit oriented towards
providing corrective and anticipated maintenance services for electric industrial
machinery and transformers. Besides being a new source of income, we believe that the
sale of maintenance services will add value to our products.
•
Greater Presence in Systems Automation and Electricity Generation and Transmission.
Growth and strengthening of our performance as suppliers of industrial solutions for
automation of systems and of electricity generation and energy transmission, and of
equipment for small hydro-electric plants (PCH) and small thermo-electric plants (PCT).
Our Strong Points
We believe that our main strong points as listed below afford us competitive advantages that
allow us to meet our strategic objectives.
•
The Ability to Generate Cash and a Consistent Financial Condition. The WEG Group
has always had a great ability to generate cash, allowing for constant modernization and
expansion of its manufacturing facilities and the pursuit of acquisitions, with low
financial leverage. Our EBITDA for the last five years has been kept above 25% on
average. Our operating revenue has been growing consistently, even in periods of
economic crisis and stagnation in Brazil and abroad. Over the past 5 years, our operating
revenues have grown on average by 26% a year.
•
Verticalization: Control over the Key Stages of the Production Process and Marketing of
Products. We have adopted a highly integrated business model and produce various goods and
services within our group of companies, employed in the development of our core activities.
During periods of expanding activities verticalization contributes towards high operating
efficiency at a low cost, with the large-scale and customized production of our goods.
•
Large, Modern, and Growing Industrial Facilities. We believe our electric motor
industrial facilities to be the largest in the world in this production segment and one of
the most modern. The industrial unit at Jaraguá do Sul covers a constructed area of
roughly 800 thousand m2, with a production capacity of over 25,000 different kinds of
electric motors. This structure permits us to develop products according to the needs and
specifications of each customer with great agility. Our production volume affords us the
gains in scale required to face up to our global competitors, and barring the entry of new
ones. In 2003 we produced over 9 million electric motors. Despite our great production
capacity, we continue investing substantially in modernization and expansion our
manufacturing facilities. These investments have been in the region of R$ 73 million on
average per annum, during the last five years. Currently idle capacity in our units is
approximately 10%, considering the present production arrangement of two shifts
followed at nearly all our factories.
15
•
Product Diversification Reduces the Risk of Concentration. We are engaged in several
product lines for different market segments. Diversification eliminates our dependence
on a specific market segment, thus reducing the risk of over-concentration. Besides this,
each or our product lines has great synergy with the others, which enables: (i) sharing of
knowledge; (ii) joint use of our production and sales structure; and (iii) integrated sale of
products and services.
•
A Global Action Company. Our products can be found in about 100 countries of five
continents. We have companies with manufacturing units in Argentina, Mexico, and
Portugal, and subsidiaries for marketing and distribution of our products in 14 other
countries. (main markets). Besides these, we also export directly from Brazil, and in
2003 roughly 39% of our operating revenues were derived from export and overseas
sales. Our export activity and global presence permits us to generate revenues in strong
currencies (United States dollars and Euros), which reduces our exposure to depreciation
of Brazilian currency.
•
Product Quality and Leadership of the Brazilian Markets. We believe we use the most
modern tools, processes, and quality control procedures. Our products are certified in
Brazil and overseas by renowned government bodies and independent laboratories.
Besides consolidated leadership of the Brazilian market for electric motors, we believe
we are positioned among the largest domestic makers of all lines of products we
manufacture.
•
Trained and Motivated Staff. Our human resources are among the most important
factors in our competitiveness. We invested around 1% of our gross revenue in 2003 in
various training and development programs for our employees in Brazil and abroad. The
WEG Quality and Productivity Program – PWQP, created in 1991, is the instrument
through which we define together with our staff the goals for each year. Achieving these
goals serves as a calculation basis for profit sharing. In 2003 we distributed R$ 45
million among our staff as profit sharing, an average of 3.7 extra salaries to each
employee. We also granted benefits such as medical and dental assistance, nursery,
transportation and investments in social activities, totaling R$ 9.6 million in 2003.
•
Technological Innovation and Development. We invest an average of 3% of our annual
net revenues in research of new technologies and improvements to our industrial
processes and product development. Large savings were possible over the last few years
through the optimization of our industrial processes and reduction of production costs.
We maintain a technology committee with members from the most renowned Brazilian
and foreign universities, whose purpose is to keep abreast of trends in world electroelectronic technologies for industrial use.
16
INFORMATION AND EXPLANATIONS
Additional copies of this Prospectus may be obtained at Company headquarters, with
Bradesco, and also in the Company and CVM world computer network pages.
Explanations on this Offering may be obtained with our Company, Bradesco, the Joint
Bookrunners, and their consultants and auditors, at the following addresses:
Company
Local Coordinator and Joint Bookrunner
WEG S.A.
(Department of Investor Relations)
Address.: Rua Pref, Waldemar Grubba, 3300
Jaraguá do Sul, SC - Brazil
Telephone: (47) 372-4000
Facsimile: (47) 372-4201
www.weg.com.br
Banco Bradesco S.A.
Address: Av. Paulista, 1450, 3º andar,
CEP01310-917 – São Paulo – SP - Brazil
Telephone: (11) 2178-4805
Facsimile: (11) 2178-4880
www.shopinvest.com.br
Joint Bookrunner
Joint Bookrunner
Banco Pactual S.A.
BB Banco de Investimento S.A.
Address: Avenida República do Chile, 230,
29º andar, 20031-170 – Rio de Janeiro – RJ - Brazil
Telephone: (21) 2514-9600
Facsimile: (21) 2514-8600
Internet: www.pactual.com.br
Address: Rua Lélio Gama, 105, 28º andar, 20031-080
Rio de Janeiro – RJ - Brazil
Telephone: (21) 3808-3625
Facsimile: (21) 3808-3588
www.bb.com.br
Auditors
Legal Counsel
For fiscal year end a at December 31, 2003:
KPMG Auditores Independentes S/C Ltda.
Address.: Rua João Marcatto, 260 – cj 402/403
Telephone: (47) 273-1616
Facsimile: (47) 275-2473
E-mail: [email protected]
Internet: www.kpmg.com.br
For matters regarding Brazilian legislation:
Souza, Cescon Avedissian, Barrieu e Flesch
Advogados
Rua Funchal, 263, 11º andar
São Paulo, SP 04551-060
Telephone: (11) 3089-6500
Facsimile: (11) 3089-6565
E-mail: [email protected]
Internet:www.scbf.com.br
17
For fiscal years ending prior to 2003:
Martinelli Auditores Independentes S/C Ltda.
Nereu Antonio Martinelli
Address.: Rua Coronel Santiago, 1.77 – Joinville
Santa Catarina
Telephone: (47) 431-1900
Facsimile: (47) 431-1830
E-mail:
[email protected]
internet: www.martinelliauditores.com.br
18
DESCRIPTION OF BOOKRUNNERS
Bradesco
Bradesco was founded in 1943 and is currently the largest full-service private bank in the
country, with its 11,192 servicing locations, of which 3,058 are branches, 2,155 Banking
Service Posts, 4,085 “Banco Postal branches”, 123 Finasa/Zogbi branches, and 1,771
automatic external service network locations. Bradesco ended first quarter 2004 with a net
worth of R$13.6 billion and total assets of R$160.9 billion.
Bradesco has been active in the capital market since 1966, holding a prominent position as
one of the most important bookrunner in the coordination, structuring, and placing of
underwriting transactions, mergers and acquisitions, project finance, besides other structured
transactions.
During first quarter 2004 Bradesco coordinated expressive debenture and commercial paper
issues and held first place in the ANBID ranking in organization and distribution, with a
total volume of R$365 million and a market share of 16.27%.
Bradesco’s presence has also been felt in project finance transactions, having acted as
financial advisor to companies with investments in electricity generation and related
projects, besides having structured the respective loans.
In March 2004, ANBID disclosed its ranking for mergers and acquisitions for the year of
2003, in which for the second consecutive year Bradesco led in this field with a total of eight
transactions. At the close of first quarter 2004 the bank had already concluded three such
transactions, involving approximately R$737 million.
With regard to structured transactions, Bradesco develops structures for segregating credit
risks by means of special purpose companies, credit acquisitions, credit rights investment
funds, real estate receivable certificates and other tailor made transactions reducing the need
for working capital, increasing liquidity, optimizing financial and fiscal charges,
accommodation of technical and legal limits/financial covenants, divestitures, and offbalance sheet loans for customers.
BB Banco de Investimento S.A.
In November 1988, Banco do Brasil S.A. created BB Banco de Investimento S.A., a wholly
owned subsidiary that owns permanent equity stakes in companies that represent an
extension of the economic activity of the Conglomerate, and also has temporary
shareholdings in companies that have good corporate governance practices. The result of
BB-BI originates from its financial intermediation activities, rendering of services and equity
holdings.
In the ANBID ranking of March 2004, Origination – Number of Operations, last 12 months,
BB Investiemento was in 1st place in Fixed Income and 2nd place in Variable Income.
19
The securities distributor of Banco do Brasil is the largest in the country, with holdings of
R$ 115 billion (37.99% higher than the 2nd ranked), with R$ 101 billion in fixed income and
R$ 14 billion in variable income investments, as per the ANBID ranking of March 2004.
Banco do Brasil S.A., parent company of BB Banco de Investimento S.A., is today Brazil’s
largest bank. In recent years it has become an agile, modern and competitive company. Its
employs 80,640 people and 14 thousand interns and adolescent helpers, to efficiently serve
the largest customer base and number of service points in Brazil. It has more than 12
thousand servicing locations in Brazil and also has in 30 other cities abroad, among
branches, business units and offices, besides four subsidiaries, present in 21 countries.
In its 195 years or existence, Banco do Brasil has stood out for its capacity to serve segments
of the financial market with a range of business products, services and solutions, without
ignoring its social role of supplying programs, projects and incentives to strengthen the
authentic values of Brazilian society.
Banco do Brasil is currently organized as a full-service bank. The Banco do Brasil currently
consists of 14 companies.
Pactual
Pactual was founded in 1983 as a securities distributorship. It is currently a full-service bank
organized as a private corporation, having a net worth of R$575.6 million and manages
assets in the region of R$21 billion (December 31, 2003). Pactual’s main focus resides in the
fields of research, corporate finance, capital markets, private banking, treasury transactions,
medium and long-term investments, and sales & trading. It is headquartered in Rio de
Janeiro and has offices in the cities of São Paulo, Belo Horizonte, and Recife, besides a
subsidiary in the Cayman Islands. Pactual is one of the few independent investment banks,
of predominantly Brazilian capital and focused on the domestic market.
Pactual is an active participant in underwriting and distribution activities, involving debt and
stock offerings on behalf of Brazilian corporations in the capital markets. Its strong points in
distribution originate from its broad access and service provision to a number of local and
overseas investment groups, which are acting whether in fixed or variable income.
Pactual advised customers with regard to funding through the local market in 2003, in
debenture and commercial paper transactions totaling roughly R$2.4 billion. Among the
most expressive ones are the R$900 million debenture issue on behalf of Companhia
Siderúrgica Nacional and the R$200 million issue on behalf of Lojas Americanas, in which
Pactual acted as Leading Coordinator.
Pactual has been closely participating in origination and distribution in variable yield
operations. In 2004, it participated as coordinator of initial and secondary public offerings of
Natura S/A and primary distribution of CCR – Companhia de Concessões Rodoviárias.
20
RISK FACTORS
Before making an investment decision, potential investors should consider all the
information available in this Prospectus, particularly the risks described below.
Our Company is a holding company with direct or indirect control of the WEG Group of
companies that produce and market WEG products in the domestic and international
markets. Almost all of our revenues originate from our interests in the equity of our
subsidiaries. Hence, our operating profits and financial condition are directly related to the
performance of these companies. In this section, references to “we” or “our” should be
understood as a reference to our Company and the respective direct and indirect
subsidiaries.
RISKS RELATING TO BRAZIL
The Brazilian government has a significant influence over the Brazilian economy.
Brazilian economic and political conditions have a direct impact on our business,
activities, and the market price for our shares.
The Brazilian government frequently intervenes in the country’s economy, in monetary,
fiscal, and regulatory policies. Measures taken by government in order to stabilize the
economy and control inflation have in the past included freezing of bank accounts, price and
wage controls, currency devaluations, capital controls, increase in the economy’s basic
interest rate, increase in the banking system’s reserve requirements, and limits on imports,
among others. Our business, operating profits, and financial conditions may be adversely
affected by changes in government policies, as well as general economic factors, including
without limitation:
•
Fluctuations in exchange rate;
•
domestic economic conditions;
•
social instability;
•
interest rates;
•
inflation;
•
price instability;
•
tax policies; and
•
other political, diplomatic, social, and economic developments in or affecting Brazil.
21
Brazilian government measures in favor of a stable economy, coupled with speculation with
regard to future government action, may generate uncertainties with respect to the Brazilian
economy and greater volatility in the domestic capital market. This may adversely affect our
business, activities, and financial condition, as well as the market price for our preferred
shares.
Inflation and certain government measures to curb inflation may have adversely effects
on the Brazilian economy and our operating results.
Brazil has historically experienced extremely high rates of inflation. Inflation and the
Brazilian government’s measures taken in an attempt to curb inflation have significant
negative effects on the Brazilian economy. The Brazilian government implemented the
Plano Real in 1994 with a view to reducing inflation and building a base for sustainable
economic growth. .
On June 30, 1999, the National Monetary Council adopted the inflation target system,
(measured according to the IPCA index) as a guideline to monetary policy. With the
exception of 2000, the Federal Government has been unable to comply with the targets
initially determined, for the four-year period from 2000 to 2003.
On June 25, 2003, the National Monetary Council determined as targets 5.5% and 4.5%
variation in the IPCA index for the years 2004 and 2005, with a of tolerance of 2.5
percentage points above and below these targets. The inflation targets for 2004 and 2005
may not be achieved. The measures that the Federal Government may adopt in order to adapt
to the established inflation targets, or to those to be defined in the future, may have adverse
effects on the Brazilian economy, affecting us as a consequence.
Should inflation rates increase considerably, we may be unable to fully compensate the
inflation in the final price of our products. An increase in our overheads arising from
inflation and compounded by the lack of compensation of such an increase in the final price
of our products may jeopardize our margins, adversely affecting our business, operating
profits, and financial condition.
The variation of the real in relation to the US dollar or Euro may have adverse effects on
our operating profits and financial condition.
During the last decades the Brazilian Government devised a number of economic plans and
foreign exchange policies. Implementation measures for these policies and plans have
included devaluations of the domestic currency, foreign exchange controls, the creation of
two exchange markets, and a floating rate system, with an end result of large fluctuations in
the exchange rates of the real in relation to the US dollar and other strong currencies.
As of fiscal year end December 31, 2003, approximately 39% of our gross operating
revenues originated from the sales of our products to overseas markets, mainly to countries
in North America and Europe. Our growth strategy includes, among others, the increasing
participation of foreign currencies in our revenues.
22
Volatility of local currency in relation to strong currencies may jeopardize our
competitiveness in international markets, as well as our internationalization plans, with
adverse effects on our business, operating profits, and financial condition.
Our results may be affected by domestic currency devaluation, as we carry indebtedness in
foreign currency (mainly US dollars debt) tied to the foreign exchange rate. On June 30,
2004, we owed R$ 527.5 million (considering the commercial rate for sale of US dollars
(PTAX) of R$ 3.1075 per US$ 1.00), which corresponds to approximately 65.5% of our total
indebtedness.
Additionally, the capital loss due to exchange rate variation on investments our Company
holds in its subsidiaries abroad can affect our results.
External events such as the deterioration of economic conditions in the emerging
economies or the increase in the US base rate may have adverse effects on the Brazilian
economy and the price for our shares.
The market for securities issued by Brazilian companies is influenced by economic and
market conditions in Brazil and, to varying degrees, market conditions in other Latin
American and emerging market countries. Economic crises in emerging countries, such as
Mexico and Argentina, have had a significant effect on the level or foreign investor
confidence in the Brazilian economy. These crises were followed by considerable outflows
of funds, local currency devaluations in relation to the US dollar, generation of inflationary
pressures and declines in the volume of foreign currency invested in Brazil. New economic
crises in the emerging markets may once more affect the Brazilian economy in the future.
An increase in the US base rate may also cause an expressive portion of foreign investments
currently allocated in emerging countries to be directed at investments in the United States.
In this case, it is likely that the Brazilian economy might witness another capital outflow,
together with loss of creditworthiness and investments.
Moreover, factors such as a marked slow-down in the growth of the Chinese economy, weak
performance of the US economy, and a hike in international oil prices, may adversely
influence the international economic situation, reflecting on global demand for commodities,
a major component in the aggregate of Brazilian exports. These include steel, and soybeans,
which may be subject to a decline in price in international markets.
Should these international events take place, they may have material adverse effects on the
Brazilian economy and, as a result, in the operating profits and financial condition of
domestic corporations, exerting a negative influence on the price of securities issued by
these corporations, including the price of the preferred shares issued by our Company.
Military actions consequent to the terrorist attacks on September 11, 2001 in the Unites
States of America may exert adverse and unpredictable effects on the global economy and
capital and financial markets, a well as on the price for our shares.
23
Military action consequent to the terrorist attacks on September 11, 2001 in the Unites States
of America, including the escalation of hostilities, may cause uncertainties and volatility in
the US and international financial and capital markets. It is impossible to estimate the future
effects of these events on the economy and international financial and capital markets. It is
also not possible to estimate the future effects of these events on the perception of investors
as to investment risks in the shares of corporations located in the emerging markets or in
investing in shares generally.
Foreign Market Exposure
Out international profile as a strong exporter has been growing since the start of the 1990s,
when we began building our network of subsidiary companies and partnerships abroad. Since
then, the importance of international markets to our total sales has grown continuously, until
reaching 39% of our total gross revenue for the year ended December 31, 2003.
Because of the above facts, our sales have come to depend not only on the performance of the
Brazilian economy, but also on that of the economies of other countries in which we operate and
that represent important markets for our products. Hence, for example, an economic slump in the
North America or Europe, markets that represented, respectively, 40% and 29% of our foreign
sales for the year ended December 31, 2003, can reduce demand for our products in these
markets, adversely affecting our operating income and financial condition.
Interest rate instability may adversely affect the business and financial condition of the
WEG Group.
Interest rates are utilized by the Brazilian Central Bank as an instrument for carrying out
monetary policies. Interest rate variations reflect directly on economic activity in every
sector of the economy.
During recent months the trend has been a gradual decline in interest rates in Brazil.
Government and market expectations in general point to a slow and gradual decrease in the
ensuing months. Nevertheless, inflationary pressures in the domestic scenario or a possible
increase in the US base rate may induce the Brazilian Central Bank to cease or even reverse
this downward trend in the Brazilian economy’s basic interest rate.
A rise in interest rates in Brazil may be followed immediately by increasing costs in
indebtedness to Brazilian corporations and a slow-down in economic activity. Both of these
outcomes may adversely affect our operating profits and financial condition, in view of the
fact that a large portion of our financial obligations is on a floating interest rate basis.
An electricity crisis may have adverse effects on our operating profits and financial condition.
Brazil has undergone a serious electricity shortage during 2001, largely owing to an
accentuated and extended dry spell that affected hydroelectric power generation and also
because of lack of investments in this area. In May 2001 the Federal Government announced
measures intended to reduce electricity consumption by an average 20% in several of
Brazil’s regions, including those where we have industrial facilities and operations.
24
A new crisis in the supply of electricity may result in a decline or even a halt in production
in our manufacturing units in Brazil, with adverse effects on our operating profits and
financial condition.
Moreover, the durable consumer goods industry, which represented 21% of our gross
operating revenues for the year ended December 31, 2003, suffered a significant retraction as
a consequence of electricity rationing in 2001. A new electricity crisis in Brazil may once
more affect our revenues derived from this market in the future.
RISKS RELATED MACHINERY AND EQUIPMENT MANUFACTURING ACTIVITY
Performance by the consumer durables sector is greatly influenced by fluctuations in the
level of economic activity.
Performance by the consumer durables sector, such as household appliances and small
equipment in general, is greatly influenced economic performance. The consumer durables
sector totaled R$ 423 million or 21% of our total revenues at the fiscal year ended on
December 31, 2003. Variations in the Brazilian economy may exert a negative influence on
the performance of the consumer durables sector in general, and as a result on our operating
profits and financial condition.
Performance by the capital goods sector is greatly influenced by the level of investments
carried out in the country and by the availability of long-term credit lines.
Performance by the capital goods sector in general and of machinery and heavy equipment
in particular, is influenced significantly by the level of investments in the country, by private
enterprise as well as by government. Because of the very nature of these high added-value
goods, this activity also depends on long-term credit made available by private and public,
domestic and international financial institutions and multilateral entities. The capital goods
sector is usually one of the first to be affected by economic crises, and one of the last to react
under a recovery of economic activity.
The decline in investments in the country and the absence of long-term credit may adversely
affect the domestic economy and jeopardize our operating profits and financial condition.
The main raw materials employed by machinery and equipment manufacturers are
international commodities. A commodity price increase in international markets may
affect sales in this area as a whole and more specifically, our sales.
The main raw materials used by machinery and equipment manufacturers are international
commodities, such as copper and steel slabs. These commodities may represent as much as
40% of the final cost of some of our products. When overseas markets are more favorable,
domestic manufacturers of these commodities may direct all or part of their production to the
international market, which may cause price increases for these commodities and raise our
production costs, with adverse effects on our operating profits and financial condition.
25
RISKS RELATED TO OUR COMPANY
We are present in highly competitive markets.
Many of the markets where we are present are highly competitive. Our main competitors are
international groups with a global presence, technical skills, well known trade names in
Brazil and overseas, and with access to the financial and capital markets at lower costs and
longer tenors than those available to ourselves.
In the market activity of our electric motors unit (Weg Motores), responsible for roughly
56% of our operating revenues in the year ended December 31, 2003, we are faced with
competition in domestic and international markets by traditional manufacturers such as GE,
Siemens, Toshiba, and ABB. In our industrial automation unit (Weg Automação), which
represented 13% of our operating revenues that same year, we have competitors such as
ABB, Siemens, Danfoss Corporation, Alen-Bradley, and Telemecanique. In the activity
undertaken by our machinery unit (Weg Máquinas), which accounted for 12% of our
operating revenues in the year ended December 31, 2003, Gevisa, ABB, Siemens, GE,
Toshiba, Trafo Eq. Elétricos, and Alstom are also present.
In recent years many of these competitors reduced their activities or closed down in Brazil.
However, they continue to present us with intense competition in the international market
and in the future may resume their intense activities in Brazil.
Besides the traditional competitors, Asian manufacturers may also face us with competition.
These producers have available extremely cheap labor costs, reduced operating costs and a
favorable exchange for exports. Hence, Asian countries in general and China in particular
may very quickly develop production technology in the scale required to compete with us in
the domestic and global markets for electric motors.
A part of our revenues originates from the commercialization of our products in what are
considered emerging countries. Political events and institutional crises in these countries
may have adverse effects on our financial results.
In the year ended December 31, 2003, approximately 37% of our exports were destined to
emerging economies, including Latin American, Asian and African countries. We are also
directly present in some of these countries, through subsidiaries that own local factories and
distribution and commercialization units. Exporting to these emerging nations and operating
factories, distribution and marketing units in these countries exposes us to the risks inherent
to doing business in these countries. These risks include as the case may be:
•
expropriation and nationalization of assets;
•
political and economic instability;
•
social unrest, acts of terrorism, force majeure, wars and armed conflicts;
26
•
inflation;
•
foreign exchange fluctuations, currency devaluations, and restrictions on the conversion
of currency;
•
confiscation and other adverse fiscal policies;
•
government measures that may limit or change markets, restrict payments or limit
receipts or transfers of funds; and
•
government measures liable to result in direct or indirect losses of rights.
Political events and institutional crisis in these countries may adversely affect our business
activities and operating income and as a consequence, the market price for our preferred shares.
Our industrial automation activities depend on quality technology in order to develop and
carry out highly complex projects.
The industrial automation activity is subject to rapid and constant advances in technology.
Our positive results in this area depend on our ability to continue developing improvements
in our products and offering our customers innovative solutions that reflect the rapid changes
in technical standards and market expectations in general. If we should be unable to predict
and develop technical improvements, or adapt our products to new technical standards, we
may suffer relevant adverse effects in our automation business, in our operating profits, and
in our financial condition.
In the fiscal year ended December 31, 2003, our sales in this area totaled R$ 250 million,
i.e., 13% of total invoicing; a 42% increase in relation to the previous year.
We may be unable to obtain or develop new technologies within the required time span and
in the volumes needed to be competitive in this market in the future, which might negatively
affect our results and financial condition.
We may be unable to implement our growth strategy.
We believe that we are in the forefront of the Brazilian market for electric motors, with a
market share of over 75% in some areas. This position makes sales growth difficult by
increasing market share and implies that our sales growth in the Brazilian market should
depend almost solely on expansion of the domestic economy. If we wish to continue
growing, we will have to win over new markets in product lines and activities in which we
occupy a small share, which will require:
•
maintenance of exchange rates at levels favorable to exports;
•
government investments in infra-structure in order to encourage growth and shipping of
Brazilian exports;
27
•
our ability to face existing competition in the international markets and to win over new
customers in these markets; and
•
absence of import barriers and restrictions in those countries to which we export or are likely
to export our products (we currently face entry restrictions to our products, in different
scales, in India, Mexico, South Africa, Colombia, Peru, and some Andean countries).
One or more of these factors may be unfavorable to our future growth, and consequently to
the price of our preferred shares.
We have a highly vertical production structure.
We produce ourselves, as a matter of principle, many of the products and services we use to
carry out our main activities. For example:
• we produce the casings and covers for our electric motors in our own foundry;
• we produce copper wire for electric motors, generators, and transformers, in our wire
production line;
• we produce molds, tools and machines, besides other stamped products, in our tool
division; and
• for customized packaging, we have reforestation areas, saw mills, and a packaging
division for this purpose
Verticalization implies in that activities not directly connected to manufacturing our products
will represent an additional and significant portion in the overhead structure. In a recession
this integrated structure may become a burden and adversely affect our margins, and
consequently our operating profits and financial condition. In the fiscal year ended
December 31, 2003, our overheads represented roughly 16% of our total costs.
We are subject to operating risks and risks related to the use of our products.
Our industrial facilities may be adversely affected by natural disasters, unfavorable climate,
operating errors, damage to property and equipment, and environmental damage.
Discontinuance of business owing to strikes, slow-downs in services, or delays in deliveries
of materials and raw materials, may cause the loss of earnings and relevant losses to the
manufacturing companies in general, and to ourselves in particular.
In addition, by virtue of their nature and use, electric motors and other products carry an
inherent and significant risk of civil liability for damages to third parties. For example, our
high-tension electric motors are used on offshore oil platforms and large steel mill
production lines. A fault in the working of these motors may cause expressive losses to our
customers and the respective obligation to indemnify the damages caused. On the other
28
hand, our low-tension electric motors are used by large manufacturers of consumer durables,
such as Brastemp and Eletrolux, for assembling household appliances in general. Any
personal or property damage caused to the purchasers of these appliances related to
malfunction of the electric motor assembled into the appliance may create an obligation by
us to indemnify the damages caused.
Our insurance coverage may be insufficient to reimburse possible losses.
Our insurance policies cover: (i) certain named risks, such as fire, explosion, lightening
strike and other events of the same nature, lost profits related to our chemical plant, aircraft
crashes, electrical damages, falling machinery, brush fires in rural areas, among others; (ii)
general civil liability; (iii) products; (iv) international transportation; (v) domestic
transportation; and (vi) vehicle fleet.
Our insurance policies may be insufficient to reimburse of possible losses. The occurrence of
accidents which exceeds the amount insured or are not coved by the insurance policies may
give rise to unexpected additional and significant costs to the companies of our Group
affecting therefore the financial results and financial condition.
We are indirectly controlled by a small group of persons whose interests may prevail over
the interests of the other shareholders.
On June 30, 2004, 96.9% of our voting capital was in the hands of WEG Participações,
which in its turn is controlled by a small group of persons related to the founders of our
Group. Hence, these persons have enough power to approve or reject any subject, which by
law or according to our Bylaws should be submitted to the shareholders’ decision, including:
•
the election or removal of the larger part of the board of directors;
•
the dividend payment policy;
•
the establishment of guidelines and business strategies; and
•
the approval of mergers, spin-offs, absorption, and sale of a part or the whole of our assets.
We are subject to rigorous environmental requirements and restrictions.
We are subject to rigorous environmental protection laws and regulations in the several
locations where we operate. For example, the implementation of the second phase of our
manufacturing park at the city of Jaraguá do Sul required a rigorous environmental study.
Furthermore, our factories’ waste production is subject to rigorous polluting waste disposal
rules and procedures. Non-compliance with environmental laws and regulations result in the
obligation of repairing caused damages, as well as the application of administrative, civil and
criminal sanctions (including retroactively). Infringement of any environment law or
regulation or contractual obligation may adversely affect our operating income and financial
conditions.
29
Furthermore, changes in environmental legislation or regulations may bring about increased
expenses in complying with them, reducing the amount of available funds for paying
expenses, making investments and developing other activities. This eventual decrease in
funds may adversely affect our activities, operating income and financial condition.
We are subject to risks associated with lawsuits.
We are a party to several civil, environmental, labor and tax lawsuits, arising from the regular
course of our business. These proceedings represented, as a whole, on June 30, 2004, an
approximately R$ 138.5 million-contingency, of which roughly R$ 120 million has been accrued.
In case some or several of these judicial contingencies become current liabilities and involve
significant amounts, our operating income and financial condition may be negatively affected.
We are subject to risks associated with our logistical and transportation structures.
A major part of our customers is far from our production and distribution centers. In order to
have our products reach our local and international customers, we use the Brazilian highway
and harbor modals. Export flows out through the São Francisco do Sul and Itajaí (SC)
harbors, which are located 60 km and 90 km, respectively, away from our manufacturing
park in Jaraguá do Sul.
Transportation infrastructure in Brazil currently faces several problems, which include,
among others, lack of investments in the growth and modernization of the harbor structure,
high harbor labor cost, saturation of existing harbors, and the precarious conservation
situation of Brazilian highways and truck fleets. Moreover, Brazilian producers and
exporters point out as obstacles to be overcome constant strikes and stoppages by civil
servants and private entities linked to the transportation sector.
These and other factors linked to the Brazilian transportation infrastructure may influence our
ability to export our production, adversely affecting our operating income and financial condition.
The holding company condition may limit our ability to pay dividends.
Being a holding company, our assets are only shares issued by WEG Indústrias, WEG
Exportadora and Perdigão S.A., besides resources held in financial investments. We do not
conduct any operating activities. Nearly all our revenues come from our subsidiaries.
Consequently, the ability to pay dividends solely depends on receiving dividends and other
cash flows from our subsidiaries.
Our result can be affected by that of Perdigão S.A.
Our equity accounting income comes from our holing of 1,566,862 common shares,
representing 10.1% of the voting capital, and 1,768,172 preferred shares, representing 6.1%
of the preferred shares of Perdigão S.A, totaling 7.4% of the total capital of this company.
The income and ability to pay dividends of our Company may be negatively affected by
Perdigão S.A’s performance.
30
RISKS ASSOCIATED WITH THE OFFERING AND SHARES
Our Company’s preferred shares have low liquidity on the secondary market, which could
hinder their sale or lower their price.
The total number of outstanding shares issued by our Company, on June 30, 2004, was
218,015,579 shares, 8,788,570 being common shares, representing 3.05% of the total
common shares, and 209,227,009 preferred shares, representing 63.41% of the total
preferred shares, and 35.28% of the total capital stock. In the past 12 months (July 2003 to
June 2004) on the average, 336 operations per month were carried out with our preferred
shares (normal trading unit of 100 shares) on BOVESPA’s (São Paulo Stock Exchange)
secondary market, totaling an average monthly traded volume of R$ 8,598,519.00. Thus, our
Company’s preferred shares are considered to have low liquidity on the secondary market.
Our Company’s shares may not have liquidity on the secondary market. In this case, our
preferred shareholders may face difficulties in selling them, or may have to do so at a price
significantly below the acquisition price.
The actual sale, or sale expectation, of a substantial number of shares issued by our
Company may reduce these shares’ trading price; the investor may not be able to sell his
preferred shares for thee price paid for them or a higher price.
The actual sale, or sale expectation, of a significant number of shares issued by our
Company, after realization of the Offering, may decrease the trading price of the preferred
shares. After the Offering conclusion, there will be roughly 219,586,009 outstanding
preferred shares, representing 35.5% of our Company’s share capital stock, in case the
Option of the Additional Shares is exercised fully. Our Controlling Shareholder, WEG
Participações, is not subject to any contractual obligations or other restrictions regarding
future sales of our Company’s preferred shares. As a result of issuing or selling shares, by
WEG Participações or other existing shareholders, the preferred stock market price and,
consequently, that of the Shares, may go down appreciably. In this case, preferred
shareholders may not be able to sell shares previously bought for a higher or equal price to
the one paid for these shares.
Our dividend distribution policy may be changed.
Our current policy of dividend distribution and payment of interest on shareholders’ equity
and the history of our dividend payment do not represent an assurance that we will allocate
dividends in the future. Our Executive Board may change, at any time, by simple majority
vote by its members, the dividend allocation policy.
Our Company’s shareholders may have their interest in our capital stock decreased in
case they do not subscribe shares in our future capital increases.
Our shareholders may have their interest in our capital stock decreased in case they do not
subscribe shares in future capital increases that we may realize.
31
Information about Our Group.
The diversity of products and local and international manufacturers, besides the lack of upto-date research and information in the public domain of the market segments in which our
Company operates makes it difficult to determine the market share of our own Company,
much less that of its competitors.
For this reason, the expressions “we believe” and “we are” used in this Prospectus, regarding
(i) our Company’s market share; (ii) our Company’s performance in comparison with that of
competitors; and (iii) the size of our manufacturing installations and output capacity in
relation to that of our competitors must be understood as our best estimate, formulated in
good faith and based on the available information in the market, and do not imply a
guarantee of the accuracy of this information.
32
INFORMATION ABOUT OUR FUTURE
This Prospectus contains information about our future outlook reflecting the opinions of the
administrators of our Group regarding future events and that, as in any economic activity,
involve risks and uncertainties. Future performance may not be consistent with this
information. Future events may substantially differ from the trends indicated in this
document, depending on several factors discussed in this section and other sections of this
Prospectus. Potential investors are advised to examine very cautiously and diligently the
information about our future and not to made investment decisions solely based on future
forecasts or outlook. We do not take any obligation to update or review any information
about our future outlook, except as required by Brazilian legislation.
33
PURPOSE OF THE OFFERING AND USE OF PROCEEDS
The purpose of the Offering is to raise the liquidity of our preferred shares and obtain
resources from the sale of the Shares.
We do not receive any resources from the sale of the preferred shares held by FVL, PREVI
or BNDES. These Offerors will receive all net funds resulting from sale of the Shares
respectively owned by them.
Funds resulting from selling Shares owned by us will be used for making investments in
expanding and modernizing our facilities.
34
SELECTED FINANCIAL INFORMATION
The chart below shows selected financial information from our Company for each of the
indicated periods. The selected financial information referring to fiscal years ended
December 31st, 2001, 2002 and 2003 were taken from our consolidated financial statements
included in this Prospectus, which were audited by Martinelli Auditores Independentes for
the fiscal years ended December 31st, 2001 and 2002, and by KPMG Auditores
Independentes for the fiscal year ended December 31st, 2003. Our financial information for
the semesters ended June 30, 2003 and 2004 come from a limited review of our independent
auditors, KPMG Auditores Independentes.
Our consolidated financial statements have been prepared in conformity with the actual
Brazilian Corporation Law. The potential investor should read the financial information
below together with the respective explanatory notes included in other sections of this
Prospectus, such as “Presentation of Financial Information” and “Analysis and Discussion
by the Administration on Financial Condition and Operating Income”.
35
In R$ Thousand
Fiscal Year ending
on December 31st
2001
Income Statement Data
Net Earnings from sales and services ........
Cost of sales and Rendered Services .........
Gross Profit ................................................
Selling Expenses ........................................
General and Administrative Expenses.......
Net Financial Results .................................
Other Operating Incomes...........................
Operating Income (loss).............................
Net Non-Operating Incomes (Expenses) ..
Income (Loss) before Income Tax.............
Income Tax and Social Contribution .......
Net Profit (Loss) ........................................
Net Profit per 1,000 shares (Loss) .............
Dividends and Interest on Shareholders’
Equity, per 1,000 shares ............................
Number of Outstanding Preferred Shares
at Year Closing (in thousands of shares) ...
Total Amount of Shares in the End of the
Fiscal Year (in thousands of shares) .........
Balance Sheet Data:
Customers ..................................................
Inventories .................................................
Recoverable taxes ......................................
Fixed Assets...............................................
Total Assets................................................
Total Short-Term Loans and Financings ...
Total Long-Term Loans and Financings ...
Total Liabilities..........................................
Net Worth ..................................................
Other Financial Information:
Net cash from Operating Activities ...........
Net cash applied in Investment activities ..
Net cash applied in Financing activities ....
EBITDA ....................................................
Investment / Fixed .....................................
Depreciation and Amortization..................
2002
1,065,935
(663,301)
402,634
(113,096)
(61,007)
27,486
(4,839)
251,178
(3,470)
247,708
(72,025)
175,683
284.30
Semester Ending
on June 30
2003
1,282,035 1,694,160
(798,745) (1,027,434)
483,290
666,726
(146,524) (194,718)
(76,544)
(88,957)
29,781
63,876
(16,386)
(51,797)
273,617
395,130
(8,088)
(4,622)
265,529
390,508
(45,203)
(82,699)
220,326
307,809
356.54
498.11
2003
2004
795,534
(478,185)
317,349
(89,419)
(40,158)
34,984
(22,474)
200,282
(4,360)
195,922
(56,546)
139,376
228,61
998,329
(592,025)
406,304
(112,088)
(50,536)
15,260
(11,649)
247,291
(4,592)
242,699
(41,854)
200,845
330,56
100.00
145.00
201.00
80,00
140,00
228,254
220,004
209,514
214,610
209,227
617,955
617,955
617,955
617,955
617,955
203,054
163,632
9,228
231,918
1,318,607
258,436
198,068
1,318,607
573,648
319,172
229,590
15,345
279,068
1,766,747
603,780
92,179
1,766,747
693,651
340,459
283,835
25,094
338,251
1.923,291
376,521
223,147
1,923,291
861,426
259,866
266,056
27,080
314,604
1,729,949
450,806
86,502
1,729,949
774,182
432,085
393,286
44,872
378,966
2,349,070
507,510
297,701
2,349,070
977,253
260,953
(219,116)
(173,791)
280.351
72,873
(43,738)
189,392
(100,381)
100,043
326.817
83,040
(50,887)
370,984
(165,877)
(308,929)
42.981
125,709
(57,238)
301,945
(96,200)
(273,326)
207,904
71,118
(27,747)
148,107
(114,755)
(64,879)
291,525
68,462
(31,894)
36
CAPITALIZATION
The chart below shows in consolidated form the short and long-term indebtedness, as well as
our Company’s net worth and minority interests on June 30, 2004, as presented in our financial
statements. This chart should be read together with the Sections “Selected Financial
Information” and “Analysis and Discussion by the Administration on Financial Condition and
Operating Incomes”, as well as our financial statements included in other parts of this
Prospectus. For a more detailed description of our and our subsidiaries’ financing statements,
see the Section “Relevant Contracts” of this Prospectus.
(in R$ thousand)
06.30.04
Short-Term Debt:
Local Currency
BNDES
. Local Currency
. Basket of Currencies
Debentures
Others (ACC’s /Finame/Prodec/Swap)
Foreign Currency
348.797
122.556
112.578
9.978
0
226.241
158.713
Long-Term Debts:
Local Currency
BNDES
. Local Currency
. Basket of Currencies
Debentures
Others (Finame/Prodec)
Foreign Currency
181.255
123.680
100.593
23.087
0
57.575
116.446
Total:
805.211
Debt with Associated People
Minority Interests in Associated Companies
3.030
708
Net Worth:
Paid-In Stock Capital
Capital Reserves
Revaluation Reserves
Revenue Reserves
Earned Surplus /(losses)
750.000
0
9.088
102.047
116.118
Total:
977.253
Total Capitalization:
1.786.202
37
MANAGEMENT DISCUSSION AND ANALYSIS ON THE FINANCIAL CONDITION
AND OPERATING INCOME
The following analysis and discussion by the administration on the financial conditions and
operating income should be read together with our audited financial statements and
respective notes attached to this Prospectus. The statements contained in this Prospectus
have been prepared in conformity with accounting practices adopted in Brazil, being that
financial statements referring to the year ending on December 31st, 2003 were audited by
KPMG Auditores Independentes S/C Ltda and financial statements referring to the years
ending on December 31st, 2002 and 2002 were audited by Martinelli Auditores
Independentes S/C Ltda.
Some amounts presented in this Prospectus may not result in an accurate sum because of
approximations.
Main Accounting Practices
As mentioned above, this analysis and discussion by the Administration on the financial
conditions and operating income of WEG S.A. has been conducted based on our
consolidated financial statements, which, in turn, have been prepared in conformity with
accounting principles generally accepted in Brazil, as determined by the Brazilian
Corporation Law, and comply with standards and regulations issued by the Securities
Commission (CVM) and technical bulletins prepared by the Brazilian Institute of
Accountants (IBRACON).
Our main accounting practices are as follows:
Income Ascertainment. We state our revenues and expenses in our financial statements
abiding by the accrual basis – Regime de Competência.
Financial investments. We record our financial investments at cost values, added by yields
earned up to the balance sheet date, in accordance with rates agreed to with financial
institutions.
Provision for Customers’ Credit Losses. We calculate our provision for customers’ credit
losses based on credit risk analysis, which considers the loss history, being sufficient to
cover losses on receivable amounts.
Inventories. We value our inventories at mean purchase and / or manufacturing cost, net of
recovered taxes and in order not to surpass market prices.
Other Current and Long-Term Assets. We present our other current and long-term assets at
their cost or realization value, including, when applicable, earned yields and incurred
monetary and foreign exchange variations.
38
Investments. We adjust our investments in subsidiaries by the equity method – equivalência
patrimonial” – of accounting. We appraise all other investments at purchase price. We
convert our foreign subsidiaries’ financial statements into local currency by the “historic rate
method”, in which:
•
•
Balance Sheets are converted based on the currency rate in force on December 31st of
the analyzed year; and
Income statements are converted based on the year’s average monthly rate.
After the conversion, we ascertain the equity adjustment by the equity method of accounting,
by observing that:
•
•
The amount resulting from the period’s income and capital gains and losses resulting
from foreign exchange variation and equity increases or decreases, is recorded in
Operating Incomes; and
The amount resulting from the interest percentage variation in our subsidiaries’
capital stock is recorded in non-operating incomes.
Fixed Assets. We calculate our fixed assets at their purchase cost, deducted by their
respective depreciations. We calculate depreciations on purchase cost by the linear method,
at the rates mentioned in their respective explanatory notes, by taking into consideration
their life cycle estimate.
Deferred. We record the deferred at purchase and formation cost, deducted from
amortization, which is calculated by the linear method at rates taking into consideration
intangible assets’ life cycle.
Income Tax and Social Contribution. We ascertain income tax and social contribution by taxable
and presumed profit – lucro real e presumido, in accordance with the legislation in force. We
ascertain deferred income tax and social contribution based on CVM Deliberation 371/02.
Other Current and Long-Term Liabilities. We state our other current and long-term
liabilities by recognized or calculable amounts, added, as the case may be, by the
corresponding financial charges on “pro rata” basis day and incurred monetary and foreign
exchange variations.
Consolidated. Pursuant to the Brazilian Corporation Law, the Consolidated Financial Statements
of our Company are prepared according to the following main criteria and principles:
•
•
•
•
Elimination of asset and liability balances arising from transactions between
companies included in the consolidation;
Elimination of investments in subsidiaries to the extent of the respective net equities;
Elimination of revenues and expenses from business dealings with companies
included in the consolidation and the profits contained in inventories resulting from
transfers to subsidiaries; and
Information on minority interests in the net equity and income statement.
39
Income Statement
Comparison of our Operating Incomes between the first semester of 2004 and equal period
of 2003
The table below shoes the comparison of our Operating Incomes between the first semester
of 2004 and equal period in 2003
R$ thousand
Gross Revenue from Sales and/or Services
Domestic Market
Foreign Market
Deductions from Gross Revenue
Net Revenue
Costs of sold goods and/or services
Gross Profit
Selling Expenses
General and Administrative Expenses
Financial Revenues
Financial Expenses
Interest on Shareholders’ Equity
Other Operating Revenues/Expenses
Equity Accounting Income
Operating Income
Non-Operating Revenues / Expenses
Income Before Taxes/Participations
Income Tax / Social Contribution
Statutory Participations/Contributions
Interest Reversal on Shareholders’ Equity
Minority Interests
Period’s Profit (Loss)
EBITDA
06.30.2003
944,453
580,274
364,179
(148,919)
795,534
(478,185)
317,349
(89,419)
(40,158)
101,558
(66,574)
0,0
(25,447)
512
197,821
(4,360)
193,461
(56,546)
(2,844)
5,382
(77)
139,376
207,904
06.30.2004
1,181,271
701,665
479,606
(182,942)
998,329
(592,025)
406,304
(112,088)
(50,536)
68,622
(53,362)
0,0
(15,671)
12,751
256,020
(4,592)
251,428
(41,854)
(4,863)
(3,746)
(120)
200,845
291,525
Var. %
25.1
20.9
31.7
22.8
25.5
23.8
28.0
25.4
25.8
-32.4
-19.8
0.0
-38.4
0.0
29.4
5.3
30.0
-26.0
71.0
0.0
55.8
44.1
40.2
Remark: For calculation of EBITDA, we consider: (+) Gross Earnings (-) general and administrative expenses (-) other operating
revenues and expenses (not including participation in the results from shareholdings of R$ 44.5 million in 2003 and R$ 30.2 million in
2002, R$ 23,9 million in 2001 and R$ 31,6 million in the first semester of 2004 and R$ 17,8 million in the first semester of 2003) (+)
depreciation and amortization.
Gross Operating Revenue
Our revenues come, mainly, from the following:
•
sales, on the local market, of several types of electric motors and related products,
mainly transformers, electrical systems, industrial automation systems, energy
machines and generators, industrial paints and varnishes;
•
export of above-mentioned products, directly from Brazil or through our foreign
subsidiaries, abroad including those having manufacturing units;
•
international sales of our electric motors and other products manufactured in our
foreign factories (Argentina, Mexico and Portugal); and
40
•
other revenues, including revenues from services rendered to our customers,
revenues originating from investments and foreign exchange variation resulting from
our foreign currency income and investments in our foreign companies.
Our Gross Operating Income in the first semester of 2004 of totaled R$1,181.3 million,
representing an R$ 236.8 million increase, that is, 25.1% in relation to our R$ 944.5 Gross
Income in the first semester of 2003. Our Gross Operational Income on the domestic market
showed a 20.9% growth, comparing the first semester of 2004 to the first semester of 2003,
while on the foreign market our Gross Income showed a 31.7% growth, compared to our
Gross Operating Income in the same period of the year 2003.
Among the factors contributing to this performance, we emphasize the sales increase of
electric motors, our Group’s main product: physical sales of single-phase motors totaled 4.0
million units in the first semester of 2004 (representing 1,274.8 thousand HP), a 9.5%
increase when compared to the first semester of 2003, when 3.6 million units were marketed
(representing 1,076.8 thousand HP). Single-phase motor sales showed a 16.1% growth in the
first semester of 2004, totaling a sale of 647.5 thousand units (representing 5.6 million HP),
compared to 557.7 thousand units in the same period in 2003 (5.1 million HP).
Our Gross Income on the foreign market totaled R$ 479.6 million (US$ 161.1 million) in the
first semester of 2004, versus R$ 364.2 million (US$ 113.4 million) in the first semester of
2003. Despite the 9% Real appreciation against the Dollar in the period (owing to the
average quotation of R$ 2.97 / US$ 1 in the first semester of 2004, versus the average R$
3.24 / US$ 1 quotation in the first semester of 2003), which has a direct influence on our
competitiveness abroad, we recorded a 42.1% growth in our Dollar Gross Income.
Of our total Income Gross on the foreign market, 40% refer to sales to North America in the
first semester of 2004, being that in the first semester of 2003 these sales represented 43%,
18% to South and Central America in the first semester of 2004, being that in the first
semester of 2003 these sales represented 12% and, lastly, 30% to Europe in the first semester
of 2004, being that in the first semester of 2003 this percentage was 31%.
Net revenue in the first semester of 2004 was R$ 998.3 million (R$ 795.5 million in the first
semester of 2003).
Cost of Sales and Services Rendered
Our cost of sales and rendered services in the first semester of 2004 increased by R$ 113.8
million, that is, 23.8% when compared to the first semester of 2003, growing from R$ 478.2
million in the first semester of 2003, to R$ 592.0 million in the first semester of 2004. The
cost of sales and rendered services in the first semester of 2004 represented a percentage of
59.3% of our net income from sales and services in this same period, while in the first
semester of 2003 our cost of sales and rendered services corresponded to 60.1% of our net
income from sales and services in the same period.
41
This variation (on a monetary basis or on absolute terms) was due, mainly, to the following:
(i) copper and steel slabs cost increase – our main raw materials, whose prices are quoted in
Dollars and indicated by the international market – even though this cost pressure as a result
of Dollar price increase has been partly offset by the 9.0% Real appreciation against the
Dollar, by comparing the Real average quotations against the Dollar in the first semester of
2004 to the first semester of 2003; and (ii) the addition of 1,335 employees to our payroll,
growing from a total of 10,763 employees registered in the first semester of 2003, to 12,098
in the first semester of 2004, as a result of our production growth (especially electric motor
production) and (iii) the category’s 11% collective bargaining salary raise in January 2004
(8% in Jan/2003 and 6.24% in Feb/2003).
Gross Profit
In consequence of the above-mentioned factors, our Gross Profit in the first semester of 2004
increased by R$ 89.0 million in relation to the same period in 2003, growing from R$ 317.3
million in the first semester of 2003, to R$ 406.3 million in the first semester of 2004, which
represented a 28.0% increase. In spite of the impact of our raw-material and labor-related
costs, we managed by means of passing on prices and productivity gains in our operations, to
increase our gross margin, which grew from 39.9% in the first semester of 2003 to 40.7% in
the first semester of 2004.
Operating Expenses
In the first semester of 2004, our consolidated selling, general and administrative expenses
totaled R$ 162.6 million, representing a 25.5% increase in relation to the same period the
previous year, which was R$ 129.6 million at the first semester of 2003. The ratio between
our consolidated operating expenses and our net income did not present an expressive
variation when comparing the first semester of 2004 to an equal period in the previous year,
remaining at 16.3% in the first semester of 2003 and in the first semester of 2004.
In the first semester of 2004 our expenses with sales totaled R$ 112.1 million, representing
an 25.4% increase when compared to expenses with sales in the first semester of 2003,
which totaled R$ 89.4 million. This R$ 22.7 million increase, that is, 25.4% was expected
and occurred in consonance with our net income growth of 25.5% in this same period. Our
general and administrative expenses totaled R$ 50.5 million, representing a R$ 10.4 million
increase, that is, 25.8% when compared to our general and administrative expenses in an
equal period in the previous year, which totaled R$ 40.2 million. We emphasize that the
main item of our consolidated selling, general and administrative expenses is payroll
expenses, which grew a result of an 11% raise under the collective bargaining agreement of
January 2004, after previous raises on 8% in January 2003 and 6.24% in February 2003.
Financial Income
Our financial income in the first semester of 2004 was R$ 15.3 million, representing a R$ 19.7
million decrease, that is, 56.4% when compared to our financial income in the first semester of
2003, which had totaled R$ 35.0 million. On the other hand, our financial expense on loans and
financings decreased from R$ 66.6 million in the first semester of 2003 to R$ 53.4 million in the
42
first semester of 2004, representing a R$ 13.2 million decrease, or 19.8%. While our financial
income increased from R$ 101.6 million in the first semester of 2003 to R$ 68.6 million in the
first semester of 2004. The positive financial result arises from investments in a fixed income
investment fund and certificates of deposit superior to the expenses arising from loans and
financing. This variation mainly resulted from the 9.0% Real appreciation against the Dollar in
the period (by comparing the average Real daily quotation in relation to the Dollar in the first
semester of 2004 and in the first semester of 2003) and its effects on our foreign currencydenominated loans and financial investments, taking into account that a portion of our
investments was not hedged by foreign exchange swap financial instruments.
At the end of the first semester of 2004, of our total R$ 805.2 million indebtedness,
approximately 65.5%, or, R$ 527.5 was made of foreign currency-indexed loans. At the end
of the first semester of 2003, the percentage of our total foreign currency-indexed
indebtedness was approximately 63.5%, representing a R$ 341.4 million amount, against our
total indebtedness in this period of R$ 537.3 million.
Our financial investments in the first semester of 2004 totaled R$ 849.0 million, being that, of this
total, R$ 273.8 million in dollar-denominated financial investments. In the first semester of 2003,
our financial investments totaled R$ 686.5 million, of which R$ 189.1 were dollar-denominated.
In order to hedge against investment transactions variations, we performed foreign swap
operations: (i) on dollar investments abroad for 100% to 105% of Interbank Deposit
Certificate (CDI), in the total amount of R$ 163.1 million (US$ 52.5 million), in the first
semester of 2004, while in the same period in 2003 these operations totaled R$ 134.7 million
(US$ 46.9 million); and (ii) of financial investments in Brazil, CDI to Dollar swap, in the
amount of R$ 39.7 million and from CDI to TJLP + interest in the amount of R$ 40 million
in the first semester of 2004.
Other Net Expenses/ Operating Incomes
Our other net operating expenses were reduced from R$ 25.4 million in the first semester of
2003 to R$ 15.7 million in the first semester of 2004. The main component of this item is
our employees’ participation in our profits, which represented expenditures of R$ 31.6
million in the first semester of 2004, while in an equal period in the 2003-year these
expenditures were R$ 17.8 million. Other non-recurring items, which had an influence on
this variation of our other net operating expenses were (i) Employees’ Profit Participation
Plan - PIS/semestrial recovery*, in the amount of R$ 6.9 million in the first semester of
2004; and (ii) capital loss resulting from foreign exchange variation of investments abroad in
the amount of R$ 11.4 million occurred in the first semester of 2003.
The recovery of “PIS/Semestralidade” refers to refund of PIS overpayment in the period from
June 1988 to November 1995 because of interpretation of the laws in force at that time – DecreeLaws no. 2445/88 and 2449/88 – that PIS could be paid monthly based on revenue from the
sixth prior month, without any monetary correction indexation during this period. The
calculation base of the PIS contribution remained in force until the issuance of Provisional
Measure 1212/95, which defined the calculation base for PIS as the revenue from the previous
month. On June 30, 2004, the remaining PIS/Semestralidade credit was R$ 2.9 million.
43
Equity Accounting Income
Our equity accounting income is made up of the 7.47% interest in Perdigão S.A.’s total capital.
In the first semester of 2004, our equity accounting income was positive by R$ 12.8 million,
versus a R$ 512 thousand income in the first semester of 2003. This variation in the equity
accounting income occurred as a result of the improvement in Perdigão S.A’s net income.
Operating Profit
In consequence of the above-mentioned factors, our Operating Profit in the first semester of
2004 totaled R$ 256.0 million, representing a R$ 58.2 million increase, that is,
approximately 29.4% in comparison to our R$ 97.8 million Operating Profit in an equal
period in the year 2003.
Net Non-Operating Income
Our net non-operating income in the first semester of 2004 had little effect on our net income in
this period, totaling R$ 4.6 million in the first semester of 2004 in comparison to R$ 4.4 million
in the first semester of 2003, whose main item was a provision for losses on investments in
FINAM and FINOR, in the amount of R$ 3.7 million in the first semester of 2003 and provision
for losses on export notes in the amount of R$ 4.9 million in the first semester of 2004.
FINAM (Amazon Investment Fund) and FINOR (Northeast Investment Fund) are funds
created to make investments in projects in regions benefited by incentives from the Amazon
Development Superintendency (SUDAM) and the Northeast Development Superintendency
(SUDENE), respectively. The amounts recognized in the income statement refer to the loss
on realization of these investments (sales of quotas in these funds at market rates).
Income Tax and Social Contribution
In the first semester of 2004 we made a provision for income tax and social contribution of
R$ 44.1 million and R$ 2.3 million of deferred income tax (positive). In the same period the
previous year these figures were R$ 45.2 million of provision for income tax and social
contribution and R$ 11.4 million of deferred income tax. Contributing to this variation was
the result of the effect of tax credits on our taxable income and movements in deferred
income tax and social contribution accounts.
We have deferred tax credits, whose balance on June 30, 2004 totaled R$ 15.0 million (in
comparison to the R$ 4.1 million balance calculated on June 30, 2003), coming from income
tax and social contribution losses by our subsidiaries (R$ 2.8 million on June 30, 2004), and
from taxes under judicial discussion, tax/civil contingencies and non-deductible provision
totaling R$ 12.2 million on June 30, 2004, being that these same provisions totaled R$ 4.1
million on June 30, 2003.
We expect to offset credits coming from tax loss with future tax losses, within the next 3
years, and tax credit originating from judicial issues and contingencies, according to the
outcome of judicial proceedings in progress.
44
Net Profit
We calculated a R$ 200.8 net profit in the first semester of 2004, representing a 44.1%
increase on the profit recorded in the first semester of 2003. The expansion or our revenues
on the foreign market, our products’ penetration in new markets, our sales growth in the
industrial automation segment and industrial package services (Turnkey) for large
consumers, have contributed to this performance.
EBITDA
EBITDA totaled R$ 291.5 million in the first semester of 2004, against R$ 207.9 million in the
same period of 2003, an increase of R$ 83.6 million (40.2%). EBITDA margin was 29.2% in the
first semester of 2004, greater than the margin of the same period the previous year (26.1%).
Operating Income Comparison in periods closed on December 31st, 2003 and December 31st, 2002
The following chart shows the comparison of our Operating Incomes in the periods closed
on December 31st, 2003 and December 31st, 2002:
R$ thousand
Gross Revenue from Sales and/or Services
Domestic Market
Foreign Market
Gross Income Deductions
Net Revenue
Costs of sold goods and/or services
Gross Profit
Selling Expenses
General Administrative Expenses
Financial Revenues
Financial Expenses
Interest on Shareholders’ Equity
Other Operating Revenues/Expenses
Equity Accounting Income
Operating Income
Non-Operating Revenues / Expenses
Income Before Taxes/Participations
Income Tax / Social Contribution
Statutory Participations/Contributions
Reversal of Interest on Shareholders’ Equity
Minority Interests
Profit (Loss) in the Period
EBITDA
12.31.2002
1,534,903
1,003,670
531,233
(252,868)
1,282,035
(798,745)
483,290
(146,524)
(76,544)
141,596
(111,410)
0
(14,482)
2,196
278,122
(8,088)
270,034
(45,203)
(3,960)
(405)
(140)
220,326
236,817
12.31.2003
2,015,111
1,233,868
781,243
(320,951)
1,694,160
(1,027,434)
666,726
(194,718)
(88,957)
177,640
(111,067)
(10,389)
(54,823)
7,567
391,979
(4,623)
387,356
(82,699)
(4,363)
7,692
(177)
307,809
429,981
Var. %
31.3%
22.9%
47.1%
26.9%
32.1%
28.6%
38.0%
32.9%
16.2%
25.5%
-0.3%
278.6%
244.6%
40.9%
-42.8%
43.4%
83.0%
10.2%
26.4%
39.7%
31.6%
Remark: For calculation of EBITDA, we consider: (+) Gross Earnings (-) general and administrative expenses (-) other operating
revenues and expenses (not including participation in the results from shareholdings of R$ 44.5 million in 2003 and R$ 30.2 million in
2002, R$ 23,9 million in 2001 and R$ 31,6 million in the first semester of 2004 and R$ 17,8 million in the first semester of 2003) (+)
depreciation and amortization.
Gross Revenue
Our Gross Revenue in the period ending on December 31st, 2003 increased by R$ 480.2 million,
that is, 31.3%, growing from R$ 1,535.9 million in the period ending on December 31st, 2002 to
45
R$ 2,015.1 million in 2003. Our gross revenue on the domestic market showed a 22.9% growth,
while our gross revenue on the foreign market showed a 47.1% growth, comparing the period
ending on December 31st, 2003 to the period ending on December 31st, 2002.
Among the factors contributing to this performance, we emphasize: (i) electric motor sales
growth – our main product, single-phase motor physical sales having totaled 7.4 million
units (2.4 million HP) in 2003, 15.6 % higher than the 6,4 million unit total (2.0 million HP)
marketed in the previous period and three-phase motor sales totaled 1.2 million units in the
period ending on December 31st, 2003 (10.7 million HP), compared to sales of 1.1 million
units (9.7 million HP) marketed in the 2002 period; and (ii) share growth of the industrial
automation unit in our Group’s total billing, which increased from 11.9% of gross revenue in
2002 to 13.2 % in 2003, representing a 45% gross revenue growth in this segment only.
Our Gross Operating Revenue in the period ending on December 31st, 2003 coming from the
foreign market totaled R$ 781.2 million (US$ 256.4 million), while these same revenues in
the year 2002 totaled R$ 531.2 million (US$ 177.3 million). Of our revenue total on the
foreign market in the period ending on December 31st, 2003, 67% were revenues generated
through our foreign subsidiaries. This percentage in 2002 was 63%.
Our Group has factories in Mexico, Argentina and Portugal. We also have subsidiaries that
market and distribute our products in the United States, Venezuela, Germany, England,
Belgium, France, Spain, Italy, Sweden, Australia and Japan. In 2003, we established
companies for marketing and distributing our products in Chile and Colombia, in addition to
having formed a partnership with Mitsui as our product distributor in Japan.
Our Net Revenue grew by R$ 412.1 million (32.1%), from R$ 1,282.0 million in 2002 to R$
1,694.2 million in 2003.
Cost of Sales and Rendered Services
The cost of our sales and rendered services in the period ending on December 31st, 2003
totaled R$ 1,027.4 million, representing a R$ 228.7 million growth, that is, 28.6%, in
relation to the cost incurred in the year 2002, which totaled R$ 798,7 million. The ratio
between the cost of our sales and rendered services decreased by 62.3% in the period ending
on December 31st, 2002 to 60.6% in the year 2003. We highlight that mentioned decrease
was, mainly a result of: (i) the scale gain as result of our product sales growth and
consequent dilution of our fixed costs; and (ii) the smaller foreign exchange pressure on
dollar-quoted raw materials prices, taking into account that during the year 2003 the Real
showed an average 4.9% devaluation in relation to the Dollar, based on Real daily quotations
against the Dollar, whereas in 2002 average devaluation was 19.5%.
Gross Profit
As a result of the above-mentioned factors our gross margin showed a 39.4% growth in the
2003 period, in comparison to the 37.7% growth in the year 2002. Our Gross Profit in 2003
increased by R$ 183.4 million, that is, 38%, growing from R$ 483.3 million in 2002, to R$
666,7 million in the 2003 period.
46
Operating Expenses
Our expenses with sales, general and administrative in the period ending on December 31st, 2003
totaled R$ 283.7 million, which represented a 27.2% growth in relation to the 2002 period, when
they totaled R$ 223.1 million. The consolidated operating expense share percentage showed a
17.4% decrease in 2002 to 16.7% in 2003, in spite of the 14.74% salary adjustment in 2003
(9.5% in 2002). The main reason for improvement of our performance was our fixed expense
dilution as a result of our expressive 32.19% income growth in the period.
Other Net Operating Expenses
The item other net operating expenses totaled R$ 54,8 million in the period ending on
December 31st, 2003 representing a R$ 40.3 million growth, that is, 277.93% in relation to
this item in the 2002 period that totaled R$ 14.5 million. The main component of this item is
our employees’ participation in our profits, which represented, in 2003, represented
expenditures of R$ 44.5 million, while these expenditures in 2003 totaled R$ 30.2 million.
Among other non-recurring items that had an influence on this variation of other operating
expenses, we highlight: (i) capital losses resulting from foreign exchange variation on
investments abroad in the amount of R$ 13.8 million in the year 2002, versus a R$ 21.7 gain
in 2003; and (ii) Employees’ Profit Participation Plan - PIS/Semestraildade recovery, in the
amount of R$ 6.6 million in 2003. On December 31, 2003 the remaining PIS/Semestralidade
credit was R$ 10.3 million.
Financial Income
Our financial income in the period ending on December 31st, 2003 was R$ 66.6 million,
representing a R$ 36.4 million growth, that is, 120.5%, over our financial income in the year
2002, which totaled R$ 30.2 million. Our financial expense with loans and financings totaled
R$ 111.1 million in 2003, versus R$ 111.4 million in 2002, while our financial income
totaled R$ 177.6 million in the period ending on December 31st, 2003, representing a R$36
million increase, that is, approximately 25.4% over our financial income in 2002, which
totaled R$ 141.6 million. The financial result comes from financial investments in a fixedyield investment fund and certificates of deposit superior of the expenses arising from loans
and financing.
This variation is the result, mainly, of the smaller Real devaluation in relation to the Dollar
during the Year 2003, which accumulated a 4.5% devaluation, in comparison to the
devaluation accumulated in the year 2002, which totaled 19.5% and, consequently, of its
effects on our foreign currency-denominated loans, and financial gain with foreign exchange
swap operations, which totaled R$ 26.5 million in 2003, in comparison to R$ 7.8 million in
2002.
Our total indebtedness on December 31st, 2003 was R$ 599.7 million, being that of this
amount, approximately, 58.0 %, that is, R$ 347.6 million was made up of foreign currencyindexed loans, while of our total R$ 696.0 million indebtedness on December 31st, 2002, R$
527.6 million were foreign-currency indexed. Our financial investments on December 31st,
2003 totaled R$ 723.6 million, being that R$ 237.5 million of this total were made up of
47
investments in Brazilian government dollar-denominated bonds and export notes, while on
December 31st, 2002, our financial investments totaled R$ 743.1 million, of which R$ 206.1
million were made up of Dollar financial investments.
In order to hedge against foreign exchange variation effects on our investments abroad, we
made foreign exchange swap operations: (i) on foreign dollar investments for 100% to 105%
of Interbank Deposit Certificate (CDI), which totaled R$ 108.4 million (US$ 37.5 million),
on December 31st, 2003, while on December 31st, 2002 these operations totaled R$ 175.4
million (US$ 49.7 million); and (ii) financial investments in Brazil, CDI to Dollar swap,
totaling R$ 59.0 million on December 31st, 2003 and R$ 202.2 on December 31st, 2002.
Equity Accounting Income
Our equity accounting income is made up of the 7.47% interest in Perdigão S.A.’s total
capital (we recognize the equity based on the balance sheet related to December of the
previous fiscal year to November of the current fiscal year). In the period ending on
December 31st, 2003, our Equity Accounting Income was positive by R$ 7.6 million, versus
the amount of R$ 2.2 million in the year 2002. The variation in the Equity Accounting
Income occurred as a result of the improvement in Perdigão S.A’s net income, which
increased from an R$ 8.2 million profit in 2002 to a R$ 123.5 profit in 2003.
Operating Profit
As a result of the above-mentioned factors, our operating profit in the period ending on
December 31st, 2003 totaled R$ 392.0 million, representing a R$ 113.9 million increase, that
is, 41.0% over our R$ 278.1 million operating profit in the year 2002.
Net Non-Operating Expenses
Our Net Non-Operating Expenses totaled R$ 4.6 million in 2003, representing a R$ 3.5
million decrease in the period ending on December 31st, 2003, that is, 42.5% in relation to
our non-operating expenses in the year 2002, which totaled R$ 8.1 million. The main nonoperating item was made up of the loss provision in investment in FINAM and FINOR, in
the amount of R$ 3.7 million in 2003, and which had totaled R$ 7.2 million in 2002.
Income Tax and Social Contribution
In the 2003 we made a provision for income tax and social contribution of R$ 80.1 million and
R$ 2.6 million of deferred income tax (negative). In 2002 these figures were R$ 48.6 million of
provision for income tax and social contribution and R$ 3.4 million of deferred income tax
(positive). Contributing to this variation was the result of the effect of tax credits on our taxable
income and movements in deferred income tax and social contribution accounts.
We have deferred tax credits, whose balance on December 31st, 2003 totaled R$ 12.9 million
(in comparison to the R$ 15.4 million balance calculated on December 31st, 2002), coming
from income tax and social contribution losses by our subsidiaries (R$ 1.0 million on
December 31st, 2003, versus R$ 3.7 million on December 31st, 2002) and from taxes under
48
judicial discussion, tax/civil contingencies and non-deductible provision totaling R$ 11.9
million on December 31st, 2003, with these same provisions totaling R$ 11.7 million on
December 31st, 2002.
Net Profit
As a result of export income and financial income increase, we calculated a R$ 307.8 million
Net Profit in the period ending on December 31st, 2003, representing a 39.7% increase over
the profit recorded in the period ending on December 31st, 2002, which totaled R$ 220.3
million.
EBITDA
EBITDA totaled R$ 430.0 million in 2003, against R$ 326.8 million in 2002, an increase of
R$ 103.2 million (31.6%). EBITDA margin changed very little, totaling 25.4% in 2003
against 25.5% in 2002.
Comparison of Operating Incomes in the periods ending on December 31st, 2002 and
December 31st, 2001
The chart below shows the comparison of our Operating Incomes between the periods
ending on December 31st, 2002 and December 31st, 2001
R$ thousand
Gross Revenue from Sales and/or Services
Domestic Market
Foreign Market
Gross Revenue Deductions
Net Revenue
Cost of sold goods and/or services
Gross Profit
Selling Expenses
General and Administrative Expenses
Financial Revenues
Financial Expenses
Interest on Shareholders’ Equity
Other Operating Revenues/Expenses
Equity Accounting Income
Operating Income
Non-Operating Revenues / Expenses
Income Before Taxes/Participations
Income Tax / Social Contribution
Statutory Participations/Contributions
Interest Reversal on Shareholders’ Equity
Minority Interests
Profit (Loss) in the Period
EBITDA
12.31.2001
1,268,873
853,872
415,001
(202,937)
1,065,936
(663,302)
402,634
(113,096)
(61,007)
111,394
(83,908)
(42.893)
(15,831)
11,081
208,374
(3,469)
204,905
(72,025)
0
42,893
(90)
175,683
280,351
12.31.2002
1,534,903
1,003,670
531,233
(252,868)
1,282,035
(798,745)
483,290
(146,524)
(76,544)
141,596
(111,410)
0
(14,482)
2,196
278,122
(8,088)
270,034
(45,203)
(3,960)
(405)
(140)
220,326
326,817
Var. %
21.0%
17.5%
28.0%
24.6%
20.3%
20.4%
20.0%
29.6%
25.5%
27.1%
32.8%
-8.5%
-80.2%
33.5%
133.2%
31.8%
-37.2%
55.6%
25.4%
16,6%
Remark: For calculation of EBITDA, we consider: (+) Gross Earnings (-) general and administrative expenses (-) other operating
revenues and expenses (not including participation in the results from shareholdings of R$ 44.5 million in 2003 and R$ 30.2 million in
2002, R$ 23,9 million in 2001 and R$ 31,6 million in the first semester of 2004 and R$ 17,8 million in the first semester of 2003) (+)
depreciation and amortization.
49
Gross Operating Revenue
Our Gross Operating Revenue in the period ending on December 31st, 2002 increased by R$
266.0 million, that is, 21.0%, growing from R$ 1,268.9 million in the period ending on
December 31st, 2001 to R$ 1,534.9 million in 2002. Our gross revenue on the domestic
market showed a 17.5% growth, while our gross revenue on the foreign market showed a
28% growth, by comparing the period ending on December 31st, 2002 to the period ending
on December 31st, 2001.
Among the factors contributing to our growth on the domestic market, we highlight the
industrial automation and transformers segment, which showed a growth, respectively, of
46% and 36% in the period ending on December 31st, 2002, in relation to the year 2001.
Our foreign sales performance benefited from the Real devaluation against the Dollar, which
accumulated, during the year 2002, a 19% devaluation, based on average daily quotations of
the Real against the Dollar, since our gross operating revenue on the foreign market totaled
R$ 531.2 million (US$ 177.3 million) in the period ending on December 31st, 2002, and R$
415.0 million (US$ 175.6 million) in the year 2001.
Our gross revenue distribution on the foreign market was influenced by the drop in the North
American share and by the Argentine economic recession. However, these factors were
offset by the growth of our sales in Europe. In the year 2002, sales to North America
represented 43% of our foreign sales (46% in 2001), while South and Central America
represented 13% in the same year (18% in 2001) and Europe 28% (21% in 2001).
In accordance with our internationalization strategy, during the 2002 period, we purchased a
manufacturing unit with 150 employees in Portugal, dedicated to the production of special
electric motors with a power over 50 HP.
Our net operating revenue underwent a R$ 216.1 million increase, that is 20.3%, growing
from R$ 1,065.9 million in 2001 to R$ 1,282.0 million in 2002.
Cost of Sales and Rendered Services
The cost of our sales and rendered services in the period ending on December 31st, 2002
totaled R$ 798.7 million, representing a R$ 135.4 million growth, that is 20.4%, in relation
to the cost incurred in the year 2001, which totaled R$ 663.3 million. The ratio between the
cost of our sales and rendered services and our net revenue from sales and services in the
period ending on December 31st, 2002 was 62.3%, remaining at the same level as in the year
2001, in which the ratio was 62.2%. This behavior, was due, mainly, to the following
factors: (i) Impact of the 19.5% foreign exchange devaluation in the year 2002 over the costs
of raw materials, which are quoted in Dollar and indicated by international prices (especially
steel slabs and copper); e (ii) The labor cost increase as a result of the growth in the number
of our employees, which increased from a 9.254 total on December 31st, 2001, to 10,152
employees on December 31st, 2002, as well as the category’s salary collective bargaining of
9.5% in 2002 (8% in 2001).
50
Gross Profit
Our Gross Profit in the period ending on December 31st, 2002 totaled R$ 483.3 million,
representing an R$ 80.7 million increase, that is 20.0%, in relation to the 2001 period, which
totaled R$ 402.6 million. The Real exchange devaluation in relation to the Dollar, which
accumulated a 19.5% devaluation during the 2002 period, and, consequently, its effects on our
export incomes offset the pressure caused by the cost of our inputs with a Dollar price and, as a
result, our gross 37.7% margin in 2002 remained at the same level as in 2001, which was 37.8%.
Operating Expenses
Our consolidated sales, general and administrative expenses in the period closed on
December 31st, 2002 totaled R$ 223.1 million, representing a 28.1% increase in relation to
the same expenses during the previous year, when they totaled R$ 174.1 million. The ratio
between our consolidated operating expenses and our net revenue showed a small increase,
growing from 16.3% in the 2001 period to 17.4% in the 2002 period. The main reasons for
the drop in our performance were: (i) increase in expenditures with personnel in our foreign
operations, due to the increase in the number of employees in these operations by 42%; and
(ii) foreign exchange variation on general expenses for maintaining our foreign structure.
Other Net Operating Expenses/Revenues
The item other net operating expenses in the year ending on December 31st, 2002 totaled R$
14.5 million, representing a R$ 1.3 million decrease,. That is, 8.2%, in relation to the same
expenses in the year 2001, which totaled R$ 15.8 million. The main component of this item
is our employees’ participation in our profits, which, in the 2002 period, represented a R$
30.2 million expenditure, while in the year 2001 this expenditure was R$ 23.9 million.
Another non-recurring item, which influenced the variation of our other net operating
expenses, was our capital gain on investments abroad as a result of foreign exchange
variation, which, in the year 2002, totaled R$ 21.7 million, in comparison to gains in the year
2001, which totaled R$ 8.2 million.
Financial Income
Our financial income in the period ending on December 31st, 2002 totaled R$ 30.2 million,
representing a R$ 2.7 million increase, that is, 9.8%, over our income in the 2001 period,
which was R$ 27.5 million. Our financial expense on loans and financings totaled R$ 111.4
million in 2002, versus R$ 83.9 million in 2001, representing a 32.8% increase, that is, R$
27.5 million by comparing the 2002 and 2001 periods. Our financial revenue totaled R$
141.6 million in 2002, versus R$ 111.4 million in 2001, representing a R$ 30.2 million
increase, that is, 27.1% in relation to the 2001 period. The financial result comes from
investments in a fixed-yield investment fund and certificates of deposit superior of the
expenses arising from loans and financing.
This variation is the result, mainly, of the smaller Real devaluation against the Dollar during the
year 2002, which accumulated a 19.5% devaluation and, consequently, its effects on our foreign
exchange-denominated loans, since a portion of our investments was not hedged by swap.
51
Of our total R$ 696.0 million indebtedness on December 31st, 2002, approximately 73.3%, that
is, R$ 510.2 million was made up of foreign currency-indexed loans, while in the 2001 period, of
our total R$ 456,5 million indebtedness, R$ 275.6 were made up of foreign-currency indexed
loans. Our financial investments on December 31st, 2002 totaled R$ 743.1 million, being that of
this total, R$ 206.1 million were made up of Dollar financial investments, while on December
31st, 2001, of our total financial investments in the amount of R$ 539.2 million, a total of R$
188.6 million was made up of Dollar financial investments.
In order to hedge against the foreign exchange variation on our investments abroad, we made
swap operations: (i) on foreign dollar investments for 100% to 105% of the CDI, in the total
amount of R$ 175.4 million (US$ 49.7 million, during the year 2002, while in the year 2001
these operations totaled R$ 125.3 million (US$ 54 million); and (ii) financial investments in
Brazil, CDI to Dollar swap, in the amount of R$ 202.2 million in the year 2002, while in
2001 these operations totaled R$ 21.3 million.
Equity Accounting (“Equivalência Patrimonial”)
Our equity accounting income is made up of our 7.47% interest in Perdigão S.A.’s total
capital (we recognize the equity based on the balance sheet related to December of the
previous fiscal year to November of the current fiscal year). In the period ending on
December 31st, 2002, our equity accounting income was positive by R$ 2.2 million, versus
R$ 11.1 million in the year 2001. The variation in the equity accounting income occurred as
a result of Perdigão S.A.’s worsening net income, which decreased from a R$ 168.2 million
profit in 2001 to an R$ 8.2 million profit in 2002.
Operating Profit
As a result of the above-mentioned factors, our Operating Profit in the period ending on
December 31st, 2002 was R$ 278.1 million, representing a R$ 69.7 million increase, that is,
33.4% in comparison to our Operating Profit in the year 2001, which totaled R$ 208.4 million.
Net Non-Operating Expenses
Our Net Non-Operating Expenses totaled R$ 8,1 million in the period ending on 31st, 2002,
representing a R$ 4.6 million increase, that is, approximately 131.4% in relation to our NonOperating Expenses in the year 2001, which totaled R$ 3.5 million. The main non-operating
item pressing our non-operating expenses was made up of the loss provision in investment in
FINAM and FINOR (see previous explanation), in the amount of R$ 7.2 million in the year
2002, while this provision in the 2001 period totaled R$ 3.1 million.
Income Tax and Social Contribution
In 2002 we made a provision for income tax and social contribution of R$ 48.6 million and R$
3.4 million of deferred income tax (positive). In 2001 these figures were R$ 76.7 million of
provision for income tax and social contribution and R$ 4.7 million of deferred income tax
(positive). Contributing to this variation was the result of the effect of tax credits on our taxable
income and movements in deferred income tax and social contribution accounts, as follows:
52
i) On December 31st, 2002, we have deferred tax credits, whose balance on December 31st,
2002 totaled R$ 15.4 million (in comparison to the R$ 12.0 million balance calculated on
December 31st, 2001), coming from income tax fiscal losses of our subsidiaries (in the
amount of R$ 3.7 million on December 31st, 2002 and from taxes under judicial discussion,
tax/civil contingencies and non-deductible provision totaling R$ 11.7 million on December
31st, 2002, being that these same provisions totaled R$ 12.0 on December 31st, 2001.
ii) As of 2002, WEG Industries started to calculate the income tax and social contribution
provision based on presumed profit, as a result of the company’s adhesion to the Fiscal
Recovery Program (REFIS) in December 2000. The new calculation form resulted in income
tax and social contribution payment decrease for our Group by comparing the 2002 period to
2001 and should be used by WEG Industries until final settlement of the REFIS balance in
2005. The aim or joining REFIS was to reduce fiscal contingencies, choosing to pay them
over a period of 60 months with the outstanding balances updated by the Long-term Interest
Rate (TJLP). On December 31st, 2003, the consolidated balance due was R$ 87 million.
Net Profit
As a result of the above-mentioned factors, we calculated a R$ 220.3 million Net Profit in
the period ending on December 31st, 2002, representing a R$ 44.6 increase, that is, 25.4%
over the profit recorded in the year 2001, which totaled R$ 175,7 million.
EBITDA
EBITDA totaled R$ 326.8 million in 2002, against R$ 280.4 million in 2001, an increase of
R$ 46.5 million (16.6%). EBITDA margin went from 26.3% in 2001 to 25.5% in 2002,
affected mainly by the effect of exchange rate devaluation on operating expenses indexed in
foreign currency and increased expenditures for labor abroad.
Liquidity and Financial Resources
We believe we have sufficient liquidity and financial resources to fulfill our forecasts of debt
service needs, capital expenditure and other needs in the next years, although we cannot
provide assurances in this respect.
We have been obtaining funds from our operating activities on the local and international market
(by means of direct exports and our foreign subsidiaries’ activities, allocating these resources to
our cash investment and management program for working capital of financial commitments.
Invested amounts totalized R$ 72.9 million in 2001, R$ 83.0 million in 2002, R$ 125.7
million in 2003 and R$ 68.4 million in the first semester of 2004 and have been allocated to
modernizing and expanding our productive capacity and opening representative offices
abroad, in order to increase the number of our foreign subsidiaries and expand our exports.
We predict investments for 2004 around R$ 149.6 million, which will be allocated to
expanding our productive capacity and modernizing our manufacturing park, being that of
this total, R$ 121.0 million allocated to application in Brazil, and the remaining balance, to
completing the construction of our new factory located in Mexico.
53
On June 30th, 2004, we had, approximately, 63.0% of maturities, totaling approximately R$
507.5 million, of a total R$ 805.2 million short-term debt. Short-term loans are mainly
constituted of transactions linked to our operating activities (trade finance) such as ACC’s
(advance on export contract) and loans via a secured account contracted in local currency by
our foreign subsidiaries to cover working capital needs of their activities.
Debt Amortization Schedule
90,0 %
95,0 %
100,0
80,6 %
70,3 %
805,2
63,0 %
507,5
CP
58,8
82,7
75,3
40,3
40,6
2005
2006
2007
2008
+ 2009
Amortização - R$ milhões
Dív. Total
Amortização Acumulada - %
Our Group presents a solid financial situation. We presented a net R$ 43.8 million cash on
June 30th, 2004, being that on that date our gross indebtedness totalized R$ 805.2 million and
our available funds, added to our financial investments, totalized R$ 849.0 million.
Our operations in Brazil and abroad generate substantial funds for our own financing. Gross
operating cash generation represented by EBITDA (Earnings Before Interest, Taxes,
Depreciation and Amortization) totaled R$ 280.4 million in 2001, R$ 326.8 million in 2002,
R$ 430.0 million in 2003 and R$ 291.5 million on the first semester of 2004.
On June 30th, 2004, approximately 65.5% of our total R$ 805.2 million indebtedness, that is,
R$ 527.5 million (US$ 169.8 million) was made up of foreign currency-indexed loans. Of
this total, R$ 494.4 million were Dollar-indexed and R$ 33.1 basket of currencies-indexed,
27.3% TJLP (Long-Term Interest Rate)-indexed, 7.2% to the IGP-M (General Price IndexMarket) and others.
Most of our foreign currency loans refer to financial funding by our foreign subsidiaries,
which totaled, on June 30th, 2004, the amount of R$ 275.2 million (US$ 88.6 million). Other
foreign-currency funded loans are made up of ACC’s (advance on export contracts) and lines
funded with BNDES, EXIM e FINEM. Our revenue with exports and foreign sales through
our subsidiaries make up a natural hedge of these loans, being that in the first semester of
2004, approximately, 40.6% of our total revenue, that is, R$ 479.6 million were foreign
currency-originated.
54
WEG Group’s Debt Status
Financings
R$ mil
ST
12.31.2003
LT
Gross Debt
376,521
Foreign Currency
Working Capital
Working Capital (ACC)
Local Currency
Property, Plant and Equipment
Working Capital
Others
Financial Assets
Local Currency
Cash Assets
Bank Deposit Certificate
Fixed Income Funds
Foreign Currency
Foreign Government Securities
Export Note
Other Investments
Net Cash
Net Worth
Total Capitalization
ST
06.30.2004
LT
Total
223,147
599,668 507,510
297,701
805,211
299,838
47,802
347,640 387,936
139,533
527,469
253,810
47,802
301,612 168,691
139,533
308,224
46,028
-
46,028 219,245
-
219,245
76,683
175,345
252,028 119,574
158,168
277,742
4,933
57,201
4,931
56,775
61,706
55,122
118,144
173,266 112,578
100,593
213,171
16,628
-
800
2,865
848,953
563,323
29,142
451,321
82,860
273,837
273,837
11,793
43,742
977,253
933,511
Total
62,134
16,628
723,622
452,411
32,678
327,812
91,921
253,582
237,505
16,077
17,629
123,954
861,426
737,472
2,065
On June 30th, 2004, our financial investments totaled R$ 849.0 million, of which R$ 273.8
million were represented by Dollar financial investments (R$ 189.1 million on June 30th,
2003). The financial result comes from investments in a fixed-yield investment fund and
bank certificates of deposit backed by the Brazilian interbank certificates superior to the
expenses resulting from loans and financing.
In order to hedge against the effects of foreign exchange variations on our foreign
investments, we made swap operations: (i) over foreign investments: in Dollars for 100% to
105% of the CDI in the total amount of R$ 163.1 million (US$ 52.5 million) on the first
semester of 2004, while in this same period of 2003 such transaction totaled R$ 134,7
million (US$46.9 million); and (ii) financial investments in Brazil: CDI to Dollar, in the total
amount of R$ 39.7 million and fro CDI to TJLP plus interest in the total amount of R$ 40
million in the first semester of 2004.
55
THE ELECTRICAL-ELECTRONIC SECTOR IN BRAZIL
General View of Our Business and Sector
Despite their great diversity, the products manufactured by Group Weg mainly consist of
motors/generators and related electrical and electronic equipments (switches, automation, paints
and varnishes for related equipments). In general, such items have been created in the history of
the Company to aggregate value to our basic products (motors and generators), such as the part
for protection and control (switches). Except for the paints unit (Weg Química, nearly 6% of the
sales), all these products are classified as part of the “Electrical-electronic Complex” as defined
by the Brazilian Association of Electrical and Electronic Industry (ABINEE). Hence, we analyze
below the relevant aspects of this complex, of which Weg is a part (the information below
regarding the Sector of Capital Goods and household appliances (white line) were selected from
public recognized sources (governmental entities and sector entities), ABINEE – Brazilian
Association of Electrical and Electronic Industry, ABIMAQ – Brazilian Association of
Machines and Equipment and Ministry of Development, Industry and External Commerce.
Proportion of roughly 80-20% between capital goods and consumer goods. The electrical
and electronic products made by our various business units serve both the capital goods and
consumer goods segment (the latter consisting of household appliances, or “white line”). It is
important to note that sales to the capital goods segment are both for direct industrial
application and indirect uses (industrial equipments that use motors or other Weg products)
and represent 79% of the total sales (including in this total sales of the Weg Química ones,
essentially paints and varnishes for industrial applications).
We identify below the sales breakdown of each WEG business unit in its respective segment,
according to the ABINEE classification.
View of the Weg Business Units
Revenue per segment of the
Electrical-Electronic Complex
Electrical and Electronic
Components
Electrical –electronic Household
Appliances
Industrial Automation
GTD (Generation, Transmission
and Distribution)
Industrial Equipments
Informatics
Electrical Installation Material
Telecommunications
Total
2003
R$ million
6,876
12,421
Weg`s Gross
Revenue
in 2003
R$ million1
Weg Unit
Weg Motores (35%) and
947
Weg Maquinas (12%)
Weg Motores
423
% of Weg`s
Gross Revenue
for 2003 per
Business Unit
47%
21%
1,721
4,449
Weg Automação
Weg Transformadores
262
141
13%
7%
8,426
16,701
4,593
8,760
63,948
Weg Acionamentos
Not active
Not active
Not active
121
6%
94%
1,894
1 Does not include revenue of Weg Química (R$ 121 million, or 6% of gross revenue in 2003).
Source: ABINEE and Company
56
We present below a general view of the electrical-electronic sector and then comment the
capital goods and consumer goods segments.
Electrical-Electronic Complex
The main segments of interest to Weg in the sector are: (i) domestic appliances; (ii)
industrial equipment; (iii) industrial automation; (iv) generation equipments; (v) electricity
distribution and transmission; and (vi) electrical and electronic components.
We present below a more detailed description of each segment in which Weg participates
(remembering that we do not act in the activities of telecommunications, informatics and
electrical installation material).
Description of the Segments Defined by the Brazilian Association of Electrical and
Electronic Industries (ABINEE)
Description of the Segment
Electrical and Electronic
Components
Characterization by ABINEE
Manufacture of resistors, capacitors, transformers for electronic
devices, switches, loudspeakers, connectors, movie projectors, diodes,
transistors, integrated circuits, printed circuits, laminated circuits, etc.
Electrical-Electronic
Household Appliances
Manufacture of portable and white line appliances, electric and manual
tools, audio and video devices, seagoing electrical equipment, etc.
Industrial Automation
Manufacture of equipment for control and supervision of processes,
manufacture, systems integration, logical and numerical controls,
electrical and non-electrical metering/measuring equipment, sensors,
alarm and security equipment, hospital equipment, among others.
GTD (Generation,
Transmission
and Distribution)
Manufacture of switches, circuit breakers, turbogenerators, water
turbines, protection relays, tooling and connectors for electricity
transmission and distribution, electricity meters, capacitors and
capacitor banks, low- , medium- and high-voltage electrical panels,
among others.
Industrial Equipments
Manufacture of components for machinery and equipment, low-voltage
switches, commutators, end-course switches, button switches, contacts,
relays, starter switches, electrical connectors, electrical equipment for
explosive environments, static servos, rectifiers, electrical
furnaces/stoves, electric motors, generators, among others.
Source: ABINEE
The electrical-electronic sector is one of the most important industrial segments nowadays,
permeating all industrial sectors and one of the main agents for diffusion of technology.
The principal economic blocks and industrialized countries have integrated and welldeveloped electrical-electronic industries, ranging from manufacturing of semiconductors to
final products, both for industrial (capital goods) and household use. In large part the
domestic needs of these blocks and countries are supplied internally.
The United States, Japan and Western Europe dominate the market for high-technology
products. More conventional products and sub-products, with low unit value and mass
consumption, are mainly produced by countries of Southeast Asia, notably China.
57
In Brazil, the sector had gross revenues of R$ 64 billion (2003), 13% more than the previous
year, representing 4.2% of Brazil’s GDP.
According to information from the ABIDEE, over the past 5 years, the average revenue
annual growth of the electrical-electronic sector in Brazil has been 11.3%. Below we present
this evolution for each segment of the sector, and in the graph that follows, the evolution of
the overall sector.
Evolution of the various segments of the electrical-electronic sector in Brazil (2001-03)
Revenue by Area
(in R$ million)
Industrial Automation
Electrical and Electronic
Components
Industrial Equipments
GTD
Informatics
Electrical Installation
Material
Telecommunications
2001
1,202
5,263
%
2%
9%
2002
1,472
5,916
%
3%
10%
2003
1,721
6,876
%
3%
11%
2003/2002
Variation
17%
16%
6,542
4,548
14,732
4,592
11%
8%
25%
8%
7,088
5,114
13,391
4,649
13%
9%
24%
8%
8,426
4,449
16,701
4,593
13%
7%
26%
7%
19%
-13%
25%
-1%
Electrical-Electronic
11,431
9,875
20%
17%
7,432
11,292
13%
20%
8,760
12,421
14%
19%
18%
10%
Household Appliances
Total
58.185
100%
56.353
100%
63.948
100%
13%
Source: ABINEE
Evolution of the Brazilian Electrical-Electronic Sector (1998-2003)
63,9
58,2
56,4
50,6
41,4
37,4
1998
1999
2000
2001
Source: ABINEE
58
2002
2003
The sector, by its characteristic of high industrialized and technological content, has a deeply
deficit, with a negative balance sheet of R$ 5.2 billion in 2003. It is worth noting hat this deficit
fell 10% in 2003 because the lower exchange rate (Real decreased 4.7%) compared to the
previous year, while exports grew 7% (to R$ 4.7 billion) and imports fell slightly 2% (to R$ 9.9
billion). In this scenario, Weg is an exception, with only slight imports and large exports (nearly
40% of its total sales were direct exports and sales to its foreign subsidiaries).
Below we present the recent evolution of exports and imports in the sector.
Export and Imports by the Brazilian Electrical-Electronic Sector
US$ billion
13,3
11,9
10,8
10,1
9,9
9,9
2,9
3,2
1998
1999
4,4
4,7
4,4
4,7
2000
2001
2002
2003
Exports
Imports
Source: ABINEE
The Electrical and Electronic Components area was the most important in volume of exports
of the sector, responsible for a total of US$ 1.7 billion in 2003. The table below presents
data on the exports of products per segment of the Electrical-Electronic Sector:
Exports – US$ million
Industrial Automation
Electrical and Electronic
Components
Industrial Equipment
GTD
Informatics
Electrical Installation
Material
Telecommunications
Electrical - Electronic
Household Appliances
Total
2001
74
1.610
%
2%
35%
2002
67
1.688
%
2%
39%
2003
76
1.713
%
2%
37%
2003/2002
Variation
15%
2%
330
205
251
155
7%
4%
5%
3%
283
170
121
142
6%
4%
3%
3%
341
165
193
151
7%
4%
4%
3%
20%
-3%
60%
6%
1.338
702
29%
15%
1.343
543
31%
12%
1.334
707
29%
15%
-1%
30%
4.664
100%
4.357
100%
4.680
100%
7%
Source: ABINEE
59
We can note that motors and generators, in which the WEG Group has a strong market
share, are among the 10 products with greatest export volume. Exports in 2003 totaled R$
217 million, growth of 24% over 2002.
In relation to the markets to which the sector’s products are exported, with the exception of
Southeast Asia and the United States, exports to all other regions in the world rose in 2003 in
relation to the results of 2002. Even with the retraction, the United States continued to be the
main market for electro-electronic products and accounted for almost half of exported total.
Next comes ALADI (Latin American Association of Integration), which relied on
Argentina’s recovery, since all other countries making up this block dropped from 19% to
17% in the Sector’s Brazilian export share.
Brazilian Exports – Total of the Electrical-Electronic Sector (2002-03)
Sector’s Product Exports
(US$ million)
2003/2002
Variation
2002
%
2003
%
United States
2,235
51%
2,150
49%
-4%
Aladi (Total)
1,011
23%
1,317
30%
30%
- Argentina
173
4%
492
11%
184%
- Other Aladi Countries
837
19%
825
19%
-1%
European Union
455
10%
521
12%
15%
Southeast Asia
281
6%
218
5%
-22%
Rest of the World
375
9%
474
11%
26%
4,357
123%
4,680
138%
7%
Total
Source: ABINEE
Brazilian imports reached US$ 9.9 billion, in 2003. The largest drop was in the Industrial
equipment area (-29%), with a US$ 520 million retraction. The largest drop was of the motor
generator group, whose imports dropped from US$ 1.2 billion, in 2002, to US$ 657 million,
in 2003. We note that imports of generator motors were very high during the period power
rationing in 2001 and start of 200s, but returned to normal in 2003.
Semiconductors were the most imported products, reaching US$ 1.7 billion in 2003,
followed by computer components (US$ 879 millions) and telecommunications components
(US$ 812 million).
In relation to imports from several regions of the world, the 21% growth from Southeast
Asia stood out, which reached US$ 4.2 billion, becoming the main origin of the Sector’s
Brazilian imports. The Component segment (US$ 3.1 billion) represented 74% of this total.
Semiconductor purchases stood out, reaching US$ 1.2 billion.
60
Capital Goods Segment
Of the six Weg business units, we can classify the industrial activities of the following as falling
in the capital goods sector: (i) Weg Motores, excluding the part aimed at the electrical appliance
sector; (ii) Weg Máquinas; (iii) Weg Acionamentos; (iv) Weg Automação Industrial; (v) Weg
Transformadores; and (vi) most of the industrial paints and varnishes of Weg Química.
Present in the productive chain of most industrial sectors, the capital goods industry is
fundamental to the economy, diffusing technology and quality that are essential for the
competitive production of a country’s consumer goods and services.
Capital goods are products endowed with many attributes (price, durability, precision,
performance, etc.) whose relative importance to their users is highly variable. As a consequence,
the heterogeneity of products is one of the main characteristics of the capital goods industry. For
example, just in the machine tools segment there are more then 3,000 types of products, differing
according to their finality, size, means of control, performance and accessories.
The output of capital goods is basically divided into goods produced in series and those
made to order. Series capital goods are machines with simpler technology, smaller physical
dimensions, produced in large scale, with low unit value and less time between manufacture
and sale. Naturally, such characteristics imply relatively lower profit margins. Such goods,
which represent nearly 80% of the capital goods market1, are produced for various segments,
among them: machinery and tools; textile machinery; heavy machinery; agricultural
machinery and tools; machinery for plastic articles; printing machinery; equipment for
electrical, plumbing, heating, refrigeration and ventilation installations; scales; and industrial
chains, among others.
They are produced from standardized designs, in medium or large runs. The fabrication of
this type of equipment can be done in relatively short order. Their production depends on
basic inputs such as steel, electricity and components produced by the informatics sector,
whose intensity of use can be taken as an indicator of the technological evolution of the
sector and of the industry as a whole.
Custom-made capital goods, in general commanding larger profit margins, are those made
from pre-agreed designs, with large dimensions, high unit value, technologically more
complex and with longer periods between order and delivery. These items represent some
20% of the market2, the main segments being: boilers; mechanical, electrical, railway and
nautical equipment; industrial production line equipment (steel making, pulp and paper);
mining equipment; oil and petrochemical industry equipment; among others.
Production is done from specific designs for determined productive units, or also from
standardized designs for products whose fabrication is to order. Production of such
machinery and equipment typically takes longer.
1
Source: ABIMAQ
2
Source: ABIMAQ
61
General View of the Offer of Demand
Made-to-order capital goods
Series-made capital goods
Subsector
Offer – some products
Pumps and compressors
Movement of cargo and persons
Agricultural equipment and implements
Refrigeration
Measurement and precision instruments
Machine tools
Electrical conductors
Electric motors and components
Measurement instruments
Industry Demanding
Manufacturing industry
Electric power
Heavy construction
Agriculture
Mining
Power generation, transmission and
distribution
Heavy machinery and equipment
Industrial machinery
Boilers
Metal structures for civil construction
Shipyard and ship components
Trains and railroad components
Oil and gas
Petrochemicals
Pulp and paper
Steel making and metallurgy
Electric power
Telecommunications
Civil construction
Mining
Capital goods
Consumer goods
Transportation
According to the Brazilian Association of the Machinery and Equipment Industry
(ABIMAQ), the sector consists of roughly 4,500 companies, of which 60% are classified as
small, 20% as medium and 20% as large. The machinery and equipment industry
encompasses 36 segments ranging from pumps to sophisticated hydraulic equipment.
Imports and Exports
Companies that produce capital goods in Brazil in general have low production scale
because of the competition from foreign companies, which generates high idle plant capacity
and fixed costs. The commercial opening of the Brazilian economy starting in 1990 and the
upturn in industrial activity after currency stabilization with the introduction of the real in
July 1994 have been causing strong expansion of capital goods imports. This is negative for
Weg because many producers of industrial equipment use motors in this equipment and are
potential customers of Weg.
This sector generally produces a trade deficit, but Weg is an exception, with growing exports
(nearly 40% of sales go to direct exports of sales to foreign subsidiaries). It is important to
note that in this context a devaluation of the real has a doubly positive impact. Weg’s
products become more competitive abroad (and to those imported competitors), and the
capital goods industry in Brazil benefits as well. The majority of industrial equipment used
by this industry has motors, in large part made by Weg. The recovery of the domestic
capital goods industry is thus positive for Weg.
62
The strategy of foreign companies is specialization of plants, defining the products that will
be manufactured in each country where they have branches. This results in a complementary
production pattern. In Brazil, these companies are producing goods with lower aggregate
value and for the regional market.
According to ABIMAQ, nearly 80% of imports are made by means of regional
manufacturers and represent 30% of their revenue. Some companies are becoming resellers
of foreign marks and suppliers of technical assistance services of these imported products.
Revenue of the Capital Goods Sector in Brazil
R$ billion
34,4
30,2
27,1
23,8
1995
22,2
22,3
1996
1997
21,2
21,3
1998
1999
2000
2001
2002
Source: ABIMAQ
Brazil can be characterized as the main Latin American country, with a capital goods industry with
export potential, particularly the segment of mechanical capital goods. The main destination of
these exports is the North American market, with more than 53% of volume exported.
Exports and Imports of the Capital Goods Sector – Brazilian Market
US$ billion
8,3
6,6
7,2
7,1
6,8
6,5
6,2
6,0
3,9
3,2
3,4
1995
1996
Exports
3,7
3,3
1997
1998
1999
3,5
3,6
3,7
2000
2001
2002
Imports
Source: ABIMAQ
63
Household Appliance Segment in Brazil
The electrical appliance (white line) segment, in which the WEG Group participates indirectly
through supply of electric motors, is considered as sub-segments of the household appliance
segment, part of the electrical-electronic complex, according to criteria of ABINEE. Other parts
of this segment are audio and video equipment (brown line) and portable appliances.
The household electrical appliance segment had revenue above R$ 12.4 billion in 2003
Revenue of the Household Electrical Appliance Segment in Brazil
R$ billion
12,4
11,2
9,8
2001
2002
2003
Source: ABINEE
This type of production is not as vulnerable to foreign competition due to the logistical
difficulty related to distribution. Countries of Southeast Asia, particularly China, are the
main competitors.
Exports and Imports of Household Appliances – Brazilian Market
707
702
543
382
374
336
2002
2001
US$ million
Exports
2003
Imports
Source: ABINEE
64
THE WEG GROUP
Our History and Development of Our Group
In June 1961, in the city of Jaraguá do Sul, the business administrator Eggon João da Silva, the
electrician Werner Ricardo Voigt and the mechanic Geraldo Werninghaus, associated to establish
a small electric motor factory, called Eletromotores Jaraguá Ltda. Producing electric motors in the
early 60s, in a 20 thousand-inhabitant town located in upstate of Santa Catarina, was a challenge.
In order to create the brand used in our motors, the founding partners chose a conjugation of
their names’ initials, Werner, Eggon and Geraldo – WEG, which means “path” in the
German language. In the first quarter of the activity, 146 electric motors were assembled
and, since then, our business has not stopped expanding.
Since our foundation, we have adopted as business strategy the creation of a highly-qualified
technical assistance network, developing our client`s confidence and publicizing our
products. Still in the 60’s, we started qualifying our first technical assistant, whom we
trained and provided with always updated information on our products. Focused on this
action, we quickly developed the largest technical assistance network in Brazil. We believe
that thanks to specialized training, constant technical updating and presence throughout the
Brazilian territory, our technical assistant network can be pointed out as responsible for the
great initial success of our products.
On June 7th, 1965, already structured and stable on the market, Eletromotores Jaraguá Ltda.
was transformed into a corporation. In 1971, our company’s shares were admitted for trading
on the stock exchange.
In 1972, in order to meet the growing demand for motors we started a phase of intensive
expansion of our industrial park. We built a foundry that made us self-sufficient in casing,
machining machines and tooling production. In this manner we were able to manufacture
new tools essential for increasing our productivity.
In 1973, we started the construction of a new production unit called “Parque Fabril II”, on a
400 thousand square-meter land, which would be added to the 30 thousand square meters up
to then occupied by our factories. At that time, our strategy started to be based on a fair and
competitive price, technological quality and efficient technical assistance.
In September 1975, we reached the mark of 1 million produced electric motors,
consolidating the WEG brand. We believe that we became, then, the biggest electric motor
manufacturer in Latin America and leading the product’s Brazilian exports.
In the early 80’s, we redefined our strategy toward diversifying our activities. Following the
major corporations operating in the sector, such as General Electrics, AEG, Siemens and
Brown Boveri, we expanded our product line, by also offering technological “packages”,
expanding our product and service line.
65
In 1979, in order to acquire cutting-edge technology to enter the power electronics field, we
associated, in Brazil, with a Swedish company Asea, through a joint-venture company called
WEG/ASEA Industrial Ltda. The association lasted for a short period of time due to the
Swedish company’s resistance to nationalizing its products. Already in the next year the
joint venture was terminated and we started developing in our laboratories the technology
used in our new products and services.
Pursuing our diversification strategy, in March 1980 we created WEG Máquinas Ltda.,
aimed at producing large-size rotary electric machines, mainly intended for the energy,
petrochemical, mining, and pulp and paper industry. WEG Máquinas also absorbed the
production of direct current, medium and high power motors, in addition to power
generators.
In December 1980, we established WEG Acionamentos Ltda., in order to produce electroelectronic components and develop application engineering for industrial systems, focusing
on the motor protection concept. With the new company, we also started operating in the
industrial computing area, developing programmable controllers, designed for industrial
process command and control. With WEG Acionamentos S.A. and WEG Máquinas S.A. we
took the first step toward diversification and future establishment of the WEG Group.
In the first months of 1981, we purchased Ecemic Indústria de Transformadores, a Blumenau
(SC) company, whose corporate name was later changed to WEG Transformadores Ltda.
The new company is dedicated to the production of distribution equipment, meeting a
diversified line of needs for industrial complexes, electric power concessionaires, rural
electrification companies, hospitals, residential and commercial condominiums, hotels, civil
and public construction. With WEG Transformadores S.A., we achieved a new synergy and
started standing out in the electric power generation, distribution and transmission market.
Pursuing the implementation of our diversification strategy, in November 1983, we
purchased Tintas Michigan S/A, a company located in Garamirim (SC), whose corporate
name was changed to WEG Química S.A. This company started focusing on market
conquest within the specific segment of industrial and electro-insulating paints. Currently,
under the form of a business unit, it fully meets the need for paints and insulators by our
other companies. We believe that WEG Química supplies a major part of the domestic
market in the industrial paint segment.
In 1986 we created WEG Automação S.A. This company started its activities with an
operation line oriented toward servo-mechanism and industrial robots mainly used in
unhealthy activities, or repetitive job such has handling, loading and unloading of parts.
In April 1988, Weg Máquinas, Weg Acionamentos, Weg Transformadores, Weg Química
and Weg Automação were transformed from corporations into limited liability companies.
In 1993, WEG Automação was moved to Jaraguá do Sul, starting to manufacture, develop
and market industrial automation products. That same year, we began an operation
consolidation process in the power electronics, industrial facilities, industrial process
automation and control market.
66
In 1994, with the implementation of our industrial business centers, we started offering,
through WEG Automação, electrical packages to the market, including electric panels, motor
control centers, supervision and control systems, low and medium-voltage motors, in
addition to transformers.
In 1999, all the companies in charge of WEG Group’s industrial activities, were incorporated
by Weg Automação, which in turn had its corporate name changed to WEG Indústrias S.A.
As a result of this restructuring, all the factories and transactions of the Group`s companies
in Brazil started making up WEG Indústrias’ business units.
Corporate Restructuring
In the late 1999, we started a corporate restructuring process aimed at obtaining better
operating performance and reduction of administrative bureaucracy. This restructuring was
characterized, mainly, by two basic aspects:
(i)
the concentration of all our industrial activities in a single corporation, WEG
Indústrias, through consecutive incorporations, seeking, among other things, to
eliminate cascading taxes; this company started being responsible for the
development, manufacturing, and marketing of WEG products on the domestic
market; and
(ii)
the establishment in August 2001 of the group’s trading company, WEG
Exportadora, which became responsible for our international activities, carrying out
exports and promoting our products abroad, in addition to being the controlling
company of our foreign subsidiaries;
In December 1999, WEG Transformadores, WEG Máquinas, WEG Acionamentos and
WEG Química were incorporated into WEG Automação’s equity. Later on, on January 17th,
2000, WEG Motores and WEG Indústrias S.A. were also incorporated into WEG
Automação’s equity, which started controlling all our industrial activities. Soon afterwards,
on January 18th, 2000, WEG Automação had its corporate name changed to WEG Indústrias
Ltda. At last, on August 1st, 200, WEG Indústrias Ltda. was transformed into a corporation,
called WEG Indústrias S.A.
In September 2001, in view of tax and operating advantages related to the concentration of
our exports in a single corporation, we established WEG Exportadora. In January 2002,
WEG Indústrias was partially split off, transferring part of its equity to WEG Exportadora, in
the amount of R$ 211,214,482.00 (based on an appraisal report conducted at the time),
referring to the interest in the foreign subsidiaries.
The chart below describes our corporate structure:
67
WEG S.A.
(JARAGUÁ DO SUL)
99,94%
99,94%
100,00%
WEG
OVERSEAS
(ILHAS VIRGENS)
WEG
INDÚSTRIAS S.A.
WEG
EXPORTADORA S.A.
70,00%
64,90%
99,01%
99,94%
WEG ELECTRIC
MOTORS JAPAN
WEG
GERMANY
WEG ELECTRIC
MOTORS
WEG
MEXICO
(JAPÃO)
(ALEMANHA)
(ESTADOS UNIDOS)
(MEXICO)
99,99%
WEG
INDUSTRIA
VENEZUELA
(VENEZUELA)
63,03%
96,64%
99,00%
WEG
JAPAN
WEG
AUSTRALIA
WEG
ITALY
(AUSTRALIA)
(ITALIA)
99,99%
83,70%
WEG
EUROPE
WEG
COLOMBIA
WEG
CHILE
(BÉLGICA)
(COLÔMBIA)
(CHILE)
FILIAL
WEG
FRANCE
(ARGENTINA)
(JAPÃO)
92,40%
(FRANÇA)
79,29%
WEG
EQUIPAMENTOS
ELECTRICOS
100,00%
WEG
ELECTRIC
MOTORS
(INGLATERRA)
100,00%
94,26%
WEG
INDÚSTRIA
ELÉCTRICA S/A
(PORTUGAL)
100,00%
WEG
IBERIA
WEG
SCANDINAVIA
(ESPANHA)
(SUÉCIA)
95,00%
WEG
INDIA
(ÍNDIA)
* Interests in the corporations indicated in the above chart concern the total capital stock of each company.
** The remaining shares of the capital stock of Weg Indústrias and of Weg Exportadora are owned by Weg
Participações and by its respective directors.
*** Weg Indústrias owns 8,15% of the capital of Weg Chile, 5% of Weg India and 5,73% of Weg Portugal.
The Company owns the remaining stock capital of all the subsidiaries of the Weg Exportadora indicated in the
above chart.
Our Group’s Internationalization Process
Our first exports of electric motors to the Latin American continent countries happened already
in the 60’s. Later on, as a result of our technological upgrading and new competitiveness gains,
our motors started reaching new markets, as from Mexico and the United States, besides
competing in the German market. The evolution of our exports has been happening within an
internationalization strategy that can be divided into 3 distinct phases indicated below:
1.
Export via Foreign Representatives and Distributors
In the period comprised between 1970 and 1990, we started exports to about 60 countries
through trade representatives and distributors. This strategy allowed for the growth or our
exports, opening markets to our products and knowledge of these products, customers and
technologies abroad.
However, our export increase became dependant on our
representatives’ and distributors’ financial capacity abroad.
68
2.
Export via Subsidiaries
In the period comprised between 1991 and 1999, we started our internationalization process,
by establishing subsidiaries in countries that we considered with good market potential,
aimed at marketing, distributing, providing technical assistance and promoting our products
abroad.
In August 1991, we established Weg Electric Motors Corp., in the United States, in order to
directly serve local manufacturers of local machines and equipment, in addition to collecting
technological trends in the American market, the largest electric motor market in the world.
In September 1992, we started expansion to Europe, by establishing Weg Europe S/A in
Belgium. We successively established subsidiaries for marketing and distribution in
Germany, in March 1995, in England, in November 1996 and in Sweden, France and Spain,
during the year 1998.
In order to consolidate our position in Mercosul, we established, in January 1994, Weg
Equipamientos Electricos S/A, in Argentina. That same year, we also advanced in Asia, by
establishing Weg Japan Co. Ltd. in Tokyo and, in August 1995, in the emerging Oceania
market, by establishing Weg Australia Pty Ltda.
On August 13th, 1999, we established Weg México S.A. de C.V., oriented towards exploring
the Mexican market. In 2001, we established subsidiaries for distribution and marketing of
our products in Venezuela and Italy. And in the course of 2003, we established subsidiaries
in Chile and Colombia. Finally, in April 2004 we set up our most recent foreign subsidiary,
Weg Electric India Private Limited, aimed at selling and distributing our products to the
Indian market.
The internationalization strategy via subsidiaries allowed for the creation of pre- and postsales service infrastructure and the expansion of our business with large resellers, service
providers and end consumers, which are not served in the representative and distributor
model. Self-management of our internationalization process allowed us to have greater
flexibility and greater direct involvement with customers. It has also required greater
investments in working capital for supporting our inventories and granting credit to our
customers.
3.
Development of Foreign Manufacturing Park
In response to the emergence of economic blocks (Mercosur, NAFTA and European
Community) we have adopted, as of 2000, the strategy of purchasing and/or implementing
production units in South America, North America, Europe and Asia, aimed at obtaining
greater competitiveness in these regions.
In March and June 2000, respectively, we purchased Argentine companies Morchio y
Benitez SAIC, manufacturer of electric motors for washing machines in clothes driers and
Intermatic SACIF, manufacturer of molded box circuit breakers, both incorporated by WEG
Equipamientos Electricos S/A in January 2002. In August 2000, we purchased Asea Brown
69
Boveri (ABB), in Mexico, a low-voltage electric motor factory, which was later incorporated
to Weg México S.A. de C.V. In May 2002, we purchased the motor unit of the Efacec group,
in Portugal. The unit was incorporated to WegEuro Indústrias Eléctricas S.A., a corporation
that we established in Portugal on May 10th, 2002. Nowadays we are making efforts in order
to acquire an electric motors fabric in China.
Our foreign factories are aimed at:
•
•
•
•
•
expanding our universe of customers and large consumers, whose philosophy is
purchasing products from local manufacturers only;
setting up foreign factories in a more horizontal concept, chiefly oriented toward
assembling products, taking advantage of parts of components manufacturing in Brazil,
which, we believe, will result in increased exports by our units located in Brazil;
reducing delivery term to foreign customers of products requiring adaptations and
customization, taking into account that foreign factories are complementary to those in
Brazil and are capable of adapting finished products coming from Brazil to local needs
of the countries where they operate;
reducing costs by improving logistics; and
acquiring greater flexibility in production management in order to face issues such as
changes in foreign exchange policies and non-customs barriers.
70
Our Businesses
Overview
We believe that our Group is currently the largest electric motor manufacturer in Brazil and
Latin America. We further believe that we are among the largest manufacturers of this product in
the world. We estimate that our electric motor domestic market share ranges between 75% and
89%, depending on the type of motor and market segment. In the global segment of electric
motors, which operates US$ 8 billions per year, we estimate that our market share in this
segment is 4%. We produce an average of 40,000 motors daily and 25,000 different types of
motors yearly. Our gross operating revenue in the year 2003 totaled R$ 2,02 billion.
Our companies employ approximately 12,100 people, of which 1,000 are allocated abroad.
Our operations are concentrated in the city of Jaraguá do Sul, in the State of Santa Catarina,
where our product research and development technological centers are located. We also have
factories in Blumenau and Guaramirim, in Santa Catarina, and Guarulhos in São Paulo. We
operate throughout Brazil, through commercial representatives, resellers and a broad
technical assistance network.
We also have strong international presence, by means of subsidiaries with headquarters and
factories in Argentina, Mexico and Portugal and other subsidiaries that act as distribution
and sales units in the United States, Venezuela, Germany, England, Belgium, France, Spain,
Italy, Sweden, Australia, Japan, Chile, Colombia and India. Our products are present in
nearly 100 countries throughout the world.
The table below shows some of the main consolidated financial and operational indicators
for the indicated periods:
Semester ended on June Average
30 of
Variation
(%)
2001
2002
2003
2003
2004
1st Semester
2003-2004
Gross Operating Revenue
1,268,873
1,534,903
2,015,111
26.0
944.453 1.181.271
25.1
Net Operating Income
1,065,936
1,282,035
1,694,160
26.1
795.534
998.329
25.5
Net Income
175,683
220,326
307,809
32.4
139.376
200.845
44.1
EBITDA*
280,351
326,817
429,981
23.8
207.904
291.525
40.2
* For calculation of EBITDA, we consider: (+) Gross Earnings (-) general and administrative expenses (-) other operating revenues and expenses
(not including participation in the results from shareholdings of R$ 44.5 million in 2003 and R$ 30.2 million in 2002, R$ 23,9 million in 2001 and
R$ 31,6 million in the first semester of 2004 and R$ 17,8 million in the first semester of 2003) (+) depreciation and amortization.
Year ended December 31st
Average
Variation
(%)
2001-2003
Our Commitment
To add value for our customers, supplying internationally competitive products and services.
To continuously create value for our shareholders by means of profitability superior to the cost of capital
invested.
To continually motivate our employees and to create opportunities for their personal and professional
development.
To be a good corporate citizen, participating in community life and preserving the environment.
71
Our Vision
We intend to be in the near future:
The world’s largest manufacturer of low-voltage industrial electric motors.
The leading company in Brazil and one of international reference in high-voltage motors, generators,
drives, switches and electric motors for household appliances.
A reference company in South America in industrial electrical-electronic systems, power generation system
and transformers.
We have been growing continuously since the early 70’s. Our sales growth in the past 5
years has been, on the average, over 21% per year. Our high electric motor domestic market
share hampers our growth by increasing our market share and makes our sales growth
dependent on the national economic growth. On the other hand, our foreign market sales are
in an intensive expansion phase, growing from US$ 177 million in 2002 to about US$ 256
million in 2003, a growth around 45%. The graph below represents our sales evolution in the
past six years:
2.500
2.250
2.000
1.750
1.500
1.250
1.000
750
500
250
YEAR
1998
1999
2000
2001
2002
2003
REVENUE
R$
932,478,988
753,442,502
962,503,988
1,268,872,691
1,534,902,482
2,015,110,709
PERCENTAGE
GROWTH
10.1%
19.1%
27.7%
31.8%
21.0%
31.2%
98 99 00 01 02 03
In addition to opening new foreign factories and branches, we expect the synergy existing
among our several product lines and businesses to boost sales in international electroelectronic markets (counters, relays, fuses, starter switches, capacitors, circuit breakers, etc),
generators, drives, transformers, paints, varnishes and enamels, in addition to providing sale
opportunities of complete industrial solutions and “packages” for large domestic and
international customers.
The graph below reflects the evolution of our exports in the past 6 years:
350
300
250
200
150
100
50
0
98 99 00 01 02 03
72
YEAR
EXPORT
(US$)
1998
100.905.300
9,0
1999
120.307.532
19
2000
154.539.050
28
2001
175.564.690
14
2002
177.276.443
1,0
2003
256.423.415
45
GROWTH
%
Currently, most of our exports are destined to North American countries, followed by
Europe and South and Central America. The graphs below represent the share of each region
in our total foreign sales in the years 2003, 2002 and 2001:
2003
Asia and
Oceania
7%
Asia and
Oceania
8%
North
America
40%
Europe
29%
Asia and
Oceania
7%
Europe
24%
Africa
11%
North
America
43%
Europe
28%
South and
Central
America
15%
Africa
9%
2002
Africa
8%
South and
Central
America
13%
2001
North and
America
39%
South and
Central
America
19%
Of our total revenues from sales in the foreign market in 2003, approximately 67% came
from sales to our foreign subsidiaries and the rest from exports from our operations in Brazil.
The graphs below show relevant information on our Group:
73
Evolution of our EBITDA Index
Ebitda - R$ million
26%
26%
25%
29%
25%
26%
23%
430
:3
GR
A
C
40%
1%
327
292
280
208
207
146
1999
2000
2001
2002
Ebitda
2003
1H03
1H04
Margin (% Net Revenues)
Evolution of our net income
35
40% 307,8
30
42%
40%
25
39%
20
15
36%
175,7
35%
35%
97,5
82,0
33,6
28,6
46,2
1998
1999
2000
10
125,4
50
0
220,3
37%
201
139
68,2
89,1
2001
2002
123,8
85
50
Dividend
2003
1H03
Net Income
74
1H04
Composition of our costs during the last 5 years and during the first semester of 2003 and 2004
COGS - R$ million
1,027
799
66%
412
63%
663
503
62%
592
478
62%
61%
1999
2000
2001
2002
COGS
Depreciation
General Expenses
Labor
2003
60%
1H03
% Net Revenues
4%
8%
20%
68%
Materials
100%
Total
Fixed Cost – 24%
Variable Cost – 76%
75
59%
1H04
Evolution of our foreign sales
US$ million
300
250
200
INTERNATIONALIZATION
150
WINNING OF
MARKETS
100
START OF
EXPORTATION
50
0
71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03
Results
Net Revenue
Domestic Market
Foreign Market
Gross Margin (%)
EBITDA
EBITDA Margin (%)
Net Profit
Net Margin (%)
Return on Equity (%)
Investment
Depreciation
1999
627.6
416.7
210.9
34.4
145.7
23.2
82.0
13.1
23.2
38
47
2000
799.9
524.1
275.8
37.1
206.5
25.8
125.4
15.7
30.7
49
43
2001
1,065.9
660.2
405.7
37.8
280.4
27.3
175.7
16.5
37.7
73
44
76
2002
1,282.0
768.6
513.4
37.7
326.8
25.6
220.3
17.2
38.4
83
49
2003
1,694.2
954.6
739.6
39.4
430.0
25.7
307.8
18.2
44.4
126
56
1S03
795
208
26
139
18
40
71
27
R$ million
1S04
998
292
29
201
20
47
68
31
Debt Amortization Schedule
Debt Amortization Schedule
90,0 %
95,0 %
100,0
80,6 %
70,3 %
805,2
63,0 %
R$
34,5%
507,5
ST
58,8
82,7
75,3
2005
2006
2007
40,3
40,6
2008
+ 2009
US$
65,5%
Total
Debt
Acumulated
Amortization -%
Amortization
- R$ million
77
Group Structure
Our Company is a holding company and also the controlling company of the WEG Group, a
group of companies established in accordance with the Brazilian Corporation Law whose
purpose is the combination of resources and efforts to accomplish the objectives of the
companies that are part of it. We directly control WEG Indústrias and WEG Exportadora,
and indirectly, their foreign subsidiaries. We also directly control Weg Overseas S.A., a
corporation headquartered in the Virgin Islands and solely used for making payments related
to the provision of technical assistance services abroad.
We have a well-defined role in the Group’s structure, together with WEG Indústrias and
WEG Exportadora:
•
We are in charge of defining policies and strategies, management and control of the
Group’s companies, as well as appraising new investments and businesses.
•
WEG Indústrias – concentrates all the group’s activities in Brazil, being in charge of
development, manufacture and marketing of WEG products on the domestic market.
•
WEG Exportadora – is in charge of the Group’s international operations, promoting
WEG products abroad and carrying out exports. WEG Exportadora is also the controlling
company of WEG group companies with head office and commercial operations and/or
industries abroad (with the exception of the operation in Japan, which is controlled by
WEG Indústrias).
Our Operations in Brazil
Our industrial operations in Brazil are carried out by Weg Indústrias and are organized into 6
business units: (i) Weg Motores; (ii) Weg Máquinas; (iii) Weg Acionamentos; (iv) Weg
Automação; (v) Weg Transformadores; and (vi) Weg Química. Our portfolio of products
covers a vast array of electric and electrical-electronic products, including besides motors,
electrical components, transformers, generators, electrical panels, motor control centers,
motor control and supervision systems, powdered paints, resins and electrical insulators.
WegGrou
Grupo Weg
p
Weg
Motores
Weg
Máquinas
Weg
Acionamentos
Weg
Automação
Automação
Industrial
78
Weg
Transformadores
Weg
Química
Main Costumers of Our Group
The table below lists our 10 main costumers and their respective shares of the Group’s total
sales, in consolidated basis:
Client
Multibrás S/A Eletrodomésticos
Eletrolux do Brasil S/A
Springer Carrier S/A
Brastemp da Amazônia S/A
Mueller Eletrodomésticos S/A
Indústrias Schneider S/A
Schulz S/A
Ferrovia Centro Atlântica S/A
KSB Bombas Hidráulicas S/A
Stemac S/A Grupo Geradores
(a)
Share
1,63%
1,06%
0,98%
0,91%
0,90%
0,86%
0,73%
0,67%
0,61%
0,61%
WEG Motores
Created in 1961, Weg Motores is our largest business unit. This unit is responsible for
development and production of a wide variety of electric motors, including motors for use in
compressors, oil wells, centrifugal pumps and fuel pumps, fans/ventilators and machinery
and equipment intended for industrial activity, besides appliance motors, designed for large
makers of household appliances and used in washers, dryers and air conditioners, among
others. Weg Motores’ line of appliance motors in 2003 was responsible for 21% of our
gross operating revenue. The other lines of motors of Weg Motores were responsible for
another 35% of our gross operating revenue that same year. Added together, the sales of this
business unit produced 56% of our gross operating revenue in 2003.
Products
Weg Motores develops and produces a wide range of electric motors, which can be divided
into the following groups:
General Use Motors
Our general use motors include three-phase motors, single-phase motors, high-yield motors,
and aluminum casing motors, fractional motors and multi-speed motors. These motors are
used, for example, in:
•
•
•
•
•
industrial machines in general;
residential pumping systems;
ventilation systems;
low-power equipment with several applications;
crushing machines, conveyor belts, machine tools.
79
Specific Use Motors
Our specific use motors include motors for compressors, monoblock pump, oil-wells,
chainsaw, inverter duty motors (with speed variation), farm duty motors for rural
application, “IEEE 841” motors for application in the petrochemical sector, motors for
centrifugal pumps, mechanical brake motors and motors for fuel pumps.
Motors for Aggressive Environments
Our motors for aggressive environments are used in explosive surroundings (petroleum
platforms, fuel pumps and chemical industries in general) and include explosion-proof
motors, safety motors and non-ignitable motors
Appliance Motors
Appliance motors are developed and produced for large household appliance manufacturers
and include motors for automatic and semiautomatic washing machines, dryers, motors for
air movement, motors for air conditioners and inverter duty motors for washing machines. .
Productive Process
Industrial electric motors are basically made up of casing, stator, rotor, shaft, ring, front and
rear covers, deflecting cover, fan and ignition box. Because they have a vertical production
structure, we produce internally each one of these components. In this manner, we have total
control on our factories’ supply (which implies shorter delivery terms) and process
parameters, obtaining specialized products with lower manufacturing costs.
Our electric motor production structure is divided into the following units: Plate Processing
Center (CPC), Aluminum Injection, Metallurgical, Castings Machining, Shaft Machining,
Wire Manufacturing, Packaging and Factories (Assembly).
Main Customers
Weg Motores’ main customers and their respective shares of the total sales of this business
unit are:
Customer
Multibrás S.A. Eletrodomésticos
Springer Carrier S.A.
Electrolux do Brasil S.A.
Share
2.95%
1.77%
1.91%
Main Competitors
Weg Motores’ main competitors in the domestic market are Kohlba and Eberle. In the
foreign market our main competitors are Baldor, Emerson, General Electric, Siemens, ABB,
Toshiba, among others.
80
(b)
WEG Máquinas
Weg Máquinas began operation in August 1981. Its customers are industries that need
specific solutions, such as those in the mining, petrochemical, steel and pulp and paper
sectors. For these customers, Weg Máquinas develops and produces custom-ordered electric
motors, with high aggregate value. Weg Máquinas was responsible for 12% of our gross
operating revenue in 2003.
Products
Our machine unit develops and produces generators and high-voltage electric motors for
industrial use. The machine units also produces generators for small and medium-size electric
power stations, working individually or in consortium with other companies, in the supply of
equipment for hydroelectric, thermoelectric, wind power generation and co-generation.
Productive Process
The productive process of the various products of Weg Máquinas involves mainly cast parts,
welded parts, forged plate, machined parts, glazed wires and windings. These parts, together
with compared components, are gathered on the assembly line where, through grooving
and/or bolting, the cover, ignition box, stator and rotor are assembled. Next, the generator is
tested in routine essays and later painted and identified, finally it is packed in a wooden box.
Weg Máquinas owns 5 products lines: industrial generators, large size generators, cage
motors, ring motors and direct current motors.
Main Customers
Weg Máquinas’ main customers and their respective shares of the total sales of this business
unit are:
Customer
Stemac S/A Grupos Geradores
Uni-Systems do Brasil Ltda.
Sulzer Brasil S/A
Share
6.03%
2.23%
1.78%
Main Competitors
Weg Máquinas main competitor in the domestic market is Gevisa. In the foreign market the
main competitors are ABB, Siemens, General Electric, Toshiba, Alstom and Schorch.
(c)
WEG Acionamentos
Weg Acionamentos was founded in January 1981 to produce a wide variety of electric
components for industry. These products are used by industries in the most varied activities,
for control and protection of electric motors in electrical installations in general. Weg
Acionamentos was responsible for 6% of our gross operating revenue in 2003.
81
Products
Our drive unit is responsible for the production of the following industrial components: molded
box thermomagnetic switches, circuit breakers, starter switches, buttonholes for command and
signaling, mini circuit breakers, contactors and overload relays, timers and electronic protectors,
capacitors for power factor correction, permanent metal-type polypropylene capacitors for
motors and lighting and fuses. These products used by numerous industries in electric
installations in general, mainly the civil construction industry. Currently the unit is also
dedicated to developing electrical systems for motor protection.
Productive Process
The productive process of our drive unit is made up of the manufacturing of Motor
Command and Protection, basically made up of elements injected in thermoplastic and heatcured material, forged parts and silver contacts. Again, owing to our vertical structure, we
produce internally each one of these components. The drive division production processes
and components comprise several forged parts and silver contacts, injection of thermoplastic
and heat-cured parts and their assembly.
Main Customers
Weg Acionamentos’ main customers and their respective shares of the total sales of this
business unit are:
Customer
Waldessa Com. Ind. Ltda.
Tec Máster Comp. Ltda.
Multibrás S/A Eletrodomésiticos.
Share
1.45%
1.39%
1.14%
Main Competitors
Our drive division’s main competitors are Siemens, Schneider Electric, Cuttler-Hammer,
Moeller Electric, General Electric, ABB, Rockwell Automation and Alen-Bradley. Currently our
sales volume of Weg Acionamentos products in the foreign market is very small. For this reason,
we do not keep a record of the main competitors of this business line on the international market.
(d)
WEG Automação
Created in 1981, WEG Automação caters large industries in the mining, steel, pulp and
paper, sanitation, cement, and foods sectors, among others. The unit was responsible for
13% of or gross operating revenue in 2003.
Products
Weg Automação is dedicated to the segment of power electronics, industrial installations,
industrial process automation and control, offering electric packages, including electric
panels, motor control centers and supervision and control systems.
82
Productive Process
WEG Automação’s productive structure can be divided into two areas, according to the type
of electronic (reversing switches, soft-starters) and electromechanical (panels). A brief
description of our industrial automation division’s productive process is found below:
•
Electronic Products. The electronic product-manufacturing unit is responsible for
manufacturing printed circuit boards, which make up frequency converters and softstarters. This area currently has two machines for storage module drive (SMD) and two
manual insertion lines, in addition to a CNC machine for board varnishing and a complete
system for load=testing products, where they are evaluated for two continuous hours.
•
Electromechanical Products. The electromechanical product-manufacturing unit is
responsible for stamping, painting and assembly of electric panels. This area has
three CNC punching machines, two folding machines and a phosphate and painting
line (powder and liquid). Furthermore, it also has specific area for panel assembly
and testing, thus assuring end product quality.
Main Customers
Weg Automação’s main customers and their respective shares of the total sales of this
business unit are:
Customer
Ferrovia Centro Atlântica S/A
Cia. Brasileira de Alumínio
Companhia Vale do Rio Doce.
Share
5.76%
4.07%
2.34%
Main Competitors
Weg Automação’s main competitors in the domestic market are ABB, Siemens, Danfoss
Corporation, Alen-Bradley and Telemecanique. In the foreign market we compete with the
same companies and also with Hitachi and Eurotherm Drives.
(e)
WEG Transformadores
Weg Transformadores was set up in June 1981. This unit was responsible for 7% of our
gross operating revenue in 2003.
Products
Our transformer unit concentrates our production activities of large-size transformers, which
can be power, industrial, distribution and dry transformers. These transformers are used in
high-voltage electric power transformation for consumption levels. The unit also operates in
the construction of electric power substations up to 100 MVA. Its operation encompasses
from project structuring and implementation to operation installation and start up.
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Productive Process
Our transformers, irrespective of powers and voltage classes, are divided into oil and dry
transformers. Oil transformers are formed by the core, connections, tank and accessories.
Dry transformers are formed by the core, impregnated coils, connections and accessories.
The manufacturing process, in simple terms, is divided into the following stages: (i) core
plate cutting; (ii) core assembly; (iii) coil manufacture; (iv) active part assembly; (v) drying
and retightening of the active part (for oil transformers only); (vi) tank and component
manufacturing; (vii) transformer closing (for oil transformers only); and (viii) Electric
essays.
Main Customers
Weg Transformadores’ main customers and their respective shares of the total sales of this
business unit are:
Customer
Centrais Eletr. Santa Catarina S/A
Cia. Energética Minas Gerais - Cemig
Saint-Gobain Mats. Cerâmicos Ltda.
Share
9.37%
3.10%
2.76%
Main Competitors
Weg Transformadores’ main competitors in the domestic market are Trafo Equipamentos
Elétricos, ABB, Toshiba, Siemens, Alstom, Indústria Transf. Itaipu, and Romagnole
Produtos Elétricos. Currently our product sales volume of the transformers division in the
foreign market is very small. For this reason, we do not keep a record of the main
competitors of this business line in the international market.
(f)
WEG Química
WEG Química emerged from the acquisition of Tintas Michigan S/A, located in Guaramirim
(Santa Catarina), in 1983. Its main customers are metalworking firms, vehicle body
assemblers, makers of tooling and equipment, and furniture makers. These customers are
also consumers of the product lines of the other business units of our group, which shows the
great synergy between Weg Química and our other business lines. Weg Química was
responsible for 6% of our gross operating revenue in 2003.
Products
Our chemical unit is made up of the liquid and powder paint, electro-insulating varnish and
resin production factories. These products are used by the durable consumer goods and
capital goods industry in general, to paint and protect components and products. Weg
Química products are divided into 5 lines: industrial, anti-corrosive, Petrobras, thinners and
resale.
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Productive Process
A brief description of the powder and liquid paint productive process of our chemical
division is found below:
•
Powdered Paint. They are 100% solid paints. Powder paint is a well-balanced mix of
solid substances designed to decorate and protect a surface. Such substances are
polymers, additive pigments and mineral loads, which, after being processed, are
presented as a single substance, under the form of fine powder. This powder is applied at
high temperatures. The end result is a highly resistant chemical and physical protective
film that can be presented in several colors, glosses and finishing aspects.
•
Liquid Paints. The basic composition of liquid paints is loads, resins, solvents,
pigments and reagents. These elements make up the formula according to the
customer’s need, which is defined by application, that is, exposure to weather,
intemperate weather and aggressive conditions, among other factors. The production
process consists of the following stages: (i) weighing; (ii) dispersal; (iii) grinding;
(iv) completion; (v) product characteristics adjustment (color, viscosity, gloss, among
others) according to the customer’s pattern (vi) the quality center analyzes all paint
characteristics (viscosity, solids, drying, gloss, among other factors) and makes final
approval, and (vii) packing and identification with product code, batch, and validity
date, and forwarding the report according to the customer’s request.
Main Customers
Weg Química’s main customers and their respective shares of the total sales of this business
unit are:
Customer
Sérgio Augusto Medina
Metalúrgica Duque S/A
Marcopolo S/A
Share
1.88%
1.62%
1.62%
Main Competitors
Weg Química’s main competitors in the domestic market are Akzo Nobel, Basf, Tintas
Coral, ICI, Dupont and Sherwin Williams. Currently our sales volume of Weg Química
products in the foreign market is very small. For this reason, we do not keep a record of our
main competitors of this business line in the international market.
Our Operations Abroad
We currently control, through WEG Exportadora and through WEG Indústrias, 17 foreign
companies. A description of these companies and their respective businesses and activities
are found below.
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Subsidiaries with Production Activities
The purpose of our foreign production units is research, development, production,
industrialization, commerce, export, import, promotion and representation of our products
abroad, as well as rendering assembly, installation, maintenance and technical assistance
services related to our products abroad.
(a)
WEG Equipamientos Electricos S/A (Argentina)
Our company in Argentina was founded in 1994. In March and June 2000, respectively, we
acquired the Argentinean firms Morchio y Benitez SAIC, located in Córdoba and Intermatic
SACIF, located in Buenos Aires. Morchio y Benitez SAIC occupies a total area of 4.200 m2
and its main activity consists in the fabrication of electric motors for clothes washers and
dryers. Intermatic SACIF occupies a total area of 2.000 m2 and its main activity consists in
the fabrication of circuit breakers in molded boxes for use in general electrical installations.
Both companies were incorporated by Weg Equipamentos Electricos S/A in January 2002.
WEG Equipamientos Electricos S/A promotes and markets, through a local sales team, both
its own products and those from our lines located in Brazil, such as high and low voltage
electric motors, transformers and generators. The products manufactured in Argentina
account for approximately 40% of our company’s billing. The remaining sales are
represented by electric motors for industrial use imported from our factories located in
Brazil.
The company suffers competition, mainly by products imported from other manufactures,
such as Siemens and General Electrics, being the only one among large global manufacturers
to keep a physical presence in the country. Weg Equipamientos Electricos S/A had billing of
approximately US$ 23 million, US$ 15 million and US$ 25 million in 2001, 2002 and 2003,
respectively. The company employed 265 employees on June 30th, 2004, of which 139 were
located in our fabric in Cordoba, 72 in our fabric in Buenos Aires and the remaining 54
employees were members of its sales team.
(b)
Weg México S.A. de C.V. (Mexico)
Our company in Mexico was founded in August 1999. In August 2000, we acquired a lowvoltage electric motor factory from Asea Brown Boveri (ABB) in Mexico. This factory is
installed in a leased building located in Mexico City and produces motors up to 100 HP for
use in industrial machinery and equipment. We are making capital investments of around
US$ 15 million to build our own factory, with a constructed area of 20,000 m2, to boost our
production capacity. This new fabric will produce motors of one-phase, three-phase of low
tension (up to 500 HP) and medium and high tension (up to 2.500 HP), and also generators
of up to 560KVA. We believe that with the conclusion of the constructions of our new plant,
our fabric in México will gain a strong position inside our Group.
Weg México S.A. de C.V operates through a local sales team, which promotes and markets
its products, as well as all other product lines manufactured in Brazil. Locally manufactured
products account for approximately 40% of the company’s billing. The products imported
86
from our factories in Brazil are mainly electric motors for use in Household appliances and
application in industrial installations in general and account for the remaining 60% of the
company’s total sales.
The company faces competition mainly by European and North American manufacturers. It
had revenues of roughly US$ 12 million, US$ 19 million and US$ 35 million in 2001, 2002
and 2003, respectively. The company employed 236 people on June 30th, 2004.
(c)
Weg Euro - Indústria Elétrica S.A. (Portugal)
Weg Euro - Indústria Elétrica S.A. was established in May 2002, to acquire the electric
motor factory of the Efacec Group. The factory is located in the city of Maia, in the Porto
metropolitan area, with a 12.000m2 constructed area and produces electric motors over 50
HP, made to order for capital goods industries, metalworks, pulp and paper factories and
others. The company serves the entire common market and suffering competition from
European manufacturers in general, mainly Siemens and ABB.
The company operates through a local sales team, which promotes and markets its products,
as well as all other product lines manufactured in Brazil. Locally manufactured products
accounted in 2003 for approximately 50% of the company’s billing. Products imported from
our factories in Brazil are mainly electric motors and account for the remaining 50% of the
company’s total sales.
Weg Euro - Indústria Elétrica S.A. had billing of approximately US$ 9 million in the year
2003 and employed 179 people on June 30th, 2004.
Distribution and Marketing - Subsidiaries
The purpose of our foreign distribution and marketing units is the sale, export, import,
promotion and representation of products from our several business lines located in Brazil,
as well as rendering assembly, installation, maintenance and technical assistance services
related to these products. Our foreign distribution and marketing units’ main sales products
are electric motors for industrial use produced in our factories in Brazil.
(a)
Weg Electric Motors Corp. (United States of America)
We established our company in the United States of America in August 1991. Anticipating
ourselves to the formation of the Northern Hemisphere Common Market, NAFTA, our
strategy was to also export motors to the Mexico and Canada markets.
Weg Electric Motors is headquartered in Atlanta, in the State of Georgia, and has logistics
and distribution warehouses in Chicago (Illinois), Kansas City (Kansas), Los Angeles
(California) and Rochester (New York).
The company operates through a local sales team, with commercial representatives covering
the North American territory, in addition to a qualified 50-technical assistant network. Its
main customers are Ingersoll Rand Company, Inc; Applied Ind´l Technology; Flanders
87
Electric Ind.; Devilbiss Air Power Co.; and Penn Ventilator Co., Inc. Its main competitors on
the North American market are local manufacturers such as General Electrics.
Weg Electric Motors’ revenues were approximately US$ 56 million, US$ 51 million and
US$ 59 million in 2001, 2002 and 2003, respectively. The company relied on 130
employees on June 30th, 2004.
(b)
Weg Europe S.A. (Belgium)
Weg Europe S.A. was established in September 1992. Through this company we market,
distribute, promote and render technical assistance to our products on the France and
Belgium markets.
Weg Europe S.A. is headquartered in Nivelles, Belgium, and has a branch (commercial
office) in St Quentin Fallavier, France. Its main customers in Belgium are CET Mot,
Emndirect, Atlas Copco, Cous Straal and Nijhuis Pompen. In France, the main customers are
Helmek Sarl, Worthington Creyssensac, Schneider Electric Industries, Flowserve Pumpes
and Robuschi France. Its main competitors are the large European and North American
electric motor manufacturers, such as Siemens, ABB and General Electrics.
On June 30th, 2004, the company had 32 employees, who directly operated with marketing
and distribution of Weg products on the Belgian and French markets, in addition to relying
on a 23-technical assistant network (2 in Belgium and 21 in France), who helped caring for
post-sales. Its revenues in 2001, 2002 and 2003 were, respectively, US$ 12 million, US$ 10
million and US$ 16 million.
(c)
Weg Germany Gmbh (Germany)
We established Weg Germany Gmbh in March 1995, aimed at marketing, distributing,
promoting and rendering technical assistance to our products on the German market.
The company is headquartered in the city of Frechen. Its main customers are Boge
Kompressoren, Hatlapa Maschinenfabrik, Alupe Kompres Oren, Kaeser Kompressoren
Gmbh and K+S Kali Gmbh. The company’s main competitors are large European and North
American electric motor manufacturers such as Siemens, ABB and General Electrics.
Weg Germany Gmbh had 33 employees on June 30th, 2004, who directly operated in the
distribution and marketing of Weg products on the German market, in addition to relying on
a 27-technical assistant network helping in pos-sale care. Its revenues were roughly US$ 6
million, US$ 7 million and US$ 13 million in 2001, 2002 and 2003, respectively.
(d)
Weg Electric Motors (UK) Ltd. (England)
We established Weg Electric Motors (UK) Ltd. in November 1996, aimed at marketing,
distributing, promoting and rendering technical assistance to our products on the British
market.
88
Weg Electric Motors (UK) Ltd. is headquartered in the city of Worcestershire. Its main
customers are Flakt Woods Ltd, BSL Ltd, Weir Pumps, Howden Process Comp. and
Flowserve Pumps. The company’s main competitors are large European and North
American electric motor manufacturers such as Siemens, ABB and General Electrics.
On June 30th, 2004, the company had 33 employees, directly operating in the marketing,
distribution and technical assistance of Weg products on the British market. Its revenues
were roughly US$ 7 million, US$ 9 million and US$ 14 million in 2001, 2002 and 2003,
respectively.
(e) Weg Australia Pty Ltd. (Australia)
We established Weg Austrália Pty Ltd. in August 1995 to sell, distribute and promote and
render technical assistance to our products in the Australian market.
On June 30th, 2004, the company had 28 employees, besides counting on a network of 23
technical assistants helping with after-sales service. Its revenues were roughly US$ 7
million, US$ 8 million and US$ 11 million in 2001, 2002 and 2003, respectively.
(f) Weg Iberia S.A. (Spain)
We established Weg Iberia S.A. in April 2001 to sell, distribute, promote and render
technical assistance to our products in the Spanish market.
On June 30th, 2004, the company had 15 employees, besides counting on a network of 29
technical assistants helping with after-sales service. It revenues were roughly US$ 700
thousand, US$ 5 million and US$ 7 millions in 2001, 2002 and 2003 respectively.
(g) Weg Scandinavia AB (Sweden)
We established Weg Scandinavia AB in March 1998 to sell, distribute, promote and render
technical assistance to our products in the Swedish market.
On June 30th, 2004, the company had 16 employees, besides counting on a network of 4
technical assistants helping with after-sales service. It revenues were roughly US$ 2 million,
US$ 3 million and US$ 6 millions in 2001, 2002 and 2003 respectively.
(h) Weg Italia S.R.L. (Italy)
We established Weg Italia S.R.L. in May 2001 to sell, distribute, promote and render
technical assistance to our products in the Italian market.
On June 30th, 2004, the company had 5 employees, besides counting on a network of11
technical assistants helping with after-sales service. It revenues were roughly US$ 600
thousand, US$ 2 million and US$ 4 millions in 2001, 2002 and 2003 respectively.
89
Distribution and Marketing - Others Subsidiaries
We also own subsidiaries in Venezuela, Chile, Colombia, India and Japan. Our subsidiary in
Venezuela was established in June 2001 and had profit of approximately US$ 2 million on
2003. Our subsidiaries in Chile, Colombia and India were established from the second
semester of 2003 and are in a pre-operational stage. Finally, our subsidiary in Japan, the
Weg Japan Co. Ltd., is in a deactivation process because of our recent partnership with the
Mitsui & Co. Ltd, which resulted in the establishment of the Weg Electric Motors Japan Co.
Ltd., as described in item “Partnerships” below.
Other Foreign Subsidiaries
In addition to the above-described production and marketing subsidiaries, we also control,
through the Company, a corporation headquartered in the Virgin Islands called Weg
Overseas S.A. This corporation was established in June 1998 for the specific purpose of
making payments related to the rendering of technical assistance services abroad.
Partnerships
In countries where we do not have controlled companies or subsidiaries for sales,
distribution or manufacturing, we operate through partnerships and local distributors and
representatives. We describe below our three more relevant foreign partnerships:
(a)
V. J. Pamensky Canada INC. (Canada)
Our partner for more than 25 years, V. J. Pamensky Canada INC. operates as a distributor
and representative of our products in the Canadian market. The company buys our products,
mainly electric motors, drives, counters, relays and starter switches and distributes them
locally. In 2001, 2002 and 2003, respectively, we exported roughly US$ 9 million, US$ 8
million and US$ 9 million worth of products to that company. Its main customers are:
•
•
•
•
(b)
Alphair
Votorantim Canadá
Sincrud
Naibors
J T Blakemore (South Africa)
Our partner for more than 20 years, J T Blakemore operates as an exclusive distributor and
representative of our products in the South African market. The company buys our products,
mainly electric motors, drives and soft-starters from our factories in Brazil and distributes them
locally. In 2001, 2002 and 2003, respectively, we exported roughly US$ 12 million, US$ 11
million and US$ 14 million worth of products to that company. Its main customers are:
•
•
•
Sasol
Anglo America
Monde
90
(c)
Mitsui & Co. Ltd (Japan)
In October 2003, we established a partnership with Mitsui & Co. Ltd, which has resulted in
the creation of Weg Electric Motors Japan Co. Ltd., a company headquartered in Japan
whose capital is 70% held by Weg Indústrias and 30% by Mitsui & Co. Ltd. Weg Electric
Motors Japan operates as an exclusive Weg product distributor, primarily industrial motors,
in the Japanese territory. The partnership has a three-year duration and is in the initial
operating phase.
Manufacturing Parks
We believe we have the largest manufacturing parks for electric motors in the world in this
segment of production, and one of the most modern. This gives us the capacity to turn out
more than 25,000 types of electric motors. Our production volume permits the scale gains
necessary to compete globally and constitutes a barrier to the entry of new players. In 2003
we produced more than 9 million electric motors, a growth of 18,4% and 32,4% related to
2002 and 2001, when we produced approximately 7.6 million and 6.8 million electric
motors, respectively.
We also have, through our foreign subsidiaries, factories in Argentina, Mexico and Portugal.
Notwithstanding our high production capacity, we continue making substantial outlays for
modernization and expansion of our plants. These investments have average R$ 80 million a
year over the past 5 years. Currently the idle capacity of our factories is on the order of 10%,
considering the current production structure based mainly on 2 work shifts.
Considering current production levels, according to the installed capacity, we have the
flexibility to augment our production by about 20% without new relevant outlays on fixed
assets. With continual investments in modernization and expansion, we have managed to
boost our output and grow in recent years.
(a)
Manufacturing Park I
Inaugurated still in the 1960’s, our industrial park called Manufacturing Park I is located in
the central region of Jaraguá do Sul – SC, and has a 31 thousand m²-built-up area and 53
thousand m²-total area, currently housing the following departments: (i) Foundry; (ii)
Winding, Assembly and Shipment; (iii) Tool Room; (iv) Product Research and
Development; (v) Quality Engineering; (vi) Capacitor Factory; (vii) Weg Training Center
(CentroWeg); and (viii) Customer Training Center (CTC).
(b)
Manufacturing Park II
We believe that our industrial park called Manufacturing Park II is the largest electric motor
industrial park in the world. Located in Jaraguá do Sul – SC, this park started activities in
1974 and has a 158 thousand m²-built-up area and approximately 400 thousand m²-total area.
91
Taking into account the intensive expansion process occurring in the past years, we
purchased in 2003 an adjoining land to Manufacturing Park II with a 427 thousand m²-total
area, which will increase the total area of this manufacturing park to 868 thousand m². The
first building in the newly-purchased area of Manufacturing Park II is under final
construction stage. For 2004, are predicted the completion of the new aluminum injection
factory and the new shipment department of Weg Exportadora in this terrain.
Manufacturing Park II houses the following factories and integrated departments in charge
of electric motor manufacturing (i) Foundry; (ii) Wire Factory; (iii) Stamping; (iv)
Machining; (v) Winding, Assembly and Shipment; and (vi) Engineering, Sales and Logistics
Departments.
In addition to the factories and departments in charge of manufacturing electric motors,
Manufacturing Park II also houses large electric machines (transformers, alternators), drives
(industrial electric components) and industrial automation (drives, panel boards, speed
variation systems), as well as marketing and administrative department and Weg
Exportadora Head Office.
(c)
Manufacturing Park III
Our Manufacturing Park III opened in 1983, is located in the town of Guaramirim – SC and
has 21 thousand m²-built-up area and 371 thousand m²- total area. Inside this park are
located our business unit factories called Weg Química, in charge of manufacturing
industrial paints and varnishes, thinners, pitch, turpentine, enamels and their byproducts. The
so-called Metallurgical Department III is also located in Manufacturing Park III. A modern
foundry in charge of manufacturing motor casings for the business unit called Weg Motores.
The casings produced by Metallurgical Department III are used in the motors that we
manufacture.
(d)
Manufacturing Park IV
Our Manufacturing Park IV was opened in 1981, in Blumenau – SC, and has an approximate
18 thousand m²-built-up area and 199.276 m² total area, being in charge of the production of
transformers for power generation, transmission and distribution.
(e)
Guarulhos Unit
Our Guarulhos factory is part of Weg Motores business unit. It has resulted from the
purchase, in 1996, of Mebsa Motores Elétricos Brasil S/A, motor manufacturer for air
conditioners and automatic washers located in the city of Guarulhos. The unit currently has
an 11 thousand m²-built-up area and is located at a strategic point for our group, the
southeastern region, especially the state of São Paulo, our products’ largest consumer
market.
The Guarulhos unit has a complete manufacturing line for household appliance motors
(motors for air conditioners, mini motors, motors for automatic and semiautomatic washing
machine and motors for ceiling fans).
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(f)
Argentina
We have two factories in Argentina, one located in the City of Córdoba and another in the
Buenos Aires region. The first one occupies a 4.200 m2 total area, employs approximately
139 people and its main activity is the manufacture of single-phase electric motors for the
durable consumer goods segment, such as washers and dryers. The second one occupies a
2.000 m2 total area, currently relies on 72 employees and is designed for producing circuit
breakers. Both factories serve, as a priority, the Argentine market.
(g)
Mexico
The construction works of our new industrial plant in Mexico were recently completed and
we have plans to initiate production in this plant still in the year of 2004. The newly built
project has originated two 10,000 m2-buildings each, located in the city of Mexico, which
will house a manufacturing unit of low voltage single-phase and three-phase motors (up to
500 HP) and medium and high voltage (up to 2,500 HP), as well as generators of up to 560
KVA. Currently, our industrial park in Mexico has, approximately, 236 employees.
(h)
Portugal
The industrial plant in Portugal is our first one outside the Americas. This plant is located in the
city of Maia, in the Porto metropolitan region, has a 12,000 m²-built up area and currently relies on
179 employees, destining production to special electric motors, with power over 50 HP.
Integrated Production Structure (Verticalization)
We have adopted a highly integrated business model, producing within the Group companies
several goods and services that are consumed in the conduction of our main activities. Our
production verticality allows us to have total control on the supply of our factories, which
implies shorter delivery terms. Verticalization also allows us to have high operating
efficiency, economy of scale, an enables continued learning throughout our production
process, generating higher aggregate value. As a result of verticalization, we have developed
series and customized products at lower manufacturing costs. A brief description of our
peripheral production structure is found below:
Foundry
Our foundries occupy a total of roughly 18.700 m2 and had 548 employees on June 30th,
2004. These foundries have a 310 ton/day production capacity and are responsible for
supplying casings and covers for our electric motors and generators.
Copper wire factory
Our copper wire factory occupies a total 5.000 m2-area, has a 62 ton/day production capacity
and relied on 87 employees on June 30th, 2004. This factory produces several types of
copper wires used in several motors and transformers leaving our production lines.
93
Steel slab center and machining center
Our steel slab center has a total area of 10.000 m2 and had 400 employees on June 30th,
2004. Our machining center is composed of the departments for machining cast parts and
shafts, each occupying a total area of 7,500 m2 and occupying 420 and 393 workers,
respectively, on June 30th, 2004.
Our steel slab center has capacity of 340 metric tons/day and is responsible for producing
rotors and stators used in our electric motors. Our cast parts machining department can turn
out 19,000 motors/day and our department for shaft machining can handle 40 metric
tons/day.
Tool Room
This department occupies a total 4.700 m2-area and relied on 418 employees on June 30th,
2004. This unit produces the tools (molds, devices and machines), which help the industrial
productivity growth of our factories, allowing flexibility and agility in the development of
our products and/or applications.
Packaging factory
Our packaging factory occupies a constructed area of 4.100 m2, can turn out 1.600 m3 of
processed wood per month and had 75 employees on June 30th, 2004. This factory produces
all the packaging used in our several product lines. Many of these lines require special
packages, capable of withstanding storage of heavy products and long-distance transport.
Our packaging factory also has over 10 thousand hectares of reforested areas, assuring
continued supply of wood.
Real Estate
Our main real properties consist of land plots and their respective factory units, located
mainly in Jaraguá do Sul, Blumenau and Guaramirim in the state of Santa Catarina, and
Guarulhos in the state of São Paulo. For more information on thes properties, see above item
“Manufacturing parks”.
Currently most of our properties located in Brazil are mortgaged to the BNDES (Brazilian
Government Development Bank) in guarantee of a loan contract entered into on November
11th, 1995 in the amount of R$ 53,922,000.00. This loan has been completely paid off,
pursuant to the release statement issued by BNDES on July 15, 2004 and the mortgages are
in the process of being canceled with the competent real estate registries and depend only on
internal BNDES administrative procedures.
On June 30th, 2004 the net book value of our property, plant and equipment was
approximately R$ 379 million, with roughly R$ 296 million representing the machinery,
equipment, land and buildings that make up our manufacturing park in Brazil and abroad.
94
Technical Assistance Network
Our technical assistance network is capable of solving, in an immediate manner, any kinds
of technical problems that perchance may occur in our products.
We have, approximately, 1.250 qualified technical assistants throughout the world, being 400 in
Brazil and 850 abroad. They are outsourced workshops, carrying out an important role in our
post-sale care, operating in supplying spare parts, maintenance and guidance to our customers.
These workshops go through a rigid, continued training and evaluation process regarding the
quality of rendered services. Periodic audits are conducted, whose evaluation cycle lasts for
four years. In the first audit stage, our team evaluates onsite the facilities and technicaladministrative structure of the authorized workshop. It analyzes aspects such as outer and
inner presentation, product and service sales, technical-administrative organization,
compliance with our policies and the quality of rendered services. The second state
comprises follow-up on improvements suggested by our commercial representatives,
consultancy and support to companies with technical-administrative restructuring projects.
In addition to periodic audits, we have developed a preparation project for our technical
assistance network to render quality services, in order to meet ISO 9000 standards.
Capital Investments
In 2002 and 2003, we invested R$ 83.0 million and R$ 125.7 million in fixed assets and R$
5.9 million and R$ 23.9 million in deferred assets, respectively, aimed at maintaining the
expansion and modernization of our manufacturing parks. In 2001, we invested R$ 72.9
million in fixed assets. There were no investments in deferred assets that year.
Of our total investments in fixed assets in 2003, 84% were destined to the units in Brazil and 16%
to foreign units. Among the investments made, we highlight (i) purchase of a 427 thousand square
meter-area adjoining the manufacturing park in Jaraguá do Sul, destined to our future expansions
and (ii) construction of a motor and generator new factory in Mexico, recently concluded.
Approximately 40% of our investments in the past few years have been made with
BNDES/FINEP funds and 60% with our own funds. Investments made in the past few years
have resulted in an average growth of our productive capacity of approximately 8% a year.
The graph below shows investments and depreciations occurred in the past 5 years:
140
125.7
120
100
83.0
72.9
80
60
40
38.1
46.8
48.6
43.2
49.4
56.0
43.7
20
0
1999
2000
2001
Investments Fixed Assets
2002
Depreciation
95
2003
Research and Development
In 2001, 2002 and 2003, we allocated R$ 18.1 million, R$ 20.5 million and R$ 30.4 million
to research and development, respectively, earmarked to upgrade or current products,
development of special products and with complex engineering and the launching of new
products lines. Investments in the first semester of 2004 totaled R$ 17.1 millions and our
investments forecast for the year 2004 is around R$ 34.1 million.
Technological Research and Development activities are part of our Technological
Development Program (PDT), which is the instrument responsible for systemizing our
Research and Development activities. On June 30th, 2004, we had more than approximately
500 engineers and 100 medium-level technicians involved with these activities.
Each sector of our Group has, in addition to its specific activities, the role of creating,
developing and setting the pertinent technology to its area.
Our research and development lines are established in a general manner from three
prioritized areas: New Technologies, Optimization and Materials, and can be grouped in
nine categories, as follows:
•
•
•
•
•
•
•
•
•
Development of new products;
Optimization of current products;
Benchmarking;
Development of new technologies (new conceptions);
Analysis and testing techniques of their products;
Software development for product calculation and optimization;
Development of magnetic, electrical, and insulating materials;
Development of methods for product life cycle evaluation;
Development of physical and chemical testing methods in materials and components.
Our Research and Development Department has the Chemical, Physical Laboratories,
Insulating and Magnetic Materials, Mechanical Essays and Benchmarking.
Our technological research and development center, located in Manufacturing Park I, has as
its main purpose the development, coordination, follow-up and guidance and all performed
research activities. The company also hires specialized consultants and has agreements with
universities and research institutions aimed at constant updating of technological knowledge.
Scientific and Technological Committee
In 1998, we created a Scientific and Technological Committee, a discussion forum aimed at
following up on electro-electronic technology trends for industrial use (motors, generators,
transformers, contactors, drives) and more specifically technological trend of motors and
drives, in order to keep ourselves updated in relation to the latest world trend and allow for
development of innovating products, through partnerships with universities and research
institutes.
96
Most of the jobs growing out of the Scientific and Technological Committee’s presentations
and discussion start out as “knowledge acquisition”, which after due maturation in the
engineering areas result in products, either through innovation or small improvements, or
further as engineering tools helping us to develop and optimize our products.
The Committee is made up of our executive officers and managers and PhDs from the most
respected Brazilian and foreign universities, among which we highlight the Federal
University of Santa Catarina – UFSC, Federal University of Rio de Janeiro – UFRJ, Hanover
and Wuppertal Universities, both from Germany and the University of Wisconsin –
Madison, USA.
The Scientific and Technological Committee’s activities include:
•
•
•
•
•
•
•
evaluating our Research and Development Plan;
proposing themes for research and development of new products as a result of
technological trends;
suggesting excellence centers (research centers and universities) in Brazil and foreign
for technological development of our products, seeking approach and development of
good relationship with these centers;
evaluating our technological shortages (personnel, infrastructure, knowledge, etc)
and suggesting measures to minimize them;
suggesting and evaluating opportunities for purchasing or hiring technology and
consultants in the electro-electronic area;
following up, evaluating and suggesting eventual route corrections in ongoing
researches;
proposing themes for research and development of new materials in order to optimize
current products.
The committee meets approximately every nine-month for a two-day period. At the meeting,
Research and Development strategic themes are discussed and the professors make technical
presentations on recent or ongoing researches at their universities to our Research and
Engineering areas.
Customer Training Center (CTC)
Another great differential to our group is our Customer Training Center. Also known by the
acronym “CTC”, The Customer Training Center is made up of laboratories equipped with
educational benches, classrooms and a 100-seat auditorium, its own instructors, in addition
to a 1,200 m2-infrastructure especially designed for developing technical courses with
emphasis on synergy modules. The programming also includes training in administration,
sales, marketing and various other courses. Approximately 2,500 customers per year receive
training at the CTC.
97
In 2003, 2002 and 2001, the CTC consumed investments around R$ 794 thousand, R$ 769
thousand and R$ 655 thousand, respectively. Our investment forecast for the year 2004 is R$
1.1 million, being that in the first semester we invested approximately R$ 416 thousand.
Sales Process
In the domestic market, we have sold our products directly to resellers, equipment makers
(original equipment manufacturers - OEMs), household appliance manufacturers, generator
group manufacturers and industries in general and infrastructure, such as sanitation and
public works, which use Weg products in their installations. Our sales in Brazil are made
with an average 30-day billing term.
In the international market, our sales are made through our foreign subsidiaries, or in
countries where we do not have a local operation, through direct export to our foreign
distributors and representatives. Our exports, both to our foreign subsidiaries and to our
foreign representatives and distributors, are made through Weg Exportadora, which
purchases the products from Weg Indústrias and organizes and implements the export
logistics.
Our pricing policy toward our foreign subsidiaries is to maintain profit margins in Brazil, the
foreign subsidiaries being challenged to cover internment and commercial operation costs
abroad. The average billing term of foreign sales is 70 days, and may vary from country to
country.
Distribution of our Products
Many of our customers are located far from our production and distribution centres. To make
sure our products reach our domestic and foreign customers, we use highway and ship
transport in Brazil. Our exports go through the ports of São Francisco do Sul and Itajaí in
Santa Catarina, located 60 km and 90 km, respectively, from our main manufacturing park in
Jaraguá do Sul.
Main Raw Materials and Suppliers
The main inputs used in our production lines are steel slabs and copper. In 2001, 2002 and
2003, these inputs accounted for 40% of total cost of products sold. The charts below
indicate our main input suppliers in the national and international markets.
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Brazilian Suppliers
Share in total inputs consumed in
Raw Material
Copper
Supplier
Caraíba Metais S/A
Usinas Sid. M. Gerais S/A Usiminas
Cia Siderúrgica Nacional – CSN
Aços Especiais Itabira - Acesita
Cia Siderúrgica Paulista - Cosipa
Steel slabs
Steel slabs
Silicon slabs
Steel slabs
2001
9.2%
2002
8.7%
2003
9.0%
4.2%
3.0%
12.6%
6.7%
3.1%
3.5%
9.7%
4.2%
2.7%
4.9%
4.5%
2.7%
Additionaly to the aforementioned suppliers above, we can also list as important suppliers:
NSK do Brasil (Roller Barings), Biliton Metais e CBA – Cia Brasileira de Alumínio
(Aluminum), Pitangui (Pig Iron), Grupo Gerdau and Aços Villares (Round Steel Bars),
Cofiban (Leads), Kabel (Multipolar Cable), Expandra and Vedax (Stamped Parts / Stationary
Switch / Centrifugal Switch).
International Suppliers
Raw Material
Supplier
Bearings
Transistors
Cresol
Neopentiglycol
Bearing journals
SKF, NTN and NSK
Eupec Inc.
Merisol RCA PTY Ltda.
Eastmann, Basf
Renk Aktiengesellschaft WEK
Fiscal Incentives
We have a fiscal incentive pursuant to Decree 3800/01, which enables us to reduce IPI
(Excise Tax on Manufactured Products) rates, having as a counterpart investments in
research. In order to be entitled to this benefit we must invest at least 5% of our gross
revenue in the domestic market with marketing of computing goods and services.
A statement is presented below of our revenues and IPI reduction for the years 2002 and 2003:
Amounts in R$
Period
Quarters
2002
2003
Total
6,122,539
13,245,202
Investment in Research
Internal
External
1,046,580
697,721
2,493,219
1,662,145
Fund
193,811
461,707
19,367,741
3,539,799
655,518
Revenue
IPI Reduction
46,507,230
107,002.598
153,509,828
2,359,866
The table below shows applicable IPI tax rates, observing that the tax rate without incentive is 15%:
Year
2002
2003
2004
2005
2006 to 2009
IPI Tax Rate %
1.50
2.25
3.00
3.75
4.5
Reduction %
90
85
80
75
70
99
Tax Recovery Program (REFIS)
On December 12th, 2000 our Company adhered to the Tax Recovery Program (REFIS), a
government program allowing installment payment of tax debts, in order to reduce our fiscal
contingencies, choosing to pay them in 60 months, with a final deadline of 2005. The
outstanding balance is updated at the Long-term Interest Rate (TJLP). The table below
shows the amounts relative to REFIS:
In R$ thousand
Long-term
Short-term
Total
Company
06/30/04
12/31/03
126
133
0
56
126
189
Consolidated
06/30/04
12/31/03
4,682
4,933
0
2,056
4,682
6,989
Insurance
Our insurance policies cover (i) certain named risks, such as fire, explosion, lightning strike
and other events of the same nature, lost profits in relation to the chemical unit, aircraft
crash, electrical damages, machine breakage, brush fires in rural zones, among others; (ii)
general civil liability, (iii) products; (iv) international transportation; (v) domestic
transportation; and (vi) vehicle fleet.
Amounts are contracted on technical bases and considered sufficient for covering eventual
losses resulting from losses with permanent asset goods and inventories, whose declared
amount is R$761,524,000.
Human Resources
On June 30th, 2004, our Company had a total of 12.098 employees (who we call
collaborators) mainly concentrated in WEG Indústrias.
The table below shows the evolution of our staff over the past three years, broken down by
professional category and geographic location:
December 31st,
2002
2003
2001
Total number of employees
Number
per
professional
category:
Technical and operational
Administrative / Financial
Commercial
Number of employees per
company
WEG S.A.
Weg Indústria
Weg Indústria, per location:
Jaraguá do Sul
Guaramirim
Blumenau
São Paulo
Weg Exportadora
Foreign Subsidiaries
June 30th, 2004
9,254
10,152
11,294
12,098
6,805
1,106
809
7,191
1,186
1,019
7,884
1,336
1,126
8,430
1,471
1,202
8,645
9,310
10,238
10,985
6,972
409
604
660
75
534
7,472
420
536
882
86
756
8,377
433
533
895
108
948
9,008
482
593
902
118
995
100
The average length of service of our employees is, approximately, 10 years. We believe on
the whole that those relations with our employees are good.
Practically all of our employees at the non-administrative level are unionized. The unions
that represent them are: Sindicato dos Trabalhadores nas Indústrias Metalúrgicas,
Mecânicas, de Materiais Elétricos, de Motores Elétricos, de Máquinas, de Peças para
Reparação de Veículos, de Fundição e de Oficinas de Jaraguá do Sul e Região (Union of
Workers in the Metallurgy, Mechanical, Electrical Materials, Electric Motors, Machinery,
Vehicle Repair Parts, Metal Casting and Repair Shop Industries of Jaraguá do Sul and
Region); Sindicato dos Trabalhadores nas Indústrias Químicas, Plásticos, Borrachas, Papel e
Isopor do Município de Jaraguá do Sul, Corupá, Guaramirim, Massaranduba e Schroeder
(Union of Workers in the Chemical, Plastic, Rubber, Paper and Styrofoam Industries of the
Minicipalities of Jaraguá do Sul, Corupá, Guaramirim, Massaranduba and Schroeder);
Sindicato dos Trabalhadores nas Indústrias Metal Mecânicas e de Material Elétrico de
Blumenau (Union of Workers in the Metalworking and Electrical Material Industries of
Blumenau); and Sindicato dos Trabalhadores nas Indústrias Metalúrgicas, Mecânicas e de
Material Eléctrico de Guarulhos (Union of Workers in the Metallurgy and Electircal
Material Industryies of Guarulhos). Each year we negotiate collective bargaining agreements
with these unions establishing the levels of pay and fringe benefits of our employees.
In January, May, August and November, we negotiate collective agreements with our
employees, represented by their unions. Our current collective bargaining agreements are, in
general, do not stipulate any tenured employment. We have no formal voluntary severance
program, particularly because the Company has been growing and requiring increasing
amounts of labor over the past 3 years.
Our system of wage administration seeks to allow us to establish a fair and competitive policy. For
this purpose, we seek to: (i) determine pay structures able to attract and retain the type of labor we
need; (ii) establish the duties of each function within the organization through job descriptions; (iii)
determine the amounts related to each position through our evaluation by points; (iv) prepare rules
to assure equitable treatment; and (v) establish a policy compatible with the market.
The only strike we have suffered in the past 15 years was in 1989.
Thee are approximately 80 labor suits pending against our Group, the great majority of them
filed by former employees. We believe that any decisions against the companies of our
Group will not taken individually or together have a materially adverse effect on our
operating results or financial condition.
Benefits
In 1991, we constituted the WEG Seguridade Social, a closed complementary pension fund
under a defined contribution plan, aiming to ensure earnings, retirement and other benefits to
our former employees and their families.
Both our companies and our employees make contributions to the plan. We contributed R$
5.153 million in 2003, R$ 4.040 million in 2002 and R$ 3.649 million in 2001. We also
made contributions of R$ 3.228 million for the first semester of 2004 ended on June 30.
101
On June 30th, 2004, the assets of WEG Seguridade Social reached R$ 123.1 million, with
9,275 contributors. The Fund currently has a surplus.
The benefits offered by WEG Seguridade Social are: (i) supplementary sick leave pay; (ii)
supplementary retirement due to disability; (iii) supplementary benefit for retirement for
length of service; (iv) supplementary annual bonus; (v) supplementary death survivorship
pension; and (vi) death benefit.
Our Group’s human resources policy includes granting of benefits that include, among
others, medical-hospital assistance; dental assistance (110% paid by the companies); daycare
reimbursement; exceptional assistance; food assistance; life insurance; complementary sick
leave assistance; scholarship program; prizes; retirement; complementary retirement plan;
and assistance for transfer.
Our employees also receive the following benefits, which are granted by means of
agreements with the respective unions for each category and for each company of our Group,
by signing collective bargaining agreements:
•
•
•
•
•
•
•
•
Profit Sharing (described below)
Medical-hospital assistance
Life Insurance
Dental Plan (100% paid by the company)
Health Plan
Life Insurance
Private Pension
At-company meals (company cafeteria)
Our investments in employee benefits totaled R$9.6 million in 2003, and R$ 7.5 million and
R$ 6.7 million in 2002 and 2001 respectively.
Profit Sharing Program
The Weg Quality and Productivity Program was conceived in 1991. The program’s
permanent guideline is to attain international quality and productivity standards, making our
products and services competitive worldwide. Broadly speaking, the program aims at
awakening awareness and stimulated readiness of our employees to solve problems and take
advantage of improvement opportunities, seeking continued quality and productivity gains
both in product manufacturing and service rendering, as well as in the overall corporate
performance, sector by sector.
The program sets specific objectives in the beginning of each year. Income sharing is
distributed together with dividend payment to shareholders. In the year 2003, every
employee received an average of 3.60 salaries thanks to the profit sharing programs. On
December 31st, 2003 and 2002 and 2001, approximately R$44 million, R$30 million and R$
24 millions were paid, respectively, for distribution to our employees.
102
Profit sharing has a motivational plan as its basis, which sets distribution of up to 12.5% of
our profits (consolidated balance sheet), if the profit equivalent to 6% of net worth existing
on December 31st of the previous year is attained. Profit sharing takes into consideration
performance evaluation, and is divided as follows:
•
1/3 is destined to all employees, proportionately to the salary of each one, being that the
condition for this distribution is that our consolidated profit is higher than 6% of net worth.
•
1/3 is destined to the employees of each unit, proportionately to the score obtained by
the respective unit in the evaluation, being that the condition for this condition is the
existence of profit (activity result).
•
1/3 is destined to the employees of each department, proportionately to the score
obtained by the employee referring to fulfillment of given goals.
The Weg Quality and Productivity Program is made up of four specific sub-programs:
(a)
Specific Goal Program. Encompasses quality, productivity improvement studies and
product cost reduction and services in general.
(b)
Technological Development Program. Includes research and development and
significant improvements in products, processes and materials, as well as industrial
automation projects.
(c)
Standardization Program. Encompasses technical, operational and administrative
standards, including procedure, standardization, testing method specification,
classification, symbology and product, process and materials terminology, as well as
quality and managerial systems.
(d)
Work Safety Program. This program, integrated to the PWQP as of 1995,
encompasses improvements toward safety in its several aspects.
Training and Development
We invested around 1% of our gross revenue in 2003 in various employee training and
development programs in Brazil and abroad.
Among these programs, the CentroWeg stands out as one of the largest company
professional training schools in Brazil. Founded on April 23, 1968, CentroWeg’s main
objective is to train and develop the competencies of minor apprentices, qualifying them for
full job mastery in activities that require specific technical skills. Currently CentroWeg
offers courses in the areas of electricity, electronics, maintenance and tooling mechanics,
mechatronics and chemistry. The training of persons fully qualified to assume the specific
jobs required by our Group is a source of great pride to us.
Besides training minor apprentices, CentroWeg trains adults, with a 540-hour course in
general mechanics. This course seeks to upgrade existing skills or teach a profession to our
employees and has facilitated the access to promotions and enabled better performance.
103
The minor students at CentroWeg are chosen from candidates from the entire micro-region,
aged between 15 and 16, who have completed their primary schooling. The selection
process includes informative presentations about the courses and future areas in which the
company will be active and psychological tests, pedagogic assessment and a newly devised
practical test (lasting one week) for those chosen for the last step, called the Acclimation
Week.
After the training period, which takes two or three years depending on the hourly class load,
the students are referred for internships in the areas of interest to incorporate them into the
regular staff.
CentroWeg is presently established in an area of 2,640 m2 and has already graduated more
than 2,500 technical staff since its foundation, of whom 75% remain employed by us, thus
assuring a source of qualified labor.
Our investments in training and development were on the order of R$ 7.5 million in 2003,
R$ 5.7 million in 2002 and R$ 4.0 million in 2001. Our forecast for outlays in 2004 is R$
8.3 million, of which R$ 4.7 million was spent in the first semester this year.
Participative Management
Participative management is a method of working that aims to eliminate barriers between the
departments of the Group’s companies, fostering cooperation among the various areas,
which enables an analysis of the same theme from different perspectives of the sectors
involved, along with internal suppliers and customers.
The participative management system is totally integrated in the daily activities of our
Company. It includes 5 spheres of decision: (i) collegial among the executives of all the
Group’s business units; (ii) executive board of each of the Group’s business units; (iii)
committees of executives; (iv) commissions of managers and chiefs; and (v) Quality Control
Circles (QCCs).
At the joint meetings of the executive boards, questions of common interest of all our
Group’s lines of business are decided. At the individual meetings of the executive boards of
each business unit decisions are taken that affect only that particular unit. The meetings of
the executive committees establish and implement our Group’s strategic guidelines. There
are more than 50 commissions of managers and chiefs. They deal with specific subjects of
their areas. Among these commissions are those on procurement (which approves all
purchases above R$ 3 thousand); finances (which proposes and approves loans according to
the “credit limit policy”); and marketing (which approves the marketing plan). There are
more than 360 Quality Control Circles, composed of a total of 2,700 employees, which deal
with subjects seeking: (i) process improvements (whether industrial, engineering,
accounting, managerial, etc.; (ii) product quality; and (iii) occupational safety. The
participants in the QCCs do not receive additional pay, but gain prizes, training trips and the
opportunity for personal development and to contribute to improve the daily routines of their
work areas.
104
Marketing
Relationship is the key word of our marketing plan: relationship of data and relationship
among people. Since our inception, people have been one of our strongest points.
Our relationship matrix is divided into four steps: Identification, Differentiation, Interaction
and Customization. In practical terms, we treat different customers differently. To do this,
we invest in a database to know our customers fully: who makes the decisions, market
share, purchase history and other management information that enables us to create filters to
differentiate customers by category, permitting creation of projects for interaction focused
on the customer.
With this information, we define and optimize the investment in events, technical seminars,
trade fairs, press relations, Internet and advertising, among others.
Intellectual Property
Our Group has a policy of protecting our trademarks in the various countries where we are
active or intend to be. We see to the renewal of these registrations according to the
respective periods in force, normally 10 years.
Our principal mark, “WEG”, is registered with the Brazilian Patent and Trademark Office
(Industrial Property Institute - INPI), with term for use valid up to May 2, 2009, renewable
for equal and successive periods. It is also registered in 68 other countries.
We currently have nearly 20 patents granted or in the examination phase with the INPI and
similar organs abroad. Over the past 3 years, we have filed 9 patent applications with the
INPI and equivalent foreign organs. Our main patents cover improvements to electric
motors.
Regulatory Aspects
Our activities are not subject to the regulation of any specific agency or organ. Our products
are compliant with all the rules and specifications of the National Institute of Metrology,
Normalization and Industrial Quality (INMETRO) and the quality certification entities and
organs of the countries where we are present, among which we can highlight: Underwriters
Laboratories Inc. (United States), Bureau Veritas Quality International (England), CSA
International (Canada), Asociación de Normalización Y Certificación, AC. (México),
Instituto Argentino de Mormalización (Argentina), South African Bureau of Standards
(South Africa), and Physikalisch-Technische Bundesanstalt (Germany).
We are subject to Brazilian labor, environmental, commercial, tax and other laws in the
normal course of our business, and the operations of our foreign subsidiaries are subject to
the laws of their respective countries.
105
Environment
Our Group actively seeks to minimize the impact of its operations on the environment,
making ongoing investments in this area. Taking effective actions for self-sustainable
development has been part of our Group’s culture since our founding over 40 years ago.
These investments also benefit us by reducing the marginal production costs by increasing
efficiency in the use of raw materials. We also carry out educational efforts relative to our
operations and the environment among the local population.
Environmental Legislation.
The Brazilian Federal Constitution grants concurrent
competence to the federal as well as state governments to legislate and regulate on
environmental matters. The environmental laws of the states where we have industrial
activities, along with the applicable general rules, contain certain specificities regarding our
activity. The standards are established in the environmental licenses (prior site study
licenses, construction licenses and operating licenses) issued for each of our factories. The
operating licenses are subject to renewal, and can therefore be modified from one year to the
next. We are fully covered by our current environmental operating licenses and do not
expect to be affected materially be any more rigorous environmental conditions, although
there is no guarantee of this.
Our liquid effluents, solid waste and atmospheric emissions are in line with all applicable
laws and regulations of all the states where we conduct our industrial activities. We do not
forecast having to make significant expenditures to continue meeting the existing or
proposed environmental laws and regulations. Nevertheless, there are no guarantees that
stricter environmental legislation enacted in the future will not demand extraordinary
expenditures to acquire fixed assets on our part.
Atmospheric Emission Levels. We have made significant investments over the years in
smokestack filters, gas scrubbers, catalytic burners for solvents and to develop new
operating procedures aimed at reducing our levels of atmospheric emissions.
Liquid Effluents. Water is important to our manufacturing processes in general. We obtain
water from the rivers near our factories. Our Manufacturing Parks II (Weg Motores and Weg
Automação), III (Weg Química) and IV (Weg Transformadores), located respectively in
Jaraguá do Sul, Guaramirim and Blumenau, have effluent treatment stations. The processes
used to treat these effluents are physical-chemical and biological. After treatment, the
effluents are returned to the rivers, according to the parameters established by current
legislation. The effluents generated in the industrial processes of our Manufacturing Park I
and part of Park II are sent for treatment at the station of Park III. The characteristics of the
effluents are monitored constantly through chemical, physical and biological analyses.
Solid Wastes. The great majority of our solid industrial wastes are recycled. Scrap from the
processing of steel slabs and machining of cast iron parts, for example, is reused in our
productive process. Our paper, cardboard and plastic trash is also collected for recycling.
Wastes that are not recycled are disposed of in industrial landfills or sent for co-processing
in cement furnaces. We are building a specific industrial landfill for our foundry wastes,
106
with a projected useful life of 18 years. The first step of this landfill is scheduled for
conclusion in August 2004.
Preservation of Native Vegetation. All the wood we use comes from tree plantations instead
of native stands. We currently have 4,200 hectares of preserved native forests and 6,000
hectares of planted forests to supply wood for our packaging crates. The lands we use are
generally not of high enough quality for other forms of agriculture. Every year we plant
more trees for our own future use than we fell. The cultivation techniques seek to preserve
the health of our forests. In the occupation of areas of silviculture and ranching, we always
preserve more than 20% of the native vegetation.
Environmental Certification. Our Manufacturing Parks I and III are certified according to
the requirements of ISO 14001. We are in the process of obtaining such environmental
certification for Park II. This will complete the certification process of all our units located
in Jaranguá do Sul and Guaramirim. The forecast for certification of Park II is by the end of
2004. The requirements for environmental certification include: (i) establishment of an
environmental management policy; (ii) study of environmental aspects and impacts; (iii)
compliance with applicable legislation; and (iv) establishment of procedures for operational
control, emergency response, communication with interested parties, internal audits of the
Environmental Management System, critical analysis by upper management, monitoring and
measurement, treatment of nonconformities and corrective and preventive actions.
Prizes and Certificates
For us, a prize, more than a trophy or a certificate, is recognition by the market. Therefore,
we are proud of each one of the many prizes we have received over our history.
In 1992, we became the first Brazilian company to be certified by the ISO 9001 standards,
confirming total quality management. See below the prizes we have received in the past 4 years:
2003:
• Outstanding Foreign Trade Technology Category – Ministry of Development and
Foreign Trade Association of Brazil;
• Supplier of the year - Abimaq;
• Visão Agrobusiness Award Transformer Category – Visão Magazine;
• Career Value - 40 Best Companies in People Management;
• 100 Best Companies for You to Work For – Exame Magazine;
• Corporate Excellence - Getúlio Vargas Foundation;
• Company of the Year in Mechanics - Value 1000 - Valor Econômico Newspaper;
• 100 Maiores do E-commerce - Info Exame;
• Silver Award - Abamec;
• 100 Most Competitive - América Economia Magazine;
• Brasil Premium – Explosion-Proof Motors and Frequency Inverter CFW-09;
• Motors, Transformers and Best Overall Performance Quality Award - Eletricidade
Moderna Magazine;
• Quality Standard in B2B Award - B2B Magazine.
107
2002:
•
•
•
•
•
•
•
•
•
•
•
•
•
Quality Award, Eletricidade Moderna Magazine– Motors;
Quality Award, Eletricidade Moderna Magazine – Transformers;
Quality Award, Eletricidade Moderna Magazine – Best Overall Performance;
The Company that has Grown Most in Exports in the South – Expressão Magazine;
Destaques Companhias Abertas – Agência Estado;
As 100 Empresas mais Ligadas do País –Info Exame Magazine;
FORBES 200 Platinum List – Company of the Year - Forbes Magazine);
Company of the Year in Mechanics – Value 1000 - Valor Econômico Newspaper);
The Most Admired Company in the Mechanics Segment – Carta Capital Magazine;
Outstanding Corporation in Santa Catarina – Gazeta Mercantil Newspaper;
Sector 2002 Highlights in Automation and Power Co-generation Equipment –
ABCTP (Brazilian Technical Association of Pulp and Paper) and O Papel Magazine;
Procel – 184 Stamps (100% of motors approved) for energetic efficiency;
7 First Places in Top Five – NEI Magazine.
2001:
• Most Admired Company in Brazil 2001 – Carta Capital; and
• 100 Best Companies for You to Work For – Exame and Você S.A. Magazines
2000:
• Company of the Century – FIESC (Federation of Industries of the State of Santa
Catarina)
We also highlight the prizes received by our founders and administrators:
2003:
• Life Achievement - Eggon João da Silva (Ernst & Young);
• Corporate Leaders Forum - Gazeta Mercantil (Eggon João da Silva and Décio da
Silva);
• Knowledge Medal - Décio da Silva - (Ministry of Development, CNI and Sebrae);
• Décio da Silva – Executive of Value - Valor Econômico Magazine;
2002:
• Corporate Leader Forum – Eggon João da Silva (Company founder);
• Scientific Order of Merit – Eggon João da Silva (Company founder);
Social Responsibility
By principle and commitment, our Group stands out for its actions in the social sphere,
through various projects and programs, which on 2003 consumed resources of R$ 19
millions. The main ones are described below:
108
(a)
Citizenship
Community action project
Program existing since 1996, aimed at contributing with the community in citizenship
building, providing important information, free services in partnership with private and
professional social entities. In 2000, 19,697 people were assisted.
New horizon project – volunteer service
Program started in 2001, with the creation of a database of employees and volunteers in the
company. In the socio-economic/2000 survey, 1,006 employees were identified who carried
out volunteer work in the community.
2000 start project
Created in 2003, through an agreement with SESI (Social Service for Industry), in
partnership with Ayrton Senna Foundation, aimed at awakening public school youths to
become involved with volunteer service, creating and carrying out cultural, educational and
recycling projects, among others. In 2003 4 schools were sponsored, totaling 500 students.
History redemption project – Senior Citizens
Created in 2001, this program operates in welcoming senior citizen groups in the region,
who apply for a visit to the company. In 2003, 4 groups were welcomed, totaling 263 people.
Dream Project – Mental Handicap
Created in 2001, through a partnership with APAE in Jaraguá do Sul and Guaramirim, this
project aims at creating work and employment opportunities for mentally handicapped
people. In 2003 we had 9 employees.
(b)
Education
Citizenship mania project
Program created in 2004, aimed at contributing to the educational training of the microregion children, through the creation and distribution of primers to 3rd grade students in the
region’s private and public schools.
Fresh start project – pre-retirement
Created in 1987, aimed at awakening employees and their families to the changes that are
going to happen in their lives after retirement. 682 people have already gone through the
project.
109
Smile project – day care center
This program has existed since 1984, through an agreement with day care centers in town to
care for employees’ children aged from 0 to 5 years. In 2003, an average of 413/children
month were cared for.
(c)
Health
Listening and Orientation Space Project
Program created in 1985, operates in solving conflicts in personal and family relationships
(couples, teenagers, several referrals). In 2003 1,240 assistances were provided.
Getting to Know your day by day Project – Removed Employees
Program created in 2003, is performed through house calls on employees removed from
work for over 6 months, for later analysis of the case with the occupational health team. In
2003, 52 house calls were made.
Loan Program
Created in 1986, aimed at enabling the employees or their dependents to obtain health care
in case they are not covered by a union heath plan or the public health system. In 2003, 81
salary advances were made.
Living Well Project – chronic disease database
This program was started in 2003, with the creation of a database identifying employees with
chronic diseases (hypertension, obesity and tobacco addiction).
(d)
Environment
ISO 14.000
Weg Química was the first producer of industrial paints, vernizes eletroisolantes and resinas
to be certified by the BVQI with ISO 14001. This certification, received in the end of 2001,
proves the respect that we have towards the environment, with the constant concerning of
manufacturing without harming the nature, contributing for the preservation of natural
resources and for the population’s quality of life. On July 2003, our industrial plants named
Manufacturing Parks I and III also received a certification of their environment
administration systems.
110
Green Life Environemnt Park Project
The city of Chapecó (SC) has few green and recreation areas to the society. The majority of
the population survives upon the activity of the collection of recycling material. The Green
Life Environment Park Project seeks teenagers aged from 14 to 17 years of the Bom Pastor
neighborhood in Chapecó, upon the construction of the Vida Verde school in a local park.
The project plant is already approved and awaits financings so that the works can be started.
The project has an estimated value of R$ 2 millions.
Santuário Rã-Bugio Project
The Rã-Bugio Institute for the Conservation of the Biodiversity is a non-governmental
organization with head offices in Guaramirim (SC) and was created on April 5, 2003, as an
association. The institute develops research and projects regarding environment education in
the north region of the Santa Catarina State, intending to save the remaining of the floresta
atlântica.
In addition to the above-mentioned programs and projects, we allocate funds to the
community, especially and the culture, education and citizenship areas. In 2003, we
allocated funds to the fire brigade, artistic cultural society (SCAR) and other social entities
in the amount of R$2.0 million, being this R$1.5 million in 2002.
In September 2003, we opened the WEG Museum with R$1.7 million investments, aimed at
portraying our history, preserving and transmitting our organization’s culture to our
employees and society and stimulating science and technology development.
111
OUR GROUP’S MANAGEMENT
Weg Group Convention
Our Company, WEG Indústrias and WEG Exportadora are part of a corporate group,
pursuant to the Brazilian Corporation Law, whose establishment convention, signed on
November 4th, 1981, has been amended four times, the last one, which consolidated it, dated
October 15th, 2002 (the “Convention”). The Convention establishes that we are the
controlling company of the WEG Group (“WEG Group”) and that WEG Indústrias and
WEG Exportadora are affiliated corporations (the “subsidiaries”), being that this relationship
will be expressed by obligatory use of the designation “WEG Group” added by the company
names of the corporations that have adhered to the Convention.
In accordance with the Brazilian Corporation Law, corporate groups do not have their own
legal personalities, being obligated, however, to publish, in addition to financial statements
of each one of the corporations that are part of them, consolidated financial statements.
Owing to the command carried out by us according to the Convention, the corporate interests
of the companies controlled by our Group, will always be conditioned to the higher interests
of our Group. Nevertheless, the Convention clarifies that the personality and equity of each
one of the WEG Group corporations are independent, there being a coordination relationship
between the subsidiaries and the Company, all of them being subordinated to the
Convention, which, in turn, sets forth subordination to the Company.
As a general rule, the subordination of the corporations to the group of corporation may
cause negative impacts on creditors and shareholders of participating corporations, to the
extent that the interest of each corporation cannot be fully convergent with those to whom
they will be subordinated (which are the interests of the group of participating corporations).
The Convention establishes that WEG Group’s institutional objectives is the combination of
resources and efforts among the corporations to achieve their respective objectives, as well
as participating in common activities and undertakings, by observing that the referred to
combination of resources and efforts will consist of the allocation of financial, technical,
managerial and human resources in general, among the corporations making up the WEG
Group. The Convention also establishes that the corporations making up the WEG Group are
jointly responsible for guarantees and similar collaterals given by the WEG Group or by
their administrators and third parties, especially financial institutions. Furthermore,
investments, costs or expenses incurred in the benefit of more than one of the WEG Group
will be prorated among the benefited corporations, as determined by the Administration. The
Convention may be amended by the Company’s initiative, being that the amendment should
be ratified by the WEG Group corporations.
The Convention sets forth that the WEG Group should be managed by a Board of Directors
and a Executive Board, whose compositions and duties will be identical to the compositions
and duties of our Company’s Board of Directors and Executive Board (see the items “Board
of Directors” and “Executive Board”), performing these duties not being remunerated. WEG
112
Group’s Management meetings will be installed with the presence of the majority of Board
of Directors and Executive Board members, respectively, and the Chief Executive Officer
should always be present (and, in his absence or impediment, the Administrative Director).
WEG Group decisions will be made by majority of votes, the Chief Executive Officer being
entitled to the qualified vote. The Weg Group’s Management is in charge of:
•
•
•
•
•
setting WEG Group general business guidance;
issuing instructions for WEG Group general policy execution in conformity with its
institutional purposes;
representing WEG Group before third parties;
admitting and excluding subsidiaries; and
enforcing the Convention’s provisions.
Without impairing the above-mentioned activities, WEG Group may:
•
•
operate on behalf of the companies making it up, as well as appointing proxies to act
judicially or extrajudicially, also being able to operate in the financial market; and
WEG Group may operate as a raw materials, input and consumer good and resale center.
By using the Company operationally, but granting to the operation the joint guarantee of
the corporations making up the WEG Group.
By the Administration’s indication, new subsidiaries may be admitted to the WEG Group. In
order to take part in the WEG Group the subsidiary shall:
•
•
•
be a subsidiary, directly or indirectly, by the Company;
ratify the Convention’s amendments proposed by the Company; and
comply with the Convention’s provisions especially referring to their objectives and
obligations.
A subsidiary may withdraw from the WEG Group at any time, by notifying the
Administration of the decision made in a corporate deliberation. Furthermore, a subsidiary
may be excluded, in case it does not comply with any of the requirements listed in the
previous paragraph.
The WEG Group may be extinguished when:
•
•
•
bankruptcy, extinction or loss of the Brazilian nationality by the Company occurs;
the subsidiaries are not under the Company’s control; and
our Company decides so.
Company
We are managed by a Board of Directors and an Executive Board, whose duties and makeup are described as follows.
113
(a)
Board of Directors
The Board of Directors is the collegial decision-making body, in charge of setting general
policies and guidelines of our business, including our long-term strategy. The Board of Directors
is also in charge, among other duties, of the election and supervision of our executive officers.
According to our Bylaws, the Board of Directors must be made up of at least 3 and at most
10 members, elected for 3-year terms, reelection permitted, being that the age limit for
remaining in the position of board member is 75. The Board of Directors meetings must be
held with the attendance by at least 2/3 of its members and deliberations are made by the
majority of votes by the attending members.
Our Board of Directors is in charge, among other matters, of:
•
•
•
•
•
•
•
•
•
setting our Company’s general business guidance;
examining and expressing itself on the Executive Board’s proposals to be submitted to
the General Meeting;
submitting to the General Meeting the period’s net profit distribution;
proposing statutory amendments to the General Meeting;
electing and dismissing Executive Officers;
indicating the replacement of the absent or temporarily disqualified Officer;
overseeing the Executive Board’s management and expressing itself on the
Administration’s report and Executive Board’s accounts;
calling General Meetings;
pronouncing itself in advance regarding the following acts to be practiced by the Executive
Board, when amounts and/or terms surpass those set by the Board of Directors:
o any loan and/or financing contract to be signed by our Company and/or its
subsidiaries;
o purchase, sale and/or encumbrance under any title of our Company’s permanent
asset goods; and
o setting credit limits to customers;
•
•
•
•
•
•
•
authorizing granting by our Company, guarantee, collateral or other guarantees in favor
of associated or subsidiaries, to guarantee any amount;
approving the assignment, transfer, license purchase of any rights referring to
trademarks, patents, industrial production processes and technology;
choosing among the Board of Directors and Executive Board members, the remuneration
and overall bonus set at the General Shareholders’ Meeting;
authorizing investments and interests in other companies or enterprises in Brazil or
abroad;
approving the Executive Board’s strategic planning and operating budgets;
approving expansion and diversification plans of the activities, as well as opening and
closing branches, agencies or offices;
authorizing share purchase by our Company, for the effect of cancellation or to remain in
treasury for later sale;
114
•
•
resolving cases not set forth in the Bylaws, which by law are of the General Meeting’s
competency, or the statutory audit committee when in operation; and
deliberating on signing loans by our Company with:
o its controlling shareholders;
o companies controlled by it;
o associated companies in which our Companies holds an interest lower than 75%.
According to the Brazilian Corporation Law, minority shareholders owning common shares
representing, at least, 15% of total shares with voting right, and shareholders owning preferred
shares representing, at least, 10% of total preferred shares, are entitled to request the election, each
one, in separate voting, of 1 Board of Directors member. Both the election of the Board of
Directors member representing minority shareholders owning 15% of the voting capital stock and
the election of the Board of Directors member representing shareholders owning, at least 10% of
the capital stock shall be made by taking into consideration the simple majority of shares for such
purpose. In case of minority shareholders and preferred-shareholders do not reach the abovestipulated quorums, they are entitled to aggregate their shares and, if they jointly hold stock interest
of 10% of the Company’s capital stock, they may elect 1 Board of Directors member. According
to the Brazilian Corporation Law, the shareholders shall exercise the faculty established in this
paragraph until forty-eight (48) hours before the general meeting.
The right to require a separate election of a representative to be part of our Company’s Board of
Directors is only assured to those shareholders who prove uninterrupted stock ownership during
the minimum 3-month period immediately preceding the respective General Meeting. In any of the
hypotheses the election of our Company’s Board of Directors members by minority or preferred
shareholders in the above-described manner, WEG Participações is assured the right to elect board
members in equal number to those elected by the other shareholders, plus 1.
Our current board members were elected at the General Meeting held on February 1st, 2002
and their term of office ends on March 31st, 2005. We list below the current make-up of our
Board of Directors:
Name
Eggon João da Silva
Gerd Edgar Baumer
Werner Ricardo Voigt
Lilian Werninghaus
Nildemar Secches
Edson Vaz Musa
Position
Chairman
Vice Chairman
Board Member
Board Member
Board Member
Board Member
Term of Office End
03/31/2005
03/31/2005
03/31/2005
03/31/2005
03/31/2005
03/31/2005
Please find below brief information about our Board of Directors active members:
Eggon João da Silva: Born on October 17th, 1929, worked from 1957 to 1961 as managing
partner of Metalúrgica João Wiest. In 1961 founded the Company, together with Werner
Ricardo Voigt and Geraldo Werninghaus (first called Eletromotores Jaraguá Ltda.). Currently
he is our Board of Directors chairman, Perdigão S.A., Board of Directors chairman, Oxford
115
S.A. Board of Directors chairman, Marisol S.A. Board of Directors member, and Tigre S.A.
Tubos e Conexões supervisory member.
Gerd Edgar Baumer: Born on October 5th, 1934, law graduate by the University of Paraná in
1964. Worked for Banco do Brasil, first as office helper, then promoted to agricultural
portfolio service head, acting sub-manager. Occupied the position of the Company’s
administrative director from February 1974 to March 1989. Currently he is our Board of
Directors Vice Chairman, Marisol S.A Board of Directors vice chairman., Perdigão statutory
audit committee member and Oxford S.A. Board of Directors member.
Werner Ricardo Voigt: Born on September 8th, 1930, was a Sul Brasileira de Eletricidade
employee in the period between August 1950 to June 1952. Specialized in electricity by in
1949. In 1961 founded the Company, together with Eggon João da Silva and Geraldo
Werninghaus, occupying the position of technical director. Currently he is our Board of
Directors member.
Lilian Werninghaus: Born on September 27th, 1934, was our social worker in the period
between 1980 to 1999. Currently she is our Board of Directors member.
Nildemar Secches: Born on November 24th, 1948, graduated in engineering by USP in São
Carlos in 1971. Post graduate in finances by PUC - Rio in 1972 and became PhD in
economics by Unicamp in 1984. He was BNDES director, IOCHPE Maxion group general
corporate director director-president of Perdigão S.A. Currently he is our Board of Directors
member, Latin American Advisory Board member of Deutsche Bank, Air Liquid Board of
Directors member and president of ABEF – Brazilian Association of Poultry Exporters.
Edson Vaz Musa: Born on January 5th, 1938, graduated in engineering by the Technological
Institute of Aeronautics – ITA. Worked for several companies, and was President of Rhodia
and Rhône Poulenc executive committee member. Currently he is majority partner of EVM
Empreendimentos, Caloi’s controlling company, and our Board of Directors member and of
several non-profit organizations, including TV Cultura, Fundação Antonio Prudente,
Instituto Uniemp, Aliança Francesa, Fundação Prêmio Nacional de Qualidade, among
others.
(b)
Executive Board
Our executive officers are responsible for the Company’s daily management and
implementation of general policies and guidelines set by the Board of Directors. In
conformity with the limits set in our Bylaws, the Officers ample management powers,
enabling them to practice all necessary acts for achieving our corporate purposes.
According to our Bylaws, the Executive Board must be made of at least 3 and at most 6
officers, elected for a 3-year term of office, admitting reelection, being that age limit for
remaining in the position of a member is 65. The election of current officers occurred at the
Board of Directors meeting held on February 12th, 2004.
116
The Executive Board is vested with ample management powers, being in charge of our
Company’s passive and active representation, as well as practicing all juridical acts that
create, modify or extinguish any rights and obligations, among others set forth by our
Company’s Bylaws.
Our Investors Relations Management is located at 3300 Avenida Prefeito Waldemar Grubba,
Jaraguá do Sul, Santa Catarina. The responsible person for this position is Mr. Alidor
Lueders, elected Investor Relations Officer at the Board of Directors meeting held on
02/17/1995. Our Investor Relations Department telephone number is (47) 372-4533, fax (47)
372-4201 and e-mail [email protected].
We list below the current make-up of our Executive Board:
Name
Décio da Silva
Alidor Lueders
Jaime Richter
Moacyr Rogério Sens
Position
Executive Director-President
Administrative and Investors
Relations Director
Marketing Director
Technical Director
Term of Office End
02/12/2007
02/12/2007
02/12/2007
02/12/2007
Please find below brief biographical information about our Executive Board members:
Décio da Silva: Born on September 16th, 1956, graduated in mechanical engineering by the
Federal University of Santa Catarina – UFSC, post-graduate in business administration by
the Advanced School of Administration and Management – ESAG. Started his career with
the company on January 15th, 1979, as quality control division assistant, going through the
positions of head of quality control section, manufacturing department manager, mechanical
production department manager, production director, regional director, sales director, until
becoming our Chief Executive Officer in 1989, the position he currently holds.
Alidor Lueders: Born on May 1st, 1948, graduated in law by Fundação Universidade
Regional de Blumenau – FURB, with an MBA from – ESAG. Started his career with the
Company on May 17th, 1971, as acting auditor, going through the positions of
legal/audit/shareholder division manager, legal/audit/systems division manager, director
superintendent of WEG Transformadores Ltda., director secretary, control director and
Administrative and Investors Relations Director, the position he currently holds. He is also
board of directors member of Irmãos Zen S.A. and statutory audit committee member of
Marisol S.A.
Jaime Richter: Born on June 13th, 1952, graduated in chemical engineering by the
University of Paraná – UFPR. Started his career with the Company on January 1st, 1977, as
assistant manager, going through the positions of physical-chemical laboratory head, wire
production manager, industrial director, production director, director superintendent and
Marketing Director, the position he currently holds.
117
Moacyr Rogério Sens: Born on September 25th, 1943, graduated in mechanical engineering
by the Industrial Engineering School of the Federal University of Santa Catarina - UFSC.
Started his career with our Company on December 2nd, 1968, as machine and tool draftsman,
going through the positions of quality control department head, planning and programming
department head, production control, engineering division manager, factory manager,
technology division manager, technical director and director superintendent. Currently holds
the position of Technical Director.
(c)
Compensation of Board of Directors Members and Executive Officers
In the period ending on December 31st, 2003, total compensation amount paid to the
Company’s Administrators totaled R$ 1,064,222.54.
The administrators of WEG Indústrias are entitled to participate in the Company’s income,
up to 10% of the period’s net profit, according to article 38 of the Bylaws. Each year’s
percentage definition is the responsibility of the General Meeting. In the past 3 years our
Company presented positive and results and the overall amounts contained in the table below
were allocated to the administrators, as participation in the results:
Year
Net Profit*
2001
175,682,779
2002
220,326,290
2003
307,809,037
* Consolidated amounts
(d)
% Participation
0
1,7973
1,4174
Amounts in R$
0
3,960,000
4,363,000
Administrator-owned Shares
The table below presents the number of shares held by each Administrator on June 30th,
2004:
Shareholder
Board Members
Eggon João da Silva
Werner
Ricardo
Voigt
Gerd Edgar Baumer
Nildemar Secches
Edson Vaz Musa
Common
%
Preferred
%
0
0
0.0
0,0
584,204
97,000
0.2
0.0
3,384
0
0
0.0
0.0
0.0
10,796,616
1,621,000
1,000
3.4
0.5
0.0
Directors
Décio da Silva
Alidor Lueders
Moacyr
Rogério
Sens
0
1,000
1,074,674
0.0
0.0
0.4
5,901,376
1,895,305
2,945,036
1.8
0.6
0.9
Total
1,079,058
0.4
23,841,537
7.2
(e)
Statutory Audit Committee
According to our Bylaws, the Statutory Audit Committee is made up of 5 members and their
respective alternates elected by our Shareholders at the General Meeting, with a term of
118
office up to the first Ordinary Shareholders’ General Meeting to be held after their election,
being able to be reelected, in accordance with the Brazilian Corporation Law. The Statutory
Audit Committee shall meet quarterly or when called.
As set forth in the Brazilian Corporation Law, the Statutory Audit Committee is not
subordinated to any Company department and is in charge of:
•
•
•
overseeing, by any of its members and in a collegiate manner, the Administrator’s acts
and checking compliance with their legal and statutory duties;
giving opinions on the Administration’s annual report, recording in its report
supplementary information that it deems necessary or useful to deliberation by the
Company’s General Assembly;
giving opinions on the proposals by the Administration’s departments regarding:
o
o
o
o
o
•
•
•
•
•
alteration of capital stock;
issuing of debentures or subscription bonus;
investment plans or capital budget;
dividend distribution;
Company transformation, amalgamation, split-up or merger;
denunciation, by any of its members and in a collegiate manner, to the Administration’s
departments and, if they do not take necessary measures for protecting our interests, to the
General Meeting, errors, frauds or crimes they find out, and suggesting useful measures ;
calling the Ordinary General Meeting, if the Administration’s departments delay the call
for more than 1 month and the Extraordinary General Meeting, whenever there are
serious or urgent reasons, also being able to include in General Meeting schedule matters
that they consider;
analysing, at least quarterly, the trial balance and all other financial statements
periodically prepared by the Company; and
checking the accounting period financial statements and giving opinions on them,
performing the duties set forth above during an eventual Company liquidation, in
compliance with especial provisions regulating it.
The current Statutory Audit Committee members and their alternates were elected on April
4th, 2004 and are as follows:
Name
Egon Handel
José Sampaio de Lacerda Junior
Eunildo Lázaro Rebelo
Irineu Bianchi
Devanir Danna
Eduardo Grande Bittencourt
José Alberto Meneguzzo Barbisan
Ilário Bruch
Robert Donath
Gilberto Cassuli
Position
Active
Active
Active
Active
Active
Alternate
Alternate
Alternate
Alternate
Alternate
119
The Statutory Audit Committee members’ compensation is decided by the General Meeting
in which they are elected and may not be lower than 10% of the compensation that, on
average, is assigned to the Directors, not computing benefits, representation grants or profit
sharing, in accordance with the Brazilian Corporation Law.
In the period ending on December 31st, 2003, the compensation amount paid to the Statutory
Audit Committee members was R$ 239,000.00.
(f)
Stock Purchase Option Plans
There are no stock purchase option plans.
(g)
Contracts with Administrators
There are no contracts signed between as and our Administrators.
(h)
Kinship
Name
Décio da Silva
Position
Executive Director-President
Kinship
Eggon João da Silva’s son
WEG Indústrias
WEG Indústrias is managed by a Board of Directors and an Executive Board, whose duties
and make-up are described as follows.
(a)
Board of Directors
The Board of Directors is made up of at least 3 and at most 10 members. The Board of
Directors’ responsibilities include setting WEG Indústrias general business guidelines,
electing Executive Officers, authorizing granting, by WEG Indústrias, of guarantees,
collateral and other pledges in favor of associated companies or subsidiaries, authorizing
purchase of WEG Indústrias own stock, among others.
WEG Indústrias Board of Directors members are elected for a 3-year term of office, and may
be reelected, with the age limit for remaining in the position being 75. The Board of
Directors meetings shall be held with the presence of, at least, 2/3 of its members and
deliberations shall be made by a majority of votes by attending members.
The current board members of WEG Indústrias were elected at the General Meeting held on
April 1st, 2002 Board Member and their term of office ends on April 2nd, 2005. We list
below the make-up of WEG Indústrias Board of Directors:
120
Name
Eggon João da Silva
Gerd Edgar Baumer
Werner Ricardo Voigt
Lilian Werninghaus
Nildemar Secches
Edson Vaz Musa
(b)
Position
Chairman
Vice Chairman
Member
Member
Member
Member
Executive Board
The Executive Board is made up of at least 6 and at most 18 Executive Officers. In
compliance with the limits set in WEG Indústrias’ Bylaws, the Executive Board has broad
and general management powers, which enables it to perform all necessary acts for WEG
Indústrias operation, aimed at attaining its corporate objectives. The Officers have individual
responsibilities set by WEG Indústrias’ Bylaws, holding their positions for a 3-year term of
office, reelection permitted. The election of its current Officers was decided at the Board of
Directors meeting held on July 17th, 2003.
WEG Indústrias’ current Executive Board make-up is as follows:
Name
Décio da Silva
Alidor Lueders
Walter Janssen Neto
Moacyr Rogério Sens
Ricardo Bartsch
Sérgio Luiz Silva Schwartz
Ronaldo Klitzkek
Martin Werninghaus
Sinesio Tenfen
Roberto Krelling
Umberto Gobbato
Harry Schmelzer Junior
Jaime Richter
Luiz Alberto Oppermann
Douglas Conrado Stange
Celso Vili Sierbert
Luiz Alberto Tiefensee
(c)
Position
Chief Executive Officer
Officer
Officer
Officer
Officer
Officer
Officer
Officer
Officer
Officer
Officer
Officer
Officer
Officer
Officer
Officer
Officer
Compensation of Members of the Board of Directors and Executive Officers
In the period ending on December 31st, 2003, total compensation amount paid to Weg
Indústrias Administrators was R$ 3,010,491.72.
WEG Indústrias Administrators are entitled to participate in WEG Indústrias’ income, up to
10% of the period’s net profit, according to article 32 of its Bylaws. Each year’s percentage
definition is the responsibility of the General Meeting. In the past 3 years WEG Indústrias
presented positive and results and the overall amounts contained in the table below were
allocated to the Administrators, as participation in the results:
121
Year
2001
2002
2003
(d)
Net Profit
150,174,683
213,604,210
286,394,291
% Participation
0
1,4497
1,0475
Amounts in R$
0
3,096,561
3,000,000
Statutory Audit Committee
According to the Bylaws, WEG Indústrias’ Statutory Audit Committee is not a department
that operates on a permanent basis, its installation not having been required or made for the
year.
(e)
Stock Purchase Option Plans
There are no stock purchase option plans.
(f)
Shares held by Administrators
The table below shows the quantity of stocks held by WEG Indústrias Administrators in
relation to its capital stock
Shareholder
Board Members
Eggon João da Silva
Werner Ricardo Voigt
Gerd Edgar Baumer
Lílian Werninghaus
Nildemar Secches
Edson Vaz Musa
Total
(g)
Number of Shares
% of Stock Capital
3,576
3,576
3,576
3,576
3
3
14,310
0.00207
0.00207
0.00207
0.00207
0.00000
0.00000
0.00828
Contracts with Administrators
There are no contracts signed between WEG Indústrias and its administrators.
(h)
Kinship
Name
Décio da Silva
Walter Janssen Neto
Ricardo Bartsch
Sérgio Luiz Silva Schwartz
Martin Werninghaus
Position
Chief Executive Officer
Officer
Officer
Officer
Officer
Kinship
Eggon João da Silva’ son
Eggon João da Silva’s son-in-law
Eggon João da Silva’s son-in-law
Werner Ricardo Voigt’s son-in-law
Lilian Werninghaus’s son
WEG Exportadora
WEG Exportadora is administered by a Board of Directors and an Executive Board, whose
duties and make-up are described as follows:
122
(a)
Board of Directors
The Supervisory is made up of at least 3 and at most 10 members. The Board of Directors’
responsibilities include setting WEG Exportadora’s general business guidelines, electing
Executive Officers, authorizing granting, by WEG Exportadora, of guarantees, collateral and
other pledges in favor of associated companies or subsidiaries, authorizing purchase of WEG
Exportadora’s own stock, among others.
WEG Exportadora Board of Directors members are elected for a 3-year term of office, and
may be reelected, the age limit for remaining in the position being 75. The Board of
Directors meetings shall be held with the presence of, at least, 2/3 of its members and
deliberations shall be made by a majority of votes by attending members.
The current board members of WEG Exportadora were elected at the General Meeting that
established it, held on April 1st, 2022 and their term of office expires on April 2nd, 2005. We
list below the make-up of WEG Exportadora’s Board of Directors:
Name
Eggon João da Silva
Gerd Edgar Baumer
Werner Ricardo Voigt
Lilian Werninghaus
Nildemar Secches
Edson Vaz Musa
(b)
Position
Chairman
Vice-Chairman
Board Member
Board Member
Board Member
Board Member
Executive Board
The Executive Board is made up of 4 Executive Officers and, .in compliance with the limits
set by law and in WEG Exportadora’s Bylaws, has ample management powers, which enable
it to perform all necessary acts for WEG Exportadora operation, aimed at attaining its
corporate objectives. The Officers have individual responsibilities set by WEG
Exportadora’s Bylaws, holding their positions for a 3-year term of office, admitting
reelection. The election of its current Officers occurred at our Board of Directors’
establishing General Meeting, held on September 25th, 2001.
The names and position of WEG Exportadora’s Officers are as follows:
Name
Décio da Silva
Alidor Lueders
Douglas Conrado Stange
Roberto Bauer
(c)
Position
Chief Executive Officer
Officer
Officer
Officer
Compensation of Board Directors Members and Executive Officers
In the period ending on December 31st, 2003, total compensation amount paid to the
Company’s Administrators was R$ 288,367.92
123
WEG Exportadora’s administrators are entitled to participate in WEG Exportadora’s income,
at up to 10% of the period’s net profit, according to article 36 of its Bylaws. Each year’s
percentage definition is the responsibility of the General Meeting. In the past 3 years Weg
Exportadora has presented positive results and the overall amounts contained in the table
below were allocated to its administrators, as participation in the results:
Year
2001
2002
2003
(d)
Net Profit
1,474,256
27,530,316
5,621,161
% Participation
0
0,7409
5,3192
Amounts in R$
0
203,969
299,000
Statutory Audit Committee
According to the Bylaws, WEG Exportadora’s Statutory Audit Committee does not operate
on a permanent basis. Its installation was not requested for the year of 2004.
(e)
Stock Purchase Option Plans
There are no stock purchase option plans.
(f)
Shares held by Administrators
The table below shows the number of shares held by Administrators:
Shareholder
Board Members
Eggon João da Silva
Werner Ricardo Voigt
Gerd Edgar Baumer
Lílian Werninghaus
Nildemar Secches
Edson Vaz Musa
Total
(g)
Number of Shares
% of capital stock
17
17
17
17
2
2
72
0.00213
0.00213
0.00213
0.00213
0.00025
0.00025
0.00902
Contracts with Administrators
WEG Exportadora has signed, with some of its Administrators, checking account credit
and/or debit contracts, through which WEG Exportadora opened credit lines, in amounts up
to R$ 25,000.00. The amounts actually used by account holders are added by financial
charges calculated on the updated debit balance, including compensation corresponding to
100% of the CDI (Interbank Deposit Certificate) variation. Account holders, in turn, may
keep in a checking account with WEG Exportadora, their credits related to fees, dividends,
bonuses and also deposits made, the credit balance becoming available to WEG
Exportadora, being that this balance shall incur a remuneration of 95% of the CDI variation.
These contracts expire up to December 31st, 2004.
(h)
Kinship
Name
Décio da Silva
Position
Chief Executive Officer
124
Kinship
Eggon João da Silva’s son
DESCRIPTION OF CAPITAL STOCK AND RIGHTS INHERENT TO SHARES
Company
Corporate Purpose
Our Company’s duration period is indeterminate and our purpose is:
•
•
•
interest in other corporations, businesses and enterprises;
service rendering, consulting, control, technical assistance, asset management;
production, industrialization, trade, export and import of :
o industrial, electro-mechanic and electronic systems, rotary electric machines,
machines and equipment in general, household and electronic appliances,
equipment for electric power production, distribution and conversion, electrical
material, soft starters, machine parts and components, devices and equipment in
general; and
o resins in general, paint materials, vegetal and chemical origin substances and
products designed for industry and science; and
•
trade, export, import, mining, and industrialization of forestry, agriculture, livestock,
research, and mineral bed mining products and services .
Our Capital Stock History
Our capital stock has undergone the following changes in the past three year, and there has
been no change to our control and the stock capital of our controlling company WEG
Participações. We list below the changes occurred in our capital stock:
Date
AUG/and
04/02/01
AUG/and
04/02/02
AUG/and
04/07/03
AUG/and
04/05/04
Amount (R$)
430,000,000.00
500,000,000.00
600,000,000.00
750,000,000.00
Change
Capital increase by utilizing the statutory reserve and capital
budget reserve, without increasing the number of shares.
Capital increase by utilizing the statutory reserve and capital
budget reserve, without increasing the number of shares.
Capital increase by utilizing the statutory reserve, capital budget
reserve and tax incentive reserve, without increasing the number
of shares.
Capital increase by utilizing the statutory reserve and capital
budget reserve, without increasing the number of shares.
Our Capital Stock make-up
Currently, our capital stock is R$ 750 million, divided into 617,955,200 nominal book entry
shares, without par value, 288 million being common voting shares and 329,955,200
preferred nonvoting shares. All our shares have been subscribed and paid-in. The table
below shows the current make-up of our capital stock:
125
Capital Stock Make-up on June 30th, 2004
Type
Number of Nominal and Book Entry Shares
Common
288,000,000
Preferred
329,955,200
Total
617,955,200
The following chart shows our stock make-up on June 30th, 2004 in a detailed manner:
(in thousands)
Shareholder
WEG Participações e Serviços S/A and
founders’ family
WEG Participações
Werner Ricardo Voigt and family
Eggon João da Silva and family
Lilian Werninghaus and family
Banco do Brasil Employees’ Retirement Fund
Eugênio José da Silva
Fundo Bradesco Templeton
FPS-BNDES
Treasury Shares
Others
Total
Common
%
Preferred
%
Total
%
279,211 96.9
110,369
33.4
389,581 63.0
279,211 96.9
0 0.0
0 0.0
0 0.0
4,570 1.6
595 0.2
0 0.0
0 0.0
0 0.0
3.624 1,3
288.000 100,0
30,023 9.0
33,332 10.1
30,966 9.4
16,048 4.9
37,805 11.5
27.475 8.3
26,563 8.1
15,833 4.8
10,359 3.1
101,551 30.8
329.955 100,0
309,235 50.0
33,332 5.4
30,966 5.0
16,048 2.6
42,375 6.9
28,070 4.5
26,563 4.3
15,833 2.6
10,359 1.7
105,175 17.0
617.955 100,0
On June 30th, 2004, we had a 1436-shareholder base, of which 1262 were individuals and
174 were corporations.
Characteristics of our Shares
As set forth in the Bylaws, preferred shares do not have voting rights but shall grant the
following rights to their holders:
•
•
•
being included in the public offering for disposing of our control, in order to assure a
minimum price equal to 80% of the amount paid per share with voting right integrating
the control block, in accordance with the Brazilian Corporations Law (“Tag Alone
Right”);
priority in capital refund, in case of closing down our activities; and
participation, in equal conditions with other stock, in dividend distribution, receiving
bonus originating from capital reserve, asset revaluation, profit reserve capitalization or
utilization of any funds.
Furthermore, we may, at any time, issue preferred shares representing up 2/3 of our total
capital without keeping proportion with other existing kinds of shares, upon a General
Meeting deliberation.
126
Voting right is exclusively reserved to common shares. Each common share is entitled to one
vote in General Meeting deliberations.
Treasury Preferred Shares
On December 31st, 2003 and 2002, preferred shares in treasury totaled 10,359,000 and
5,292,537, respectively, at weighted average purchase price of R$ 2.66 per share, minimum
price being R$ 1.95 and maximum R$ 3.50. Market value of these shares on December 30th,
2003 and June 30th, 2004 was R$ 4.80 and R$ 7.35 per share, respectively.
Currently, we have 10,359,000 preferred shares in treasury, representing 3.1% of our
preferred shares and 1.7% of our total capital stock.
Execution of Stock Purchase Operations Issued by Ourselves
Our Bylaws authorize our Board of Directors to approve purchase of shares issued by
ourselves, for cancellation or to remain in treasury for subsequent sale, meeting the
requirements imposed by the Brazilian Corporations Law and applicable regulation issued
by the Securities Commission (CVM).
In the period from May 6th, 2003 to August 3rd, 2003, we were authorized by decision taken
at the Board of Directors meeting of May 5th, 2003, as announced in a relevant fact
published in the newspapers Valor Econômico (São Paulo regional) and A Notícia (Santa
Catarina regional) on May 6th, 2003, to purchase up to 16,172,710 preferred shares to
remain in treasury. During this period, we purchased 4,797,493 preferred shares.
Company Stock Trading Policy
We have a manual of Stock Trading Policy and Disclosure of Relevant Acts and Facts that
also rules on our securities trading policy. Our manual establishes what an objectionable
practice is, subject to sanctions set forth by law:
•
•
Taking advantage of privileged information in order to, by non-equitable practices,
obtain advantages for oneself or third parties, by trading securities; and
Not exerting all efforts in order to prevent disclosure of any privileged information
(internally or externally), omitting oneself from the responsibility to care for
confidentiality of information, until it becomes public, which is only characterized by
making facts official before the stock market regulatory agencies and the media.
According to the referred to manual, notwithstanding Law provisions, the following are
prevented from trading our share:
•
Shareholders, controlling or not, who have any interest, direct or indirect, in the
Company’s Administration, and their subsidiaries, including their administrators
(considered to be the directors and Board of Directors members), as well as statutory
audit committee members, employees and executives; or further, their spouses, spouses
127
•
•
•
from whom they are not de facto or judicially separated, their mates, ancestors and
descendants, as other relatives, or close relationships, in addition to their dependents,
regardless of family relationship, understood here to be people who are usually included
in their income tax returns, during the period preceding disclosure by the market of a
relevant act or fact of which they become knowledgeable.
Those who are removed from the Administration prior to public disclosure of the deal or fact
initiated in their term of office and shall extend for a 6-month period after their removal.
In the 15-day period preceding disclosure of Quarterly Information (ITR), Standardized
Financial Statements (DFP) and Yearly Information (IAN).
The same impediments are applicable to consulting companies, of any type and selfemployed professionals who, hired by our Company, for rendering services, of any
nature, have, or may have, when performing their duties, access to any kind of privileged
information, in this case, the party in charge of hiring is responsible for clarifying hired
personnel regarding the standards in question, as well as inspecting their hired persons’
conduct, as long as the service rendering lasts.
Alternately, the people mentioned in the above items may inform, in writing, their periodic
trading plans under the title of investment, or scheduled divestment, in order to obtain more
trading flexibility of their shares.
Furthermore, WEG Participações, the Company’s Administrators (considered to be the
Directors and Board of Directors members), as well as Statutory Audit Committee:
•
•
•
Are obligated to communicate to us, in writing, the quantity of owned shares, specifying
their type (common and/;or preferred) immediately after they assume their office duties,
submitting the same information relating to their spouses, spouses from whom they are not
de facto or judicially separated, their partners, ancestors and descendants, as other relatives,
or close relationships, in addition to their dependents, regardless of family relationship,
understood here to be people who are usually included in their income tax returns.
Shall communicate us regarding every and any trading performed, the type of operation
and all other information pertinent to the shares referred to in this item, within at most 10
days after the end of the months in which the trading occurs. The Company shall inform
the negotiations performed to the São Paulo Stock Exchange (BOVESPA) and the
Securities Commission (CVM).
Holders of interest equal to or higher than 5% of the kind or class of the Company’s
capital stocks, shall communicate to us, and disclose the event as relevant fact whenever
their interest rises by 5% of the kind or class of shares.
Subscription of New Shares
The subscription of new shares for capital increase shall be processed according to the terms
and conditions stipulated by our General Assembly, the Meeting or the Board of Directors
being in charge of setting the issuing prices of the new shares, observing that the delay by
the shareholder in realizing subscribed capital, shall imply levying a 10% fine on the amount
of the overdue installment, in addition to 1% interest on arrears.
128
In the quality of open company, we are legally forbidden to issue beneficiary parties dealt
with article 46 and following of the Brazilian Corporation Law.
Right of First Refusal
According to the Brazilian Corporations Law, all shareholders shall have preference for
capital increase subscription proportionately to the number of shares they hold, by observing
that is the capital is divided into several kinds or classes and the increase is made by issuing
more than one kind or class, by observing the following:
•
•
•
•
in case of increase, in the same proportion, to the number of shares of all existing
kinds and classes, this shareholder may perform the right of first refusal on identical
shares to those he owns;
if issued shares are of existing kinds and classes, but mean changing the respective
proportions in the capital stock, the preference shall be performed on shares of
identical kinds and classes to those owned by the shareholders, only extending to the
others those that are insufficient to assure them the same proportion they had in the
capital prior to the increase;
if there is stock issuing of the kind or class other than the existing ones, each
shareholder shall perform the preference, proportionately to the number of shares he
owns, on the shares of all kinds and classes of the increase; and
furthermore, the shareholders shall be entitled to perform the right of first refusal in
the subscription of any convertible securities in shares issued by the Company, but
shall not have it in case of performing the stock purchase option and upon the actual
conversion of these securities into shares.
Our Bylaws do not contain an authorized capital provision. Thus, unless this provision is
adopted and the placement occurs by sale on the stock exchange or public subscription or,
further, stock barter for purchasing out control, we shall not be able to issue new shares,
convertible debentures into shares or subscription bonus with the exclusion of the right of
first refusal to old shareholders or their term reduction.
The General Meeting
General Meetings shall be called by the Board of Directors or other legal forms, with the
exception that the call to the meeting shall be published in the Official Gazette of the State of
Santa Catarina and the newspapers “A Notícia” and “Valor Econômico”, at least 15 days
prior to the first call and 8 days for the second call and shall have the duties assigned to them
by the legislation in force.
The General Meetings shall be chaired by the Board of Directors Chairman or his acting
alternate and, in the latter’s impediment, by a shareholder chosen by the attendants.
In order to participate and vote in General Meetings, the shareholder shall identify himself and
present proofs of his shareholder condition, by means of a document provided by the financial
institution indicated by us to manage our book entry shares. For the purpose of deliberation,
alterations to stock positions occurred on the date of the General Meeting shall be disregarded.
129
Each common share shall correspond to one vote in the General Meeting deliberations. In
case of a draw the General Assembly chairman shall have, in addition to his vote or votes,
the casting vote. Furthermore, the General Meeting deliberations, with the exception of
provisions set forth in the legislation, shall be made by absolute majority of votes, not
computing blank votes, according to our Bylaws.
Our Bylaws set forth that General Shareholders’ Meetings shall have the duties granted to
them by the Brazilian Corporations Law.
The shareholders may be represented in General Meeting by their proxy so appointed less
than 1 year before such meeting and who is our shareholder, our administrator or a lawyer,
provided that his capacity as such is proven in a special power of attorney which is to be
filed at our head office, in accordance with the Brazilian Corporation Law.
The General Meeting may, at any time, deliberate on transforming our corporate type, in
accordance with the legislation in force.
Furthermore, General Meetings shall comply with all other legal provisions applicable to
open companies including concerning the installation quorum.
Right of Removal
The Brazilian Corporations Law sets forth that, in restricted circumstances, shareholders
dissenting from given General Meeting deliberations (even though they have not attended
the General Meeting or have abstained from voting) are entitled to remove themselves from
our Company, being refunded for the amount of their shares. Dissenting shareholders may
perform the right of removal in case any of the deliberations indicated below is approved in
the General Meeting:
•
•
•
•
•
•
•
•
•
•
creation of preferred shares or increase of existing preferred share class without keeping
proportion to the other preferred share classes, being understood that the right of removal
shall only be performed by the damaged shareholders;
change in preferred shares, advantages and redemption or amortization conditions of one or
more classes of preferred shares, or creation of a new more favored class, being understood
that the right of removal shall only be performed by the damaged shareholders;
reduction of mandatory dividend;
merger of our Company, or our amalgamation into another one;
interest in a group of corporations, according to the definition contained in the Brazilian
Corporation Law, by observing the conditions set forth therein;
change in our corporate purpose;
stoppage of liquidation status of our Company;
spit-up of our Company implying (i) a change in our corporate purpose (except when the split
equity goes into a corporation which predominant activity is similar to that of the split-up
company); (ii) the reduction of mandatory dividend e (iii) to join a groups of corporations;
transformation of our Company into another corporate type;
dissolution of our Company;
130
•
•
transfer of all shares issued by us to another company in order to make it become a whollyowned subsidiary of the company in question, an operation called upstream merger,
according to the Brazilian Corporation Law, by observing the conditions set forth therein; or
purchase of control from another corporation by a price exceeding the limits set forth by
the Brazilian Corporation Law.
The right of removal shall be performed by dissenting shareholders in up to 30 days starting
on the publication of the General Meeting minute that has approved any of the abovedescribed corporate deliberations and shall only be performed by those damaged
shareholders, as set forth in the Brazilian Corporations Law.
We are authorized to
reconsider any of our deliberations that cause the right of removal in the 10 subsequent days
to the expiry of the term for performing this right in case the stock refund of dissenting
shareholders jeopardizes our financial stability, being understood that the refund for the
amount of shares is due only upon execution of the transaction approved.
The Brazilian Corporations Law authorizes companies to refund shares of dissenting
shareholders for their economic value, by observing the provisions contained in the respective
Bylaws and other legal requirements. Our Bylaws sets forth that shares integrating our capital
stock be refunded for their economic value. Consequently, every eventual refund of shares
issued by our Company shall be made based on the equity (accounting) value of our shares,
determined in our latest balance sheet approved by the shareholders. However, in case a General
Shareholders’ Meeting deliberating about matters causing the right of removal occurs after 60
days starting on the date our Company’s latest balance sheet was disclosed, any shareholder may
require that his shares be evaluated based on a new balance sheet to be made in up to 60 days
starting on the date the respective General Shareholder’s Meeting was held.
As set forth in the Brazilian Corporations Law, the right of removal based on the fourth, fifth
and ninth above-described items may only be performed by shareholders in case:
•
•
shares have no liquidity, namely, they have no general representative index of security
portfolio admitted for trading in Brazil or abroad, as defined by the CVM; and
there is no dispersal, that is, when WEG Participações or other companies under its
control hold more than half of the kind or class of stocks. Our preferred shares are
not part of the general representative index of securities admitted for trading on the
securities market in Brazil (São Paulo Stock Exchange Index– IBOVESPA).
The right of removal may also be performed in the hypothesis that the company resulting
from upstream merger, merger, amalgamation or split-up of our Company does not have its
shares admitted for trading on a stock exchange within 120 days starting on the date when
the General Meeting approved the deliberation.
Redemption of Shares
According to the Brazilian Corporations Law, our company-issued shares may be redeemed
by means of our Company shareholders’ determination at the Extraordinary General
Meeting, by observing the conditions set forth in the referred to law.
131
Reserves
The Company has the following reserve accounts:
Profit Reserves. Comprise the statutory reserve, realizable profits reserve, contingency
reserve and profits withholding reserve.
•
Statutory Reserve. According to the Brazilian Corporations Law, the Company must
keep a statutory reserve, to which it must allocate 5% of the net profit earned in each
accounting year, until the reserve amount is equal to 20% of our capital stock.
Nevertheless, the Company is not obligated to make any allocation to the statutory
reserve in relation to any accounting year in which the statutory reserve, when added
by other established capital reserves, exceeds 30% of our capital stock. Eventual
losses may be debited to the statutory reserve. The General Ordinary Shareholders’
Meeting must approve the amount of profits allocated to forming the statutory
reserve and, once this allocation is approved, these amounts shall not be available for
dividend payment. The statutory reserve may be used to increase the Company’s
capital stock. On June 30th, 2004, the Company had no balance in its statutory
reserve, once the balance of approximately R$ 15.4 million, which was equal to
approximately 2.6% of our Company’s paid-in capital, had been fully used to
increase our paid-in capital stock, as established in our General Ordinary and
Extraordinary Meeting dated April 5th, 2004.
•
Realizable Profits Reserve. According to the Brazilian Corporation Law, in the
accounting year in which the mandatory dividend amount exceeds the realized
portion of net profit, the surplus may be allocated to establishing a realizable profits
reserve. According to the Brazilian Corporation Law, the portion of the period’s net
profit exceeding the sum of one of the following amounts is considered to be
realized:
•
o
o
the positive net income of equity accounting and
the profit, gain or yield in operations whose financial realization term occurs
after the following accounting year end.
o
Reversion of Profits Realized. Profits accounted for the realizable profits
reserve must be added to the first divided declared after their realization, if
they are not absorbed by losses in subsequent years. On June 30th, 2004, the
Company had no realizable profits reserve balance.
Contingency Reserve. According to the Bylaws, part of the net profit may be
allocated to the contingency reserve in order to make for, in a future year, the
decrease of profit resulting from a loss deemed probable, whose amount can be
estimated. Any thus allocated amount in a previous year must be reverted in the
accounting year in which it is found that the predicted loss will not occur, or must be
cancelled and written off in the event the predicted loss actually occurs. On June 30th,
2004, the Company had no contingency reserve balance.
132
•
Profits withholding reserve. According to the Brazilian Corporation Law, the
General Assembly may deliberate on withholding part of the year’s net profit
forecasted in capital budget, previously approved by our Company’s General
Meeting, which may last up to 5 years, and indicate all the sources of our Company’s
funds and capital investments, fixed or short-termed, which shall be yearly reviewed
by the General Ordinary Meeting, in case its duration surpasses one accounting year.
On June 30th, 2004, the balance of this reserve was, approximately, R$ 129.7 million.
Capital Reserves. Our Company’s capital reserves consist of share premium reserve, tax
incentives and investment subsidies, as allowed by the legislation in force. The amounts
allocated to the capital reserve are not considered for the effect of determining the
mandatory dividend. On June 30th, 2004, the Company had no capital reserve balance.
•
Revaluation Reserve. The revaluation reserve is divided into two different subaccounts, being the first related to our own assets and the second related to the assets
belonging to our Subsidiaries, being understood that in the latter the contra-entry
related to the registries accounted for in the Investment account in Subsidiaries shall
be accounted for, pursuant to the equity accounting method. On June 30th, 2004, the
balance of this reserve was, approximately, R$ 9.088 million, accounted for in the
Subsidiaries’ sub-account.
Dividend Policy
The Company’s preferred shares grant to their holders participation in dividend distribution
in equal conditions with the Company’s other shares.
As set forth in article 38 of our Company’s Article of Incorporation, after ascertaining each
accounting year’s income and making all applicable legal deductions, our Company shall
distribute dividends and/or interest on shareholders’ equity imputed to the dividends in the
minimum mandatory percentage of 25% on the net profit adjusted according to article 202 of
the Brazilian Corporation Law. As set forth in the Company’s Bylaws, income distribution
under the form of interest on shareholders’ equity allows us the treatment as deductible
expenses for corporate income tax and Social Contribution on Net Income (CSLL) purposes.
Furthermore, after making all distributions and deductions, as set forth above, the balance
found can also be distributed to our shareholders in the form of dividends. In this case, our
Board of Directors will decide:
•
•
on the amount of interest on shareholders’ equity to be paid to shareholders, in kind or
“in natura”, wholly or partly; and
on the refutation or deduction of the mandatory dividend, of the amount of interests
credited or paid to shareholders under the title of shareholders’ equity compensation.
In this context, in case we raise a half-yearly balance sheet according to the legislation in
force, our Board of Directors may declare intermediate dividend distribution and/or interest
on shareholders’ equity, according to Law No. 9.249/95. In this case, declared dividends will
133
be taken to the account of profits earned in this half-yearly balance sheet, as set forth in
article 204 of the Brazilian Corporation Law.
Unclaimed dividends in 3 years, starting on the date when they were placed at the disposal of
shareholders, are reverted in our favor, according to the Brazilian Corporation Law and our
Bylaws.
Our Company makes yearly dividend distribution. In the past 4 (four) years, we have
distributed dividends and interest on shareholders’ equity in a percentage exceeding 30% of
our net profit. The table below shows dividend on interest distributions made by the
Company between 1998 and 2004:
Type of Proceeds
Interest on
Shareholders’ Equity
Dividends
Interest on
Shareholders’ Equity
Interest on
Shareholders’ Equity
Interest on
Shareholders’ Equity
Interest on
Shareholders’ Equity
Interest on
Shareholders’ Equity
Dividends
Interest on
Shareholders’ Equity
Dividends
Interest on
Shareholders’ Equity
Dividends
Dividends
Dividends
Dividends
Interest on
Shareholders’ Equity
Interest on
Shareholders’ Equity
Dividends
Dividends
Approval
Date
Relating to
Payment
Start
Limitation
Amount per Share
(R$)
07/16/1998
1st Half/1998
08/17/1998
08/17/2001
0.017647
12/18/1998
Complement 1998
03/15/1999
03/15/2002
0.0025
12/18/1998
Complement 1998
03/15/1999
03/15/2002
0.032353
07/20/1999
1st Half/1999
08/16/1999
08/16/2002
0.022941
12/16/1999
Complement 1999
03/13/2000
03/13/2003
0.021764
07/13/2000
1st Half/2000
08/21/2000
08/21/2003
0.03294118
12/14/2000
Complement 2000
03/14/2001
03/14/2004
0.03176471
02/15/2001
Complement 2000
06/13/2001
03/14/2001
03/14/2004
0.01
st
08/20/2001
08/20/2004
0.03176471
st
1 Half/2001
06/13/2001
1 Half/2001
08/20/2001
08/20/2004
0.013
12/13/2001
Complement 2001
03/11/2002
03/11/2005
0.03764706
12/13/2001
07/18/2002
02/13/2003
07/17/2003
Complement 2001
1st Half/2002
1st Half/2002
1st Half/2003
03/11/2002
08/09/2002
03/10/2003
08/18/2003
03/11/2005
08/09/2005
03/10/2006
08/18/2006
0.028
0.05
0.095
0.0725
07/17/2003
1st Half/2003
08/18/2003
08/18/2006
0.008823544
12/11/2003
Complement 2003
03/17/2004
03/17/2007
0.008235294
02/12/2004
07/23/2004
Complement 2003
1st Half/2004
03/17/2004
08/18/2004
03/17/2007
08/18/2004
0.114
0.140
Stock Register
The institution in charge of our stock bookkeeping is Bradesco. Our stock transfer is done by
means of an entry by Bradesco in its register systems to the debit of the transferor’s share
account and credit to the buyer’s share account, by means of a written order from the
transferor or by a judicial order or authorization.
134
Relevant Act or Fact Disclosure
According to legal provisions, our Company must inform the CVM and BOVESPA the
occurrence of any act or fact concerning our business, and must also widely disclose it in the
newspapers in which we usually publish our financial statements a notice on such act or fact.
An act or fact is considered relevant if it affects the price of securities issued by us, decision
by investors to trade securities issued by us or the decision by investors to perform any of the
rights in quality of our security holders.
In exceptional cases, which in our Administrators’ understanding may cause losses to the
Company, we may apply for an authorization by the CVM for a confidential treatment
concerning the notified matter.
Trading Disclosure by WEG Participações, Administrators and Statutory Audit Committee
Members
WEG Participações, in the quality of our controlling company, our Administrators and Statutory
Audit Committee members are obligated to communicate to the CVM and BOVESPA the
quantity and characteristics of our securities, including derivatives, held by them or by spouses,
mates and dependents, as already set forth in the Company’s Stock Trading and Disclosure
Policy Manual, within the period and conditions stipulated by applicable CVM regulation.
Our manual establishes the policy for the disclosure of information which aims to make
available to investors and the public in general acts and facts related to the Company’s
activities, pursuant to the rules established by the CVM.
Furthermore, because we have adhered to Corporate Governance Level 1, there are other
rules to be complied with. For further information, see item “Bovespa Level 1”.
Periodic Information Disclosure
According to the regulation in force, an open company must supply to the CVM and BOVESPA
given periodic information, which includes yearly information, quarterly information and the
quarterly reports by the Administration and independent auditors, as well as filing with the CVM
shareholders’ agreements, General Meetings calls and minutes of these Meetings.
The main information periodically supplied to the CVM, BOVESPA and made available to
shareholders are:
•
•
•
•
•
•
financial statements and, if applicable, consolidated statements, drawn up in
accordance with the Brazilian Corporation Law and regulations issued by the CVM,
accompanied by the administration’s report and the opinion by independent auditors:
Standardized Financial Statement Form – DFP;
Ordinary General Meeting call;
Yearly Information form – IAN;
summary of decisions made at the Ordinary General Meeting;
Ordinary General Meeting minutes;
135
•
•
fax of securities issued by the Company, if there has been a change to those
forwarded previously; and
Quarterly Information form - ITR, drawn up in constant purchasing power currency,
accompanied by a Special Review Report, in form established by the CVM, issued
by an independent auditor duly registered with the CVM.
Bovespa Level 1
Our preferred shares are traded on the BOVESPA, a non-profit entity, owned by the brokers
who are its members. CVM and BOVESPA are empowered to, discretionarily, suspend
trading on shares issued by our Company in special circumstances. Settlement of operations
performed on the BOVESPA occurs in 3 business days after trading date.
We adhered to BOVESPAS’s Corporate Governance Level 1 as soon as it was launched in
June 2001. According to the Corporate Governance Differentiated Practice Regulation (the
“Regulation”), companies adhering to Level 1 shall commit themselves, primarily, to adopting
corporate government practices and disclosure in addition to those required by the legislation.
The main practices to be complied with by our Company because we are part of the select
group of open companies that have adhered to BOVESPAS’s Corporate Governance Level
1:
•
•
•
•
•
Free Float. We must keep a portion of the outstanding shares issued by us
representing, at least, 25% of our total capital stock, including after capital increases
and control transfers, observing that, in these cases, in the event this minimum
percentage is not respected, the Company will be granted a 6-month- period to reset
this minimum percentage;
In case of making public stock distribution, we must exert our best efforts in order to
attain stock dispersal, by adopting special procedures, including concerning assuring
access to all interested investors and distribution to natural persons or noninstitutional investors of, at least, 10% of the total to be distributed;
We must draw up and publicize financial consolidated and revised statements and
quarterly information, in accordance with the requirements set forth in Regulation, in
addition to those of the Brazilian Corporation Law and CVM’s applicable regulation.
Disclosure. We must comply with the rules and disclose to the market any contract
signed between the Company and its controlled and associated companies, WEG
Participações and, further, between the Company and controlled and associated
companies owned by our Administrators, as well as with other companies that forms a
group with any of these people in fact or right, whenever attaining in a single contract
or successive contract, and with or without the same purpose, in any 1-year period, an
amount equal to or higher than R$ 200 thousand or an amount equal to or higher than
1% of the Company’s net worth, whichever amount is greater between these options;
We must forward shareholders’ agreements, as well as information on existing
agreement registration to BOVESPA, observing that upon signing a new agreement, its
disclosure to Bovespa must be made within 5 days from its filing with the Company. Our
Company has no agreement signed between its shareholders on file, however, WEG
Participações, in the quality of controlling shareholder owning 99.96% of our voting
capital stock, is governed by its Bylaws and Shareholders’ Agreement;
136
•
•
•
•
•
We must forward to BOVESPA and disclose all stock purchase option programs or
of other securities, destined to its employees or Administrators. Currently we have no
stock purchase option programs or of other securities, destined to its employees or
Administrators issued by the Company;
We must make available to the market a yearly calendar of corporate events, which
obligatorily must be available by the end of the month of January of the year in question;
We must hold public meetings with financial analysts and interested third parties, yearly,
to provide information about the economic-financial situation, projects and others;
We must inform BOVESPA the quantity and characteristics of issued securities,
including their derivatives owned by the Company, directly or indirectly, by
Administrators, Statutory Audit Committee members and; and
Our Company’s eventual new controlling shareholders, Administrators and Statutory
Audit Committee members must sign the Consent Commitment to Corporate Governance
Level I rules, their respective installations being conditioned to signing such document.
Cancellation of Registration as a Publicly Traded Company and Exit from Corporate
Governance Level I on the BOVESPA
The Company can at any time decide to discontinue its corporate governance practices, as
long as this is:
•
•
Approved by a General Meeting by shareholders representing at least more than half
the voting capital; and
Reported to the BOVESPA in writing at least 30 (thirty) days in advance.
The exit from the Corporate Governance Level I does not imply that the Company has lost
its listing on the BOVESPA.
If the discontinuance of the exercise of good corporate governance practices is due to
cancellation of authorization as a publicly traded company by the CVM, all procedures
stipulated in the Brazilian Corporation Law and applicable CVM regulations must be followed.
Discontinuance of the exercise of the corporate governance practices does not excuse the
Company, its Administrator and WEG Participações from complying with the obligations
and meeting the demands arising from the Agreement to Adopt Differentiated Corporate
Governance Practices, the Arbitration Regulation and the Regulation covering facts prior to
the exit mentioned here.
Sanctions
Failure to comply, whether in full or in part, with any of the obligations of the Regulation for
Corporate Governance shall be the object for notification by the BOVESPA, which shall
determine the deadline for such noncompliance to be rectified. Should the Company fail to
comply with the determinations of the notification, the BOVESPA may apply pecuniary
sanctions, such as fines, or non-pecuniary sanctions, such as separate disclosure of the
quotation of its securities or suspension of their trading on the Level I, and may even cancel
its authorization to trade at Corporate Governance Level I.
137
Liquidation
Our company will go into liquidation in cases set forth by law, and the Board of Directors
will appoint the liquidator and the General Assembly will determine the liquidation manner,
electing the Statutory Audit Committee that must work during this period.
WEG Indústrias
Currently, WEG Indústrias’ total capital stock amount is R$ 400 million, divided into
172,770,853 common shares, with no par value. All WEG Indústrias’ shares have been
subscribed and paid-in. The table below shows WEG Indústrias’ capital stock make-up.
Capital stock make-up on June 30th, 2004
Type
Number of Shares
Nominal and Book Entry
Common
172,770,853
172,770,853
Total
The table below shows WEG Indústrias’ capital stock make-up on June 30th, 2004 in a
detailed manner:
Shareholder
WEG S.A.
Common
%
Total
(in thousands)
%
172,669,294
99.94122
172,669.294
99.94122
87,249
0.05050
87,249
0.05050
Werner Ricardo Voigt
3.576
0,00207
3.576
0,00207
Eggon João da Silva
3.576
0,00207
3.576
0,00207
Lilian Werninghaus
3.576
0,00207
3.576
0,00207
Gerd Edgar Baumer
3.576
0,00207
3.576
0,00207
Nildemar Secches
3
0.00000
3
0.00000
Edson Vaz Muza
3
0.00000
3
0.00000
Treasury Shares
0
0.00000
0
0.00000
Others
0
0.00000
0
0.00000
172,770,853
100.0
172,770,853
100.0
WEG Participações
Total
WEG Exportadora
Currently, WEG Exportadora’s total capital stock amount is R$ 212,100,000.00 million,
represented by 800 thousand nominatives common shares, with no par value. All WEG
Exportadora’s shares have been subscribed and paid-in. The table below shows WEG
Exportadora’s capital stock make-up.
138
Capital stock make-up on June 30th, 2004
Type
Number of Shares
Nominal and Book Entry
Common
800,000
800,000
Total
The table below shows WEG Exportadora’s capital stock make-up on June 30th, 2004 in a
detailed manner:
Shareholder
Common
WEG S.A.
%
Total
(in thousands)
%
799.522
99,94023
799.522
99,94023
406
0,05075
406
0,05075
Werner Ricardo Voigt
17
0,00213
17
0,00213
Eggon João da Silva
17
0,00213
17
0,00213
Lilian Werninghaus
17
0,00213
17
0,00213
Gerd Edgar Baumer
17
0,00213
17
0,00213
Nildemar Secches
2
0,00025
2
0,00025
Edson Vaz Muza
2
0,00025
2
0,00025
Treasury Shares
0
0,00000
0
0,00000
Outros
0
0,00000
0
0,00000
800.000
100,0
800.000
100,0
WEG Participações
Total
139
MAIN SHAREHOLDERS
Our Company’s Main Shareholders
Our Company has a total of 617,955,200 nominal book entry shares, with no par value,
288,000,000 being single class common shares, and 329,955,200 also single class preferred
shares. The following table shows information referring to shareholders owning 5% or more
of our Company’s capital stock on June 30th, 2004:
Shareholder
WEG Participações
Werner Ricardo Voigt and family
Eggon João da Silva and family
Banco do Brazil Employees’ Retirement
Fund
Eugênio José da Silva
Fundo Bradesco Templeton
(In thousands)
Total
%
309,235 50.0
33,332 5.4
30,966 5.0
Common
279,211
0
0
%
96.9
0.0
0,0
Preferred
30,023
33,332
30.966
%
9.1
10.1
9.4
4,570
1.6
37,805
11.5
42,375
6.9
595
0
0.2
0.0
27,475
26,563
8.3
8.1
28,070
26,563
4.5
4.3
Please find below a description of shareholders owning 5% or more of the Company’s
capital stock:
(a)
WEG Participações
WEG Participações is our Company’s main shareholder, owning 96.9% of our common
shares and 9.0% of our preferred shares, representing 50% of our total capital stock. We are,
therefore, controlled by WEG Participações.
WEG Participações is a joint-stock company held by our Company’s 3 founding partners’
family members, at a 1/3 ratio per family.
WEG Participações’ Capital Stock
Currently, WEG Participações’ capital stock amount is R$ 420 million, represented by
92,846,250 common nominatives shares, with no par value, divided into classes A, B and C.
All WEG Participações’ shares have been subscribed and paid-in.
WEG Participações’ shareholders are natural persons who have a family relationship with each
one of the 3 founding partners. The table below shows WEG Participações’ capital stock make-up:
WEG Participações’ Stock make-up on June 30th, 2004
Common Share
Classes
Number of Shares
Silva family members
A
30,948,750
Voigt family members
B
30,948,750
Werninghaus family members
C
30,948,750
Family
140
WEG Participações’ Corporate Purpose
WEG Participações’ corporate purpose is as follows:
•
participating in our Company’s capital stock, in order to, through this participation,
assure stock control, normal development, and the power to elect the majority of our
Administrators, always holding at least social 51% of the shares with voting right issued
by us.
exploration of farming activities on its own or third parties’ account; and
interest in other companies, businesses, enterprises of any nature, in compliance with the
restrictions existing in its Bylaws.
•
•
WEG Participações’ Administration
WEG Participações’ Administration, the Company’s controlling corporation is performed as
follows:
Executive Board
The Executive Board is made up of 3 Directors and their respective alternates, elected for 3year terms, reelection permitted. In conformity with the limits established in the Bylaws and
in WEG Participações’ shareholders’ agreement, the Executive Board has ample
management powers, which enable practicing all acts necessary for WEG Participações’
operation, aimed at achieving its corporate purposes. The election of current Directors was
deliberated at a general shareholders’ meeting of March 18th, 2002.
WEG Participações’ current Executive Board make-up is as follows:
Name
Eggon João da Silva
Laura Augusta da Silva
Werner Ricardo Voigt
Wally Ella Schlup Voigt
Lilian Werninghaus
Martin Werninghaus
Position
Effective Director appointed by class “A” shares
Alternate Director appointed by class “A” shares
Effective Director appointed by class “B” shares
Alternate Director appointed by class “B” shares
Effective Director appointed by class “C” shares
Alternate Director appointed by class “C” shares
For further information, see the item “Shareholders’ Agreement” ahead.
(b)
Werner Ricardo Voigt and family
Mr. Werner Ricardo Voigt is the Company’s Board of Directors member and his business
address is at 3300 Avenida Prefeito Waldemar Grubba, Jaraguá do Sul, Santa Catarina. For
further information, see the Company’s Board Member biographical information, contained
in the section “Our Group Administration” of this Prospectus.
141
(c)
Eggon João da Silva and family
Mr. Eggon João da is the Company’s Board of Directors member and his business address is
at 3300 Avenida Prefeito Waldemar Grubba, Jaraguá do Sul, Santa Catarina. For further
information, see the Company’s Board Member biographical information, contained in the
section “Our Group Administration” of this Prospectus.
(d)
PREVI
The biggest private pension entity in Brazil, PREVI was incorporated in 1904 as a pension
plan for Banco do Brasil S/A’s employees. PREVI is headquartered at Praia do Botafogo,
501, 3rd and 4th floors, Zip Code 22250-040, Rio de Janeiro, RJ.
(e)
Eugênio José da Silva
Mr. Eugênio José da Silva is an industry worker, lives and is domiciled in Barra Velha, SC,
worked for WEG Group, holding the position of director in charge of supplies,
constructions, materials and reforestation in the period from 1963 to 1982.
(f)
FVL
FVL is an equity fund for qualified investors which started its operations on December of
1998. Its total assets amount on June 2004 was, approximately, R$ 610 million. FVL is
administrated by BTAM.
BTAM is an asset management company which has started its operations on July 1998. Its
partners are BRAM – Bradesco Asset Management Ltda., which holds 50.1% of the
BTAM’s capital stock, and Franklin Templeton Investments, which holds the rest of the
49.9% of the BTAM’s capital stock. BTAM counts on the support and expertise of two
major financial groups. On one side, Bradesco, with assets in the amount of R$ 154 billion,
14 million clients, 2.3 million shareholders, and which administrates around R$ 83 billion of
third party’s assets. On the other side, Franklin Templeton Investments is one the biggest
asset management companies in the United States with assets totalizing US$ 300 billion
under its management. Franklin Templeton Investments is headquartered in San Mateo,
California, and is presented in more than 28 countries.
Shareholders’ Agreement
There is no shareholders’ agreement involving our Company’s direct shareholders.
However, Voigt, Silva and family members, holding 100% of WEG Participações’ total
stock, signed on July 27th, 2003, a shareholders’ agreement valid up to January 2nd, 2047 (the
“Shareholders’ Agreement”). This Agreement is relevant to our Company and its preferredshareholders, to the extent that WEG Participações holds 96.9% of our common shares and
50.0% of our total capital stock.
According to the terms of the referred to Shareholders’ Agreement, WEG Participações’
control is performed in a shared manner by Voigt, Silva and Werninghaus family members.
142
The Shareholders’ Agreement binds the totality of WEG Participações-issued shares, being
part of the shares held by the descendents of each family received by donation. The received
and donated shares are encumbered by:
•
•
lifelong usufruct in donors’ benefit; and
burdened with severalty and inalienability.
Right of First Refusal. The Shareholders’ Agreement further rules on the right of first refusal
in purchasing shares. In case any of the shareholders intends to transfer his interest in WEG
Participações’ capital stock, he will communicate his decision to the other shareholders
owning shares of the same class, who will have the right to, should they wish so, to express
their interest in purchasing them within 30 days. In the event that the shareholders owning
shares of the same class as the one offered do not perform or partially perform their right of
first refusal, the remaining shares should be offered to WEG Participações’ other
shareholders, who may perform the right of first refusal on the referred shares in an equal
30-day period, observing that as priority in a proportionate percentage to their interest in
their totality, in case there are no other interested shareholders. If there are balances, the
transfer may be made to third parties. The right of first refusal dealt with in the
Shareholders’ Agreement is not applicable in case of assignment or transfer of shares by the
shareholders to their possible future spouses and necessary heirs.
Voting Agreement. Each one of the families has elected one of its members to represent them
at the general meeting, and always subjecting their votes to WEG Participações’ primary
purpose, which maintaining our Company’s stock control. For this end, all the Shareholders’
Agreement signatories have committed themselves to observing and keeping
•
•
•
•
our Company’s control,
the form of trading WEG Participações’ shares, divided into classes A, B and C,
WEG Participações’ and our Company’s own rule of command; and
voting performance converging with WEG Participações’ interests at their general
meetings, among others.
Furthermore, WEG Participações’ Shareholders’ Agreement signatories are entitled to
appoint 6 of our Company’s Board of Directors members, abiding by the criteria stipulated
in the shareholders’ agreement in relation to electing 3 outside members.
Moreover, the agreement determines that the shareholders signatories of the shareholders’
agreement should follow given principles, the main ones being:
•
•
•
•
•
giving priority to the Company’s corporate interests to the detriment of family
loyalty;
our Company’s performance judged on the basis of objective criteria;
defense of our Company’s Administration professional structure;
filling high-management positions with capable professionals; and
whether they are or not family members.
143
Furthermore, in order to admit family members to companies controlled by WEG
Participações, several conditions established in the Shareholders’ Agreement, regarding
proving actual capability of these family members to hold a position in our Administration,
should be met.
Other established obligations. WEG Participações’ Shareholders’ Agreement signatories
have further stipulated that, in order to avoid conflict of interests, personal companies held
by and/or under control of first degree parents may not contract with any with any
associated, controlled or under WEG Participações’ common control, either as product and
service suppliers or as distributors.
Moreover, personal companies held by and/or under control of first degree relatives may not
compete or operate in any activity sector of any associated, controlled or under WEG
Participações’ common control. As a form of preventing dependence and intromission in
internal affairs, personal companies held by and/or under control of second degree relatives
may not surpass 30% of their billing in the supply of products or service rendering to any
associated, subsidiaries or under WEG Participações’ common control.
Family Members Admission to the Administration
Furthermore, according to the stipulation expressed in the Shareholders’ Agreement,
admission of any family member in any associated, controlled or under WEG Participações’
common control will be preceded by a severe professional capability analysis, in order to
preserve the Company’s interest to the detriment of family succession in its Administration.
144
INFORMATION ON ISSUED BONDS AND SECURITIES
Company
Shares
Except for preferred and common shares issued by it, the Company has no other bonds and
securities on the market. The total number of the Company’s outstanding shares, on June
30th, 2004, was 218,015,579 shares, 8,788,570 being common shares, representing 3.05% of
the Company’s total common shares and 209,272,009 preferred shares, representing 63.41%
of the Company’s total preferred shares, and 35.28% of its total capital stock.
The table below shows information about the Company’s stock quotation on BOVESPA:
Years
Minimum
1999
2000
2001
2002
2003
0.48
0.80
1.26
1.90
2.75
2Q2002
3Q2002
4Q2002
1Q2003
2Q2003
3Q2003
4Q2003
1Q2004
2Q2004
2.00
2.00
2.20
2.87
2.75
3.17
2.75
4.70
6.21
oct/03
nov/O3
dec/O3
jan/04
feb/04
mar/04
apr/04
may/04
jun/04
4.07
4.62
4.50
4.70
5.20
5.30
6.25
6.21
6.90
Preferred Shares
Maximum
YEAR
1.18
1.30
2.05
3.12
5.00
QUARTER
2.20
2.40
3.12
3.15
3.35
4.20
5.00
6.99
7.65
MONTH
5.00
4.95
5.00
6.01
5.95
6.99
7.09
7.49
7.65
Average
0.78
1.08
1.69
2.26
3.63
2.08
2.22
2.79
2.95
3.09
3.74
3.63
5.66
6.89
4.62
4.76
4.79
5.36
5.68
5.95
6.75
6.62
7.30
The Company’s preferred shares had in 2003 a R$ 69,766,640.00 traded volume. This
volume represented 0.034% of the volume traded on BOVESPA in 2003. The Company’s
preferred shares had a R$ 61,358,392.00 traded volume in the first semester of 2004. This
volume represented 0.057% of the volume traded on BOVESPA in the referred period. In
2003 and in the first semester of 2004, the Company’s preferred shares had a 53.85%
appreciation and a 53.1% appreciation, respectively.
145
WEG Indústrias
A WEG Indústrias has no issued bonds and securities on the market.
146
WEG Exportadora
WEG Exportadora has no issued bonds and securities on the market.
147
MATERIAL CONTRACTS
The companies of our Group have signed several financial contracts with different financial
institutions and Brazilian and foreign companies for financing its expansion and machine
and equipment purchase projects.
Our Company’s indebtedness, in consolidated basis, is mainly concentrated in medium and
short term, being that 85.4% of its debts contracted in Brazil mature in 3 years and 84.5% of
its debts contracted abroad expire in two years. On June 30th, 2004, the Company’s debt
balance, in consolidated basis, was R$ 805 million.
Company Financial Contracts
BNDES I
On December 14th, 1998, the Company and BNDES, with the intervention of by WEG
Participações, as guarantor, signed a financing contract by credit opening, which was the
object of an amendment, in which two R$ 22,852,680.00 and R$ 7,134,389.89 sub-credits
were opened for the Company, intended for improving productivity, among others, and
payment of machines and equipment to be purchased by it. The debt principal incurs interest
of 3% over the Long-Term Interest Rate (TJLP). The sub-credits are payable in 60 monthly,
successive installments, the last one maturing on December 15th, 2004. There is a prediction
in the Contract of advance maturity hypotheses usual for this kind of operation. Furthermore,
the contract determines that the Company must keep given financial indexes. The debit
balance of this contract on June 30th, 2004, was R$ 3,885,118.90.
BNDES II
On July 10th, 2000, the Company and BNDES, with the intervention of WEG Participações,
as guarantor, signed a financing contract by credit opening, in which two R$ 47,869,000.00
and R$ 5,319,000.00 sub-credits were opened for our Company, intended for the Company’s
investment program for three years. The first and second sub-credits incur interest of 3% per
year over the readjusted variable rate based on the weighted average cost of all fees and
expenses by BNDES in foreign currency financial funding without relation and onlending at
special conditions. The sub-credits are payable in 51 monthly, successive installments, the
last one maturing on July 15th, 2006. There is a prediction in the Contract of advance
maturity hypotheses usual for this kind of operation. Furthermore, the contract determines
that the Company must keep given financial indexes. The debit balance of this contract, on
June 30th, 2004, was R$ 32,155,361.79.
ABN Bank I
On July 16th, 2003, our Company, ABN Amro Bank N.V. and WEG Electric Motors Corp.
entered into an Offshore Export Prepayment Agreement to finance purchases of WEG Electric
Motors Corp. of electric motors from our Company. The total value of the financing is US$
148
8,500,000.00 and it will be granted in various tranches by ABN Amro Bank N.V., with
repayment due in 3 years from each tranche. The interest rate on the outstanding balance is
2.70% per year, plus 4.70% per year. The principal shall be paid in 5 installments, the last
falling due on June 30, 2006. This agreement has the usual hypotheses for accelerated
maturity. A promissory note was issued by WEG Electric Motors Corp. in the amount of US$
8,500,000.00. Moreover, WEG Electric Motors Corp. granted ABN Amro Bank N.V. certain
rights relative to its receivables, according to the terms established in the agreement.
Additionally, a Guarantee Provision Agreement was also signed between our Company and
Banco ABN Amro Real S.A., with WEG Exportadora as an intervenor, in which Banco Amro
Real S.A. pledges to provide an international guarantee to ABN Amro Bank N.V. We issued a
promissory note in the amount of US$ 8,959,127.50 in relation to this last agreement.
ABN Bank II
On September 24th, 2003, our Company, ABN Amro Bank N.V. and WEG Electric Motors
Corp. entered into an Offshore Export Prepayment Agreement to finance purchases of WEG
Electric Motors Corp. of electric motors from our Company. The total value of the financing is
US$ 5,000,000.00 and it will be granted in various tranches by ABN Amro Bank N.V., with
repayment due in 3 years from each tranche. The interest rate on the outstanding balance is the
Libor plus 2.00% per year. The principal shall be paid in 5 installments, the last falling due on
August 9, 2006. This agreement has the usual hypotheses for accelerated maturity. A
promissory note was issued by WEG Electric Motors Corp. in the amount of US$
5,000,000.00. Moreover, WEG Electric Motors Corp. granted ABN Amro Bank N.V. certain
rights relative to its receivables, according to the terms established in the agreement.
Additionally, a Guarantee Provision Agreement was also signed between our Company and
Banco ABN Amro Real S.A., with WEG Exportadora as an intervenor, in which Banco Amro
Real S.A. pledges to provide an international guarantee to ABN Amro Bank N.V. We issued a
promissory note in the amount of US$ 5,000,000.00 in relation to this last agreement.
Financial Contracts of WEG Indústrias
BNDES
On August 7th, 2003, WEG Indústrias and BNDES, with the intervention of our Company, as
guarantor, signed a financing contract by credit opening, in which three R$ 27,642,000.00, R$
68,180,800.00 and R$ 42,385,200.00 sub-credits were opened to WEG Indústrias, expanding
the Company’s productive capacity and its purchasing of these machines and equipments. The
first sub-credit incurs interest of 3.25% per year over the readjusted variable rate based on the
weighted average cost of all fees and expenses incurred by BNDES in foreign currency
financial funding without relation and onlending in specific conditions and the other two subcredit incur interest of 3.25% over the TJLP. The sub-credits are payable in 40 monthly,
successive installments, the first sub-credit’s last installment matures on May 15th, 2009 and
the last installment of the other two sub-credits, on March 15th, 2009. There is a prediction in
the Contract of advance maturity hypotheses usual for this type of operation. Furthermore, the
contract determines that the Company must keep given financial indexes. The debit balance of
this contract, on June 30th, 2004, was R$ 100,611,335.26.
149
PRODEC
On April 15th, 1998, various financing contracts were signed as part of the Development
Program of the Catarinense Company (PRODEC), the state development agency, with resources
from the Development Support Fund of the Catarinense Company (FADESC), between the State
of Santa Catarina and various companies of our Group that were subsequently incorporated by
WEG Indústrias, which is successor to all the rights and obligations under those contracts. The
contracts have basically the same terms and conditions and aim to regulate the concession of
financial credits, with FADESC resources, intended for construction of fixed assets by the
companies. Each tranche credited has a grace period of 60 months for the start of amortization.
The principal resulting from the credit granted will be amortized in monthly installments, plus
interest and monetary updating. The installments are due on the 15th of each month after the
grace period, with the last falling due on April 15, 2013. The contracts contain the usual
hypotheses for accelerated maturity. As a guarantee for payment of the amounts owed under
these contracts, Weg Participações extended a guarantee colleteral. Below is a table containing
the companies that entered into such as contract, as well as the total amount of each contract:
Party
Amount in R$
122,784,176.00
12,556,332.00
12,741,324.00
9,487,777.00
8,113,055.00
8,024,028.00
WEG Motores Ltda.
WEG Máquinas Ltda.
WEG Automação Ltda.
WEG Transformadores
WEG Acionamentos
WEG Química
Financial Contracts of WEG Exportadora
Banco do Brasil
On November 20th, 2003, WEG Exportadora and Banco do Brasil S.A., signed a financing
contract by credit opening, in the pre-shipment modality - TJLP, in the amount of R$
23,605,600.00, observing that the funds to be lent on are intended to be directed to exporting
goods described in the contract. The debit balance incurs interest made up of the TJLP, as
well as 2.5% per year as BNDES spread and 0.5% per year as Banco do Brasil S.A. spread.
Contract maturity date is June 15th, 2005. The debt principal referring to exported goods will
be paid in a single installment per shipment, within 6 months starting on the 15th subsequent
day to each shipment date. This contract has a letter of guarantee from our Company. There
is a prediction in this contract of advance maturity hypotheses usual for this type of
operation. The debit balance of this contract, on June 30th, 2004, was R$ 23,973,852.63.
Banco Santos
On November 20th, 2003, WEG Exportadora and Banco Santos S.A., signed a financing
contract by credit opening, in the pre-shipment modality - TJLP, in the amount of R$
5,901,400.00, observing that the funds to be lent on are intended to be directed to exporting
goods described in the contract. The debit balance incurs interest made up of the TJLP, as
150
well as 2.5% per year as BNDES spread and 0.5% per year as Banco Santos S.A. spread.
Contract maturity date is June 15th, 2005. The debt principal referring to exported goods will
be paid in a single installment per shipment, within 6 months starting on the 15th subsequent
day to each shipment date. A promissory note was issued in relation to this contract in the
same amount, as the Company’s guarantee collateral signature. There is a prediction in this
contract of advance maturity hypotheses usual for this type of operation. The debit balance
of this contract, on June 30th, 2004, was R$ 5,995,313.84.
Bradesco
On November 5th, 2003, WEG Exportadora and Bradesco, signed a financing contract by
credit opening, in the pre-shipment modality - TJLP, in the amount of R$ 28,607,000.00,
observing that the funds to be lent on are intended to be directed to exporting goods
described in the contract. The debit balance incurs interest made up of the TJLP, as well as
2.5% per year as BNDES spread and 0.45% per year as Bradesco spread. Contract maturity
date is May 15th, 2005. The debt principal referring to exported goods will be paid in a single
installment per shipment, within 6 months starting on the 15th subsequent day to each
shipment date. A promissory note was issued in relation to this contract in the same amount,
as the Company’s guarantee collateral signature. There is a prediction in this contract of
advance maturity hypotheses usual for this type of operation. The debit balance of this
contract, on June 30th, 2004, was R$ 29,165,497.80.
Financial Contracts of our Foreign Subsidiaries
WEG Electric Motors Corporation
On September 12th, 2003, WEG Electric Motors Corp and Banco Mercantil de São Paulo
S.A., with the intervention of our Company, as guarantor, signed a credit line opening
contract, in the amount of US$ 10,000,000.00, being that each part should be of at least US$
100,000.00. Each part will have maturity up to 2 years from the disbursement date. The debit
balance incurs interest of 3,40% over the Libor per year. A promissory note was issued in
relation to this contract, which has the Company’s collateral signature. There is a prediction
in the Contract of advance maturity hypotheses usual for this type of operation.
On September 12th, 2003, WEG Electric Motros Corporation entered into a Facility
Agreement with Banco do Brasil in an amount of up to US$ 10,000,000.00. The principal is
subject to a six month Libor plus a spread of 2.3% per year. Payments will be made up to
January 19, 2007. As a guarantee, assets owned by WEG Electric Motors Corporation were
pledged. Moreover, a promissory note in the same amount as the agreement was issued. The
contract has the usual early termination conditions.
On October 27th, 2003, WEM Enterprises Inc. (a subsidiary of Weg Electric Motors
Corporation) issued a Demand Grid Note in favor of Safra National Bank of New York in the
amount of US$ 5,000,000.00, as evidence of the loans made by the latter to WEM Enterprises
Inc. Up to the principal payment is due, interest shall be charged of the Libor plus a spread of
3.5%. Weg Motors Corporation is in the process of incorporating WEM Enterprises Inc., so
that the former will succeed in all the rights and obligations under the agreement.
151
WEG México, S.A. de C.V.
On April 16th, 2003, WEG México, S.A. de C.V. entered into a Simple Credit Contract with
Comercia Bank México, S.A. in the amount of up to US$ 10,000,000.00. The principal is
subject to the Libor plus a spread of 2.15%, payable in 15 equal and successive quarterly
installments with the first due in 18 months counted from the signing date and the last is 5
years thereafter. To guarantee payment, an industrial mortgage was established and a
promissory note was issued. The referred note is guaranteed by WEG Electric Motors
Corporation, which also granted an in rem guarantee on all its real properties. Finally,
according to this agreement, WEG México, S.A. de C.V. and WEG S.A. must comply with
certain financial indices stipulated therein. The contract has the usual early termination
conditions.
Contracts with Suppliers
WEG Indústrias S.A. has signed the following contracts with its suppliers:
Caraíba Metais S.A.: Governs the supply by Caraíba Metais of, approximately 14,000 metric
tons of copper rods during the year 2004. This agreement has dollar amounts and its total
amount is variable as a result of the quantity of copper to be supplied. This agreement was
signed on January 1st, 2004 and is valid until December 31st, 2004.
Acesita S.A.: Governs the supply by Acesita S.A of, approximately, 30,000 metric tons of
silicon steel reels during the year 2004. Product prices may be in dollars or reais, depending
on the type of steel to be supplied, so that this agreement overall price will also vary. This
agreement was signed on January 1st, 2004 and is valid until December 31st, 2004.
Usinas Siderúrgicas de Minas Gerais S.A. - Usiminas: Governs the supply by Usinas
Siderúrgicas de Minas Gerais S.A. of, approximately, 38,000 metric tons of steel reels
during the year 2003. Product prices are set in reais and the agreement overall amount is
variable. This agreement was signed on January 1st 2003 and was valid until December 31st,
2003. The parties to this agreement are negotiating its renewal so that Usiminas continues to
supply products to WEG Indústrias S.A. – Unidade Motores.
Companhia Siderúrgica Nacional - CSN: Governs the supply by CSN of, approximately,
40,000 metric tons of carbon steel reels during the year 2002. Product prices are set in reais
and the agreement overall amount is variable. This agreement was signed on January 1st
2002 and was valid until December 31st, 2002. The parties to this agreement are negotiating
its renewal so that CSN continues to supply products to WEG Indústrias S.A. – Unidade
Motores.
Companhia Siderúrgica Paulista - COSIPA: Governs the supply by COSIPA of,
approximately, 20,000 metric tons of carbon steel reels during the year 2003. Product prices
are set in reais and the agreement overall amount is variable. This agreement was signed on
January 1st 2003 and was valid until December 31st, 2003. The parties to this agreement are
negotiating its renewal so that COSIPA continues to supply products to WEG Indústrias
S.A. – Unidade Motores.
152
JUDICIAL AND ADMINISTRATIVE CONTINGENCIES
The WEG Group companies are party to administrative and judicial suits primarily involving
taxes and social contributions, indemnities and labor obligations, which represented on June
30th, 2004, an amount of approximately R$ 138.5 million. Below is a description of the main
suits involving the Group’s companies.
Labor Suits
On June 30th, 2004, WEG Group companies were defendant in approximately 107 laborrelated suits representing a total liability of around R$ 4.5 million. Of this amount, roughly
R$ 3.4 million is provisioned on the balance sheets of the respective companies (see table
below). The main suits regard work-related accidents and illnesses, particularly repetitive
strain injuries (RSI).
Besides the labor-related suits above mentioned, the WEG Group companies are party in 3
suits filed by their former commercial representatives, through which such former
commercial representatives are pledging the recognizing of their labor relationship with the
WEG Group companies. Such suits represented a liability of R$ 2.9 million on June 30th,
2004. Of this amount, roughly R$ 2.8 million is provisioned on the balance sheets of the
respective companies (see table below).
Social Security Suits
The WEG Group companies have filed a lawsuit claiming unconstitutionality of the
collection of Work-Related Accident Insurance (SAT) at the tax rate of one, two or three
percent, according to the activity of the company being light, medium or severe,
respectively. There is already jurisprudence on the matter contrary to the thesis.
Furthermore, the Company is discussing the possibility of paying the SAT according to the
hazard degree of each plain, which would already mean a reasonable reduction in this
contribution. This thesis is being supported by the courts, relying on favorable jurisprudence
from the Superior Tribunal of Justice (STJ, the highest infra-constitutional court). The
amount involved is R$ 21.4 million, and it is fully provisioned and deposited judicially (as
shown below).
Civil Suits
On June 30th, 2004, WEG Group companies were defendant in approximately 50 civil suits
representing a total liability of around R$ 19.3 million. Most of these proceedings concern
work-related accident compensations and repetitive strain injuries (RSI).
Furthermore, the Company is the defendant in an ongoing proceeding before the Court of
Alberta, in Canada, in which it is accused of being co-responsible for an accident occurring
at a customer’s facilities. The amount involved is US$ 12.4 million. The trial court decision
was favorable to the Company and the plaintiff has already authorized the Company to
153
withdraw from the proceeding, but the other co-defendants have not so allowed. The
Company has provisioned the amount of R4 3.1 million, equivalent to 25% of the abovementioned amount, on its balance sheet.
Tax-Related Proceedings
WEG Group companies are plaintiffs in several tax-related proceedings, through which they
are challenging the constitutionality and legality of levying certain federal taxes and social
contributions. The main tax-related proceedings involving the Group’s companies are
described below.
(a)
Plano Verão (“Summer Plan”)
Upon institution of the January 1989 Economic Plan, known as the “Summer Plan”, the
Brazilian government unduly expurgated part of the currently verified price-level
restatement, which brought about a smaller restatement in that year’s balance sheet, of
around 51.87%. Consequently, WEG Group companies proposed a lawsuit in order to enable
completing the balance sheet restatement by 51.87%. The trend of appellate court decisions
in similar cases is to allow a restatement complement of around 35.58%, which has also
already been recognized in a final decision of one the company’s suits. The amount involved
related to IRPJ and CSLL (Corporate Income Tax and Social Contribution on Net Income,
respectively) is R$ 41 million. The Group’s companies have established provisioned the full
amount of the challenged taxes and have deposited in court the amount exceeding the
35.58% percentage.
(b)
PIS/COFINS on financial revenues
The WEG Group companies have proposed a lawsuit aimed to exclude their financial
revenues from the calculation base of the contribution to the Social Integration Program
(PIS) and Contribution for Social Security Financing (COFINS), in relation to the alteration
promoted by Law No. 9718/98. However, jurisprudence on this matter is unfavorable to the
thesis presented by the Group’s companies. The amount involved is R$ 17.9 million and is
partly provisioned and partly deposited in court.
(c)
PIS/COFINS on inputs applied to products intended for export
As a result of Law No. 9363/96, the WEG Group’s companies are entitled to the presumed
IPI (Excise Tax on Manufactured Products) credit, as a form of offsetting PIS and COFINS
that have been incurred by inputs applied to exported products. The Group’s companies have
not been subjecting such amounts to PIS, COFINS, IRPJ and CSLL levies. The amount
involved is R$ 16.3 million, and there is no provision or deposit in court, because there is an
understanding that these amounts represent compensation and therefore should not be
subject to taxation.
154
(d)
IPI Credits
The WEG Group’s companies have been seeking judicially for the recognition of the right to
use the IPI on duty-free and zero tax rate imports as offsetting credits, in light of the noncumulative principle. The courts have been favorable to the Group’s position. The amount
involved is R$ 30 million, but the companies only intend to utilize these credits after a res
judicata decision of the respective suits, taking into account the legal provision in this sense.
Provisioning Table
The following table shows the provisions constituted regarding the most relevant lawsuits
involving the WEG Group’s companies:
Company
1) Weg S.A.
Amount at Risk
Amount
Provisioned
Amount Deposited
Judicially
6,602,279
6,602,279
6,098,378
6,602,279
6,602,279
6,098,378
92,029,547
68,773,245
65,850,597
68,327,810
52,009,422
65,844,754
2,560,930
1,749,683
-
12,916,667
7,750,000
-
- Representatives
4,598,554
4,598,554
-
- Others
3,625,586
2,665,586
5,843
56,286,268
45,130,409
-
34,695,427
34,695,427
-
1,945,746
1,696,773
-
- Civil Liability
16,702,555
5,937,617
-
Representatives
2,942,540
2,800,592
-
GRAND TOTAL
154,918,094
120,505,933
71,948,975
Tax
2) Weg Indústrias S.A.
- Tax
- Labor
- Civil Liability
3) Weg Exportadora S.A.
- Tax
- Labor
155
TRANSACTIONS WITH RELATED PARTIES
Our Group’s internal policy is to avoid contracting services or carrying out operations that
may generate conflict of interest.
The Company has loan operations with related parties with market-compatible financial
charges, accounted for as shown below:
Controlling Co.
06/30/04
12/31/03
Long-Term Realizable Assets
WEG Indústrias S.A.
Long-Term Liabilities
WEG Exportadora S.A.
WEG Participações e Serviços S.A.
(In R$ thousand)
Consolidated
06/30/04
12/31/03
578
-
-
-
190
-
129
-
3,030
2,879
Below is a description of the main contracts signed with related parties.
Weg Participações
WEG Participações is a guarantor of the following contracts entered into by companies of
the Group: (i) Financing Agreement between the Company and BNDES on December 14th,
1998, in the total amount of R$ 29,987,069.89; (ii) Financing Agreement between the
Company and BNDES on July 10th, 2000 in the total amount of R$ 53,188,000.00; and (iii)
financing agreements between the State of Santa Catarina and the companies incorporated
by Weg Indústrias (PRODEC) on April 15th, 1998, in the total amount of R$
173,706,692.00. To post this guarantee, WEG Participações charges a commission of 1% per
year of the outstanding balance of the respective loans.
Company
The Company and WEG Exportadora signed a loan agreement, on January 2nd 2004,
whereby the Company will grant loans to WEG Exportadora, and WEG Exportadora will
grant loans to the Company, by means of a written request, of several amounts, terms and
forms, which are to be stipulated by the parties verbally or in writing. On daily existing
balances, financial charges of up to 95% of the CDI will be applied. This contract expires on
December 31st, 2004.
The Company and WEG Indústrias signed a loan agreement, on January 2nd 2004, whereby
the Company will grant loans to WEG Indústrias, and WEG Indústrias will grant loans to the
Company, by means of a written request, of several amounts, terms and forms, which are to
be stipulated by the parties verbally or in writing. On daily existing balances, financial
charges of up to 95% of the CDI will be applied. This agreement expires on December 31st,
2004.
156
WEG Indústrias
WEG Indústrias and a WEG Exportadora signed a loan agreement, on January 2nd 2004,
whereby WEG Indústrias will grant loans to WEG Exportadora, and WEG Exportadora will
grant loans to WEG Indústrias, by means of a written request, of several amounts, terms and
forms, which are to be stipulated by the parties verbally or in writing. On daily existing
balances, financial charges of up to 95% of the CDI will be applied. This contract expires on
December 31st, 2004.
WEG Exportadora
WEG Participações and WEG Exportadora signed a loan agreement, on January 2nd 2004,
whereby WEG Participações will grant loans to WEG Exportadora, and WEG Exportadora
will grant loans to the Company, by means of a written request, of several amounts, terms
and forms, which are to be stipulated by the parties verbally or in writing. On daily existing
balances, financial charges of up to 95% of the CDI will be applied. This contract expires on
December 31st, 2004.
WEG Exportadora has extended loans to various of its foreign subsidiaries. The main
characteristics of these loan agreements are shown below:
Subsidiary
Date of Agreement
Amount
Maturity
Weg Electric Motors (UK) Ltd.
08/06/2002
$ 720,000.00
07/13/2007
Weg Itália S.R.L.
08/06/2002
$ 100,000.00
07/13/2007
Weg Scandinavia AB
08/20/2002
$ 500,000.00
07/27/2007
Weg Indústrias Venezuela C.A.
08/20/2002
$ 300,000.00
07/27/2007
Weg Australia PTY Ltd.
08/20/2002
AUD 3,000,000.00
09/12/2007
Weg Electric Motors (UK) Ltd.
09/04/2002
GBP 900,000.00
08/10/2007
Weg Indústrias Venezuela C.A.
10/03/2002
$ 635,000.00
09/12/2007
Weg Australia PTY Ltd.
10/04/2002
AUD 1,300,000.00
07/27/2007
Weg Germany GmbH
10/04/2002
EUR 510,000.00
09/12/2007
Weg Indústrias Venezuela C.A.
10/04/2002
$ 250,000.00
09/12/2007
Weg Itália S.R.L.
10/04/2002
EUR 800,000.00
09/12/2007
Weg Electric Motors (UK) Ltd.
12/12/2002
GBP 850,000.00
11/19/2007
Weg Electric Motors (UK) Ltd.
12/19/2002
GBP 320,000.00
11/26/2007
Weg Europe S.A.
12/19/2002
EUR 380,000.00
11/26/2007
Weg Electric Motors Crop.
09/08/2003
$ 10,000,000.00
12/21/2006
157
TRANSACTIONS WITH BOARD MEMBERS AND EXECUTIVE OFFICERS OF THE WEG GROUP
COMPANIES AND THEIR SUBSIDIARIES AND WITH THE OFFERORS
WEG Exportadora has checking account credit and/or debit contracts signed with its
administrators. For further information about these contracts, see the section “WEG Group
Administration – Contracts with Administrators”.
Except for the operations mentioned in this Section, our Group does not currently have any
commercial relationship (direct or indirect) with persons who are Board Members or
Officers of WEG Group companies and their respective subsidiaries.
Except for the financing contracts with the BNDES described in the section “Relevant
Contracts of the Weg Group” of this Prospectus, the companies of the WEG Group do not at
present have any operation or relationship with the Offerors.
158
TRANSACTIONS WITH BOOKRUNNERS
Our Company has signed several financial contracts with the Bookrunners of this Offering,
as listed below. For more information about the most relevant financial agreements
involving our Group’s companies, see the section “Company’s Relevant Contracts” of this
Prospectus.
Bradesco
Position on 06/30/2004
Amount of the Contract
R$91,338,746.10
US$25,000,000.00
US$10,000,000.00
EUR550,000.00
R$45,984,496.07
R$220,000,000
R$2,524,665.15
R$29,165,497.80
Modality
Bank Certificate of Deposit
Advance on foreign exchange contracts
Financing of foreign subsidiaries
Customer billing account
Credit limit
FINAME operations
BNDES-Exim operation
Banco do Brasil
Modality
Bank Certificate of Deposit
Global 07 exclusive sovereign bond fund (Brazil)
Advances on foreign exchange contracts
Controlled financing abroad
Guaranteed account
Customer billing account
Credit limit
BNDES/Exim transaction
Position on 06/30/2004
Amount of the Contract
R$80,572,066.88
US$10,561,696.77
EUR5,000,000.00
US$8,000,000.00
EUR7,137,304.00
US$12,505,000.00
GBP1,600,000.00
EUR2,000,000.00
R$42,970,819.68
R$200,000,000.00
R$23,973,852.63
Pactual
Position on 06/30/2004
Amount of the Contract
R$ 11,375,642.58
R$ 10,000,000.00
Modality
Investment Fund
Swap TJLP
159
For more information regarding the most relevant contracts entered into between the
companies of the WEG Group and the Bookrunners, see the section “Relevant Contracts of
the WEG Group” of this Prospectus.
160
RELATIONSHIP BETWEEN THE OFFERORS AND THE LOCAL COORDINATOR
Bradesco maintains close relationship with the Company through commercial bank
transactions, including banking services in general such as collection services, suppliers’
payments and exchange transactions. In relation to the other Offerors, Bradesco: (1) acts as
agent (agente repassador) for BNDES, to which Bradesco has also rendered investment
banking services in connection with capital market transactions and structured transactions;
(2) maintains indirect participation, through BRAM – Bradesco Asset Management Ltda.,
shared with Templeton International, Inc., in BTAM – Bradesco Templeton Asset
Management Ltda., manager of FVL; and (3) does not maintain commercial relationship
with PREVI.
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162
APPENDIX A
Bylaws of the Company
163
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164
ESTATUTO SOCIAL
CAPÍTULO I
DENOMINAÇÃO, SEDE, OBJETO E PRAZO DE DURAÇÃO
Artigo 1º -
WEG S.A. é uma Sociedade Anônima, de capital aberto, com seus atos constitutivos arquivados na Junta
Comercial do Estado de Santa Catarina em 30 de junho de 1.961, sob nº 25.254 e reger-se-á pelo presente
Estatuto Social e pelas disposições legais que lhe forem aplicáveis.
Artigo 2º -
A Companhia tem sua sede e foro na cidade de Jaraguá do Sul, Santa Catarina, à Avenida Prefeito Waldemar
Grubba, 3.300, podendo abrir e fechar filiais, agências, depósitos, postos de vendas e escritórios em qualquer
localidade do país ou no exterior.
Artigo 3º -
A Companhia tem por objetivo:
I - a participação em outras sociedades, negócios e empreendimentos;
II -a prestação de serviços, consultoria, controle, assistência técnica, administração de bens;
III-
a produção, industrialização, comércio, exportação e importação de:
a) sistemas industriais, eletromecânicos e eletrônicos, máquinas elétricas girantes, máquinas e equipamentos
em geral, aparelhos para produção, distribuição e conversão de energia elétrica, material elétrico,
controladores programáveis, partes e componentes de máquinas, aparelhos e equipamentos em geral; e
b) resinas em geral, materiais tintoriais, substâncias e produtos de origem vegetal e química destinados à
indústria e a ciência.
IV - o comércio, exportação, importação, extração e industrialização de produtos e serviços de silvicultura, agricultura,
pecuária, pesquisa e lavra de jazidas minerais.
Artigo 4º - O prazo de duração da Companhia é indeterminado.
CAPÍTULO II
DO CAPITAL SOCIAL E AÇÕES
Artigo 5º - O Capital Social é de R$ 750.000.000,00 (setecentos e cinqüenta milhões de reais), representado por 617.955.200
ações escriturais nominativas, sem valor nominal, sendo 288.000.000 ações ordinárias com direito a voto e
329.955.200 ações preferenciais sem direito a voto.
§ 1º -
Não será permitida a conversão de ações ordinárias em preferenciais, ou destas naquelas.
§ 2º - As ações preferenciais conferirão a seus possuidores os seguintes direitos:
a)
direito de serem incluídas na oferta pública de alienação de controle da Companhia, de modo a lhes
assegurar o preço mínimo igual a 80% (oitenta por cento) do valor pago por ação com direito a voto
integrante do bloco de controle, nos termos do artigo 254-A, da Lei 6.404/76, com a redação dada pela
Lei 10.303/01;
b) prioridade no reembolso de capital, em caso de encerramento das atividades da Companhia;
c)
§ 3º -
participação, em igualdade de condições com as demais ações, na distribuição de dividendos, no
recebimento de bonificações provenientes de Reservas de Capital, de reavaliação de ativos, de
capitalização de reservas de lucros ou de utilização de quaisquer fundos.
A Companhia, a qualquer tempo, poderá emitir ações preferenciais até dois terços (2/3) do total das ações
do capital social, sem guardar proporção com as demais espécies existentes.
165
§ 4º -
A instituição financeira poderá cobrar dos Acionistas o custo dos serviços de transferência dessas ações.
§ 5º - A Companhia não poderá emitir partes beneficiárias de que tratam os artigos 46 e seguintes da Lei nº
6.404/76.
Artigo 6º -
Prescrevem a favor da Companhia os dividendos não reclamados em 3 (três) anos, contados da data em que
tenham sido postos à disposição dos Acionistas.
Artigo 7º -
A subscrição de novas ações para aumento de capital processar-se-á nos termos e condições estipulados pela Assembléia
Geral, cabendo à Assembléia ou ao Conselho de Administração fixar o preço de emissão das novas ações.
§ Único - A mora do Acionista na realização do capital subscrito, importará na cobrança, pela Companhia, de
multa de 10% (dez por cento) do valor da prestação vencida, além de juros de 1% (um por cento) ao mês de
acordo com a legislação em vigor.
CAPÍTULO III
DOS ACORDOS DE ACIONISTAS
Artigo 8º -
Os acordos de acionistas, devidamente registrados na sede da Companhia, que disciplinem a compra e venda de ações, o
direito de preferência na sua compra ou o exercício do direito de voto, serão sempre observados pela Companhia.
§ Único - As obrigações e responsabilidades resultantes de tais acordos serão oponíveis a terceiros, tão logo tais
acordos tenham sido devidamente averbados nos livros de registro da Companhia e nos certificados de ações, se
emitidos, observado o artigo 118, da Lei nº 6.404/76, com a redação dada pela Lei nº 10.303/01.
CAPÍTULO IV
DA ADMINISTRAÇÃO
Artigo 9º -
A Companhia será administrada por um Conselho de Administração e por uma Diretoria.
CAPÍTULO V
DAS ASSEMBLÉIAS GERAIS
Artigo 10 -
As Assembléias Gerais serão convocadas pelo Conselho de Administração ou pelas demais formas leais.
§ Único - O edital de convocação será publicado com antecedência mínima de 15 (quinze) dias para a primeira
convocação, e de 8 (oito) dias para a segunda convocação. O edital de segunda convocação somente poderá ser
publicado caso a Assembléia não tenha se realizado na primeira convocação.
Artigo 11 -
As Assembléias Gerais serão presididas pelo Presidente do Conselho de Administração ou seu substituto em
exercício. No impedimento deste, por Acionista escolhido pelos presentes. O Presidente da Assembléia Geral
convidará um dos presentes para secretariar os trabalhos.
Artigo 12 -
Para participar e deliberar nas Assembléias Gerais, o Acionista se identificará e apresentará à Companhia
comprovantes de sua condição de Acionista, mediante documento fornecido pela instituição financeira indicada
pela Companhia para administração das suas ações escriturais. Para efeito de deliberação serão desconsideradas as
alterações de posições acionárias ocorridas na data da Assembléia Geral.
§ 1º - A Companhia adotará, na fiscalização da regularidade documental da representação do acionista, o princípio
da boa-fé, presumindo-se verdadeiras as declarações que prestar. Com exceção da não apresentação da
procuração, se for o caso, e do comprovante de custódia de ações, quando estas constem nos registros da
Companhia como de titularidade da instituição custodiante, nenhuma irregularidade formal, como a apresentação
de documentos por cópia, ou a falta de autenticação de cópias, será motivo para impedimento do voto do acionista
cuja regularidade da documentação for colocada em dúvida.
166
§ 2º - Na hipótese do item anterior, os votos do acionista impugnado serão computados normalmente, cabendo à
Companhia, no prazo de 5 (cinco) dias úteis posteriores à Assembléia Geral, notificar o acionista impugnado de
que, através de elementos definitivos de prova posteriormente obtidos, demonstrou-se que: a) o acionista
impugnado não estava corretamente representado na Assembléia Geral; ou, b) o acionista impugnado não era
titular, na data da Assembléia Geral, da quantidade de ações declarada. Nestas hipóteses, independentemente de
realização de nova Assembléia Geral, a Companhia desconsiderará os votos do acionista impugnado, que
responderá por perdas e danos que o seu ato tiver causado.
Artigo 13 -
As Assembléias Gerais terão as atribuições que lhe são conferidas pela legislação em vigor.
Artigo 14 -
A cada ação com direito a voto corresponde um voto nas deliberações da Assembléia Geral. No caso de empate o
Presidente da Assembléia Geral terá, além de seu voto ou votos, o de qualidade.
Artigo 15-
As deliberações da Assembléia Geral, ressalvadas as exceções previstas na legislação, serão tomadas por maioria
absoluta de votos, não se computando os votos em branco.
Artigo 16 -
O Acionista poderá ser representado nas Assembléias Gerais por procurador constituído há menos de um ano, que
seja Acionista, Administrador da Companhia ou Advogado, desde que este comprove sua qualidade por meio de
mandato com poderes especiais, cujo instrumento procuratório ficará arquivado na Companhia.
CAPÍTULO VI
DO CONSELHO DE ADMINISTRAÇÃO
Artigo 17 -
O Conselho de Administração compor-se-á de 3 (três) membros no mínimo, e 10 (dez) no máximo, Acionistas,
eleitos pela Assembléia Geral de Acionistas pelo período de 3 (três) anos, podendo ser reeleitos, sendo que a
idade limite para permanência no cargo de Conselheiro, é de 75 anos.
§ 1º - A Assembléia Geral que eleger os membros do Conselho de Administração indicará, dentre estes, o
Presidente, bem como o Vice-Presidente.
§ 2º - Os Conselheiros serão investidos nos seus cargos mediante assinatura de termo de posse no livro de Atas do
Conselho de Administração.
Artigo 18 -
O Conselho de Administração reunir-se-á sempre que necessário, ao menos trimestralmente, por convocação do
seu Presidente, ou, na ausência ou impedimento deste, do Vice-Presidente, com antecedência mínima de 3 (três)
dias.
Artigo 19 -
As reuniões do Conselho de Administração serão realizadas com a presença de, no mínimo, 2/3 (dois terços) de
seus membros.
Artigo 20 -
O Conselho de Administração deliberará por maioria de votos dos membros presentes. Das deliberações
lavrar-se-á a ata devida.
Artigo 21 -
Sempre que o Conselho de Administração se reunir para tratar de matéria cuja decisão dependa de esclarecimentos
adicionais da Diretoria, esta poderá ser total ou parcialmente convocada, para participar da reunião, sem direito a
voto, nas deliberações.
Artigo 22 -
Compete ao Conselho de Administração:
a) fixar a orientação geral dos negócios da Companhia;
b) examinar e manifestar-se sobre propostas da Diretoria a serem submetidas à Assembléia Geral;
c) submeter à Assembléia Geral a distribuição do lucro líquido do exercício nos termos do Artigo 38 deste
Estatuto;
d) propor à Assembléia Geral alterações estatutárias;
167
e)
eleger e destituir os Diretores da Companhia e fixar-lhes as atribuições, aprovando o organograma da
Companhia;
f) indicar o substituto do Diretor ausente ou temporariamente impedido;
g) fiscalizar a gestão da Diretoria e manifestar-se sobre o relatório da Administração e das contas da Diretoria;
h) convocar as Assembléias Gerais;
i) pronunciar-se previamente em relação aos seguintes atos a serem praticados pela Diretoria Executiva, quando
os valores e/ou prazos ultrapassarem os fixados pelo Conselho de Administração:
i.1) quaisquer contratos de mútuo, empréstimos e/ou financiamentos a serem firmados pela Companhia e/ou
por suas controladas, junto as instituições financeiras de crédito;
i.2) aquisição, alienação e/ou oneração a qualquer título de bens do ativo permanente da Companhia; e
i.3) estabelecimento de limites de crédito a clientes.
j) autorizar a prestação pela Companhia, de aval, fiança e outras garantias a favor de empresas coligadas,
associadas ou controladas, para garantia de qualquer valor;
l) aprovar a cessão, transferência, aquisição de licença de quaisquer direitos referentes a marcas, patentes,
processos de produção industrial e tecnologia;
m) escolher e destituir os auditores independentes;
n) distribuir entre os membros do Conselho de Administração e Diretoria, a remuneração e gratificação global
fixadas na Assembléia Geral dos Acionistas;
o) autorizar investimentos e participação em outras empresas ou empreendimentos, no Brasil e no exterior;
p) aprovar o planejamento estratégico e os orçamentos operacionais da Diretoria;
q) aprovar planos de expansão e diversificação de atividades, bem como, a abertura e encerramento de filiais,
agências ou escritórios;
r) autorizar a aquisição de ações da Companhia, para efeito de cancelamento ou permanência em tesouraria para
posterior alienação;
s) resolver os casos não previstos neste Estatuto Social, e que por lei não sejam de competência da Assembléia
Geral, nem do Conselho Fiscal quando em funcionamento; e
t) deliberar sobre a celebração de contratos de mútuo pela Companhia com: (i) seus acionistas controladores; (ii)
empresas por estes controladas; e (iii)coligadas nas quais a Companhia detenha participação inferior a 75%.
Artigo 23 -
Competirá ao Presidente do Conselho de Administração:
a) convocar e presidir as reuniões do Conselho; e
b) presidir as Assembléias Gerais da Companhia.
§ Único - Nas decisões do Conselho de Administração, o Presidente terá, além do voto comum, o de qualidade em
caso de empate na votação.
Artigo 24 -
Competirá ao Vice-Presidente do Conselho substituir o Presidente nos casos de eventual ausência ou
impedimento, bem como em caso de vacância do cargo de Presidente do Conselho, até que a Assembléia Geral
decida quanto ao seu preenchimento.
168
Artigo 25 -
Em caso de vacância do cargo de Conselheiro Efetivo, assumirá o Conselheiro Suplente, se houver. No caso de
vacância do cargo de qualquer dos demais Conselheiros, caberá ao Conselho de Administração a escolha do
substituto, que exercerá a função até a data da realização da primeira Assembléia Geral.
CAPÍTULO VII
DA DIRETORIA
Artigo 26-
A Diretoria será composta de 03 (três) a 06 (seis) membros, Acionistas ou não, sendo: um Diretor Presidente
Executivo, um Diretor Administrativo, um Diretor de Marketing, um Diretor Técnico, cabendo ao Conselho de
Administração decidir pela necessidade de criação dos outros dois cargos. Todos os membros da Diretoria serão
eleitos e destituíveis, a qualquer tempo, pelo Conselho de Administração. A idade limite de permanência no cargo
de Diretor é de 65 anos.
§ 1º - O prazo de gestão da Diretoria será de 03 (três) anos, admitida a reeleição.
§ 2º - Os Diretores serão investidos nos seus cargos, mediante assinatura de termo de posse no livro de atas do
Conselho de Administração.
Artigo 27 -
A Diretoria, dentro dos limites fixados em lei e por este Estatuto, fica investida de amplos e gerais poderes de
gestão, que possibilitem a prática de todos os atos necessários ao regular funcionamento da Companhia, com
vistas à consecução dos seus objetivos sociais.
§ 1º - A representação ativa e passiva da Companhia, em juízo ou fora dele, bem como a prática de todos os atos
jurídicos que criem, modifiquem ou extingam quaisquer direitos e obrigações, compete a 2 (dois) membros da
Diretoria, assinando em conjunto, sendo um dos Diretores o Diretor Presidente Executivo, o Diretor
Administrativo ou o Diretor de Marketing.
§ 2º - A Companhia será representada isoladamente por qualquer dos membros da Diretoria, nos casos de
recebimento de citações, intimações ou notificações judiciais e na prestação de depoimento pessoal.
Artigo 28 -
A Diretoria, por intermédio de 2 (dois) membros em conjunto, poderá constituir, em nome da Companhia,
procuradores com poderes “ad negotia” a serem especificados no instrumento de mandato, sendo necessárias as
assinaturas do Diretor Presidente Executivo, ou do Diretor Administrativo e/ou Diretor de Marketing em conjunto
com qualquer outro Diretor. Tais procurações terão prazo de validade até o dia 31 de dezembro do ano em que
forem Outorgadas, ressalvadas as Outorgadas no último trimestre do ano, as quais poderão ter prazo de validade
até o dia 31 de dezembro do ano imediatamente subseqüente. Para a representação em Juízo, os mandatos poderão
ser Outorgados com prazo indeterminado, com poderes específicos.
Artigo 29 -
Ao Diretor Presidente Executivo cabe o exercício, entre outras, das seguintes atribuições:
a) exercer a representação institucional da Companhia e dirigir as suas atividades gerais;
b) estabelecer políticas para o desenvolvimento da Companhia e de suas controladas;
c) aprovar os planos estratégicos, orçamentários e de investimentos da Companhia e de suas controladas,
submetendo-os ao referendo do Conselho de Administração;
d) orientar, coordenar e supervisionar o trabalho dos Diretores;
e) convocar e presidir as reuniões da Diretoria; e,
f) zelar pelo fiel cumprimento deste Estatuto, das deliberações da Assembléia Geral e do Conselho de
Administração.
§ Único - O Diretor Presidente Executivo terá, além do voto comum, o de qualidade no caso de empate nas decisões de
competência da Diretoria.
169
Artigo 30 -
Aos demais Diretores compete:
a) substituírem-se entre si, em suas ausências ou impedimentos; e
b) exercer as funções executivas e os poderes que lhes são atribuídos no sentido de planejar, desenvolver e
controlar os negócios da Companhia e suas controladas.
Artigo 31 -
No caso de ausência ou impedimento do Diretor Presidente Executivo, este será substituído na seguinte ordem:
pelo Diretor Administrativo, e na ausência ou impedimento deste, pelo Diretor de Marketing.
Artigo 32 -
A Diretoria reunir-se-á sempre que convocada pelo Diretor Presidente Executivo, sendo suas deliberações
tomadas por maioria dos votos e registradas em atas.
Artigo 33 -
Aos Diretores e eventuais Procuradores é expressamente vedado o uso do nome da Companhia em atos estranhos
aos interesses sociais e de modo especial na concessão de avais, fianças ou endossos de favor.
§ Único - Será permitido, entretanto, aos Diretores, em nome da Companhia e de suas Controladas, prestarem
fiança perante entidades autárquicas ou paraestatais ou ainda às fazendas públicas em favor de entidades
comerciais ou industriais, dentro do limite de sua competência, sendo necessárias as assinaturas do Diretor
Presidente Executivo, ou do Diretor Administrativo e/ou Diretor de Marketing em conjunto com qualquer outro
Diretor.
Artigo 34 -
Os Diretores terão as funções e encargos de direção da companhia na forma do organograma e definição de
atribuições e responsabilidades de cada um, aprovado pelo Conselho de Administração.
CAPÍTULO VIII
DO CONSELHO FISCAL
Artigo 35 -
A Companhia terá um Conselho Fiscal de funcionamento não permanente, composto de até 05 (cinco) membros
efetivos e até 05 (cinco) suplentes, sendo somente instalado por deliberação da Assembléia Geral que, na ocasião,
elegerá os seus membros e fixará a sua remuneração.
§ Único – Os membros do Conselho Fiscal e seus suplentes exercerão seus cargos até a primeira Assembléia
Geral Ordinária que se realizar após sua eleição.
Artigo 36-
O Conselho Fiscal deliberará pela maioria de seus membros, e as suas reuniões somente se instalarão se
presente a maioria dos seus membros.
§ 1º - O Conselho Fiscal reunir-se-á trimestralmente, ou quando convocado por qualquer Conselheiro, e a
convocação dos seus membros se fará por escrito, com antecedência de 5 (cinco) dias da reunião, por qualquer
Conselheiro.
§ 2º - Das reuniões do Conselho Fiscal lavrar-se-ão atas, em livro próprio, que ficará disponível aos acionistas na
sede Companhia.
CAPÍTULO IX
DO EXERCÍCIO SOCIAL
Artigo 37 -
O exercício social terminará no último dia do mês de dezembro de cada ano, data em que será levantado o
inventário geral e o balanço anual.
§ Único - O Conselho de Administração poderá decidir sobre a distribuição de dividendos intermediários e/ou
juros sobre capital próprio, na forma da Lei nº 9.249/95, desde que seja levantado balanço na forma da legislação
vigente.
Artigo 38 - Dos resultados verificados no exercício, após as deduções previstas no Artigo 189 da Lei 6.404/76 e após a dedução,
observadas as restrições legais, de até 10% (dez por cento) a título de participação dos administradores (Artigo
190 da Lei nr. 6.404/76), será dada a seguinte destinação:
170
a) 5% (cinco por cento) para constituição de reserva legal, que não excederá de 20% (vinte por cento) do capital
social;
b) importância, quando necessária e devidamente justificada pelos administradores, para a formação de Reservas
para Contingências e para a formação de Reserva de Lucros a Realizar, na forma da legislação;
c) 25% (vinte e cinco por cento) no mínimo, do lucro líquido ajustado na forma do artigo 202 da Lei nº 6.404/76,
para distribuição de dividendos e/ou juros sobre capital próprio, na forma da Lei nº 9.249/95, imputados aos
dividendos;
d) Retenção do lucro, quando devidamente justificado pelos Administradores, para financiar orçamento de
capital aprovado pela Assembléia Geral e revisado anualmente;
e) o saldo que se verificar, depois das deduções acima, será distribuído aos Acionistas na forma de dividendos.
§ Único - Em face da Lei 9.249/95, o Conselho de Administração deliberará sobre:
a) o montante dos juros a título de remuneração do capital próprio, a serem pagos ou creditados aos
Acionistas, em espécie ou “in natura”, total ou parcialmente; e
b) a imputação e dedução, do dividendo obrigatório, do valor dos juros pagos ou creditados aos Acionistas a
título de remuneração do capital próprio.
CAPÍTULO X
DA LIQUIDAÇÃO
Artigo 39 -
A Companhia entrará em liquidação nos casos previstos em lei, sendo que o Conselho de Administração nomeará
o liquidante e a Assembléia Geral determinará o modo de liquidação, elegendo o Conselho Fiscal, que deverá
funcionar durante esse período.
CAPÍTULO XI
DAS DISPOSIÇÕES GERAIS
Artigo 40 -
A Assembléia Geral poderá a todo tempo, deliberar a transformação do tipo jurídico da Companhia, na forma da
legislação em vigor.
Artigo 41 -
Os casos omissos neste Estatuto serão resolvidos pela legislação vigente.
Artigo 42 -
A Companhia participará em grupo de sociedade, designado "Grupo WEG", na qualidade de Sociedade de
Comando, por prazo indeterminado, mediante convenção pela qual se obrigue a combinar recursos e esforços para
a realização dos respectivos objetos sociais das Empresas do Grupo ou a participar de atividades ou
empreendimentos comuns.
171
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172
APPENDIX B
Annual Information for fiscal year ended December 31, 2003
173
This Page Intentionally Left Blank
174
APPENDIX C
The Issuer’s Financial Statements for fiscal year ended December 31, 2002 and Report of
Independent Auditors.
175
This Page Intentionally Left Blank
176
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2002
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
O REGISTRO NA CVM NÃO IMPLICA QUALQUER APRECIAÇÃO SOBRE A COMPANHIA , SENDO OS SEUS
ADMINISTRADORES RESPONSÁVEIS PELA VERACIDADE DAS INFORMAÇÕES PRESTADAS.
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
4 - NIRE
01.02 - SEDE
1 - ENDEREÇO COMPLETO
2 - BAIRRO OU DISTRITO
AV. PREFEITO WALDEMAR GRUBBA - 3.300
CENTRO
3 - CEP
4 - MUNICÍPIO
89256-900
JARAGUÁ DO SUL
6 - DDD
047
11 - DDD
047
7 - TELEFONE
372-4000
12 - FAX
372-4201
5 - UF
SC
8 - TELEFONE
9 - TELEFONE
-
-
13 - FAX
14 - FAX
-
-
10 - TELEX
15 - E-MAIL
[email protected]
01.03 - DIRETOR DE RELAÇÕES COM INVESTIDORES (Endereço para Correspondência com a Companhia)
1 - NOME
ALIDOR LUEDERS
2 - ENDEREÇO COMPLETO
3 - BAIRRO OU DISTRITO
AV. PREFEITO WALDEMAR GRUBBA - 3.300
CENTRO
4 - CEP
5 - MUNICÍPIO
89256-900
JARAGUÁ DO SUL
7 - DDD
047
12 - DDD
047
8 - TELEFONE
372-4511
13 - FAX
372-4201
6 - UF
SC
9 - TELEFONE
10 - TELEFONE
-
-
14 - FAX
15 - FAX
-
-
11 - TELEX
16 - E-MAIL
[email protected]
01.04 - REFERÊNCIA / AUDITOR
EXERCÍCIO
1 - DATA DE INÍCIO DO EXERCÍCIO SOCIAL
2 - DATA DE TÉRMINO DO EXERCÍCIO SOCIAL
1 - Último
01/01/2002
31/12/2002
2 - Penúltimo
01/01/2001
31/12/2001
3 - Antepenúltimo
01/01/2000
4 - NOME/RAZÃO SOCIAL DO AUDITOR
31/12/2000
5 - CÓDIGO CVM
MARTINELLI AUDITORES INDEPENDENTES S.C.
00447-2
6 - NOME DO RESPONSÁVEL TÉCNICO
7 - CPF DO RESP. TÉCNICO
NEREU ANTÔNIO MARTINELLI
248.262.009-00
177
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 31/12/2002
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
01.05 - COMPOSIÇÃO DO CAPITAL SOCIAL
Número de Ações
2
31/12/2001
1
31/12/2002
(Mil)
3
31/12/2000
Do Capital Integralizado
1 - Ordinárias
288.000
288.000
288.000
2 - Preferenciais
329.955
329.955
352.717
3 - Total
617.955
617.955
640.717
0
0
0
5.293
5.293
0
22.762
0
22.762
Em Tesouraria
4 - Ordinárias
5 - Preferenciais
6 - Total
01.06 - CARACTERÍSTICAS DA EMPRESA
1 - TIPO DE EMPRESA
Empresa Comercial, Industrial e Outras
2 - TIPO DE SITUAÇÃO
Operacional
3 - NATUREZA DO CONTROLE ACIONÁRIO
Nacional Holding
4 - CÓDIGO ATIVIDADE
1170000 - Participação e Administração
5 - ATIVIDADE PRINCIPAL
GESTÃO DE PARTICIPAÇÕES SOCIETÁRIAS ( HOLDINGS)
6 - TIPO DE CONSOLIDADO
Total
01.07 - SOCIEDADES NÃO INCLUÍDAS NAS DEMONSTRAÇÕES FINANCEIRAS CONSOLIDADAS
1 - ÍTEM
2 - CNPJ
3 - DENOMINAÇÃO SOCIAL
01.08 - PROVENTOS EM DINHEIRO
1 - ÍTEM
2 - EVENTO
4 - PROVENTO
5 - INÍCIO PGTO. 6 - TIPO AÇÃO 7 - VALOR DO PROVENTO P/ AÇÃO
01
RCA
3 - APROVAÇÃO
18/07/2002
Dividendo
09/08/2002
ON
0,0500000000
02
RCA
18/07/2002
Dividendo
09/08/2002
PN
0,0500000000
03
RCA
13/02/2003
Dividendo
10/03/2003
ON
0,0950000000
04
RCA
13/02/2003
Dividendo
10/03/2003
PN
0,0950000000
01.09 - DIRETOR DE RELAÇÕES COM INVESTIDORES
1 - DATA
2 - ASSINATURA
14/02/2003
178
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2002
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
02.01 - BALANÇO PATRIMONIAL ATIVO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
1
Ativo Total
1.01
3 - 31/12/2002
4 - 31/12/2001
5 - 31/12/2000
766.394
623.063
562.583
Ativo Circulante
61.726
52.700
89.985
1.01.01
Disponibilidades
31
9.946
30.535
1.01.02
Créditos
0
0
0
1.01.03
Estoques
0
0
0
1.01.04
Outros
61.695
42.754
59.450
1.01.04.01
Títulos e Valores
1.01.04.02
Dividendos
1.01.04.03
Juros s/ Capital Próprio
1.01.04.04
Outros Créditos
1.02
Ativo Realizável a Longo Prazo
1.02.01
0
0
0
58.143
17.293
39.976
0
21.960
17.290
3.552
3.501
2.184
6.599
5.620
3.387
Créditos Diversos
0
0
0
1.02.02
Créditos com Pessoas Ligadas
0
0
0
1.02.02.01
Com Coligadas
0
0
0
1.02.02.02
Com Controladas
0
0
0
1.02.02.03
Com Outras Pessoas Ligadas
0
0
0
1.02.03
Outros
6.599
5.620
3.387
1.02.03.01
Depósitos Judiciais
5.399
4.438
2.823
1.02.03.02
Outros
1.200
1.182
564
1.03
Ativo Permanente
698.069
564.743
469.211
1.03.01
Investimentos
695.727
562.239
466.542
1.03.01.01
Participações em Coligadas
49.803
48.190
40.689
1.03.01.02
Participações em Controladas
645.890
514.024
425.853
1.03.01.03
Outros Investimentos
34
25
0
1.03.02
Imobilizado
2.342
2.504
2.669
1.03.02.01
Imóveis
2.342
2.504
2.669
1.03.03
Diferido
0
0
0
179
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2002
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
02.02 - BALANÇO PATRIMONIAL PASSIVO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
2
Passivo Total
2.01
Passivo Circulante
2.01.01
3 - 31/12/2002
4 - 31/12/2001
5 - 31/12/2000
766.394
623.063
562.583
59.392
38.358
24.181
Empréstimos e Financiamentos
0
0
0
2.01.02
Debêntures
0
0
0
2.01.03
Fornecedores
0
0
0
2.01.04
Impostos, Taxas e Contribuições
207
723
610
2.01.04.01
Obrigações Sociais
406
2.01.04.02
Obrigações Tributárias
2.01.05
71
597
136
126
204
Dividendos a Pagar
58.525
37.635
23.527
2.01.05.01
Dividendos
58.369
17.340
6.180
2.01.05.02
Juros s/ Capital Próprio
156
20.295
17.347
2.01.06
Provisões
0
0
0
2.01.07
Dívidas com Pessoas Ligadas
0
0
0
2.01.08
Outros
660
0
44
2.02
Passivo Exigível a Longo Prazo
13.351
11.057
72.283
2.02.01
Empréstimos e Financiamentos
0
0
0
2.02.02
Debêntures
0
0
0
2.02.03
Provisões
0
0
0
2.02.04
Dívidas com Pessoas Ligadas
6.071
3.475
27.986
2.02.05
Outros
7.280
7.582
44.297
2.02.05.01
Tributos em Contingências
6.016
5.939
4.017
2.02.05.02
Obrigações Sociais e Tributárias
173
273
354
2.02.05.03
Outras Obrigações
1.091
1.370
39.926
2.03
Resultados de Exercícios Futuros
0
0
0
2.05
Patrimônio Líquido
693.651
573.648
466.119
2.05.01
Capital Social Realizado
500.000
430.000
370.000
2.05.02
Reservas de Capital
111
26
0
2.05.03
Reservas de Reavaliação
10.026
10.673
11.319
2.05.03.01
Ativos Próprios
2.05.03.02
Controladas/Coligadas
2.05.04
Reservas de Lucro
2.05.04.01
Legal
2.05.04.02
Estatutária
2.05.04.03
2.05.04.04
0
0
0
10.026
10.673
11.319
183.514
132.949
84.800
11.016
8.784
6.271
183.893
124.165
100.885
Para Contingências
0
0
0
De Lucros a Realizar
0
0
0
2.05.04.05
Retenção de Lucros
0
0
0
2.05.04.06
Especial p/ Dividendos Não Distribuídos
0
0
0
2.05.04.07
Outras Reservas de Lucro
(11.395)
0
(22.356)
2.05.04.07.01
Ações em Tesouraria
(11.395)
0
(22.356)
2.05.05
Lucros/Prejuízos Acumulados
0
0
0
180
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2002
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
03.01 - DEMONSTRAÇÃO DO RESULTADO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
3.01
Receita Bruta de Vendas e/ou Serviços
3 - 01/01/2002 a 31/12/2002 4 - 01/01/2001 a 31/12/2001 5 - 01/01/2000 a 31/12/2000
0
0
0
3.02
Deduções da Receita Bruta
0
0
0
3.03
Receita Líquida de Vendas e/ou Serviços
0
0
0
3.04
Custo de Bens e/ou Serviços Vendidos
0
0
0
3.05
Resultado Bruto
0
0
0
3.06
Despesas/Receitas Operacionais
225.357
173.987
127.083
3.06.01
Com Vendas
3.06.02
Gerais e Administrativas
3.06.03
Financeiras
1.043
3.397
3.366
3.06.03.01
Receitas Financeiras
1.148
48.175
45.176
3.06.03.01.01
Juros s/ Capital Próprio (Recebidos)
405
46.081
40.936
3.06.03.01.02
Outras Receitas
743
2.094
4.240
3.06.03.02
Despesas Financeiras
(105)
(44.778)
(41.810)
3.06.03.02.01
Juros s/ Capital Próprio (Pagos)
3.06.03.02.02
Outras Despesas
3.06.04
Outras Receitas Operacionais
3.06.05
Outras Despesas Operacionais
3.06.06
3.07
3.08
Resultado Não Operacional
3.08.01
Receitas
3.08.02
Despesas
3.09
Resultado Antes Tributação/Participações
3.10
Provisão para IR e Contribuição Social
3.11
IR Diferido
3.12
0
0
0
(1.580)
(1.942)
(1.684)
0
(42.893)
(39.985)
(105)
(1.885)
(1.825)
10.050
16.640
0
0
0
(17.260)
Resultado da Equivalência Patrimonial
215.844
155.892
142.661
Resultado Operacional
225.357
173.987
127.083
(4.627)
6.620
(86)
0
6.620
0
(4.627)
0
(86)
220.730
180.607
126.997
644
(2.354)
(1.184)
16
617
564
Participações/Contribuições Estatutárias
(659)
0
0
3.12.01
Participações
(659)
0
0
3.12.02
Contribuições
0
0
0
3.13
Reversão dos Juros sobre Capital Próprio
(405)
(3.187)
(951)
3.15
Lucro/Prejuízo do Exercício
220.326
175.683
125.426
NÚMERO AÇÕES, EX-TESOURARIA (Mil)
612.662
617.955
617.955
LUCRO POR AÇÃO
0,35962
0,28430
0,20297
PREJUÍZO POR AÇÃO
181
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2002
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
04.01 - DEMONSTRAÇÃO DAS ORIGENS E APLICAÇÕES DE RECURSOS (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
4.01
Origens
3 - 01/01/2002 a 31/12/2002 4 - 01/01/2001 a 31/12/2001 5 - 01/01/2000 a 31/12/2000
90.243
80.336
4.01.01
Das Operações
94.256
91.685
63.891
4.01.01.01
Lucro/Prejuízo do Exercício
220.326
175.683
125.426
4.01.01.02
Vls. que não repr. mov. Cap. Circulante
(126.070)
(83.998)
(61.535)
4.01.01.02.01
Depreciações e Amortizações
161
165
166
4.01.01.02.02
Equivalência Patrimonial
(215.844)
(155.892)
(142.661)
4.01.01.02.03
Juros s/Cap. Próprio Controlada/Coligada
4.01.01.02.04
Dividendos/Lucros de Controlada/Coligada
4.01.02
Dos Acionistas
4.01.03
De Terceiros
4.01.03.01
Redução do Ativo R. L. P.
4.01.03.02
Aumento do Passivo E. L. P.
4.01.03.03
Incentivos Fiscais
4.01.03.04
Perdas/Ganhos de Capital
4.01.03.05
Outros
4.02
Aplicações
4.02.01
Juros s/ Capital Próprio
4.02.02
Dividendos
4.02.03
114.310
0
46.081
40.984
89.613
25.648
39.976
0
0
0
(4.013)
(11.349)
50.419
0
0
0
2.294
0
49.617
0
85
26
(6.529)
(16.914)
0
137
5.539
802
102.252
131.798
85.020
0
42.894
39.985
89.075
25.336
6.180
Aumento do Ativo Permanente
803
109
15.489
4.02.04
Aumento do Ativo R. L. P.
979
2.233
1.010
4.02.05
Redução do Passivo E. L. P.
0
61.226
0
4.02.06
Ações em Tesouraria
11.395
0
22.356
4.03
Acréscimo/Decréscimo no Cap. Circulante
(12.009)
(51.462)
29.290
4.04
Variação do Ativo Circulante
9.026
(37.285)
40.516
4.04.01
Ativo Circulante no Início do Exercício
52.700
89.985
49.469
4.04.02
Ativo Circulante no Final do Exercício
61.726
52.700
89.985
4.05
Variação do Passivo Circulante
21.035
14.177
11.226
4.05.01
Passivo Circulante no Início Exercício
38.358
24.181
12.955
4.05.02
Passivo Circulante no Final do Exercício
59.393
38.358
24.181
182
183
6 - RESERVAS DE
Dividendos
Outros
Incentivos Fiscais
Saldo Final
5.08
5.08.01
5.09
Lucro/Prejuízo do Exercício
5.06
5.07.03
Ações em Tesouraria
5.05
Reserva p/ Orçamento de Capital
Reserva de Reavaliação
5.04.01
Reserva Legal
Realização de Reservas
5.04
5.07.02
Aumento/Redução do Capital Social
5.03
5.07.01
Ajustes de Exercícios Anteriores
5.02
Destinações
Saldo Inicial
5.01
5.07
2 - DESCRIÇÃO
1 - CÓDIGO
500.000
0
0
0
0
0
0
0
0
0
0
70.000
0
430.000
3 - CAPITAL SOCIAL
CAPITAL
4 - RESERVAS DE
111
85
85
0
0
0
0
0
0
0
0
0
0
26
10.026
0
0
0
0
0
0
0
0
(647)
(647)
0
0
10.673
REAVALIAÇÃO
5 - RESERVAS DE
LUCRO
183.514
0
0
0
120.944
11.016
131.960
0
(11.395)
0
0
(70.000)
0
132.949
0
647
647
0
62
0
0
0
0
(89.075)
(120.944)
(11.016)
(221.035)
220.326
ACUMULADOS
7 - LUCROS/PREJUÍZOS
LÍQUIDO
693.651
85
85
(89.075)
0
0
(89.075)
220.326
(11.395)
0
0
0
62
573.648
8 - TOTAL PATRIMÔNIO
84.429.695/0001-11
WEG SA
05.01 - DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2002 A 31/12/2002 (Reais Mil)
3 - CNPJ
2 - DENOMINAÇÃO SOCIAL
Legislação Societária
00541-0
Data-Base - 31/12/2002
Divulgação Externa
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
SERVIÇO PÚBLICO FEDERAL
184
6 - RESERVAS DE
Juros s/ Capital Próprio
Dividendos
Outros
Incentivos Fiscais
Saldo Final
5.07.04
5.08
5.08.01
5.09
Lucro/Prejuízo do Exercício
5.06
5.07.03
Ações em Tesouraria
5.05
Reserva p/ Orçamento de Capital
Reserva de Reavaliação
5.04.01
5.07.02
Realização de Reservas
5.04
Reserva Legal
Aumento/Redução do Capital Social
5.03
Destinações
Ajustes de Exercícios Anteriores
5.02
5.07.01
Saldo Inicial
5.01
5.07
2 - DESCRIÇÃO
1 - CÓDIGO
430.000
0
0
0
0
0
0
0
0
0
0
0
60.000
0
370.000
3 - CAPITAL SOCIAL
CAPITAL
4 - RESERVAS DE
26
26
26
0
0
0
0
0
0
0
0
0
0
0
0
10.673
0
0
0
0
0
0
0
0
0
(646)
(646)
0
0
11.319
REAVALIAÇÃO
5 - RESERVAS DE
LUCRO
132.949
0
0
0
0
99.365
8.784
108.149
0
0
0
0
(60.000)
0
84.800
0
646
646
0
49
0
0
0
0
(25.336)
(42.893)
(99.365)
(8.784)
(176.378)
175.683
ACUMULADOS
7 - LUCROS/PREJUÍZOS
LÍQUIDO
573.648
26
26
(25.336)
(42.893)
0
0
(68.229)
175.683
0
0
0
0
49
466.119
8 - TOTAL PATRIMÔNIO
84.429.695/0001-11
WEG SA
05.02 - DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2001 A 31/12/2001 (Reais Mil)
3 - CNPJ
2 - DENOMINAÇÃO SOCIAL
Legislação Societária
00541-0
Data-Base - 31/12/2002
Divulgação Externa
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
SERVIÇO PÚBLICO FEDERAL
185
6 - RESERVAS DE
Juros s/ Capital Próprio
Dividendos
Outros
Saldo Final
5.07.04
5.08
5.09
Lucro/Prejuízo do Exercício
5.06
5.07.03
Ações em Tesouraria
5.05
Reserva para Orçamento de Capital
Reserva de Reavaliação
5.04.01
Reserva Legal
Realização de Reservas
5.04
5.07.02
Aumento/Redução do Capital Social
5.03
5.07.01
Ajustes de Exercícios Anteriores
5.02
Destinações
Saldo Inicial
5.01
5.07
2 - DESCRIÇÃO
1 - CÓDIGO
370.000
0
0
0
0
0
0
0
0
0
0
70.000
0
300.000
3 - CAPITAL SOCIAL
CAPITAL
4 - RESERVAS DE
0
0
0
0
0
0
0
0
0
0
0
(77)
0
77
11.319
0
0
0
0
0
0
0
0
(631)
(631)
0
0
11.950
REAVALIAÇÃO
5 - RESERVAS DE
LUCRO
84.800
0
0
0
74.208
6.271
80.479
0
(22.356)
0
0
(69.923)
0
96.600
0
631
631
0
587
0
0
0
(6.180)
(39.985)
(74.208)
(6.271)
(126.644)
125.426
ACUMULADOS
7 - LUCROS/PREJUÍZOS
LÍQUIDO
466.119
0
(6.180)
(39.985)
0
0
(46.165)
125.426
(22.356)
0
0
0
587
408.627
8 - TOTAL PATRIMÔNIO
84.429.695/0001-11
WEG SA
05.03 - DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2000 A 31/12/2000 (Reais Mil)
3 - CNPJ
2 - DENOMINAÇÃO SOCIAL
Legislação Societária
00541-0
Data-Base - 31/12/2002
Divulgação Externa
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
SERVIÇO PÚBLICO FEDERAL
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2002
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
06.01 - BALANÇO PATRIMONIAL ATIVO CONSOLIDADO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
1
Ativo Total
3 - 31/12/2002
1.766.747
4 - 31/12/2001
1.318.607
5 - 31/12/2000
1.196.710
1.01
Ativo Circulante
1.166.124
794.410
873.985
1.01.01
Disponibilidades
581.292
392.238
524.192
1.01.02
Créditos
319.172
203.054
175.974
1.01.03
Estoques
229.591
163.632
144.428
1.01.04
Outros
36.069
35.486
29.391
1.02
Ativo Realizável a Longo Prazo
249.024
223.432
64.097
1.02.01
Créditos Diversos
0
0
0
1.02.02
Créditos com Pessoas Ligadas
0
0
0
1.02.02.01
Com Coligadas
0
0
0
1.02.02.02
Com Controladas
0
0
0
1.02.02.03
Com Outras Pessoas Ligadas
0
0
0
1.02.03
Outros
249.024
223.432
64.097
1.02.03.01
Aplicações Financeiras
161.812
146.984
0
1.02.03.02
Depósitos Judiciais
57.946
55.503
49.006
1.02.03.03
Export Notes
6.302
1.02.03.04
Outros
1.03
Ativo Permanente
1.03.01
1.03.01.01
1.03.01.02
Participações em Controladas
1.03.01.03
Outros Investimentos
1.03.02
Imobilizado
1.03.02.01
Imóveis
1.03.02.02
Equipamentos e Instalações
1.03.02.03
Móveis e Utensílios
1.03.02.04
Veículos
1.03.02.05
1.03.03
9.217
3.205
20.049
17.740
8.789
351.599
300.765
258.628
Investimentos
64.190
65.212
57.874
Participações em Coligadas
49.803
48.190
40.689
0
0
0
14.387
17.022
17.185
279.069
231.918
197.699
71.795
67.327
66.085
144.875
109.043
96.249
24.302
17.385
11.925
1.347
1.665
575
Outros
36.750
36.498
22.865
Diferido
8.340
3.635
3.055
186
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2002
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
06.02 - BALANÇO PATRIMONIAL PASSIVO CONSOLIDADO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
2
Passivo Total
2.01
3 - 31/12/2002
4 - 31/12/2001
5 - 31/12/2000
1.766.747
1.318.607
1.196.710
Passivo Circulante
873.281
445.603
512.275
2.01.01
Empréstimos e Financiamentos
603.780
258.436
365.259
2.01.02
Debêntures
0
0
0
2.01.03
Fornecedores
77.589
49.582
47.135
2.01.04
Impostos, Taxas e Contribuições
46.914
39.792
34.316
2.01.04.01
Obrigações Sociais
28.623
24.102
23.521
2.01.04.02
Obrigações Tributárias
18.291
15.690
10.795
2.01.05
Dividendos a Pagar
58.560
37.657
23.560
2.01.05.01
Dividendos
58.404
17.350
6.203
2.01.05.02
Juros s/ Capital Próprio
156
20.307
17.357
2.01.06
Provisões
0
0
0
2.01.07
Dívidas com Pessoas Ligadas
0
0
0
2.01.08
Outros
86.438
60.136
42.005
2.01.08.01
Participação no Resultado
20.456
14.757
11.141
2.01.08.02
Adiantamento de Clientes
25.519
19.158
9.875
2.01.08.03
Outras Obrigações
40.463
26.221
20.989
2.02
Passivo Exigível a Longo Prazo
199.414
299.051
218.067
2.02.01
Empréstimos e Financiamentos
92.179
198.068
121.497
2.02.02
Debêntures
0
0
0
2.02.03
Provisões
0
0
0
2.02.04
Dívidas com Pessoas Ligadas
1.692
112
6.359
2.02.05
Outros
105.543
100.871
90.211
2.02.05.01
Tributos em Contingências
81.323
78.958
68.418
2.02.05.02
Obrigações Sociais e Tributárias
6.995
10.097
13.128
2.02.05.03
Outras Obrigaçoes
17.225
11.816
8.665
2.03
Resultados de Exercícios Futuros
0
0
0
2.04
Participações Minoritárias
401
305
249
2.05
Patrimônio Líquido
693.651
573.648
466.119
2.05.01
Capital Social Realizado
500.000
430.000
370.000
2.05.02
Reservas de Capital
111
26
0
2.05.03
Reservas de Reavaliação
10.026
10.673
11.319
2.05.03.01
Ativos Próprios
2.05.03.02
Controladas/Coligadas
2.05.04
Reservas de Lucro
2.05.04.01
Legal
2.05.04.02
Estatutária
2.05.04.03
2.05.04.04
0
0
0
10.026
10.673
11.319
183.514
132.949
84.800
11.016
8.784
6.271
183.893
124.165
100.885
Para Contingências
0
0
0
De Lucros a Realizar
0
0
0
2.05.04.05
Retenção de Lucros
0
0
0
2.05.04.06
Especial p/ Dividendos Não Distribuídos
0
0
0
2.05.04.07
Outras Reservas de Lucro
(11.395)
0
(22.356)
2.05.04.07.01
Ações em Tesouraria
(11.395)
0
(22.356)
2.05.05
Lucros/Prejuízos Acumulados
0
0
0
187
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2002
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
07.01 - DEMONSTRAÇÃO DO RESULTADO CONSOLIDADO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
3.01
Receita Bruta de Vendas e/ou Serviços
3 - 01/01/2002 a 31/12/2002 4 - 01/01/2001 a 31/12/2001 5 - 01/01/2000 a 31/12/2000
1.534.902
1.268.873
962.504
3.02
Deduções da Receita Bruta
(252.868)
(202.937)
(162.610)
3.03
Receita Líquida de Vendas e/ou Serviços
1.282.034
1.065.936
799.894
3.04
Custo de Bens e/ou Serviços Vendidos
(798.745)
(663.302)
(502.885)
3.05
Resultado Bruto
483.289
402.634
297.009
3.06
Despesas/Receitas Operacionais
(205.168)
(194.260)
(174.358)
3.06.01
Com Vendas
(146.524)
(113.096)
(85.528)
3.06.02
Gerais e Administrativas
(76.544)
(61.007)
(52.848)
3.06.03
Financeiras
30.186
(15.407)
(24.714)
3.06.03.01
Receitas Financeiras
141.596
111.394
79.749
3.06.03.02
Despesas Financeiras
(111.410)
(126.801)
(104.463)
3.06.03.02.01
Juros s/ Capital Próprio
3.06.03.02.02
Outras Despesas
3.06.04
Outras Receitas Operacionais
3.06.05
Outras Despesas Operacionais
3.06.06
Resultado da Equivalência Patrimonial
3.07
Resultado Operacional
3.08
Resultado Não Operacional
3.08.01
Receitas
3.08.02
Despesas
3.09
Resultado Antes Tributação/Participações
270.033
204.905
120.153
3.10
Provisão para IR e Contribuição Social
(48.608)
(76.700)
(38.909)
3.11
IR Diferido
3.405
4.675
4.265
3.12
Participações/Contribuições Estatutárias
(3.960)
0
0
3.12.01
Participações
(3.960)
0
0
3.12.02
Contribuições
0
0
0
3.13
Reversão dos Juros sobre Capital Próprio
(405)
42.893
39.985
3.14
Participações Minoritárias
(139)
(90)
(68)
3.15
Lucro/Prejuízo do Exercício
220.326
175.683
125.426
NÚMERO AÇÕES, EX-TESOURARIA (Mil)
612.662
617.955
617.955
LUCRO POR AÇÃO
0,35962
0,28430
0,20297
PREJUÍZO POR AÇÃO
188
0
(42.893)
(39.985)
(111.410)
(83.908)
(64.478)
30.383
16.932
8.434
(44.865)
(32.763)
(22.275)
2.196
11.081
2.573
278.121
208.374
122.651
(8.088)
(3.469)
(2.498)
1.128
1.729
1.773
(9.216)
(5.198)
(4.271)
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2002
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
08.01 - DEMONSTRAÇÃO DAS ORIGENS E APLICAÇÕES DE RECURSOS CONSOLIDADAS (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
4.01
Origens
3 - 01/01/2002 a 31/12/2002 4 - 01/01/2001 a 31/12/2001 5 - 01/01/2000 a 31/12/2000
264.563
290.194
206.685
4.01.01
Das Operações
250.055
202.293
162.548
4.01.01.01
Lucro/Prejuízo do Exercício
220.326
175.683
125.426
4.01.01.02
Vls. que não repr. mov. Cap. Circulante
29.729
26.610
37.122
4.01.01.02.01
Depreciações e Amortizações
49.448
43.738
43.215
4.01.01.02.02
Equivalência Patrimonial
(2.196)
(11.081)
(2.573)
4.01.01.02.03
Alienações/Baixas do Permanente
4.01.01.02.04
Ganhos/Perdas de Capital
4.01.01.02.05
Participação dos Minoritários
139
90
69
4.01.01.02.06
Juros s/ Capital Próprio Coligada
590
3.597
1.060
4.01.02
Dos Acionistas
4.01.03
De Terceiros
4.01.03.01
Redução do Ativo R. L. P.
0
0
0
4.01.03.02
Aumento de Passivo E. L. P.
0
80.984
40.562
4.01.03.03
Incentivos Fiscais
5.790
2.618
542
4.01.03.04
Outros
8.718
4.299
3.033
4.02
Aplicações
320.528
303.097
145.210
4.02.01
Dividendos
89.128
25.336
6.180
4.02.02
Juros s/ Capital Próprio
0
42.933
40.032
4.02.03
Ações em Tesouraria
11.395
0
22.356
4.02.04
Aumento do Ativo R.L.P
25.592
159.335
18.244
4.02.05
Redução do Passivo E.L.P
99.637
0
0
4.02.06
Aumento do Ativo Permanente
94.776
75.493
58.398
4.03
Acréscimo/Decréscimo no Cap. Circulante
(55.965)
(12.903)
61.475
4.04
Variação do Ativo Circulante
371.714
(79.575)
220.575
4.04.01
Ativo Circulante no Início do Exercício
794.410
873.985
653.410
4.04.02
Ativo Circulante no Final do Exercício
1.166.124
794.410
873.985
4.05
Variação do Passivo Circulante
427.678
(66.672)
159.100
4.05.01
Passivo Circulante no Início Exercício
445.603
512.275
353.175
4.05.02
Passivo Circulante no Final do Exercício
873.281
445.603
512.275
189
488
2.263
394
(18.740)
(11.997)
(5.043)
0
0
0
14.508
87.901
44.137
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
09.01 - PARECER DOS AUDITORES INDEPENDENTES - SEM RESSALVA
Aos
Diretores, Conselheiros e Acionistas da
WEG S.A.
(1)
Examinamos o balanço patrimonial da WEG S.A., e o balanço patrimonial consolidado dessa
empresa e suas controladas levantados em 31 de dezembro de 2002, e as respectivas demonstrações
do resultado, das mutações do patrimônio líquido e das origens e aplicações de recursos
correspondentes ao exercício findo naquela data, elaborados sob a responsabilidade de sua
administração. Nossa responsabilidade é a de expressar uma opinião sobre essas demonstrações
contábeis.
(2)
Nossos exames foram conduzidos de acordo com as normas de auditoria e compreenderam: (a) o
planejamento dos trabalhos, considerando a relevância dos saldos, o volume das transações e o
sistema contábil e de controles internos da entidade; (b) a constatação, com base em testes, das
evidências e dos registros que suportam os valores e as informações contábeis divulgados; e (c) a
avaliação das práticas e das estimativas contábeis mais representativas adotadas pela administração
da empresa, bem como da apresentação das demonstrações contábeis tomadas em conjunto.
(3)
Em nossa opinião, as demonstrações contábeis referidas no primeiro parágrafo representam
adequadamente, em todos os aspectos relevantes, a posição patrimonial e financeira da WEG S.A., e
dessa empresa e suas controladas em 31 de dezembro de 2002, o resultado de suas operações, as
mutações do seu patrimônio líquido e as origens e aplicações de seus recursos referentes ao exercício
findo naquela data, de acordo com as práticas contábeis emanadas da legislação societária.
(4)
As demonstrações contábeis referentes ao exercício findo em 31 de dezembro de 2001 foram por nós
examinadas conforme parecer emitido em 01 de fevereiro de 2002.
Joinville, 03 de fevereiro de 2003.
NEREU ANTÔNIO MARTINELLI
Contador CRC (SC) nº 0011.591/O-8
ALFREDO HIRATA
Contador CRC(SC) nº 0018.835/O-7
MARTINELLI Auditores Independentes S.C.
CRC (SC) nº 001.132/O-9
A member of JHI Jeffreys Henry International
190
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2002
00541-0 WEG SA
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
Senhores Acionistas,
A Administração da Companhia submete à apreciação de V.Sªs o Relatório da Administração e as
Demonstrações Financeiras da WEG S.A., e o Consolidado do Grupo WEG, referentes ao
exercício social encerrado em 31 de dezembro de 2002.
DESEMPENHO
Apesar do fraco desempenho da economia brasileira e dos principais mercados no exterior em que
a WEG atua, a Companhia logrou alcançar resultados satisfatórios, no exercício de 2002, como se
pode verificar neste relatório.
•
A receita operacional bruta consolidada aumentou 21%, dos quais 18% no mercado interno e
28% no mercado externo, atingindo o montante de R$ 1.534,9 milhões (R$ 1.268,9 milhões em
2001), mantendo-se dentro das previsões da Companhia.
•
O aumento dos insumos ocorridos no custo dos produtos vendidos, foi compensado pelo
melhor resultado auferido nas exportações favorecido pelo câmbio, o que resultou com que se
mantivesse inalterada a margem do lucro bruto.
•
O lucro líquido do exercício atingiu R$ 220,3 milhões (R$ 175,7 milhões em 2001),
representando um aumento de 25%, favorecido pelo mercado externo.
•
O lucro antes dos juros, impostos, depreciação e amortização (EBITDA), atingiu o montante de
R$ 327,6 milhões (R$ 291,4 milhões em 2001), representando uma evolução de 12%. Abaixo
apresentamos a evolução do EBITDA em relação à receita operacional líquida dos últimos 5
anos.
EBITDA / RECEITA OPERACIONAL LÍQUIDA
1400
1 .2 8 2 ,0
1200
1 .0 6 5 ,9
1000
7 9 9 ,9
800
600
6 2 7 ,6
5 2 7 ,4
400
200
1 3 5 ,9
2 0 6 ,6
1 4 5 ,5
2 9 1 ,4
3 2 7 ,6
0
1998
1999
2000
R e ce ita O p e ra cio na l L íq uid a
191
2001
E B ITD A
2002
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
•
Todas as unidades de negócios da WEG tiveram crescimento de vendas em 2002,
apresentando-se a distribuição das vendas semelhante a 2001, a saber:
Transformadores
8%
Química
6%
Motores Elétricos
Industriais
47%
Automação
10%
Acionamentos
6%
Máquinas e
Alternadores
11%
Motores P/
Eletrodoméstico
12%
RESULTADOS DO 4º TRIMESTRE / 2002
No quarto trimestre de 2002, a receita operacional bruta consolidada atingiu R$ 482,3 milhões (R$
342,3 milhões em 2001), resultando num incremento de 41%.
O lucro líquido após os impostos e participações alcançou o montante de R$ 69,1 milhões (R$ 41,4
milhões em 2001), representando incremento de 67%.
O EBITDA atingiu R$ 112,7 milhões (R$ 69,5 milhões em 2001).
No mercado interno:
- As vendas físicas de motores elétricos monofásicos, destinados a bens de consumo durável,
aumentaram 48% em comparação ao quarto trimestre de 2001;
- As vendas físicas de motores elétricos trifásicos, destinados a bens de capital, aumentaram
14% em comparação ao quarto trimestre de 2001;
- Os demais produtos tiveram um incremento de faturamento de 34%, em comparação ao quarto
trimestre de 2001.
No mercado externo:
- A receita operacional bruta consolidada perfez o montante de R$ 198,1 milhões (US$ 53,9
milhões) contra R$ 111,3 milhões (US$ 43,4 milhões) no quarto trimestre de 2001.
192
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2002
00541-0 WEG SA
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
MERCADO INTERNO
Apesar do baixo crescimento do PIB, a receita operacional bruta no mercado interno totalizou R$
1.003,7 milhões (R$ 853,9 milhões em 2001), representando incremento de 18%. Contribuíram
para esse desempenho os segmentos de automação industrial e transformadores que
apresentaram incremento de 46% e 36%, respectivamente, em relação ao exercício de 2001.
Um dos principais focos estratégicos da WEG é agregar maior valor aos clientes, aumentando os
negócios no segmento de pacotes industriais (Turn Key) para grandes consumidores, o que
representou cerca de 10% do faturamento no mercado interno. A WEG atua com três centros de
negócios para atingir os grandes consumidores:
CENTRO DE NEGÓCIOS
INDUSTRIAIS
Fornecimento de pacotes elétricos e
sistemas de automação industrial.
CENTRO DE NEGÓCIOS
SUBESTAÇÃO
Construção
MVA.
CENTRO DE NEGÓCIOS
DE ENERGIA
de subestações até 100
Equipamentos e soluções economicamente
viáveis, para a geração de energia.
MERCADO EXTERNO
Favorecida pelo câmbio, a receita operacional bruta no mercado externo perfez o montante de
R$ 531,2 milhões (US$ 177,3 milhões) contra R$ 415,0 milhões (US$ 175,6 milhões) no ano
anterior. Do total das receitas no mercado externo, 63% foram realizadas através de suas
controladas no exterior (58% em 2001).
A distribuição da receita operacional bruta no mercado externo apresentou-se em:
PERCENTUAIS (%)
REGIÕES
2002
2001
América do Norte
América do Sul e Central
Europa
África
Oceania
Ásia
43
13
28
8
6
2
46
18
21
9
5
1
Verifica-se na distribuição da receita uma queda da participação no mercado norte- americano,
decorrente do fraco desempenho das vendas nos Estados Unidos e uma queda na América do Sul,
ocasionada pelo desempenho da economia da Argentina, que foram compensados com o maior
crescimento das vendas na Europa.
193
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2002
00541-0 WEG SA
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
Dentro da estratégia de internacionalização, no decorrer de 2002, foi adquirida uma unidade fabril
em Portugal com 150 funcionários, dedicada a produção de motores elétricos especiais acima de
50 CV´s, com o objetivo de expandir os negócios no mercado europeu.
O Grupo WEG possui plantas industriais no México, Argentina e Portugal, além de manter
controladas de comercialização e distribuição de seus produtos nos Estados Unidos, Venezuela,
Alemanha, Inglaterra, Bélgica, França, Espanha, Itália, Suécia, Austrália e Japão.
INVESTIMENTOS
Em 2002, o Grupo WEG investiu R$ 83,0 milhões (R$ 72,9 milhões em 2001) em ativos fixos,
visando manter a expansão e modernização dos parques fabris.
Dos investimentos totais em ativos fixos em 2002, 80% destinaram-se às unidades no Brasil e 20%
às unidades no exterior. O gráfico abaixo demonstra a relação entre investimentos e depreciação
ocorridos nos últimos 5 anos.
INVESTIMENTOS ATIVOS FIXOS / DEPRECIAÇÃO
90
8 3 ,0
80
7 2 ,9
70
60
50
40
4 6 ,8
4 2 ,1
3 7 ,5
4 8 ,6
4 9 ,4
4 3 ,2
3 8 ,1
4 3 ,7
30
20
10
0
1998
1999
2000
I n v e s t im e n t o s A t iv o s F ix o s
2001
2002
D e p r e c ia ç ã o
PESQUISA E DESENVOLVIMENTO
Em 2002, para pesquisa e desenvolvimento tecnológico, foi alocado o montante de R$ 20,5
milhões (R$ 18,1 milhões em 2001), destinado ao aprimoramento dos atuais produtos, atendimento
de produtos engenheirados e especiais por cliente e o lançamento de novas linhas de produtos.
Destacamos, entre outros, os seguintes lançamentos de novas linhas de produtos e/ou produtos
para novas aplicações:
194
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
a) em motores - linhas de motores para: Smoke Motors (motores para extração de fumaça em
situação de incêndio); Pool & SPA - motores para piscinas e banheiras de hidromassagem;
motores para compressores dedicados; motores à prova de explosão e segurança aumentada;
motores de alumínio multimontagem; motores refrigerados à água; Jet Pump baixo ruído; e
servo motor de ímãs permanentes de terras raras;
b) em máquinas - linha de turbo gerador de 50 MVA e motores síncronos de 3.000 kW;
c) em componentes elétricos - linha de disjuntormotor;
d) em transformadores - linha de transformadores de força de 500 kV;
e) em automação - linha inversores de freqüência até 10 CV´s e micro soft - starters até 50 CV´s;
f)
e na área química - novas especialidades de tintas em pó e eletro-isolante hidro-solúvel.
RECURSOS HUMANOS E COMUNIDADE
• Em 2002, a WEG manteve sua política de investimento em desenvolvimento e treinamento,
investindo R$ 5,7 milhões (R$ 4,0 milhões em 2001). O quadro de colaboradores atingiu
10.152 colaboradores (9.254 colaboradores em 2001), dos quais 756 atuam nas controladas
do exterior.
•
O Programa WEG de Qualidade e Produtividade, que trata da participação dos colaboradores
nos resultados da Empresa, estabelece a distribuição de até 12,5% do lucro líquido do
exercício. Em 2002, foi destinado um montante de R$ 30,2 milhões aos colaboradores (R$
23,9 milhões em 2001).
•
Os investimentos em benefícios aos colaboradores com assistência médica e odontológica,
creches, transportes, associação recreativa e outros foram no montante de R$ 9,0 milhões (R$
6,7 milhões em 2001).
•
A WEG Seguridade Social disponibiliza plano de contribuição definida para os benefícios de
aposentadoria por tempo de serviço e/ou por idade aos contribuintes do plano. Em dezembro
de 2002, o patrimônio atingiu R$ 79,3 milhões, com 7.917 participantes contribuintes.
•
A WEG destina recursos para a comunidade, especialmente nas áreas de cultura, educação e
cidadania. Em 2002, foram destinados recursos financeiros ao Corpo de Bombeiros, hospitais,
Sociedade Cultural Artística (SCAR) e outras entidades sociais, no montante de R$ 1,5 milhões
(R$ 1,4 milhões em 2001).
Além disso, a WEG investiu na conscientização de seus colaboradores em relação ao trabalho
voluntário, incentivando-os e disponibilizando oportunidades de participação, em entidades
sem fins lucrativos e ações comunitárias.
195
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
VALOR ADICIONADO
Em 2002, no Brasil, o Grupo WEG gerou um valor adicionado líquido de R$ 687,8 milhões (R$
603,8 milhões em 2001), representando 48% da receita operacional bruta, com a seguinte
distribuição:
DISTRIBUIÇÃO DO VALOR ADICIONADO / 2002
Salários
17%
Lucros retidos
20%
Encargos
Sociais
13%
Juros s/ capital
próprio e
dividendos
13%
Impostos, taxas
e contribuições
27%
Juros
10%
MERCADO DE CAPITAIS
Em 2002, as ações preferenciais da WEG S.A. valorizaram 61% na Bolsa de Valores de São
Paulo. A cotação da ação PN atingiu R$ 3,12/ação (31/12/01, R$ 1,94/ação).
Em Assembléia Geral Ordinária e Extraordinária de 01/04/02, a Companhia aumentou o capital
social de R$ 430,0 milhões para R$ 500,0 milhões, mediante incorporação de reservas.
Com base nos Resultados do Exercício, a Empresa destinou a seus acionistas um montante de R$
89,1 milhões para pagamento de dividendos, subdivididos da seguinte forma:
a) Em 18 de julho de 2002, foram aprovados dividendos intermediários, no valor de R$ 30,9
milhões, pagos em 09/08/02 (R$ 50,00 por mil ações);
b) Em 13 de fevereiro de 2003, foram aprovados dividendos complementares, no valor de R$
58,2 milhões a serem pagos em 10/03/03 (R$ 95,00 por mil ações).
Abaixo, apresentamos a evolução do comparativo do lucro líquido, dividendos e juros, distribuídos
aos acionistas:
196
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2002
00541-0 WEG SA
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
LUCRO LÍQUIDO / DIVIDENDOS
250
220,3
200
100%
150
100
125,4
97,5
89,1
100%
82,0
68,2
100%
50
100%
175,5
33,6
34%
100%
46,2
28,6
40%
39%
37%
35%
0
1998
1999
Lucro Líquido
2000
2001
2002
Dividendos e Juros s/ Capital Próprio
Em Assembléia Geral Extraordinária de 18/11/02, a WEG compatibilizou o Estatuto Social com a
Lei 10.303/01, alterando principalmente as vantagens das ações preferenciais, oferecendo o ¨Tag
Along” que consiste no direito de serem incluídas na oferta pública de alienação de controle da
companhia, de modo a lhes assegurar o preço mínimo igual a 80% do valor pago por ação com
direito a voto integrante do bloco de controle acionário.
DESTINAÇÃO DOS LUCROS
O Conselho de Administração proporá à Assembléia Geral Ordinária, a ser convocada, que o lucro
líquido, deduzidas a reserva legal e os dividendos, seja destinado à reserva para financiar planos
de investimentos.
O Orçamento de Capital da Companhia, para 2003, prevê os seguintes investimentos:
- Imobilizado (ampliação/modernização fabril)
- Circulante (capital de giro)
- Total de Investimentos
R$ 132,4 milhões
R$ 59,7 milhões
R$ 192,1 milhões
O financiamento desse Orçamento de Capital se dará com a utilização da reserva para orçamento
de capital e de recursos a serem captados junto as Instituições Financeiras, preferencialmente das
linhas de financiamento do Sistema BNDES.
197
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
PRÊMIOS
No decorrer do exercício findo, fomos agraciados com inúmeros prêmios que demonstram o
desempenho e a imagem da Companhia nos diversos segmentos. Citamos:
• Prêmio Qualidade Revista Eletricidade Moderna - Motores
• Prêmio Qualidade Revista Eletricidade Moderna - Transformadores
• Prêmio Qualidade Revista Eletricidade Moderna - Melhor Desempenho Global
• A Empresa que mais cresceu em Exportações no Sul - Revista Expressão
• Destaques Cias. Abertas - Agência Estado
• As 100 empresas mais ligadas do país - Revista INFO EXAME
• FORBES 200 Platinun List - Empresa do Ano (Revista FORBES)
• Empresa do Ano em Mecânica - Valor 1000 (Jornal Valor Econômico)
• A Empresa mais admirada no segmento de Mecânica - Revista Carta Capital
• Fórum de Líderes Empresariais - Eggon João da Silva (fundador da WEG)
• Destaque Empresarial Santa Catarina - Jornal Gazeta Mercantil
• Destaques do Setor 2002 em Automação e Equipamentos para Cogeração de Energia ABTCP (Associação Brasileira Técnica de Celulose e Papel) e revista O Papel
• Procel - 184 selos (100% dos motores avaliados) de eficiência energética
• Ordem do Mérito Científico - Eggon João da Silva (fundador da WEG)
• 7 Primeiros lugares no Top Five - Revista NEI
PERSPECTIVAS
Para 2003, consideramos o mercado interno e externo como favoráveis e projetamos o seguinte:
• No mercado interno: a) - fortalecer-se como fornecedor de soluções industriais (sistemas de
automação industrial, subestação e geração e distribuição de energia elétrica) agregando
maior valor aos nossos clientes; e b) - concentrar esforços visando ao aumento da
participação no mercado de transformadores, geradores, componentes elétricos e automação
industrial;
• Continuidade dos investimentos na internacionalização, principalmente dirigidos ao mercado
norte-americano e europeu, destacando-se a implantação de nova fábrica com 18.750m2 no
México onde investiremos US$ 11,0 milhões destinada à produção de motores monofásicos e
industriais e de geradores.
Finalizando, agradecemos aos nossos clientes, fornecedores, representantes, acionistas e órgãos
governamentais pela atenção e preferência, bem como reconhecimento especial aos
colaboradores pela dedicação e participação nos planos e programas implementados para o
desenvolvimento do Grupo WEG.
Jaraguá do Sul (SC), fevereiro de 2003.
A ADMINISTRAÇÃO
198
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
NOTAS EXPLICATIVAS ÀS DEMONSTRAÇÕES FINANCEIRAS
EM 31 DE DEZEMBRO DE 2002
(Em Reais Mil)
01 - APRESENTAÇÃO DAS DEMONSTRAÇÕES FINANCEIRAS
As demonstrações financeiras foram elaboradas de acordo com a Lei nº 6.404/76, e em
conformidade com a Instrução nº 248/96 da CVM.
02 - PRINCIPAIS PRÁTICAS CONTÁBEIS
a)
Apuração do Resultado: As receitas e despesas estão demonstradas obedecendo o regime
de competência.
b)
Aplicações Financeiras: Estão registradas aos valores de custo acrescidas dos rendimentos
auferidos até a data do balanço, de acordo com as taxas pactuadas com as instituições
financeiras.
c)
Provisão com Perdas de Créditos de Clientes: Calculada com base em análise de risco dos
créditos, que considera o histórico de perdas, sendo suficiente para cobrir perdas sobre os
valores a receber.
d)
Estoques: Estão valorados ao custo médio de aquisição ou fabricação, líquidos de
impostos recuperados e não superam os preços de mercado.
e)
Demais Ativos Circulante e de Longo Prazo: São apresentados pelo valor de custo ou de
realização, incluindo, quando aplicável, os rendimentos auferidos e as variações monetárias e
cambiais incorridas.
f)
Investimentos: Os investimentos em empresas controladas e coligada, foram ajustados
pelo método da equivalência patrimonial. Os demais investimentos são avaliados ao custo
de aquisição, acrescidos da correção monetária até 31 de dezembro de 1995.
g)
Imobilizado: É calculado ao custo de aquisição e deduzido das respectivas depreciações. As
depreciações são calculadas sobre o custo de aquisição, pelo método linear, levando-se em
consideração a estimativa de vida útil.
h)
Imposto de Renda e Contribuição Social: Foram apurados pelo lucro real e presumido de
acordo com a legislação vigente. O Imposto de Renda e a Contribuição Social diferidos foram
apurados com base na Deliberação CVM 273/98 e 371/02.
i)
Demais Passivos Circulante e Exigível a Longo Prazo: São demonstrados pelos valores
conhecidos ou calculáveis, acrescidos, quando aplicável, dos correspondentes encargos
financeiros em base "pró rata"-dia e das variações monetárias e cambiais incorridas.
199
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
03 - PROCEDIMENTOS DE CONSOLIDAÇÃO
a)
a Weg S/A e suas controladas adotam práticas contábeis uniformes, sendo que as
demonstrações financeiras das controladas do exterior foram convertidas pela cotação do
câmbio vigente na data do balanço;
b)
eliminação dos saldos das contas ativas e passivas decorrentes das transações entre as
sociedades incluídas na consolidação;
c)
eliminação dos investimentos nas sociedades controladas na proporção de seus respectivos
patrimônios;
d)
eliminação das receitas e das despesas decorrentes de negócios com as sociedades incluídas
na consolidação e dos lucros contidos nos estoques decorrentes de transferências para
controladas;
e)
destaque da participação dos minoritários no patrimônio líquido e na demonstração de
resultados.
04 - DISPONIBILIDADES E APLICAÇÕES FINANCEIRAS
CONTROLADORA
2002
2001
31
26
9.920
9.870
50
-
Disponibilidades
Aplicações em Reais:
- Certificado Depósito Bancário (CDB)
- Fundos de Renda Fixa
Aplicações em Dólar:
- Títulos do Governo no Exterior
- Export Note
- Notas do Banco Central (NBC)
Outras
Total
Curto Prazo
Longo Prazo
200
CONSOLIDADO
2002
2001
30.054
19.527
492.136
306.344
410.385
240.491
81.751
65.853
206.121
188.571
168.140
151.828
37.981
24.597
12.146
14.793
24.780
31
9.946
743.104
539.222
-
-
581.292
161.812
392.238
146.984
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
05 - INSTRUMENTOS FINANCEIROS
O grupo WEG efetua operações com instrumentos financeiros que objetivam maximizar a
rentabilidade dos recursos líquidos de caixa.
A Companhia possui operações relacionadas às suas atividades, que foram pactuadas e
registradas por taxas e condições praticadas no mercado.
- Disponibilidades
- Aplicações Financeiras
- Contas a Receber
- Fornecedores
- Financiamentos
Controladora
Valores
Contábil
Mercado
31
31
-
Consolidado
Valores
Contábil
Mercado
30.054
30.054
713.050
713.050
319.172
319.172
77.589
77.589
695.959
695.959
A Companhia possui derivativos financeiros referentes à contratos de "SWAP", com objetivo de
reduzir os riscos da variação cambial sobre Ativos e Passivos que estão indexados ao dólar.
a) De dólar norte-americano mais juros para 105% do CDI referente aplicação financeira em
títulos do governo brasileiro no exterior no montante de R$ 147.152 mil;
b) De CDI para dólar norte-americano mais juros, referente aos adiantamentos de contrato de
câmbio (ACC's) no montante de R$ 202.218 mil.
06 - CONTAS A RECEBER DE CLIENTES
CONSOLIDADO
2002
135.081
188.900
(1.534)
(3.275)
319.172
Mercado Interno
Mercado Externo
Adiantamentos de Câmbio – ACE
Provisão com Perdas de Créditos de Clientes
Total
2001
113.084
119.303
(26.503)
(2.830)
203.054
07 - ESTOQUES
CONSOLIDADO
2002
2001
139.645
91.690
41.827
34.141
48.119
37.801
229.591
163.632
Produtos Acabados
Produtos em Elaboração
Matérias-primas
Total
201
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
08 - IMPOSTOS A RECUPERAR
CONTROLADORA
2002
2001
Imposto de Renda
Contribuição Social
IPI
ICMS
Outros
Total
3.506
46
3.552
3.502
3.502
CONSOLIDADO
2002
2001
6.918
46
918
4.427
3.036
15.345
3.643
869
1.660
3.056
9.228
Os créditos serão realizados pela empresa e suas controladas, através de restituição e
compensação com impostos e contribuições.
09 - EQUIVALÊNCIA PATRIMONIAL
Foi apurado sobre os investimentos relevantes nas sociedades controladas pelo valor do
patrimônio líquido da investida no ano de 2002, conforme participação em cada empresa.
O valor da equivalência patrimonial decorrente do resultado do período, e os ganhos e perdas de
capital decorrente de variação cambial, acréscimos ou diminuições patrimoniais, estão
classificados em resultados operacionais.
EMPRESAS
Patrimônio
Resultado
Líquido
Líquido do
Participação % Equivalência
Valor
Capital
Patrimonial
Patrimonial
Social/Votante
do
Direta Indireta
Investimento
Ajustado
Exercício
Weg Indústrias S.A.
429.277
213.604
99,94
Weg Exportadora S.A.
-
197.078
429.025
241.079
27.530
99,94
-
27.447
240.935
Weg Equip. Electricos S.A.
15.663
(7.999)
23,23
76,76
(1.846)
3.639
Weg Inds. Venezuela C.A.
(2)
(2.631)
-
99,99
-
-
51.329
3.870
0,04
99,96
1
17
151.474
(16.049)
1,21
98,79
(1.679)
1.828
(1.327) 100,00
-
747
4.715
Weg México S.A de C.V.
Weg Electric Motors Corp.
Weg Overseas S.A
Weg Europe S.A
4.715
15.754
(746)
12,69
87,29
(736)
2.000
Weg Germany GmbH
2.962
179
35,56
64,44
494
1.053
Weg Ibéria S.A
1.358
328
-
100,00
-
-
Weg Electric Motors UK Ltd.
(697)
(2.395) 100,00
-
(954)
-
Weg Itália S.R.L
Wegeuro Inds. Electricas S.A
Weg Scandinávia AB
(55)
(508)
0,50
99,50
-
-
11.232
(2.318)
-
99,99
-
-
802
699
-
100,00
-
-
Weg Austrália PTY
24.029
4.636
3,34
96,66
(382)
803
Weg Japan CO Ltd.
(1.065)
(775)
36,97
63,03
-
-
202
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
10 - INVESTIMENTOS SOCIETÁRIOS NO EXTERIOR
a)
As Demonstrações Financeiras das controladas no exterior são convertidas em moeda
nacional pelo “método da taxa corrente”, em que:
- Balanços Patrimoniais, são convertidos com base na taxa da moeda vigente em 31/12/02;
- Demonstrações de Resultados convertidas com base na taxa média mensal do exercício.
b)
Após a conversão, é apurado o ajuste patrimonial pelo método da equivalência patrimonial,
observando-se o seguinte critério:
- Valor decorrente do resultado do período, e os ganhos e perdas de capital, decorrente de
variação cambial e acréscimos ou diminuições patrimoniais, estão registrados em
Resultados Operacionais;
- Valor decorrente da variação na porcentagem de participação no capital social das
controladas, estão registrados em resultados não operacionais.
11 - TRANSAÇÕES COM AS SOCIEDADES CONTROLADAS
A Companhia possui operações de mútuo com suas controladas, sendo a sua realização de longo
prazo, que em 31/12/02 correspondiam aos seguintes valores:
- Realizável a Longo Prazo
R$
1 mil
- Exigível a Longo Prazo
R$ 6.071 mil
12 - IMOBILIZADO
Taxa Anual de
Depreciação
Terrenos e Construções
Equipamentos e Instalações
Móveis e Utensílios
Veículos
Imobilizações em Curso
Reflorestamento
Outros
Sub Total
Depreciações Acumuladas
%
00 a 04
10 a 30
10 a 30
20 a 30
-
CONTROLADORA
2002
4.736
274
-
-
5.010
(2.668)
Total
2.342
203
2001
4.736
274
-
CONSOLIDADO
2002
109.949
489.281
56.982
3.749
10.556
7.781
34.962
2001
101.714
406.782
46.798
3.868
16.217
7.582
35.828
5.010
713.260
618.789
(2.506) (434.191) (386.871)
2.504
279.069
231.918
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2002
00541-0 WEG SA
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
13 - FINANCIAMENTOS
Exigível a Curto Prazo
Modalidade
Financiamentos de capital de giro
Financiamentos de capital de giro (ACC`s)
Financiamentos de capital de giro
Financiamentos de imobilizado
Financiamentos de imobilizado
Total
CONSOLIDADO
Encargos Anuais
TJLP (+) 1,0 a 3,15% a.a.
Juros 3,18 a 11,68% a.a.(+) V. C.
LIBOR (+) 1,32 a 4,5% a.a.
TJLP (+) 2,5 a 3,5% a.a.
UFIR/IGPM (+) 1,0% a.a.
2002
84.125
277.781
232.422
3.780
5.672
603.780
2001
62.433
125.450
66.554
3.737
262
258.436
2002
43.696
7.522
40.961
2001
77.777
83.577
4.489
32.225
92.179
198.068
Exigível a Longo Prazo
Modalidade
Financiamentos de capital de giro
Financiamentos de capital de giro
Financiamentos de imobilizado
Financiamentos de imobilizado
Encargos Anuais
TJLP (+) 1,0 a 3,15% a.a.
LIBOR (+) 1,32 a 4,5% a.a.
TJLP (+) 2,5 a 3,5% a.a.
IGPM (+) 1,0% a.a.
Total
Em 31 de dezembro de 2002, os vencimentos dos financiamentos de longo prazo, têm a seguinte
composição:
Vencimento
2003
2004
2005
2006
Total
Consolidado
30.906
25.215
23.104
12.954
92.179
Os financiamentos são garantidos por alienação fiduciária e hipoteca de bens.
Os financiamentos captados em moeda estrangeira basicamente abrange os ACC´s no montante
de US$ 76,9 milhões. A Companhia conta com hedge natural de suas exportações que atingiram o
montante de US$ 128,8 milhões em 2002.
Os financiamentos tomados pelas controladas do exterior, são em dólares e nas moedas locais dos
países das unidades, que perfazem o montante de R$ 232,4 milhões em 2002 (US$ 65,8 milhões).
204
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2002
00541-0 WEG SA
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
14 - PROVISÃO PARA IMPOSTO DE RENDA E CONTRIBUIÇÃO SOCIAL
A provisão para imposto de renda foi constituída com alíquota de 15%, acrescida de adicional de
10%, e na contribuição social sobre o lucro com alíquota de 9%, de acordo com a legislação em
vigor. Os impostos das empresas do exterior estão constituídos conforme a legislação vigente de
cada país.
CONTROLADORA
-
Imposto de Renda
Contribuição Social
Total
CONSOLIDADO
32.490
16.118
48.608
15 - IMPOSTO DE RENDA E CONTRIBUIÇÃO SOCIAL DIFERIDOS
Os créditos fiscais diferidos de Imposto de Renda e Contribuição Social sobre o lucro, registrados
no ativo e passivo, foram apurados em conformidade com o pronunciamento do IBRACON,
aprovado pela Deliberação CVM nº 273/98 e 371/02:
CONTROLADORA
IRPJ
CSSL
CONSOLIDADO
IRPJ
CSSL
Base para constituição dos impostos diferidos:
Ativo
- Provisões não dedutíveis
653
235
- Contingências trabalhistas/cíveis
1.612
581
- Tributos em discussão judicial
882
317
6.453
2.323
- Base Negativa da Contribuição Social
976
- Prejuízo Fiscal do I.R.
2.711
- Total
882
317
11.429
4.115
Passivo
- Depreciação acelerada incentivada
121
A realização dos créditos tributários, irão ocorrer a médio/longo prazo, face andamento dos
processos judiciais. A Administração prevê a recuperação dos prejuízos nos próximos 5 anos.
16 - PROGRAMA DE RECUPERAÇÃO FISCAL – REFIS
A Companhia em 12/12/00 aderiu ao Programa de Recuperação Fiscal – REFIS com o objetivo de
reduzir contingências fiscais, optando-se como pagamento pelo parcelamento alternativo, sendo
que os valores são atualizados pela TJLP.
CONTROLADORA
2002
2001
122
113
173
273
295
386
- Curto Prazo
- Longo Prazo
Total
205
CONSOLIDADO
2002
2001
4.527
4.178
6.413
10.097
10.940
14.275
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
17 - PROVISÃO PARA CONTINGÊNCIAS E OUTROS
A Companhia constituiu provisões para contingências sobre processos em andamento de natureza
trabalhista, cível e tributária. Os valores provisionados são suficientes para cobrir eventuais perdas.
CONTROLADORA
2002
2001
6.016
5.939
78
2
-
Contingências tributárias
Investimentos em incentivos fiscais
Processos trabalhistas, cíveis e outros
CONSOLIDADO
2002
2001
81.323
78.958
10.295
3.079
16.038
9.078
Contingências tributárias decorrem de processos tributários a nível federal, os principais processos
em discussão abrangem: IR e CS s/ CMC Plano Verão e Pis/Cofins sobre receitas financeiras.
18 – TRIBUTAÇÃO DA EQUIVALÊNCIA PATRIMONIAL
A Instrução Normativa nº 213/02, considera tributável o resultado da equivalência patrimonial de
investimentos no exterior. Os critérios apresentados nessa instrução normativa não são
conclusivos e permitem interpretações variadas. No presente caso a equivalência patrimonial é
oriunda principalmente de variações cambiais sobre investimentos no exterior. O Imposto de
Renda e Contribuição Social sobre a equivalência patrimonial, correspondente ao montante de R$
23 milhões, será objeto de contestação na esfera administrativa e judicial, e não foi considerado no
Balanço Patrimonial e na Demonstração do Resultado do Exercício.
19 – PARTICIPAÇÃO NOS RESULTADOS
A Companhia e suas controladas, mantém política de conceder participação nos lucros e
resultados a seus colaboradores, vinculada ao Programa Weg de Qualidade e Produtividade, que
estabelece objetivos específicos no início de cada ano. Em 31/12/02 foi provisionado o montante
de R$ 30.190 mil (R$ 23.913 mil em 2001), o qual está registrado na rúbrica de outras receitas/
despesas operacionais.
20 - PATRIMÔNIO LÍQUIDO
a)
Capital Social
Na AGO/E de 01/04/02, foi aprovado aumento de capital social de R$ 430.000 mil para R$
500.000 mil, sem modificação do número de ações, mediante aproveitamento das seguintes
reservas:
- Reserva Legal
8.784 mil
- Reserva para Orçamento de Capital
61.216 mil
O capital social em 31/12/02, é formado de 617.955.200 ações sendo 288.000.000 ordinárias
e 329.955.200 preferenciais, todas sem valor nominal. As ações preferenciais tem as
vantagens asseguradas no Estatuto Social.
206
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
b) Reserva de Reavaliação
No exercício de 2002 foi realizado por depreciações e baixas dos bens reavaliados na
controlada Weg Indústrias S/A, o montante acumulado de R$ 646 mil, contabilizado
diretamente na conta de Resultados Acumulados.
c)
Dividendos
A política de distribuição de dividendos está estabelecida no artigo 36 do Estatuto Social de,
no mínimo 25% do lucro líquido ajustado na forma do artigo 202 da Lei nº 6.404/76. A
distribuição ocorre semestralmente com base nos balanços. Nos últimos 4 anos a empresa
vem distribuindo percentual superior a 30%.
Lucro líquido do exercício
220.326
(+) Realização da reserva de reavaliação
646
(-) Reserva Legal
11.016
Base de cálculo dos dividendos
209.956
Dividendos 1º semestre/2002
30.898
Dividendos 2º semestre/2002
58.177
Total dividendos de 2002
89.075
d)
Ações em Tesouraria
A Companhia, conforme ata do Conselho de Administração de 18 de julho de 2002, com
objetivo de aplicação de recursos disponíveis para investimento, foi autorizada a adquirir até
11.250.000 ações preferenciais para permanência em tesouraria. Em 17 de outubro de 2002
foi aprovado prorrogar o prazo das aquisições das ações por mais 90 dias. Até 31/12/02 foram
adquiridas 5.292.537 ações preferenciais nominativas escriturais, perfazendo o montante de
R$ 11.395 mil ao custo médio de R$ 2,15 por ação.
e)
Constituição de Reservas
- Reserva Legal – constituída no montante de R$ 11.016 mil equivalente a 5% do lucro
líquido do exercício, obedecendo o limite de 20% do capital social;
- Retenção de Lucros – corresponde ao valor remanescente do lucro líquido do exercício R$
120.235 mil, mais o saldo de lucros acumulados R$ 708 mil (decorrente da realização da
reserva de reavaliação e reversão de dividendos de exercícios anteriores) que se destinam a
reserva para orçamento de capital, face o plano de investimentos para 2003 que prevê:
- Imobilizado (ampliação e modernização fabril)
- Circulante (capital de giro)
Total
132.392
59.697
192.089
21 - POSIÇÃO ACIONÁRIA DO CAPITAL VOTANTE EM 31/12/02 (Nº AÇÕES)
Acionista
Weg Particip. e Serviços S/A
Outros
Total
Ordinárias
%
Preferenciais
279.139.477 96,92
24.900.092
8.860.523
3,08
305.055.108
288.000.000 100,00
329.955.200
207
%
7,55
92,45
100,00
Total
304.039.569
313.915.631
617.955.200
%
49,20
50,80
100,00
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
POSIÇÃO ACIONÁRIA
Acionista
Controladores
Administradores
- Conselho de Administração
- Diretoria
Conselho Fiscal
Ações em Tesouraria
Outros
Total Geral
Ordinárias
279.139.477
1.079.058
3.384
1.075.674
1
7.781.464
288.000.000
%
96,92
0,37
0,00
0,37
2,71
100,00
Ordinárias
%
279.139.477
8.860.523
288.000.000
96,92
3,08
100,00
Preferenciais
%
104.658.191 31,72
17.775.609
5,39
12.212.144
3,70
5.563.465
1,69
3
5.292.537
1,60
202.228.860 61,29
329.955.200 100,00
Total
383.797.668
18.854.667
12.215.528
6.639.139
4
5.292.537
210.010.324
617.955.200
%
62,10
3,05
1,97
1,08
0,86
33,99
100,00
AÇÕES EM CIRCULAÇÃO
Weg Particip. S/A e Família
Fundadores
Ações em Tesouraria
Ações em Circulação
Total
Preferenciais
%
104.658.191 31,72
5.292.537
1,60
220.004.472 66,68
329.955.200 100,00
Total
383.797.668
5.292.537
228.864.995
617.955.200
%
62,10
0,86
37,04
100,00
22 - WEG SEGURIDADE SOCIAL
Entidade mantida pela controladora e suas controladas, com plano de contribuição definida,
objetivando assegurar a seus funcionários suplementação de proventos, aposentadoria e outros
benefícios previdenciários. A suplementação é calculada de acordo com a reserva matemática
constituída. A controladora e suas controladas contribuíram com R$ 4.040 mil em 2002.
23 - COBERTURA DE SEGUROS
Os valores são contratados em bases técnicas e estimados suficientes para coberturas de
eventuais perdas decorrentes de sinistros com bens do ativo permanente e estoques, cujo risco
declarado é de R$ 579.156 mil.
24 – PERDAS CAMBIAIS – ARGENTINA
A Companhia reconheceu perda de R$ 5.839 mil, decorrente da crise econômica que levou o peso
argentino de uma cotação de P$ 1,0011 em 31/12/01 para P$ 3,3768 em 31/12/02 em relação ao
US$, reconhecidas nas seguintes contas:
- Despesas Financeiras
- Receitas Financeiras
Variação Contabilizada
(8.753)
2.914
(5.839)
208
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2002
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
25 - DEMONSTRAÇÃO DO FLUXO DE CAIXA
CONTROLADORA
2002
2001
Atividades Operacionais
Lucro líquido do exercício
Imposto de renda e contribuição social
Depreciações e Amortizações
Equivalência patrimonial e ganhos de capital
Participação dos minoritários
Perda ativo imobilizado baixado
Provisões:
Participação no resultado
Outros
Variação do capital de giro
220.326
175.683
(1.327)
1.736
161
232
(221.344) (180.679)
-
CONSOLIDADO
2002
2001
220.326
45.203
50.887
(21.183)
139
487
175.683
71.769
44.868
(21.812)
90
748
1.038
841
30.190
2.181
21.977
(58.455) (158.634)
23.913
10.447
(44.753)
(305)
(59.302)
260.953
Atividades de Investimentos
Aplicação em títulos do governo de longo prazo
Aquisição de Investimentos
Aquisição ações em tesouraria
Alienação de Investimentos
Aquisição de imobilizado
Venda de imobilizado
Ativo Diferido
(719)
(11.395)
-
5.421
(82)
-
Aplicação de caixa em investimentos
(12.114)
5.339 (100.381) (219.115)
Atividades de Financiamentos
Financiamento de capital de giro
Financiamento de longo prazo
Recebimentos de dividendos/ juros s/ capital próprio
Pagamento de dividendos/juros s/ capital próprio
Pagamento participação no resultado
Pagamento imposto de renda e contribuição social
70.723
(68.123)
(96)
82.830
(48.463)
(993)
2.504
33.374
100.043 (173.792)
(9.915)
(20.589)
189.054 (131.954)
9.946
31
30.535
9.946
Caixa líquido de atividades operacionais
Caixa líquido de atividades de financiamentos
Variação no saldo do caixa
Saldo de Caixa:
No início do período
No final do período
209
189.392
- (146.984)
(11.395)
(83.040)
(72.873)
742
(5.946)
-
252.866
(13.411)
2.787
(71.600)
(24.491)
(46.108)
392.238
581.292
(33.186)
2.933
1.506
(54.345)
(20.856)
(69.844)
524.192
392.238
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Legislação Societária
Data-Base - 31/12/2002
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
ÍNDICE
GRUPO QUADRO
DESCRIÇÃO
PÁGINA
01
01
IDENTIFICAÇÃO
1
01
02
SEDE
1
01
03
DIRETOR DE RELAÇÕES COM INVESTIDORES (Endereço para Correspondência com a Companhia)
1
01
04
REFERÊNCIA DO DFP
1
01
05
COMPOSIÇÃO DO CAPITAL SOCIAL
2
01
06
CARACTERÍSTICAS DA EMPRESA
2
01
07
SOCIEDADES NÃO INCLUÍDAS NAS DEMONSTRAÇÕES FINANCEIRAS CONSOLIDADAS
2
01
08
PROVENTOS EM DINHEIRO
2
01
09
DIRETOR DE RELAÇÕES COM INVESTIDORES
2
02
01
BALANÇO PATRIMONIAL ATIVO
3
02
02
BALANÇO PATRIMONIAL PASSIVO
4
03
01
DEMONSTRAÇÃO DO RESULTADO
5
04
01
DEMONSTRAÇÃO DAS ORIGENS E APLICAÇÕES DE RECURSOS
6
05
01
DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2002 A 31/12/2002
7
05
02
DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2001 A 31/12/2001
8
05
03
DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2000 A 31/12/2000
06
01
BALANÇO PATRIMONIAL ATIVO CONSOLIDADO
10
06
02
BALANÇO PATRIMONIAL PASSIVO CONSOLIDADO
11
07
01
DEMONSTRAÇÃO DO RESULTADO CONSOLIDADO
12
08
01
DEMONSTRAÇÃO DAS ORIGENS E APLICAÇÕES DE RECURSOS CONSOLIDADAS
13
09
01
PARECER DOS AUDITORES INDEPENDENTES - SEM RESSALVA
14
10
01
RELATÓRIO DA ADMINISTRAÇÃO
11
01
NOTAS EXPLICATIVAS
9
15
23/33
210
APPENDIX D
The Issuer’s Financial Statements for fiscal year ended December 31, 2003 and Report of
Independent Auditors.
211
This Page Intentionally Left Blank
212
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2003
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
O REGISTRO NA CVM NÃO IMPLICA QUALQUER APRECIAÇÃO SOBRE A COMPANHIA , SENDO OS SEUS
ADMINISTRADORES RESPONSÁVEIS PELA VERACIDADE DAS INFORMAÇÕES PRESTADAS.
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
4 - NIRE
01.02 - SEDE
1 - ENDEREÇO COMPLETO
2 - BAIRRO OU DISTRITO
AV. PREFEITO WALDEMAR GRUBBA - 3300
CENTRO
3 - CEP
4 - MUNICÍPIO
89256-900
JARAGUÁ DO SUL
6 - DDD
047
11 - DDD
047
7 - TELEFONE
372-4000
12 - FAX
372-4201
5 - UF
SC
8 - TELEFONE
9 - TELEFONE
-
-
13 - FAX
14 - FAX
-
-
10 - TELEX
0
15 - E-MAIL
01.03 - DIRETOR DE RELAÇÕES COM INVESTIDORES (Endereço para Correspondência com a Companhia)
1 - NOME
ALIDOR LUEDERS
2 - ENDEREÇO COMPLETO
3 - BAIRRO OU DISTRITO
AV. PREFEITO WALDEMAR GRUBBA - 3.300
CENTRO
4 - CEP
89256-900
7 - DDD
047
12 - DDD
047
6 - UF
5 - MUNICÍPIO
JARAGUÁ DO SUL
8 - TELEFONE
372-4511
13 - FAX
372-4201
SC
9 - TELEFONE
10 - TELEFONE
-
-
14 - FAX
15 - FAX
-
-
11 - TELEX
16 - E-MAIL
[email protected]
01.04 - REFERÊNCIA / AUDITOR
EXERCÍCIO
1 - DATA DE INÍCIO DO EXERCÍCIO SOCIAL
2 - DATA DE TÉRMINO DO EXERCÍCIO SOCIAL
1 - Último
01/01/2003
31/12/2003
2 - Penúltimo
01/01/2002
31/12/2002
3 - Antepenúltimo
01/01/2001
4 - NOME/RAZÃO SOCIAL DO AUDITOR
31/12/2001
5 - CÓDIGO CVM
KPMG AUDITORES INDEPENDENTES
00418-9
6 - NOME DO RESPONSÁVEL TÉCNICO
7 - CPF DO RESP. TÉCNICO
PEDRO JAIME CERVATTI
655.644.058-20
213
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 31/12/2003
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
01.05 - COMPOSIÇÃO DO CAPITAL SOCIAL
Número de Ações
2
31/12/2002
1
31/12/2003
(Mil)
3
31/12/2001
Do Capital Integralizado
1 - Ordinárias
288.000
288.000
288.000
2 - Preferenciais
329.955
329.955
329.955
3 - Total
617.955
617.955
617.955
Em Tesouraria
0
0
0
10.359
10.359
5.293
0
5.293
0
4 - Ordinárias
5 - Preferenciais
6 - Total
01.06 - CARACTERÍSTICAS DA EMPRESA
1 - TIPO DE EMPRESA
Empresa Comercial, Industrial e Outras
2 - TIPO DE SITUAÇÃO
Operacional
3 - NATUREZA DO CONTROLE ACIONÁRIO
Nacional Holding
4 - CÓDIGO ATIVIDADE
1170000 - Participação e Administração
5 - ATIVIDADE PRINCIPAL
GESTÃO DE PARTICIPAÇÕES SOCIETÁRIAS ( HOLDINGS)
6 - TIPO DE CONSOLIDADO
Total
01.07 - SOCIEDADES NÃO INCLUÍDAS NAS DEMONSTRAÇÕES FINANCEIRAS CONSOLIDADAS
1 - ÍTEM
2 - CNPJ
3 - DENOMINAÇÃO SOCIAL
01.08 - PROVENTOS EM DINHEIRO
1 - ÍTEM
2 - EVENTO
4 - PROVENTO
5 - INÍCIO PGTO. 6 - TIPO AÇÃO 7 - VALOR DO PROVENTO P/ AÇÃO
01
RCA
3 - APROVAÇÃO
17/07/2003
Juros Sobre Capital Próprio
18/08/2003
ON
0,0075000000
02
RCA
17/07/2003
Juros Sobre Capital Próprio
18/08/2003
PN
0,0075000000
03
RCA
17/07/2003
Dividendo
18/08/2003
ON
0,0725000000
04
RCA
17/07/2003
Dividendo
18/08/2003
PN
0,0725000000
05
RCA
12/02/2004
Juros Sobre Capital Próprio
17/03/2004
ON
0,0070000000
06
RCA
12/02/2004
Juros Sobre Capital Próprio
17/03/2004
PN
0,0070000000
07
RCA
12/02/2004
Dividendo
17/03/2004
ON
0,1140000000
08
RCA
12/02/2004
Dividendo
17/03/2004
PN
0,1140000000
01.09 - DIRETOR DE RELAÇÕES COM INVESTIDORES
1 - DATA
2 - ASSINATURA
12/02/2004
214
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2003
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
02.01 - BALANÇO PATRIMONIAL ATIVO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
1
Ativo Total
3 - 31/12/2003
944.452
4 - 31/12/2002
766.394
5 - 31/12/2001
623.063
1.01
Ativo Circulante
165.400
61.726
52.700
1.01.01
Disponibilidades
37.937
31
9.946
1.01.02
Créditos
0
0
0
1.01.03
Estoques
0
0
0
1.01.04
Outros
127.463
61.695
42.754
1.01.04.01
Títulos e Valores
1.01.04.02
Dividendos
1.01.04.03
Juros s/ Capital Próprio
1.01.04.04
Impostos a Recuperar
1.02
Ativo Realizável a Longo Prazo
1.02.01
0
0
0
119.930
58.143
17.293
3.995
0
21.960
3.538
3.552
3.501
7.314
6.599
5.620
Créditos Diversos
0
0
0
1.02.02
Créditos com Pessoas Ligadas
0
0
0
1.02.02.01
Com Coligadas
0
0
0
1.02.02.02
Com Controladas
0
0
0
1.02.02.03
Com Outras Pessoas Ligadas
0
0
0
1.02.03
Outros
7.314
6.599
5.620
1.02.03.01
Depósitos Judiciais
5.925
5.399
4.438
1.02.03.02
Impostos Diferidos
1.389
1.200
1.182
1.03
Ativo Permanente
771.738
698.069
564.743
1.03.01
Investimentos
769.557
695.727
562.239
1.03.01.01
Participações em Coligadas
54.672
49.803
48.190
1.03.01.02
Participações em Controladas
714.879
645.622
514.024
1.03.01.03
Outros Investimentos
6
302
25
1.03.02
Imobilizado
2.181
2.342
2.504
1.03.02.01
Imóveis
2.181
2.342
2.504
1.03.03
Diferido
0
0
0
215
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2003
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
02.02 - BALANÇO PATRIMONIAL PASSIVO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
2
Passivo Total
2.01
Passivo Circulante
2.01.01
3 - 31/12/2003
4 - 31/12/2002
5 - 31/12/2001
944.452
766.394
623.063
76.031
59.392
38.358
Empréstimos e Financiamentos
0
0
0
2.01.02
Debêntures
0
0
0
2.01.03
Fornecedores
0
0
0
2.01.04
Impostos, Taxas e Contribuições
1.460
207
723
2.01.04.01
Obrigações Sociais
695
71
597
2.01.04.02
Obrigações Tributárias
765
136
126
2.01.05
Dividendos a Pagar
74.093
58.525
37.635
2.01.05.01
Dividendos
69.611
58.369
17.340
2.01.05.02
Juros s/ Capital Próprio
4.482
156
20.295
2.01.06
Provisões
0
0
0
2.01.07
Dívidas com Pessoas Ligadas
0
0
0
2.01.08
Outros
478
660
0
2.02
Passivo Exigível a Longo Prazo
6.995
13.351
11.057
2.02.01
Empréstimos e Financiamentos
0
0
0
2.02.02
Debêntures
0
0
0
2.02.03
Provisões
0
0
0
2.02.04
Dívidas com Pessoas Ligadas
129
6.071
3.475
2.02.05
Outros
6.866
7.280
7.582
2.02.05.01
Tributos em Contingências
6.586
6.016
5.939
2.02.05.02
Obrigações Sociais e Tributárias
56
173
273
2.02.05.03
Outras Obrigações
224
1.091
1.370
2.03
Resultados de Exercícios Futuros
0
0
0
2.05
Patrimônio Líquido
861.426
693.651
573.648
2.05.01
Capital Social Realizado
600.000
500.000
430.000
2.05.02
Reservas de Capital
0
111
26
2.05.03
Reservas de Reavaliação
9.379
10.026
10.673
2.05.03.01
Ativos Próprios
2.05.03.02
Controladas/Coligadas
2.05.04
Reservas de Lucro
2.05.04.01
Legal
2.05.04.02
Estatutária
2.05.04.03
2.05.04.04
0
0
0
9.379
10.026
10.673
252.047
183.514
132.949
15.390
11.016
8.784
264.294
183.893
124.165
Para Contingências
0
0
0
De Lucros a Realizar
0
0
0
2.05.04.05
Retenção de Lucros
0
0
0
2.05.04.06
Especial p/ Dividendos Não Distribuídos
0
0
0
2.05.04.07
Outras Reservas de Lucro
(27.637)
(11.395)
0
2.05.04.07.01
Ações em Tesouraria
(27.637)
(11.395)
0
2.05.05
Lucros/Prejuízos Acumulados
0
0
0
216
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2003
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
03.01 - DEMONSTRAÇÃO DO RESULTADO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
3.01
Receita Bruta de Vendas e/ou Serviços
3 - 01/01/2003 a 31/12/2003 4 - 01/01/2002 a 31/12/2002 5 - 01/01/2001 a 31/12/2001
0
0
0
3.02
Deduções da Receita Bruta
0
0
0
3.03
Receita Líquida de Vendas e/ou Serviços
0
0
0
3.04
Custo de Bens e/ou Serviços Vendidos
0
0
0
3.05
Resultado Bruto
0
0
0
3.06
Despesas/Receitas Operacionais
312.923
225.357
173.987
3.06.01
Com Vendas
3.06.02
Gerais e Administrativas
3.06.03
Financeiras
3.06.03.01
Receitas Financeiras
3.06.03.01.01
Juros s/ Capital Próprio (Recebidos)
3.06.03.01.02
Outras Receitas
3.06.03.02
0
0
0
(2.124)
(1.580)
(1.942)
7.039
1.043
3.397
18.314
1.148
48.175
13.074
405
46.081
5.240
743
2.094
Despesas Financeiras
(11.275)
(105)
(44.778)
3.06.03.02.01
Juros s/ Capital Próprio (Pagos)
(10.383)
0
(42.893)
3.06.03.02.02
Outras Despesas
(892)
(105)
(1.885)
3.06.04
Outras Receitas Operacionais
0
10.050
16.640
3.06.05
Outras Despesas Operacionais
(969)
0
0
3.06.06
Resultado da Equivalência Patrimonial
308.977
215.844
155.892
3.07
Resultado Operacional
312.923
225.357
173.987
3.08
Resultado Não Operacional
(28)
(4.627)
6.620
3.08.01
Receitas
0
0
6.620
3.08.02
Despesas
(28)
(4.627)
0
3.09
Resultado Antes Tributação/Participações
312.895
220.730
180.607
3.10
Provisão para IR e Contribuição Social
(1.521)
644
(2.354)
3.11
IR Diferido
190
16
617
3.12
Participações/Contribuições Estatutárias
(1.064)
(659)
0
3.12.01
Participações
(1.064)
(659)
0
3.12.02
Contribuições
0
0
0
3.13
Reversão dos Juros sobre Capital Próprio
(2.691)
(405)
(3.187)
3.15
Lucro/Prejuízo do Exercício
307.809
220.326
175.683
NÚMERO AÇÕES, EX-TESOURARIA (Mil)
607.596
612.662
617.955
LUCRO POR AÇÃO
0,50660
0,35962
0,28430
PREJUÍZO POR AÇÃO
217
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2003
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
04.01 - DEMONSTRAÇÃO DAS ORIGENS E APLICAÇÕES DE RECURSOS (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
4.01
Origens
3 - 01/01/2003 a 31/12/2003 4 - 01/01/2002 a 31/12/2002 5 - 01/01/2001 a 31/12/2001
234.198
90.243
4.01.01
Das Operações
232.559
94.256
91.685
4.01.01.01
Lucro/Prejuízo do Exercício
307.809
220.326
175.683
4.01.01.02
Vls. que não repr. mov. Cap. Circulante
(75.250)
(126.070)
(83.998)
4.01.01.02.01
Depreciações e Amortizações
429
161
165
4.01.01.02.02
Equivalência Patrimonial
(308.977)
(215.844)
(155.892)
4.01.01.02.03
Juros s/Cap. Próprio Controlada/Coligada
13.074
0
46.081
4.01.01.02.04
Dividendos/Lucros de Controlada/Coligada
220.224
89.613
25.648
4.01.02
Dos Acionistas
0
0
0
4.01.03
De Terceiros
1.639
(4.013)
(11.349)
4.01.03.01
Redução do Ativo R. L. P.
0
0
0
4.01.03.02
Aumento do Passivo E. L. P.
0
2.294
0
4.01.03.03
Incentivos Fiscais
0
85
26
4.01.03.04
Perdas/Ganhos de Capital
1.552
(6.529)
(16.914)
4.01.03.05
Outros
87
137
5.539
4.02
Aplicações
147.163
102.252
131.798
4.02.01
Juros s/ Capital Próprio
4.02.02
Dividendos
4.02.03
Aumento do Ativo Permanente
4.02.04
Aumento do Ativo R. L. P.
4.02.05
Redução do Passivo E. L. P.
4.02.06
Ações em Tesouraria
4.03
Acréscimo/Decréscimo no Cap. Circulante
87.035
4.04
Variação do Ativo Circulante
4.04.01
Ativo Circulante no Início do Exercício
4.04.02
Ativo Circulante no Final do Exercício
4.05
80.336
10.383
0
42.894
113.466
89.075
25.336
0
803
109
715
979
2.233
6.357
0
61.226
16.242
11.395
0
(12.009)
(51.462)
103.673
9.026
(37.285)
61.726
52.700
89.985
165.399
61.726
52.700
Variação do Passivo Circulante
16.638
21.035
14.177
4.05.01
Passivo Circulante no Início Exercício
59.393
38.358
24.181
4.05.02
Passivo Circulante no Final do Exercício
76.031
59.393
38.358
218
219
6 - RESERVAS DE
Dividendos
Outros
Saldo Final
5.08
5.09
Destinações
5.07
5.07.04
Lucro/Prejuízo do Exercício
5.06
Juros sobre o Capital Próprio
Ações em Tesouraria
5.05
5.07.03
Realização de Reservas
5.04
Reserva para Orçamento de Capital
Aumento/Redução do Capital Social
5.03
Reserva Legal
Ajustes de Exercícios Anteriores
5.02
5.07.02
Saldo Inicial
5.01
5.07.01
2 - DESCRIÇÃO
1 - CÓDIGO
600.000
0
0
0
0
0
0
0
0
0
100.000
0
500.000
3 - CAPITAL SOCIAL
CAPITAL
4 - RESERVAS DE
0
0
0
0
0
0
0
0
0
0
(111)
0
111
9.379
0
0
0
0
0
0
0
0
(647)
0
0
10.026
REAVALIAÇÃO
5 - RESERVAS DE
LUCRO
252.047
0
0
0
169.274
15.390
184.664
0
(16.242)
0
(99.889)
0
183.514
0
647
0
57
0
0
0
(113.466)
(10.383)
(169.274)
(15.390)
(308.513)
307.809
ACUMULADOS
7 - LUCROS/PREJUÍZOS
LÍQUIDO
861.426
0
(113.466)
(10.383)
0
0
(123.849)
307.809
(16.242)
0
0
57
693.651
8 - TOTAL PATRIMÔNIO
84.429.695/0001-11
WEG SA
05.01 - DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2003 A 31/12/2003 (Reais Mil)
3 - CNPJ
2 - DENOMINAÇÃO SOCIAL
Legislação Societária
00541-0
Data-Base - 31/12/2003
Divulgação Externa
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
SERVIÇO PÚBLICO FEDERAL
220
6 - RESERVAS DE
Dividendos
Outros
Incentivos Fiscais
Saldo Final
5.08
5.08.01
5.09
Lucro/Prejuízo do Exercício
5.06
5.07.03
Ações em Tesouraria
5.05
Reserva p/ Orçamento de Capital
Reserva de Reavaliação
5.04.01
Reserva Legal
Realização de Reservas
5.04
5.07.02
Aumento/Redução do Capital Social
5.03
5.07.01
Ajustes de Exercícios Anteriores
5.02
Destinações
Saldo Inicial
5.01
5.07
2 - DESCRIÇÃO
1 - CÓDIGO
500.000
0
0
0
0
0
0
0
0
0
0
70.000
0
430.000
3 - CAPITAL SOCIAL
CAPITAL
4 - RESERVAS DE
111
85
85
0
0
0
0
0
0
0
0
0
0
26
10.026
0
0
0
0
0
0
0
0
(647)
(647)
0
0
10.673
REAVALIAÇÃO
5 - RESERVAS DE
LUCRO
183.514
0
0
0
120.944
11.016
131.960
0
(11.395)
0
0
(70.000)
0
132.949
0
647
647
0
62
0
0
0
0
(89.075)
(120.944)
(11.016)
(221.035)
220.326
ACUMULADOS
7 - LUCROS/PREJUÍZOS
LÍQUIDO
693.651
85
85
(89.075)
0
0
(89.075)
220.326
(11.395)
0
0
0
62
573.648
8 - TOTAL PATRIMÔNIO
84.429.695/0001-11
WEG SA
05.02 - DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2002 A 31/12/2002 (Reais Mil)
3 - CNPJ
2 - DENOMINAÇÃO SOCIAL
Legislação Societária
00541-0
Data-Base - 31/12/2003
Divulgação Externa
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
SERVIÇO PÚBLICO FEDERAL
221
6 - RESERVAS DE
Juros s/ Capital Próprio
Dividendos
Outros
Incentivos Fiscais
Saldo Final
5.07.04
5.08
5.08.01
5.09
Lucro/Prejuízo do Exercício
5.06
5.07.03
Ações em Tesouraria
5.05
Reserva p/ Orçamento de Capital
Reserva de Reavaliação
5.04.01
5.07.02
Realização de Reservas
5.04
Reserva Legal
Aumento/Redução do Capital Social
5.03
Destinações
Ajustes de Exercícios Anteriores
5.02
5.07.01
Saldo Inicial
5.01
5.07
2 - DESCRIÇÃO
1 - CÓDIGO
430.000
0
0
0
0
0
0
0
0
0
0
0
60.000
0
370.000
3 - CAPITAL SOCIAL
CAPITAL
4 - RESERVAS DE
26
26
26
0
0
0
0
0
0
0
0
0
0
0
0
10.673
0
0
0
0
0
0
0
0
0
(646)
(646)
0
0
11.319
REAVALIAÇÃO
5 - RESERVAS DE
LUCRO
132.949
0
0
0
0
99.365
8.784
108.149
0
0
0
0
(60.000)
0
84.800
0
646
646
0
49
0
0
0
0
(25.336)
(42.893)
(99.365)
(8.784)
(176.378)
175.683
ACUMULADOS
7 - LUCROS/PREJUÍZOS
LÍQUIDO
573.648
26
26
(25.336)
(42.893)
0
0
(68.229)
175.683
0
0
0
0
49
466.119
8 - TOTAL PATRIMÔNIO
84.429.695/0001-11
WEG SA
05.03 - DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2001 A 31/12/2001 (Reais Mil)
3 - CNPJ
2 - DENOMINAÇÃO SOCIAL
Legislação Societária
00541-0
Data-Base - 31/12/2003
Divulgação Externa
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
SERVIÇO PÚBLICO FEDERAL
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2003
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
06.01 - BALANÇO PATRIMONIAL ATIVO CONSOLIDADO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
1
Ativo Total
3 - 31/12/2003
1.923.291
4 - 31/12/2002
1.766.747
5 - 31/12/2001
1.318.607
1.01
Ativo Circulante
1.153.651
1.166.124
794.410
1.01.01
Disponibilidades
477.470
581.292
392.238
1.01.02
Créditos
340.459
319.172
203.054
1.01.03
Estoques
283.835
229.591
163.632
1.01.04
Outros
51.887
36.069
35.486
1.01.04.01
Impostos a Recuperar
25.095
15.345
9.228
1.01.04.02
Outros
26.792
20.724
26.258
1.02
Ativo Realizável a Longo Prazo
337.390
249.024
223.432
1.02.01
Créditos Diversos
0
0
0
1.02.02
Créditos com Pessoas Ligadas
0
0
0
1.02.02.01
Com Coligadas
0
0
0
1.02.02.02
Com Controladas
0
0
0
1.02.02.03
Com Outras Pessoas Ligadas
0
0
0
1.02.03
Outros
337.390
249.024
223.432
1.02.03.01
Aplicações Financeiras
246.152
161.812
146.984
1.02.03.02
Depósitos Judiciais
69.335
57.946
55.503
1.02.03.03
Export Notes
0
5.481
3.205
1.02.03.04
Impostos Diferidos
12.855
15.544
12.314
1.02.03.05
Outros
1.03
Ativo Permanente
1.03.01
1.03.01.01
1.03.01.02
Participações em Controladas
1.03.01.03
Outros Investimentos
1.03.02
1.03.02.01
9.048
8.241
5.426
432.250
351.599
300.765
Investimentos
62.371
64.190
65.212
Participações em Coligadas
57.370
49.803
48.190
0
0
0
5.001
14.387
17.022
Imobilizado
338.251
279.069
231.918
Imóveis
106.083
71.795
67.327
1.03.02.02
Equipamentos e Instalações
151.894
144.875
109.043
1.03.02.03
Móveis e Utensílios
28.840
24.302
17.385
1.03.02.04
Veículos
1.773
1.347
1.665
1.03.02.05
Outros
49.661
36.750
36.498
1.03.03
Diferido
31.628
8.340
3.635
222
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2003
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
06.02 - BALANÇO PATRIMONIAL PASSIVO CONSOLIDADO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
2
Passivo Total
2.01
3 - 31/12/2003
4 - 31/12/2002
5 - 31/12/2001
1.923.291
1.766.747
1.318.607
Passivo Circulante
720.373
873.281
445.603
2.01.01
Empréstimos e Financiamentos
376.521
603.780
258.436
2.01.02
Debêntures
0
0
0
2.01.03
Fornecedores
96.662
77.589
49.582
2.01.04
Impostos, Taxas e Contribuições
68.140
46.914
39.792
2.01.04.01
Obrigações Sociais
40.174
28.623
24.102
2.01.04.02
Obrigações Tributárias
27.966
18.291
15.690
2.01.05
Dividendos a Pagar
74.165
58.560
37.657
2.01.05.01
Dividendos
69.682
58.404
17.350
2.01.05.02
Juros s/ Capital Próprio
4.483
156
20.307
2.01.06
Provisões
0
0
0
2.01.07
Dívidas com Pessoas Ligadas
0
0
0
2.01.08
Outros
104.885
86.438
60.136
2.01.08.01
Participação no Resultado
30.235
24.417
14.757
2.01.08.02
Adiantamento de Clientes
29.981
25.519
19.158
2.01.08.03
Outras Obrigações
44.669
36.502
26.221
2.02
Passivo Exigível a Longo Prazo
340.900
199.414
299.051
2.02.01
Empréstimos e Financiamentos
223.147
92.179
198.068
2.02.02
Debêntures
0
0
0
2.02.03
Provisões
0
0
0
2.02.04
Dívidas com Pessoas Ligadas
2.879
1.692
112
2.02.05
Outros
114.874
105.543
100.871
2.02.05.01
Tributos em Contingências
111.238
96.327
78.958
2.02.05.02
Obrigações Sociais e Tributárias
3.073
6.995
10.097
2.02.05.03
Outras Obrigaçoes
563
2.221
11.816
2.03
Resultados de Exercícios Futuros
0
0
0
2.04
Participações Minoritárias
592
401
305
2.05
Patrimônio Líquido
861.426
693.651
573.648
2.05.01
Capital Social Realizado
600.000
500.000
430.000
2.05.02
Reservas de Capital
0
111
26
2.05.03
Reservas de Reavaliação
9.379
10.026
10.673
2.05.03.01
Ativos Próprios
2.05.03.02
Controladas/Coligadas
2.05.04
Reservas de Lucro
2.05.04.01
Legal
2.05.04.02
Estatutária
2.05.04.03
2.05.04.04
0
0
0
9.379
10.026
10.673
252.047
183.514
132.949
15.390
11.016
8.784
264.294
183.893
124.165
Para Contingências
0
0
0
De Lucros a Realizar
0
0
0
2.05.04.05
Retenção de Lucros
0
0
0
2.05.04.06
Especial p/ Dividendos Não Distribuídos
0
0
0
2.05.04.07
Outras Reservas de Lucro
(27.637)
(11.395)
0
2.05.04.07.01
Ações em Tesouraria
(27.637)
(11.395)
0
2.05.05
Lucros/Prejuízos Acumulados
0
0
0
223
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2003
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
07.01 - DEMONSTRAÇÃO DO RESULTADO CONSOLIDADO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
3.01
Receita Bruta de Vendas e/ou Serviços
3 - 01/01/2003 a 31/12/2003 4 - 01/01/2002 a 31/12/2002 5 - 01/01/2001 a 31/12/2001
2.015.111
1.534.903
3.02
Deduções da Receita Bruta
(320.951)
(252.868)
(202.937)
3.03
Receita Líquida de Vendas e/ou Serviços
1.694.160
1.282.035
1.065.936
3.04
Custo de Bens e/ou Serviços Vendidos
(1.027.434)
(798.745)
(663.302)
3.05
Resultado Bruto
666.726
483.290
402.634
3.06
Despesas/Receitas Operacionais
(274.747)
(205.168)
(194.260)
3.06.01
Com Vendas
(194.718)
(146.524)
(113.096)
3.06.02
Gerais e Administrativas
(88.957)
(76.544)
(61.007)
3.06.03
Financeiras
56.184
30.186
(15.407)
3.06.03.01
Receitas Financeiras
177.640
141.596
111.394
3.06.03.02
Despesas Financeiras
(121.456)
(111.410)
(126.801)
3.06.03.02.01
Juros s/ Capital Próprio
3.06.03.02.02
Outras Despesas
3.06.04
Outras Receitas Operacionais
3.06.05
Outras Despesas Operacionais
3.06.06
Resultado da Equivalência Patrimonial
3.07
Resultado Operacional
3.08
Resultado Não Operacional
3.08.01
Receitas
3.08.02
Despesas
3.09
Resultado Antes Tributação/Participações
387.356
270.034
204.905
3.10
Provisão para IR e Contribuição Social
(80.132)
(48.608)
(76.700)
3.11
IR Diferido
(2.567)
3.405
4.675
3.12
Participações/Contribuições Estatutárias
(4.363)
(3.960)
0
3.12.01
Participações
(4.363)
(3.960)
0
3.12.02
Contribuições
0
0
0
3.13
Reversão dos Juros sobre Capital Próprio
7.692
(405)
42.893
3.14
Participações Minoritárias
(177)
(140)
(90)
3.15
Lucro/Prejuízo do Exercício
307.809
220.326
175.683
NÚMERO AÇÕES, EX-TESOURARIA (Mil)
607.596
612.662
617.955
LUCRO POR AÇÃO
0,50660
0,35962
0,28430
PREJUÍZO POR AÇÃO
224
1.268.873
(10.389)
0
(42.893)
(111.067)
(111.410)
(83.908)
13.092
30.383
16.932
(67.915)
(44.865)
(32.763)
7.567
2.196
11.081
391.979
278.122
208.374
(4.623)
(8.088)
(3.469)
912
1.128
1.729
(5.535)
(9.216)
(5.198)
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Data-Base - 31/12/2003
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
08.01 - DEMONSTRAÇÃO DAS ORIGENS E APLICAÇÕES DE RECURSOS CONSOLIDADAS (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
4.01
Origens
3 - 01/01/2003 a 31/12/2003 4 - 01/01/2002 a 31/12/2002 5 - 01/01/2001 a 31/12/2001
518.664
264.563
290.194
4.01.01
Das Operações
380.667
251.494
202.293
4.01.01.01
Lucro/Prejuízo do Exercício
307.809
220.326
175.683
4.01.01.02
Vls. que não repr. mov. Cap. Circulante
72.858
31.168
26.610
4.01.01.02.01
Depreciações e Amortizações
57.238
50.887
43.738
4.01.01.02.02
Equivalência Patrimonial
(7.567)
(2.196)
(11.081)
4.01.01.02.03
Alienações/Baixas do Permanente
4.01.01.02.04
Ganhos/Perdas de Capital
4.01.01.02.05
Participação dos Minoritários
4.01.01.02.06
Juros s/ Capital Próprio Coligada
4.01.02
Dos Acionistas
4.01.03
De Terceiros
4.01.03.01
Redução do Ativo R. L. P.
4.01.03.02
Aumento de Passivo E. L. P.
4.01.03.03
Incentivos Fiscais
4.01.03.04
Outros
4.02
2.140
488
2.263
18.173
(18.740)
(11.997)
177
139
90
2.697
590
3.597
0
0
0
137.997
13.069
87.901
0
0
0
141.486
0
80.984
2.618
0
5.790
(3.489)
7.279
4.299
Aplicações
378.229
320.528
303.097
4.02.01
Dividendos
113.597
89.128
25.336
4.02.02
Juros s/ Capital Próprio
10.389
0
42.933
4.02.03
Ações em Tesouraria
16.242
11.395
0
4.02.04
Aumento do Ativo R.L.P
88.366
25.592
159.335
4.02.05
Redução do Passivo E.L.P
4.02.06
Aumento do Ativo Permanente
4.03
4.04
4.04.01
0
99.637
0
149.635
94.776
75.493
Acréscimo/Decréscimo no Cap. Circulante
140.435
(55.965)
(12.903)
Variação do Ativo Circulante
(12.473)
371.714
(79.575)
Ativo Circulante no Início do Exercício
1.166.124
794.410
873.985
4.04.02
Ativo Circulante no Final do Exercício
1.153.651
1.166.124
794.410
4.05
Variação do Passivo Circulante
(152.908)
427.678
(66.672)
4.05.01
Passivo Circulante no Início Exercício
873.281
445.603
512.275
4.05.02
Passivo Circulante no Final do Exercício
720.373
873.281
445.603
225
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
09.01 - PARECER DOS AUDITORES INDEPENDENTES - SEM RESSALVA
Ao
Conselho de Administração e aos Acionistas da
WEG S.A.
Jaraguá do Sul - SC
1.
Examinamos o balanço patrimonial da WEG S.A., e o balanço patrimonial consolidado dessa Companhia
e suas controladas, levantados em 31 de dezembro de 2003, e as respectivas demonstrações do resultado,
das mutações do patrimônio líquido e das origens e aplicações de recursos, correspondentes ao exercício
findo naquela data, elaborados sob a responsabilidade de sua administração. Nossa responsabilidade é a
de expressar uma opinião sobre essas demonstrações financeiras.
2.
Nosso exame foi conduzido de acordo com as normas de auditoria aplicáveis no Brasil e compreendeu:
(a) o planejamento dos trabalhos, considerando a relevância dos saldos, o volume de transações e os
sistemas contábil e de controles internos da Companhia e suas controladas; (b) a constatação, com base
em testes, das evidências e dos registros que suportam os valores e as informações contábeis divulgados;
e (c) a avaliação das práticas e das estimativas contábeis mais representativas adotadas pela
administração da Companhia e suas controladas, bem como da apresentação das demonstrações
financeiras tomadas em conjunto.
3.
Em nossa opinião, as demonstrações financeiras acima referidas representam, adequadamente, em todos
os aspectos relevantes, a posição patrimonial e financeira da WEG S.A., e a posição patrimonial e
financeira consolidada dessa Companhia e suas controladas em 31 de dezembro de 2003, o resultado de
suas operações, as mutações do seu patrimônio líquido e as origens e aplicações de seus recursos
correspondentes ao exercício findo naquela data, de acordo com as práticas contábeis adotada no Brasil.
4.
Nossos exames foram efetuados com o objetivo de formarmos uma opinião sobre as demonstrações
financeiras tomadas em conjunto. A demonstração do fluxo de caixa representa informação
complementar àquelas demonstrações e é apresentada para possibilitar uma análise adicional. Essa
informação complementar foi submetida aos mesmos procedimentos de auditoria aplicados às
Demonstrações Financeiras e, em nossa opinião, está apresentado, em todos os aspectos relevantes,
adequadamente em relação às Demonstrações Financeiras, tomadas em conjunto.
5.
As demonstrações financeiras da WEG S.A., e dessa Companhia e suas controladas referentes ao
exercício findo em 31 de dezembro de 2002 foram auditadas por outros auditores independentes que,
sobre elas, emitiram um parecer sem ressalvas, datado de 3 de fevereiro de 2003.
02 de fevereiro de 2004.
KPMG Auditores Independentes
CRC-SP-14.428 "S"SC
Pedro Jaime Cervatti
Contador CRC-SP-129.565/O-7 T-PR S SC
226
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2003
00541-0 WEG SA
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
Senhores Acionistas,
A Administração da Companhia tem o prazer de submeter à apreciação de V.Sªs o Relatório da
Administração e as Demonstrações Financeiras da WEG S.A. e o consolidado do Grupo WEG,
referentes ao exercício social encerrado em 31 de dezembro de 2003.
DESEMPENHO
O ano de 2003, no Brasil, foi marcado pela transição política e pela retomada do controle
inflacionário com superávit na balança comercial, porém, sem crescimento econômico. A nível
mundial, constatou-se baixo crescimento econômico na Europa e Japão e recuperação, no 2º
semestre, nos Estados Unidos.
Apesar do baixo crescimento da economia mundial, a Companhia alcançou os seguintes
resultados no exercício de 2003:
• A receita operacional bruta consolidada aumentou 31%, dos quais 23% no mercado interno e
47% no mercado externo, atingindo o montante de R$ 2.015,1 milhões (R$ 1.534,9 milhões em
2002), mantendo-se dentro das previsões da Companhia.
• As vendas físicas de motores elétricos, principal produto do Grupo Weg atingiram os seguintes
montantes:
Motores Monofásicos em unidades 7,4 milhões (6,4 milhões em 2002), em CV´s 2,4
milhões (2,0 milhões em 2002);
Motores Trifásicos em unidades 1,2 milhões (1,1 milhões em 2002), em CV´s 10,7 milhões
(9,7 milhões em 2002).
• O lucro líquido do exercício de R$ 307,8 milhões (R$ 220,3 milhões em 2002), aumentou 40%.
Foi influenciado principalmente pelo aumento das exportações e pelo resultado financeiro
líquido de R$ 66,6 milhões (R$ 29,5 milhões em 2002).
• O lucro antes dos juros, impostos, depreciação e amortização (EBITDA), atingiu o montante de
R$ 434,7 milhões, representando 25,6% da receita operacional líquida (R$ 327,6 milhões em
2002, representando 25,5% da receita operacional líquida). Abaixo apresentamos a evolução
do EBITDA em relação à receita operacional líquida dos últimos 5 anos.
E B IT D A / R E C E IT A O P E R A C IO N A L L ÍQ U ID A
1800
1600
1400
1200
1000
800
600
400
200
0
1 .6 9 4 ,2
1 .2 8 2 ,0
1 .0 6 5 ,9
7 9 9 ,9
6 2 7 ,6
1 4 5 ,5
1999
2 9 1 ,4
2 0 6 ,6
2000
2001
R e c e ita O p e ra c io n a l L íq u id a
227
3 2 7 ,6
2002
E B IT D A
4 3 4 ,7
2003
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2003
00541-0 WEG SA
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
• Todas as unidades de negócios da WEG tiveram crescimento de vendas em 2003,
apresentando-se a distribuição das vendas semelhante a 2002, a saber:
Unidades de negócios
Motores Elétricos Industriais
Motores para Eletrodomésticos
Motores de Alta Tensão e Geradores
Acionamentos
Automação
Transformadores
Tintas e Vernizes
2003
2002
35%
21%
12%
6%
13%
7%
6%
34%
19%
12%
6%
12%
10%
7%
MERCADO INTERNO
A receita operacional bruta totalizou R$ 1.233,9 milhões (R$ 1.003,7 milhões em 2002),
representando incremento de 23%, foi distribuída pelos segmentos a saber:
Segmentos
2003
. Revenda
. OEM
. Eletrodoméstico
. Consumidor
. Outros
2002
16%
37%
13%
24%
10%
16%
35%
13%
22%
14%
Contribuíram para esse desempenho o crescimento em todos os segmentos, exceto o de
transformadores, com destaque para o segmento de automação industrial que apresentou
incremento de 45%, em relação ao exercício de 2002.
Representando 10% das vendas, a WEG continua com foco em soluções industriais atuando nos
segmentos de:
Sistemas Industriais: fornecimento de pacotes elétricos e sistemas de automação
industrial;
Subestações: construção de subestações até 150 MVA;
Energia: fornecimento de equipamentos e serviços para instalação de centrais geradoras
hidrelétricas, termoelétricas e eólicas com potência até 50 MVA.
MERCADO EXTERNO
A receita operacional bruta no mercado externo perfez o montante de R$ 781,2 milhões (US$
256,4 milhões) contra R$ 531,2 milhões (US$ 177,3 milhões) no ano anterior.
Do total das receitas no mercado externo, 67% foram realizadas através de suas controladas no
exterior (63% em 2002). O Grupo WEG possui plantas industriais no México, Argentina e
Portugal, além de manter controladas de comercialização e distribuição de seus produtos nos
Estados Unidos, Venezuela, Alemanha, Inglaterra, Bélgica, França, Espanha, Itália, Suécia,
Austrália e Japão com crescimento de vendas em praticamente todas as controladas.
228
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2003
00541-0 WEG SA
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
No decorrer de 2003, foram constituídas controladas de comercialização e distribuição dos
produtos WEG no Chile e na Colômbia. Também foi formada parceria com a Mitsui como
distribuidora dos produtos WEG no território japonês.
Além das plantas industriais e controladas de comercialização, os produtos WEG estão presentes
em mais de 100 países nos cinco continentes. Abaixo apresentamos a distribuição da receita
operacional bruta no mercado externo, a saber:
DISTRIBUIÇÃO MERCADO EXTERNO
2003
2002
Ásia e
Oceania
7%
Europa
29%
África
9%
Ásia e
Oceania
8%
América do
Norte
40%
Europa
28%
América do
Sul e
Central
15%
África
8%
América do
Norte
43%
América do
Sul e
Central
13%
INVESTIMENTOS
Em 2003, o Grupo WEG investiu R$ 125,7 milhões em ativos fixos (R$ 83,0 milhões em 2002), e
R$ 23,9 milhões em ativos diferidos (R$ 5,9 milhões em 2002), visando manter a expansão e
modernização dos parques fabris.
Dos investimentos totais em ativos fixos em 2003, 84% destinaram-se às unidades no Brasil e 16%
às unidades no exterior. Destacamos nos investimentos, a aquisição de uma área de 427 mil
metros quadrados contígua ao parque fabril em Jaraguá do Sul, destinada à futuras expansões do
Grupo WEG e a construção da fábrica de motores e geradores no México que estará concluída em
junho de 2004.
229
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
O gráfico abaixo demonstra os investimentos e depreciações ocorridos nos últimos 5 anos.
INVESTIMENTOS ATIVOS FIXOS / DEPRECIAÇÃO
140
1 2 5 ,7
120
100
8 3 ,0
7 2 ,9
80
5 6 ,0
60
4 6 ,8
40
3 8 ,1
4 8 ,6
4 9 ,4
4 3 ,2
4 3 ,7
20
0
1999
2000
2001
I n v e s t im e n t o s A t iv o s F ix o s
2002
2003
D e p r e c ia ç ã o
PESQUISA E DESENVOLVIMENTO
Em 2003, para pesquisas e desenvolvimento, foi alocado o montante de R$ 30,4 milhões (R$ 20,5
milhões em 2002), destinado ao aprimoramento dos atuais produtos, atendimento de produtos
engenheirados e especiais por cliente e o lançamento de novas linhas de produtos.
Destacamos, entre outros, os seguintes lançamentos de novas linhas de produtos e/ou produtos
para novas aplicações:
a) em motores:
- linha de motores em ferro fundido e alumínio para ventilação (Pad Mounted para o
mercado europeu);
- linhas de motores a prova de explosão para ambiente com pós explosivos (para os
mercados europeu e africano);
- linha de motores para bomba vertical de alto empuxo (LP Médium Thrust API 610 para o
mercado norte americano);
- linha de motores de alto rendimento (para o mercado japonês);
- linha de motores especiais para compressores industriais (para os mercados europeu e
brasileiro);
230
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
- linha de motores especiais para compressores domésticos (para os mercados
americano e brasileiro);
- linha de motores de baixo ruído <85 dBA (para o mercado brasileiro);
- linha de motores especiais para lavadora de roupa (para o mercado mexicano);
- linha de motores para ventilação (para o mercado norte americano).
norte
b) em motores de alta tensão e geradores:
- fabricação de geradores com capacidade de maior porte, atingindo potência de até 100
MVA.
c) em componentes elétricos:
- dispositivos para comando e sinalização (botões e sinaleiros) em automação industrial.
d) em transformadores:
- capacitação para realização de serviços de reforma e repotenciação no campo de
transformadores de força;
- aquisição de laboratório móvel de extra alta tensão que permite realizar ensaios no campo
até 550 KV.
e) em automação:
- linha inversores de freqüência e micro soft-starters para o mercado externo, linha até 690V.
f)
em tintas e vernizes:
- novas especialidades de tintas em pó NOBAC para segmento hospitalar e dentário e tintas
anticorrosivas para indústria petroquímica;
- novas linhas de vernizes eletroisolantes.
RECURSOS HUMANOS E COMUNIDADE
• Em 2003, a WEG manteve sua política de investimento em desenvolvimento e treinamento,
investindo R$ 7,5 milhões (R$ 5,7 milhões em 2002). O quadro de colaboradores atingiu
11.294 colaboradores (10.152 colaboradores em 2002), dos quais 948 atuam nas controladas
do exterior (756 em 2002), com geração de 950 novos empregos no Brasil e 192 no exterior.
•
O Programa WEG de Qualidade e Produtividade, que trata da participação dos colaboradores
nos resultados, estabelece a distribuição de até 12,5% do lucro líquido do exercício. Em 2003,
foi destinado o montante de R$ 44,5 milhões aos colaboradores (R$ 30,2 milhões em 2002).
•
Os investimentos em benefícios aos colaboradores com assistência médica e odontológica,
creches, transportes, associação recreativa e outros foram no montante de R$ 9,6 milhões (R$
7,5 milhões em 2002).
•
A WEG investiu R$ 5,2 milhões (R$ 3,9 milhões em 2002) na WEG Seguridade Social que
disponibiliza plano de contribuição definida de aposentadoria aos contribuintes do plano. Em
dezembro de 2003, o patrimônio da WEG Seguridade Social atingiu R$ 109,2 milhões (R$ 79,7
milhões em 2002), com 8.829 participantes contribuintes.
•
A WEG destina recursos para a comunidade, especialmente nas áreas de cultura, educação e
cidadania. Em 2003, foram destinados recursos financeiros ao corpo de bombeiros, hospitais,
231
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2003
00541-0 WEG SA
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
sociedade cultural artística (SCAR) e outras entidades sociais, no montante de R$ 2,0 milhões
(R$ 1,5 milhões em 2002).
Além disso, a WEG investiu na conscientização de seus colaboradores em relação ao trabalho
voluntário, incentivando-os e disponibilizando oportunidades de participação, em entidades
sem fins lucrativos e ações comunitárias.
•
Em setembro de 2003, a WEG inaugurou o Museu WEG com investimentos de R$ 1,7 milhões,
com o objetivo de retratar a história da WEG, preservar e transmitir a cultura da organização
aos colaboradores e a sociedade e, estimular o desenvolvimento da ciência e tecnologia.
VALOR ADICIONADO
Em 2003, no Brasil, o Grupo WEG gerou um valor adicionado líquido de R$ 959,6 milhões (R$
687,8 milhões em 2002), representando 48% da receita operacional bruta, com a seguinte
distribuição:
DISTRIBUIÇÃO DO VALOR ADICIONADO / 2003
Salários
15%
Lucros retidos
25%
Encargos
Sociais
12%
Acionistas (juros
s/ capital próprio
e dividendos)
13%
Impostos, taxas
e contribuições
27%
Juros
8%
MERCADO DE CAPITAIS
Em 2003, as ações preferenciais da WEG S.A. valorizaram 54% na Bolsa de Valores de São
Paulo. A cotação da ação PN atingiu R$ 4,80/ação (31/12/02, R$ 3,12/ação). Realizaram-se 1.649
operações com ações da WEG, (706 em 2002), representando um aumento de 134%. Em termos
de volume negociado o aumento foi de 86% com uma média diária em torno de R$ 300 mil com
presença em 89% dos pregões.
232
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2003
00541-0 WEG SA
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
Em Assembléia Geral Ordinária e Extraordinária de 07/04/03, a Companhia aumentou o capital
social de R$ 500 milhões para R$ 600 milhões, incorporando reservas de lucros.
Com base nos resultados do exercício, a Companhia destinou a seus acionistas um montante de
R$ 123,8 milhões bruto (R$ 122,3 milhões líquido) para pagamento de dividendos e juros sobre
capital próprio (R$ 201,00 por mil ações), subdivididos da seguinte forma:
a) Em 17 de julho de 2003, foram aprovados dividendos e juros sobre capital próprio
intermediários, no valor de R$ 48,8 milhões, pagos em 18/08/03 (R$ 80,00 por mil ações);
b) Em 11 de dezembro de 2003 foram aprovados juros sobre capital próprio no valor líquido de
R$ 4,3 milhões a serem pagos em 17/03/04 (R$ 7,00 por mil ações);
c) Em 12 de fevereiro de 2004, foram aprovados dividendos complementares, no valor de R$
69,3 milhões a serem pagos em 17/03/04 (R$ 114,00 por mil ações).
Abaixo, apresentamos o comparativo dos dividendos e juros, distribuídos aos acionistas em
relação ao lucro líquido:
DIVIDENDOS / LUCRO LÍQUIDO
350
307,8
300
175,5
200
50
82,0
100%
100%
100% 28,6
35%
100%
123,8
125,4
150
100
100%
220,3
250
46,2
68,2
39%
37%
89,1
40%
40%
0
1999
2000
Lucro Líquido
2001
2002
2003
Dividendos e Juros s/ Capital Próprio
DESTINAÇÃO DOS RESULTADOS DE 2003
O Conselho de Administração proporá à Assembléia Geral Ordinária, a ser convocada, que o lucro
líquido, deduzidas a reserva legal e os dividendos, seja destinado à reserva para financiar planos
de investimentos.
O orçamento de capital da companhia, para 2004, prevê os seguintes investimentos:
Imobilizado (ampliação/modernização fabril)
R$ 149,6 milhões
Diferido
R$ 37,3 milhões
Circulante (capital de giro)
R$ 54,5 milhões
Total de Investimentos
R$ 241,4 milhões
233
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
O financiamento desse orçamento de capital se dará com a utilização da reserva para orçamento
de capital e de recursos a serem captados junto as instituições financeiras, preferencialmente das
linhas de financiamento do sistema BNDES.
PRÊMIOS
No decorrer do exercício findo, fomos agraciados com inúmeros prêmios que demonstram o
desempenho e a imagem da Companhia nos diversos segmentos. Citamos:
• Score Card Springer - Motores e Acionamentos
• Destaque de Comércio Exterior Categoria Tecnologia - Ministério do Desenvolvimento e
Associação de Comércio Exterior do Brasil
• Fornecedor do ano - Abimaq
• Prêmio Visão da Agroindústria Categoria Transformador - Revista Visão
• Medalha do conhecimento - Décio da Silva - (Ministério de Desenvolvimento, CNI e Sebrae)
• Life Achievement - Eggon João da Silva (Ernst & Young)
• Valor Carreira - 40 Melhores Empresas na Gestão de Pessoas
• Prêmio Finep de Tecnologia
• Fórum de Líderes Empresariais - Gazeta Mercantil (Eggon João da Silva e Décio da Silva)
• As 20 Melhores Empresas da Década - Revista Expressão
• 100 Melhores Empresas para Você Trabalhar - Exame
• Excelência Empresarial - Fundação Getúlio Vargas
• Empresa do Ano em Mecânica - Valor 1000 - Jornal Valor Econômico
• 100 Maiores do E-commerce - Info Exame
• Prêmio Prata - Abamec
• 100 Mais Competitivas - Revista América Economia
• Brasil Premium - Motores a Prova de Explosão e Inversor de Freqüência CFW-09
• Prêmio Qualidade Motores, Transformadores e Melhor Desempenho Global - Revista
Eletricidade Moderna
• Décio da Silva - Executivo de Valor - Jornal Valor Econômico
• Prêmio Padrão de Qualidade em B2B - Revista B2B Magazine
RELACIONAMENTO COM AUDITORES INDEPENDENTES
Em atendimento a Instrução CVM nº 381/03, informamos que a WEG tem como política não
contratar os Auditores Independentes em serviços de consultoria, que possam gerar conflito de
interesse. No decorrer do exercício de 2003, os nossos Auditores Independentes não prestaram
qualquer serviço de consultoria.
PERSPECTIVAS
Para 2004, consideramos o mercado interno e externo como favoráveis e projetamos o seguinte:
• No mercado interno: a) incrementar os negócios como fornecedor de soluções industriais
(sistemas de automação industrial, subestação e geração e distribuição de energia elétrica)
agregando maior valor aos nossos clientes; e b) concentrar esforços visando aumento da
participação no mercado de transformadores, geradores, componentes elétricos,
automação industrial e tintas industriais.
234
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
10.01 - RELATÓRIO DA ADMINISTRAÇÃO
• No mercado externo: a) continuidade dos investimentos na internacionalização nos
mercados onde a WEG possui controladas de comercialização e distribuição visando o
aumento do market share; b) estudos de investimentos na Ásia para a produção e
comercialização dos produtos WEG.
Finalizando, agradecemos aos nossos clientes, fornecedores, representantes, acionistas e órgãos
governamentais pela atenção e preferência, e externamos reconhecimento especial aos nossos
colaboradores pela dedicação e participação nos planos e programas implementados para o
desenvolvimento do Grupo WEG.
Jaraguá do Sul (SC), fevereiro de 2004.
A ADMINISTRAÇÃO
235
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
NOTAS EXPLICATIVAS ÀS DEMONSTRAÇÕES FINANCEIRAS
EM 31 DE DEZEMBRO DE 2003
(Em Reais Mil)
01 - CONTEXTO OPERACIONAL
A companhia tem prazo de duração indeterminado e por objetivo:
I – a participação em outras sociedades, negócios e empreendimentos
II – a prestação de serviços, consultoria, controle, assistência técnica e a administração de
bens;
III – a produção, industrialização, comércio, exportação e importação de:
a) sistemas industriais, eletromecânicos e eletrônicos, máquinas elétricas girantes,
máquinas e equipamentos em geral, aparelhos para produção, distribuição e
conversão de energia elétrica, material elétrico, controladores programáveis, partes
e componentes de máquinas, aparelhos e equipamentos em geral; e
b) resinas em geral, materiais tintoriais, substâncias e produtos de origem vegetal e
química destinados à indústria e a ciência.
IV – o comércio, exportação, importação, extração e industrialização de produtos e serviços
de silvicultura, agricultura, pecuária, pesquisa e lavra de jazidas minerais.
02 - APRESENTAÇÃO DAS DEMONSTRAÇÕES FINANCEIRAS
As demonstrações financeiras foram elaboradas com base nas práticas contábeis emanadas
da legislação societária e normas da Comissão de Valores Mobiliários.
03 - PRINCIPAIS PRÁTICAS CONTÁBEIS
a) Apuração do Resultado: As receitas e despesas estão demonstradas obedecendo o
regime de competência.
b) Aplicações Financeiras: Estão registradas aos valores de custo acrescidas dos
rendimentos auferidos até a data do balanço, de acordo com as taxas pactuadas com as
instituições financeiras.
c) Provisão com Perdas de Créditos de Clientes: A provisão com perdas de créditos de
clientes foi calculada com base em análise de risco dos créditos, que considera o histórico
de perdas, sendo suficiente para cobrir perdas sobre os valores a receber.
d) Estoques: Estão valorados ao custo médio de aquisição ou fabricação, líquidos de
impostos recuperados e não superam os preços de mercado.
e) Demais Ativos Circulante e de Longo Prazo: São apresentados pelo valor de custo ou
de realização, incluindo, quando aplicável, os rendimentos auferidos e as variações
monetárias e cambiais incorridas.
236
SERVIÇO PÚBLICO FEDERAL
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CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
f) Investimentos: Os investimentos em empresas controladas e coligada, foram ajustados
pelo método da equivalência patrimonial. Os demais investimentos são avaliados ao
custo de aquisição. As demonstrações financeiras das controladas no exterior são
convertidas em moeda nacional pelo "método da taxa histórica" em que:
- Balanços Patrimoniais, são convertidos com base na taxa da moeda vigente em 31 de
dezembro de 2003;
- Demonstrações de Resultados convertidas com base na taxa média mensal do exercício.
Após a conversão, é apurado o ajuste patrimonial pelo método da equivalência
patrimonial, observando-se:
- O valor decorrente do resultado do período, e os ganhos e perdas de capital, decorrente
de variação cambial e acréscimos ou diminuições patrimoniais, estão registrados em
Resultados Operacionais;
- Valor decorrente da variação na porcentagem de participação no capital social das
controladas, está registrado em resultados não operacionais.
g) Imobilizado: É calculado ao custo de aquisição e deduzido das respectivas depreciações.
As depreciações são calculadas sobre o custo de aquisição, pelo método linear às taxas
mencionadas na nota explicativa nº 10, levando-se em consideração a estimativa de vida
útil.
h) Diferido: Registrado ao custo de aquisição e formação, deduzido da amortização, a qual é
calculada pelo método linear às taxas que levam em consideração a vida útil dos ativos
intangíveis.
i) Imposto de Renda e Contribuição Social: Foram apurados pelo lucro real e presumido
de acordo com a legislação vigente. O Imposto de Renda e a Contribuição Social diferidos
foram apurados com base na Deliberação CVM 371/02.
j) Demais Passivos Circulante e Exigível a Longo Prazo: São demonstrados pelos valores
conhecidos ou calculáveis, acrescidos, quando aplicável, dos correspondentes encargos
financeiros em base "pró rata"-dia e das variações monetárias e cambiais incorridas.
k) Demonstrações dos Fluxos de Caixa: A Companhia está apresentando como
informações suplementares, a demonstração dos fluxos de caixa preparados pelo método
indireto de acordo com as Normas e Procedimentos de Contabilidade (NPC 20) Demonstração dos fluxos de caixa, emitida pelo Instituto dos Auditores Independentes do
Brasil (IBRACON).
04 - PROCEDIMENTOS DE CONSOLIDAÇÃO
a) a WEG S.A. e suas controladas adotam práticas contábeis uniformes, sendo que as
demonstrações financeiras das controladas do exterior foram convertidas pela cotação do
câmbio vigente na data do balanço;
b) eliminação dos saldos das contas ativas e passivas decorrentes das transações entre
as sociedades incluídas na consolidação;
237
SERVIÇO PÚBLICO FEDERAL
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CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
c) eliminação dos investimentos nas sociedades controladas na proporção de seus
respectivos patrimônios;
d) eliminação das receitas e das despesas decorrentes de negócios com as sociedades
incluídas
na consolidação e dos lucros contidos nos estoques decorrentes de
transferências para controladas;
e) informação da participação dos minoritários no patrimônio líquido e na demonstração de
resultados.
05 - DISPONIBILIDADES E APLICAÇÕES FINANCEIRAS
CONTROLADORA
2003
2002
77
31
37.860
35.761
Caixas e Bancos
Aplicações em Reais:
- Certificado de Depósito Bancário (CDB)
- Fundos de Renda Fixa
Aplicações em Dólar:
- Títulos do Governo no Exterior
- Export Note
Outras
Total
CONSOLIDADO
2003
2002
32.678
30.054
419.733
492.136
327.812
410.385
91.921
81.751
253.582
206.121
237.505
168.140
16.077
37.981
17.629
14.793
2.099
-
-
37.937
31
723.622
743.104
-
-
477.470
246.152
173.252
44.008
28.892
581.292
161.812
161.812
-
Curto Prazo
Longo Prazo
- 2005
- 2006
- 2007
06 - CONTAS A RECEBER DE CLIENTES
Mercado Interno
Mercado Externo
Adiantamentos de Câmbio – ACE
Provisão com Perdas de Créditos de Clientes
Total
238
CONSOLIDADO
2002
2003
135.081
152.076
188.900
207.186
(1.534)
(14.568)
(3.275)
(4.235)
319.172
340.459
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
07 - ESTOQUES
CONSOLIDADO
2003
2002
178.971
139.645
49.025
41.827
55.839
48.119
283.835
229.591
Produtos Acabados
Produtos em Elaboração
Matérias-primas e Outros
Total
08 - IMPOSTOS A RECUPERAR
ICMS
IPI
Imposto de Renda
Contribuição Social
IVA (Controladas Exterior)
Outros
Total
Curto Prazo
Longo Prazo
CONTROLADORA
2003
2002
3.479
3.506
59
46
3.538
3.552
CONSOLIDADO
2003
2002
17.199
10.987
528
918
9.469
6.918
59
46
5.293
2.806
134
230
32.682
21.905
25.095
15.345
7.587
6.560
Os créditos serão realizados pela empresa e suas controladas, através de restituição e
compensação com impostos e contribuições.
09 - INVESTIMENTOS
CONTROLADORA
2003
2002
a) COMPOSIÇÃO DOS INVESTIMENTOS
- Investimentos em Controladas
- Outros Investimentos
Total
714.879
54.678
769.557
239
645.622
50.105
695.727
CONSOLIDADO
2003
2002
62.371
62.371
64.190
64.190
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
b) INVESTIMENTOS EM CONTROLADAS
As sociedades controladas incluídas na consolidação das demonstrações financeiras são as
seguintes:
CONTROLADAS
Patrimônio
Resultado
Líquido
Líquido do
Participação % Equivalência
Valor
Capital
Patrimonial
Patrimonial
Social/Votante
do
Direta Indireta
Investimento
Ajustado
Exercício
WEG Indústrias S.A.
492.160
286.394
99,94
-
295.306
491.854
WEG Exportadora S.A.
210.163
5.621
99,94
-
5.618
210.038
WEG Chile S.A.
337
(359)
-
90,00
-
-
WEG Colômbia Ltda.
296
(27)
-
99,99
-
-
WEG Equip. Electricos S.A.
23.175
6.920
20,70
79,29
1.159
4.798
WEG Inds. Venezuela C.A.
394
395
-
99,99
-
-
39.431
(735)
0,03
99,97
(4)
13
165.962
(953)
0,99
99,01
(180)
1.648
-
(2.009)
2.705
WEG México S.A de C.V.
WEG Electric Motors Corp.
WEG Overseas S.A
2.705
(1.150) 100,00
WEG Europe S.A
9.226
(4.721)
12,69
87,30
(829)
1.171
WEG Germany GmbH
5.262
2.524
35,10
64,90
794
1.847
WEG Ibéria S.A
1.902
6
-
100,00
-
-
(4.725)
(5.196)
-
100,00
-
-
652
(199)
1,00
99,00
7
7
WEGeuro Inds. Electricas S.A
9.389
(8.099)
-
99,99
-
-
WEG Scandinávia AB
(117)
(892)
-
100,00
-
-
23.901
(1.964)
3,34
96,66
(4)
798
(605)
361
36,97
63,03
-
-
411
140
-
70,00
-
-
WEG Electric Motors UK Ltd.
WEG Itália S.R.L
WEG Austrália PTY
WEG Japan CO Ltd.
WEG Electric Motors Japan
CO Ltd.
240
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2003
00541-0 WEG SA
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
10 - IMOBILIZADO
Taxa Anual de
Depreciação
Terrenos e Construções
Equipamentos e Instalações
Hardware/Software
Móveis e Utensílios
Veículos
Imobilizações em Curso
Reflorestamento
Outros
CONTROLADORA
%
00 a 04
10 a 30
20 a 30
10 a 30
20 a 30
-
Sub Total
Depreciações Acumuladas
-
2003
4.736
270
-
2002
4.736
274
-
5.006
(2.825)
5.010
(2.668)
2.181
2.342
Total
CONSOLIDADO
2003
147.974
531.605
38.366
43.298
3.935
20.593
8.028
25.387
2002
109.949
489.281
34.374
32.499
3.749
10.556
7.782
25.069
819.186
713.259
(480.935) (434.190)
338.251
279.069
11 - DIFERIDO
Especificação
Custo
Projetos de Pesquisa e Desenvolvimento
Projetos de Tecnologia de Informação
Projetos em Empresas do Exterior
Total
11.924
14.166
8.507
34.597
Amortização
Acumulada
433
2.536
2.969
Saldo Líquido
2003
2002
11.491
204
14.166
4.190
5.971
3.946
31.628
8.340
12 - FINANCIAMENTOS
Exigível a Curto Prazo
Modalidade
Capital de giro
Capital de giro
Capital de giro (ACC`s)
Capital de giro
Ativo Imobilizado
Ativo Imobilizado
Outras
Total
CONSOLIDADO
Encargos Anuais
TJLP (+) 1,0 a 3,15% a.a.
Cesta de Moedas (+) 2,4 a 3.0% a.a.
Juros 1,69 a 10,0% a.a.(+) Variação Cambial
LIBOR (+) 0,63 a 6,75% a.a.
TJLP (+) 2,5 a 3,5% a.a.
IGPM (+) 1,0% a.a.
-
241
2003
55.122
9.304
46.028
244.506
3.997
936
16.628
376.521
2002
72.003
11.036
277.781
232.422
3.780
5.672
1.086
603.780
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
Exigível a Longo Prazo
Modalidade
Capital de giro
Capital de giro
Capital de giro
Ativo Imobilizado
Ativo Imobilizado
Encargos Anuais
TJLP (+) 1,0 a 3,15% a.a.
Cesta de Moedas (+) 3,0 a 3,25% a.a.
LIBOR (+) 0,63 a 6,75% a.a.
TJLP (+) 2,5 a 3,5% a.a.
IGPM (+) 1,0% a.a.
Total
2003
118.144
18.846
28.956
4.199
53.002
2002
37.382
6.314
7.522
40.961
223.147
92.179
Em 31 de dezembro de 2003 e2002, os vencimentos dos financiamentos de longo prazo, têm a
seguinte composição:
Consolidado
2003
2002
30.907
68.511
25.215
34.074
23.104
26.718
12.953
56.345
14.499
23.000
223.147
92.179
Vencimento
2004
2005
2006
2007
2008
2009
2010 em diante
Total
Os financiamentos são garantidos por avais, alienação fiduciária e/ou hipoteca de bens.
Os financiamentos captados em moeda estrangeira basicamente abrangem os ACC's no montante
de R$ 46,0 milhões e BNDES EXIM e FINEM em cesta de moedas no montante de R$ 28,1
milhões. A Companhia conta com hedge natural de suas exportações que atingiram o montante de
US$ 185,3 milhões em 2003.
Os financiamentos tomados pelas controladas do exterior, são em dólares e nas moedas de cada
país, num montante de R$ 273,5 milhões em 2003, equivalente a US$ 84,6 milhões.
13 - PROVISÃO PARA IMPOSTO DE RENDA E CONTRIBUIÇÃO SOCIAL
A provisão para imposto de renda foi constituída com alíquota de 15%, acrescida do adicional
de 10%, e da contribuição social com alíquota de 9%, de acordo com a legislação em vigor.
Os impostos das empresas do exterior estão constituídos conforme a legislação vigente de
cada país. Os valores contabilizados no resultado do exercício são os seguintes:
Imposto de Renda
Contribuição Social
Total
CONTROLADORA
2003
2002
1.157
364
1.521
-
242
CONSOLIDADO
2003
2002
55.819
32.490
24.313
16.118
80.132
48.608
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2003
00541-0 WEG SA
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
14 - IMPOSTO DE RENDA E CONTRIBUIÇÃO SOCIAL DIFERIDOS
Os créditos fiscais diferidos de Imposto de Renda e Contribuição Social sobre o lucro,
registrados no ativo e passivo, foram apurados em conformidade com o pronunciamento do
IBRACON, aprovado pela Deliberação CVM nº 371/02:
CONTROLADORA
2003
2002
CONSOLIDADO
2003
2002
Base para constituição dos impostos diferidos:
Ativo
- Provisões não dedutíveis
225
888
- Contingências trabalhistas/cíveis
2.562
2.192
- Tributos em discussão judicial
1.389
1.200
9.041
8.776
- Prejuízo Fiscal do I.R.
750
2.712
- Base Negativa da CSSL
277
976
- Total
1.389
1.200
12.855
15.544
Passivo
- Depreciação acelerada incentivada
121
A realização dos créditos tributários, irá ocorrer a médio/longo prazo, de acordo com o
andamento dos processos judiciais. A Administração prevê a recuperação dos prejuízos nos
próximos 2 anos.
15 - EMPRESAS CONTROLADAS/CONTROLADORA
A Companhia possui operações de mútuo com partes relacionadas com encargos financeiros
compatíveis com os de mercado, contabilizado no passivo exigível a longo prazo conforme
demonstrativo abaixo:
WEG Exportadora S.A.
WEG Participações e Serviços S.A.
Total
CONTROLADORA
2003
2002
129
6.071
129
6.071
243
CONSOLIDADO
2003
2002
2.879
1.692
2.879
1.692
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
16 - PROGRAMA DE RECUPERAÇÃO FISCAL – REFIS
A Companhia em 12/12/00 aderiu ao Programa de Recuperação Fiscal – REFIS com o objetivo de
reduzir contingências fiscais, optando-se como pagamento pelo parcelamento alternativo, sendo
que os valores são atualizados pela TJLP.
CONTROLADORA
2003
2002
133
122
56
173
189
295
- Curto Prazo
- Longo Prazo
Total
CONSOLIDADO
2003
2002
4.933
4.527
2.056
6.413
6.989
10.940
17 - PROVISÃO PARA CONTINGÊNCIAS E OUTROS
A Companhia constituiu provisões para contingências sobre processos em andamento de
natureza trabalhista, cível e tributária. Os valores provisionados são suficientes para cobrir
eventuais perdas.
Tributárias
Trabalhistas
Cíveis e Outros
Total
CONTROLADORA
2003
2002
6.586
6.016
6.586
6.016
CONSOLIDADO
2003
2002
89.170
81.323
2.589
2.106
19.479
12.898
111.238
96.327
As contingências tributárias decorrem de processos tributários a nível federal e estadual. Os
principais processos em discussão abrangem: IR e CSSL s/ Correção Monetária
Complementar do Plano Verão e Pis/Cofins sobre Receitas Financeiras.
18 – PARTICIPAÇÃO NOS RESULTADOS
A Companhia e suas controladas, mantém política de conceder participação nos lucros e
resultados a seus colaboradores, vinculada ao Programa WEG de Qualidade e Produtividade,
que estabelece objetivos específicos no início de cada ano. Em 31 de dezembro de 2003 e
2002 foram provisionados os montantes de R$ 44.515 e R$ 30.190 respectivamente,
contabilizado em outras despesas operacionais.
244
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
19 - PATRIMÔNIO LÍQUIDO
a) Capital Social
Na AGO/E de 07 de abril de 2003, foi aprovado aumento do capital social de R$ 500.000
para R$ 600.000, sem modificação do número de ações, mediante aproveitamento das
seguintes reservas:
- Reserva de Incentivo Fiscal
- Reserva Legal
- Reserva para Orçamento de Capital
111
11.016
88.873
O capital social em 31 de dezembro de 2003, é formado de 617.955.200 ações, sendo
288.000.000 ordinárias e 329.955.200 preferenciais, todas sem valor nominal. As ações
preferenciais tem as seguintes vantagens asseguradas no Estatuto Social:
I. Direito de serem incluídas na oferta pública de alienação de controle da Companhia, de
modo a lhes assegurar o preço mínimo igual a 80% (oitenta por cento) do valor pago
por ação com direito a voto integrante do bloco de controle, nos termos do artigo 254-A,
da Lei 6.404/76, com redação dada pela Lei 10.303/01;
II. Prioridade no reembolso de capital, em caso de encerramento das atividades da
Companhia;
III. Participação em igualdade de condições com as demais ações, na distribuição de
dividendos, no recebimento de bonificações provenientes de reserva de capital, de
reavaliação de ativos, de capitalização de reservas de lucros ou de utilização de
quaisquer fundos.
b) Reserva de Reavaliação
No exercício de 2003 foi realizado por depreciações e baixas dos bens reavaliados na
controlada WEG Industrias S.A., o montante acumulado de R$ 647, contabilizado
diretamente na conta de resultados acumulados.
c) Ações em Tesouraria
A Companhia, com objetivo de aplicação de recursos disponíveis para investimento, foi
autorizada a adquirir no período de 06 de maio de 2003 a 03 de agosto de 2003 até o limite
de 16.172.710 ações preferenciais nominativas para permanência em tesouraria.
Em 31 de dezembro de 2003 e 2002, as ações em tesouraria totalizavam 10.359.000 e
5.292.537 ações preferenciais nominativas respectivamente, a um custo médio ponderado
de aquisição de R$ 2,66 por ação, sendo o custo mínimo de R$ 1,95 e o máximo de R$
3,50 por ação. O valor de mercado destas ações em 30 de dezembro de 2003 era de R$
4,80 por ação.
245
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
d) Dividendos
A política de distribuição de dividendos está estabelecida no artigo 36 do Estatuto Social de,
no mínimo 25% do lucro líquido ajustado na forma do artigo 202 da Lei nº 6.404/76. A
distribuição ocorre semestralmente com base nos balanços. Nos últimos 4 anos a empresa
vem distribuindo percentual superior a 30%.
LUCRO LÍQUIDO DO EXERCÍCIO
(+) Realização da reserva de reavaliação
(-) Reserva Legal
BASE DE CÁLCULO DOS DIVIDENDOS
Dividendos do 1º Semestre/2003
Juros s/ Capital Próprio do 1º Semestre/2003 (IRF R$ 807)
Dividendos do 2º Semestre/2003
Juros s/ Capital Próprio do 2º Semestre/2003 (IRF R$ 751)
Total Dividendos/Juros s/ Capital Próprio de 2003
e)
307.809
647
15.390
293.066
44.200
5.379
69.266
5.004
123.849
Constituição de Reservas
- Reserva Legal – constituída no montante de R$ 15.390 equivalente a 5% do lucro líquido do
exercício obedecendo o limite de 20% do capital social;
- Retenção de Lucros – corresponde ao valor remanescente do lucro líquido do exercício R$
168.569, mais o saldo de lucros acumulados R$ 705 (decorrente da realização da reserva de
reavaliação e reversão de dividendos de exercícios anteriores) que se destinam a reserva
para orçamento de capital, face o plano de investimentos para 2004 que prevê:
- Imobilizado (ampliação e modernização fabril)
- Diferido
- Circulante (capital de giro)
Total
149.563
37.337
54.483
241.383
20 - WEG SEGURIDADE SOCIAL
Entidade mantida pela controladora e suas controladas, com plano de contribuição
definida, objetivando assegurar a seus funcionários suplementação de
proventos,
aposentadoria e outros benefícios previdenciários. A suplementação é calculada de acordo
com a reserva matemática constituída. A controladora e suas controladas contribuíram em
2003 e 2002 respectivamente R$ 5.153 e R$ 4.040.
21 - COBERTURA DE SEGUROS
Os valores são contratados em bases técnicas e estimados suficientes para coberturas de
eventuais perdas decorrentes de sinistros com bens do ativo permanente e estoques, cujo
risco declarado é de R$ 761.524.
246
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
22 – AVAIS
A WEG S.A. e suas controladas receberam aval da controladora WEG Participações e
Serviços S.A. referente a contratação de financiamentos no montante de R$ 100.514 que são
remunerados em 1% (um por cento) a.a. sobre o saldo devedor vigente.
23 – INSTRUMENTOS FINANCEIROS
Em 31 de dezembro de 2003 e 2002 a Companhia possuia os seguintes saldos de
instrumentos financeiros, sendo seus valores de mercado equivalentes aos saldos contábeis:
DESCRIÇÃO
- Disponibilidades
- Aplicações Financeiras
- Títulos a Recuperar
- Tributos Diferidos
- Financiamentos
- Mútuos a Pagar
CONTROLADORA
2003
2002
77
31
37.860
3.538
3.552
1.389
1.200
129
6.071
CONSOLIDADO
2003
2002
32.678
30.054
690.944
713.050
32.682
21.905
12.855
15.423
599.668
695.959
2.879
1.692
a) Os valores de realização calculados de ativos e passivos financeiros da Companhia foram
determinados por meio de informações disponíveis no mercado e metodologias
apropriadas de avaliações, que não indicam, necessariamente, os montantes que poderão
ser realizados no mercado de troca corrente. O uso de diferentes metodologias de
mercado pode ter um efeito nos valores calculados de realização.
A administração desses instrumentos é efetuada por meio de estratégias operacionais,
visando liquidez, rentabilidade e segurança. A política de controle consiste em
acompanhamento permanente das taxas contratadas versus as vigentes no mercado. A
Companhia e suas controladas aplicam em derivativos sem caráter especulativo,
objetivando redução dos riscos.
b) As aplicações financeiras (R$ 237.505) no exterior em títulos do Governo Brasileiro estão
atualizadas até 31 de dezembro de 2003 com base nas taxas de remuneração contratadas,
sendo previsto a manutenção até os vencimentos.
Em 31 de dezembro de 2003, se as operações fossem realizadas pelas condições do
mercado, representariam um ganho financeiro adicional de aproximadamente R$ 19.877.
c) A Companhia realiza operações de swap com o objetivo de se proteger dos efeitos de
variações em operações de investimentos em moeda estrangeira.
I. No Exterior
De dólar norte-americano mais juros para 105% do CDI referente a aplicação financeira
em títulos do governo brasileiro no exterior de R$ 147.152 (valor original);
II. No Brasil
De CDI para dólar norte-americano mais juros, referente a aplicação financeira no
montante de R$ 59.034.
247
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 31/12/2003
00541-0 WEG SA
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
24 - POSIÇÃO ACIONÁRIA DO CAPITAL VOTANTE EM 31 DE DEZEMBRO DE 2003
(Nº AÇÕES)
Acionista
Ordinárias
%
WEG Particip. e Serviços S.A.
279.161.593
96,93
29.749.092
9,02
308.910.685
49,99
8.838.407
3,07
300.206.108
90,98
309.044.515
50,01
288.000.000
100,00
329.955.200 100,00
617.955.200
100,00
Outros
Total
Preferenciais
%
Total
%
POSIÇÃO ACIONÁRIA
Acionista
Ordinárias
%
Controladores
279.161.593
96.93
110.082.191
33,36
389.243.784
62,99
1.079.058
0,37
17.295.357
5,24
18.374.415
2,97
Administradores
- Conselho de Administração
- Diretoria
Conselho Fiscal
Ações em Tesouraria
Outros
Total Geral
Preferenciais
%
Total
%
3.384
0,00
12.418.616
3,76
12.422.000
2,01
1.075.674
0,37
4.876.741
1,48
5.952.415
0,96
1
-
3
-
4
-
-
-
10.359.000
3,14
10.359.000
1,68
7.759.348
2,70
192.218.649
58,26
199.977.997
32,36
288.000.000
100,00
329.955.200 100,00
617.955.200
100,00
AÇÕES EM CIRCULAÇÃO
Ordinárias
WEG Particip. S.A. e Família
Fundadores
%
Preferenciais
%
Total
%
279.161.593
96,93
110.082.191
33,36
389.243.784
62,99
Ações em Tesouraria
-
-
10.359.000
3,14
10.359.000
1,68
Ações em Circulação
8.838.407
3,07
209.514.009
63,50
218.352.416
35,33
288.000.000
100,00
329.955.200 100,00
617.955.200
100,00
Total
248
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - Demonstrações Financeiras Padronizadas
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 31/12/2003
84.429.695/0001-11
11.01 - NOTAS EXPLICATIVAS
25 - DEMONSTRAÇÕES DOS FLUXOS DE CAIXA
CONTROLADORA
2003
2002
Atividades Operacionais
Resultado líquido do exercício
Imposto de renda e contribuição social
Depreciações e Amortizações
Equivalência patrimonial e ganhos de capital
Participação dos minoritários
Perda ativo imobilizado baixado
Perda ativo investimentos baixado
Provisões:
Participação no resultado
Outros
Variação do capital de giro
307.809
220.326
1.597
(1.327)
429
161
(307.424) (222.373)
-
Caixa líquido de atividades operacionais
CONSOLIDADO
2003
2002
307.809
78.583
57.239
10.606
177
781
1.359
220.326
45.203
50.887
(21.183)
139
487
-
224
24.057
44.515
30.190
2.068
13.194
21.977
840 (143.279) (158.634)
26.692
(305)
370.984
189.392
(11.395)
(83.040)
(5.946)
Atividades de Investimentos
Investimentos em Incentivos Fiscais
Ações em tesouraria
Imobilizado
Diferido
(16.242)
-
(719)
(75)
(11.395) (16.242)
- (125.709)
- (23.851)
Aplicação de caixa em investimentos
(16.242)
(12.114) (165.877) (100.381)
Atividades de Financiamentos
Financiamento de capital de giro
Financiamento de longo prazo
Recebimentos de dividendos/ juros s/ capital próprio
Pagamento de dividendos/juros s/ capital próprio
Pagamento participação no resultado
Pagamento imposto de renda e contribuição social
136.830
(107.587)
(1.787)
- (145.991)
49.699
70.723
(68.123) (107.497)
- (34.779)
(96) (70.361)
252.866
(13.411)
2.787
(71.600)
(24.491)
(46.108)
Caixa líquido de atividades de financiamentos
27.456
2.504 (308.929)
100.043
Variação no saldo do caixa
37.906
(9.915) (103.822)
189.054
Saldo de Caixa:
No início do período
No final do período
31
37.937
249
9.946
31
581.292
477.470
392.238
581.292
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
DFP - DEMONSTRAÇÕES FINANCEIRAS PADRONIZADAS
Legislação Societária
Data-Base - 31/12/2003
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
ÍNDICE
GRUPO QUADRO
DESCRIÇÃO
PÁGINA
01
01
IDENTIFICAÇÃO
1
01
02
SEDE
1
01
03
DIRETOR DE RELAÇÕES COM INVESTIDORES (Endereço para Correspondência com a Companhia)
1
01
04
REFERÊNCIA DO DFP
1
01
05
COMPOSIÇÃO DO CAPITAL SOCIAL
2
01
06
CARACTERÍSTICAS DA EMPRESA
2
01
07
SOCIEDADES NÃO INCLUÍDAS NAS DEMONSTRAÇÕES FINANCEIRAS CONSOLIDADAS
2
01
08
PROVENTOS EM DINHEIRO
2
01
09
DIRETOR DE RELAÇÕES COM INVESTIDORES
2
02
01
BALANÇO PATRIMONIAL ATIVO
3
02
02
BALANÇO PATRIMONIAL PASSIVO
4
03
01
DEMONSTRAÇÃO DO RESULTADO
5
04
01
DEMONSTRAÇÃO DAS ORIGENS E APLICAÇÕES DE RECURSOS
6
05
01
DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2003 A 31/12/2003
7
05
02
DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2002 A 31/12/2002
8
05
03
DEMONSTRAÇÃO DAS MUTAÇÕES DO PATRIMÔNIO LÍQUIDO DE 01/01/2001 A 31/12/2001
06
01
BALANÇO PATRIMONIAL ATIVO CONSOLIDADO
10
06
02
BALANÇO PATRIMONIAL PASSIVO CONSOLIDADO
11
07
01
DEMONSTRAÇÃO DO RESULTADO CONSOLIDADO
12
08
01
DEMONSTRAÇÃO DAS ORIGENS E APLICAÇÕES DE RECURSOS CONSOLIDADAS
13
09
01
PARECER DOS AUDITORES INDEPENDENTES - SEM RESSALVA
14
10
01
RELATÓRIO DA ADMINISTRAÇÃO
11
01
NOTAS EXPLICATIVAS
9
16
25/39
250
APPENDIX E
Quarterly report for the period ended on June 30, 2004.
251
This Page Intentionally Left Blank
252
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 30/06/2004
ITR - INFORMAÇÕES TRIMESTRAIS
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
O REGISTRO NA CVM NÃO IMPLICA QUALQUER APRECIAÇÃO SOBRE A COMPANHIA , SENDO OS SEUS
ADMINISTRADORES RESPONSÁVEIS PELA VERACIDADE DAS INFORMAÇÕES PRESTADAS.
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
4 - NIRE
25254
01.02 - SEDE
1 - ENDEREÇO COMPLETO
2 - BAIRRO OU DISTRITO
AV. PREFEITO WALDEMAR GRUBBA - 3300
CENTRO
3 - CEP
4 - MUNICÍPIO
89256-900
JARAGUÁ DO SUL
6 - DDD
5 - UF
SC
7 - TELEFONE
047
8 - TELEFONE
372-4000
11 - DDD
12 - FAX
047
372-4201
9 - TELEFONE
-
-
13 - FAX
14 - FAX
-
-
10 - TELEX
15 - E-MAIL
[email protected]
01.03 - DIRETOR DE RELAÇÕES COM INVESTIDORES (Endereço para Correspondência com a Companhia)
1 - NOME
ALIDOR LUEDERS
2 - ENDEREÇO COMPLETO
3 - BAIRRO OU DISTRITO
AV. PREFEITO WALDEMAR GRUBBA - 3.300
CENTRO
4 - CEP
89256-900
7 - DDD
6 - UF
5 - MUNICÍPIO
JARAGUÁ DO SUL
SC
8 - TELEFONE
047
9 - TELEFONE
372-4533
12 - DDD
13 - FAX
047
372-4201
10 - TELEFONE
-
-
14 - FAX
15 - FAX
-
-
11 - TELEX
16 - E-MAIL
[email protected]
01.04 - REFERÊNCIA / AUDITOR
EXERCÍCIO SOCIAL EM CURSO
TRIMESTRE ATUAL
TRIMESTRE ANTERIOR
1 - INÍCIO
2 - TÉRMINO
3 - NÚMERO
4 - INÍCIO
5 - TÉRMINO
6 - NÚMERO
7 - INÍCIO
8 - TÉRMINO
01/01/2004
31/12/2004
2
01/04/2004
30/06/2004
1
01/01/2004
31/03/2004
9 - NOME/RAZÃO SOCIAL DO AUDITOR
10 - CÓDIGO CVM
KPMG AUDITORES INDEPENDENTES
00418-9
11 - NOME DO RESPONSÁVEL TÉCNICO
12 - CPF DO RESP. TÉCNICO
PEDRO JAIME CERVATTI
655.644.058-20
253
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 30/06/2004
ITR - INFORMAÇÕES TRIMESTRAIS
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
01.05 - COMPOSIÇÃO DO CAPITAL SOCIAL
Número de Ações
1 - TRIMESTRE ATUAL
2 - TRIMESTRE ANTERIOR
3 - IGUAL TRIMESTRE EX. ANTERIOR
30/06/2004
31/03/2004
30/06/2003
(Mil)
Do Capital Integralizado
1 - Ordinárias
288.000
288.000
2 - Preferenciais
329.955
329.955
288.000
329.955
3 - Total
617.955
617.955
617.955
Em Tesouraria
4 - Ordinárias
5 - Preferenciais
6 - Total
0
0
0
10.359
10.359
10.359
8.294
10.359
8.294
01.06 - CARACTERÍSTICAS DA EMPRESA
1 - TIPO DE EMPRESA
Empresa Comercial, Industrial e Outras
2 - TIPO DE SITUAÇÃO
Operacional
3 - NATUREZA DO CONTROLE ACIONÁRIO
Nacional Holding
4 - CÓDIGO ATIVIDADE
134 - Emp. Adm. Participações
5 - ATIVIDADE PRINCIPAL
GESTÃO DE PARTICIPAÇÕES SOCIETÁRIAS ( HOLDINGS)
6 - TIPO DE CONSOLIDADO
Total
7 - TIPO DO RELATÓRIO DOS AUDITORES
Sem Ressalva
01.07 - SOCIEDADES NÃO INCLUÍDAS NAS DEMONSTRAÇÕES FINANCEIRAS CONSOLIDADAS
1 - ITEM
2 - CNPJ
3 - DENOMINAÇÃO SOCIAL
01.08 - PROVENTOS EM DINHEIRO DELIBERADOS E/OU PAGOS DURANTE E APÓS O TRIMESTRE
1 - ITEM
2 - EVENTO
4 - PROVENTO
5 - INÍCIO PGTO. 6 - TIPO AÇÃO 7 - VALOR DO PROVENTO P/ AÇÃO
01
RCA
3 - APROVAÇÃO
23/07/2004
Dividendo
18/08/2004
ON
0,1400000000
02
RCA
23/07/2004
Dividendo
18/08/2004
PN
0,1400000000
254
255
WEG SA
00541-0
05/04/2004
(Reais Mil)
750.000
3 - VALOR DO CAPITAL SOCIAL
(Reais Mil)
1 - DATA
12/07/2004
2 - ASSINATURA
5 - ORIGEM DA ALTERAÇÃO
150.000 Reserva de Lucro
4 - VALOR DA ALTERAÇÃO
01.10 - DIRETOR DE RELAÇÕES COM INVESTIDORES
01
ALTERAÇÃO
1- ITEM 2 - DATA DA
01.09 - CAPITAL SOCIAL SUBSCRITO E ALTERAÇÕES NO EXERCÍCIO SOCIAL EM CURSO
2 - DENOMINAÇÃO SOCIAL
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
ITR - INFORMAÇÕES TRIMESTRAIS
Data-Base - 30/06/2004
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
SERVIÇO PÚBLICO FEDERAL
(Mil)
7 - QUANTIDADE DE AÇÕES EMITIDAS
0
0,0000000000
8 - PREÇO DA AÇÃO NA
EMISSÃO
(Reais)
84.429.695/0001-11
3 - CNPJ
Legislação Societária
Divulgação Externa
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 30/06/2004
ITR - INFORMAÇÕES TRIMESTRAIS
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
02.01 - BALANÇO PATRIMONIAL ATIVO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
1
Ativo Total
1.01
3 - 30/06/2004
4 - 31/03/2004
1.071.403
965.104
Ativo Circulante
132.146
89.941
1.01.01
Disponibilidades
42.573
41.081
1.01.02
Créditos
0
0
1.01.03
Estoques
0
0
1.01.04
Outros
89.573
48.860
1.01.04.01
Dividendos
85.014
46.454
1.01.04.02
Juros s/ Capital Próprio
3.185
0
1.01.04.03
Impostos a Recuperar
1.374
2.406
1.02
Ativo Realizável a Longo Prazo
8.070
8.276
1.02.01
Créditos Diversos
1.02.02
Créditos com Pessoas Ligadas
1.02.02.01
1.02.02.02
0
0
578
784
Com Coligadas
0
0
Com Controladas
0
0
1.02.02.03
Com Outras Pessoas Ligadas
0
0
1.02.03
Outros
7.492
7.492
1.02.03.01
Depositos Judiciais
6.098
6.098
1.02.03.02
Impostos Diferidos
1.394
1.394
1.03
Ativo Permanente
931.187
866.887
1.03.01
Investimentos
929.086
864.744
1.03.01.01
Participações em Coligadas
1.03.01.02
Participações em Controladas
1.03.01.03
Outros Investimentos
6
6
1.03.02
Imobilizado
2.101
2.143
1.03.02.01
Imóveis
2.101
2.143
1.03.03
Diferido
0
0
256
63.686
60.235
865.394
804.503
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 30/06/2004
ITR - INFORMAÇÕES TRIMESTRAIS
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
02.02 - BALANÇO PATRIMONIAL PASSIVO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
2
Passivo Total
2.01
Passivo Circulante
2.01.01
3 - 30/06/2004
4 - 31/03/2004
1.071.403
965.104
87.358
1.314
Empréstimos e Financiamentos
0
0
2.01.02
Debêntures
0
0
2.01.03
Fornecedores
0
0
2.01.04
Impostos, Taxas e Contribuições
734
342
2.01.04.01
Obrigações Sociais
584
184
2.01.04.02
Obrigações Tributárias
150
158
2.01.04.03
Imposto de Renda
2.01.05
0
0
Dividendos a Pagar
85.620
568
2.01.05.01
Dividendos
85.569
510
2.01.05.02
Juros s/ Capital Próprio
51
58
2.01.06
Provisões
0
0
2.01.07
Dívidas com Pessoas Ligadas
0
0
2.01.08
Outros
1.004
404
2.01.08.01
Participações nos Resultados
0
0
2.01.08.02
Outras Obrigações
1.004
404
2.02
Passivo Exigível a Longo Prazo
6.792
6.860
2.02.01
Empréstimos e Financiamentos
0
0
2.02.02
Debêntures
0
0
2.02.03
Provisões
0
0
2.02.04
Dívidas com Pessoas Ligadas
2.02.05
190
0
Outros
6.602
6.860
2.02.05.01
Tributos em Contingências
6.602
6.602
2.02.05.02
Obrigações Sociais e Tributárias
0
23
2.02.05.03
Outras Obrigações
0
235
2.03
Resultados de Exercícios Futuros
0
0
2.05
Patrimônio Líquido
977.253
956.930
2.05.01
Capital Social Realizado
750.000
600.000
2.05.02
Reservas de Capital
2.05.03
Reservas de Reavaliação
2.05.03.01
Ativos Próprios
2.05.03.02
Controladas/Coligadas
2.05.04
Reservas de Lucro
2.05.04.01
Legal
2.05.04.02
Estatutária
2.05.04.03
2.05.04.04
0
0
9.088
9.226
0
0
9.088
9.226
102.047
252.047
0
15.390
129.684
264.294
Para Contingências
0
0
De Lucros a Realizar
0
0
2.05.04.05
Retenção de Lucros
0
0
2.05.04.06
Especial p/ Dividendos Não Distribuídos
0
0
2.05.04.07
Outras Reservas de Lucro
(27.637)
(27.637)
2.05.04.07.01
Ações em Tesouraria
(27.637)
(27.637)
2.05.05
Lucros/Prejuízos Acumulados
116.118
95.657
257
258
3 - 01/04/2004 a 30/06/2004
0
4 - 01/01/2004 a 30/06/2004
0
5 - 01/04/2003 a 30/06/2003
0
2 - DESCRIÇÃO
Receita Bruta de Vendas e/ou Serviços
Deduções da Receita Bruta
Receita Líquida de Vendas e/ou Serviços
Custo de Bens e/ou Serviços Vendidos
Resultado Bruto
Despesas/Receitas Operacionais
Com Vendas
Gerais e Administrativas
Financeiras
Receitas Financeiras
Despesas Financeiras
Outras Receitas Operacionais
Outras Despesas Operacionais
Resultado da Equivalência Patrimonial
Resultado Operacional
Resultado Não Operacional
Receitas
Despesas
Resultado Antes Tributação/Participações
Provisão para IR e Contribuição Social
IR Diferido
Participações/Contribuições Estatutárias
Participações
Contribuições
Reversão dos Juros sobre Capital Próprio
1 - CÓDIGO
3.01
3.02
3.03
3.04
3.05
3.06
3.06.01
3.06.02
3.06.03
3.06.03.01
3.06.03.02
3.06.04
3.06.05
3.06.06
3.07
3.08
3.08.01
3.08.02
3.09
3.10
3.11
3.12
3.12.01
3.12.02
3.13
(3.746)
0
(599)
(599)
0
(1.473)
111.205
(10)
10
0
111.205
105.342
31
1.509
(500)
5.327
4.827
(504)
0
111.205
0
0
0
0
(3.746)
0
(1.003)
(1.003)
6
(1.759)
207.347
(10)
10
0
207.347
200.940
(639)
1.756
(630)
6.913
6.283
(993)
0
207.347
0
0
0
0
3
0
(326)
(326)
(93)
(1.935)
69.285
0
(36)
(36)
69.321
69.076
(164)
(338)
(5.721)
6.879
1.158
(411)
0
69.321
0
0
0
0
0
0
0
0
0
3
0
(586)
(586)
75
(1.935)
141.819
(28)
0
(28)
141.847
142.040
(938)
182
(5.741)
7.068
1.327
(764)
0
141.847
6 - 01/01/2003 a 30/06/2003
84.429.695/0001-11
WEG SA
03.01 - DEMONSTRAÇÃO DO RESULTADO (Reais Mil)
3 - CNPJ
2 - DENOMINAÇÃO SOCIAL
00541-0
Legislação Societária
Divulgação Externa
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 30/06/2004
ITR - INFORMAÇÕES TRIMESTRAIS
SERVIÇO PÚBLICO FEDERAL
259
3 - 01/04/2004 a 30/06/2004
4 - 01/01/2004 a 30/06/2004
607.596
0,17345
Lucro/Prejuízo do Período
NÚMERO AÇÕES, EX-TESOURARIA (Mil)
LUCRO POR AÇÃO
PREJUÍZO POR AÇÃO
105.387
2 - DESCRIÇÃO
1 - CÓDIGO
3.15
0,33056
607.596
200.845
5 - 01/04/2003 a 30/06/2003
0,10979
609.661
66.934
0,22861
609.661
139.376
6 - 01/01/2003 a 30/06/2003
84.429.695/0001-11
WEG SA
03.01 - DEMONSTRAÇÃO DO RESULTADO (Reais Mil)
3 - CNPJ
2 - DENOMINAÇÃO SOCIAL
00541-0
Legislação Societária
Divulgação Externa
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 30/06/2004
ITR - INFORMAÇÕES TRIMESTRAIS
SERVIÇO PÚBLICO FEDERAL
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
01 - CONTEXTO OPERACIONAL
A companhia tem prazo de duração indeterminado e por objetivo:
I – a participação em outras sociedades, negócios e empreendimentos
II – a prestação de serviços, consultoria, controle, assistência técnica e a administração de
bens;
III – a produção, industrialização, comércio, exportação e importação de:
a) sistemas industriais, eletromecânicos e eletrônicos, máquinas elétricas girantes,
máquinas e equipamentos em geral, aparelhos para produção, distribuição e
conversão de energia elétrica, material elétrico, controladores programáveis, partes
e componentes de máquinas, aparelhos e equipamentos em geral; e
b) resinas em geral, materiais tintoriais, substâncias e produtos de origem vegetal e
química destinados à indústria e a ciência.
IV – o comércio, exportação, importação, extração e industrialização de produtos e serviços
de silvicultura, agricultura, pecuária, pesquisa e lavra de jazidas minerais.
02 - APRESENTAÇÃO DAS DEMONSTRAÇÕES FINANCEIRAS - EM REAIS MIL
As demonstrações financeiras foram elaboradas com base nas práticas contábeis emanadas
da legislação societária e normas da Comissão de Valores Mobiliários.
Adicionalmente a Companhia está apresentando a Demonstração dos Fluxos de Caixa,
preparada pelo método indireto de acordo com as Normas e Procedimentos de Contabilidade
(NPC 20) - Demonstração dos Fluxos de Caixa, emitida pelo Instituto dos Auditores
Independentes do Brasil (IBRACON).
03 - PRINCIPAIS PRÁTICAS CONTÁBEIS
a) Apuração do Resultado: As receitas e despesas estão demonstradas obedecendo o
regime de competência.
b) Aplicações Financeiras: Estão registradas aos valores de custo acrescidas dos
rendimentos auferidos até 30 de junho de 2004, de acordo com as taxas pactuadas com as
instituições financeiras.
c) Provisão com Perdas de Créditos de Clientes: A provisão com perdas de créditos de
clientes foi calculada com base em análise de risco dos créditos, que considera o histórico
de perdas, sendo suficiente para cobrir perdas sobre os valores a receber.
d) Estoques: Estão valorados ao custo médio de aquisição ou fabricação, líquidos de
impostos recuperados e não superam os preços de mercado.
e) Demais Ativos Circulante e de Longo Prazo: São apresentados pelo valor de custo ou
de realização, incluindo, quando aplicável, os rendimentos auferidos e as variações
monetárias e cambiais incorridas.
260
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
f) Investimentos: Os investimentos em empresas controladas e coligada, foram ajustados
pelo método da equivalência patrimonial. Os demais investimentos são avaliados ao
custo de aquisição. As demonstrações financeiras das controladas no exterior são
convertidas em moeda nacional pelo "método da taxa histórica" em que:
- Balanços Patrimoniais, são convertidos com base na taxa da moeda vigente em 30 de
junho de 2004;
- Demonstrações de Resultados convertidas com base na taxa média mensal do
exercício.
Após a conversão, é apurado o ajuste patrimonial pelo método da equivalência
patrimonial, observando-se:
- O valor decorrente do resultado do período, e os ganhos e perdas de capital, decorrente
de variação cambial e acréscimos ou diminuições patrimoniais, estão registrados em
Resultados Operacionais;
- Valor decorrente da variação na porcentagem de participação no capital social das
controladas, está registrado em resultados não operacionais.
g) Imobilizado: É calculado ao custo de aquisição e deduzido das respectivas depreciações.
As depreciações são calculadas sobre o custo de aquisição, pelo método linear às taxas
mencionadas na nota explicativa nº 11, levando-se em consideração a estimativa de vida
útil.
h) Diferido: Registrado ao custo de aquisição e formação, deduzido da amortização, a qual é
calculada pelo método linear às taxas que levam em consideração a vida útil dos ativos
intangíveis.
i) Imposto de Renda e Contribuição Social: Foram apurados pelo lucro real e presumido
de acordo com a legislação vigente. O Imposto de Renda e a Contribuição Social diferidos
foram apurados com base na Deliberação CVM 371/02.
j) Demais Passivos Circulante e Exigível a Longo Prazo: São demonstrados pelos valores
conhecidos ou calculáveis, acrescidos, quando aplicável, dos correspondentes encargos
financeiros em base "pró rata"-dia e das variações monetárias e cambiais incorridas.
04 - PROCEDIMENTOS DE CONSOLIDAÇÃO
a) a WEG S.A., e suas controladas no Brasil adotam práticas contábeis uniformes, e as
demonstrações financeiras das controladas do exterior foram convertidas pela cotação do
câmbio vigente em 30 de junho de 2004;
b) eliminação dos saldos das contas ativas e passivas decorrentes das transações entre
as sociedades incluídas na consolidação;
c) eliminação dos investimentos nas sociedades controladas na proporção de seus
respectivos patrimônios;
d) eliminação das receitas e das despesas decorrentes de negócios com as sociedades
incluídas
na consolidação e dos lucros contidos nos estoques decorrentes de
transferências para controladas;
261
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
e) informação da participação dos minoritários no patrimônio líquido e na demonstração de
resultados.
05 - DISPONIBILIDADES E APLICAÇÕES FINANCEIRAS
CONTROLADORA
30/06/04
31/03/04
47
39
42.526
41.042
40.285
38.862
2.241
2.180
-
Caixas e Bancos
Aplicações em Reais:
- Certificado de Depósito Bancário (CDB)
- Fundos de Renda Fixa
Aplicações em Dólar:
- Títulos do Governo no Exterior
Outras
Total
Curto Prazo
Longo Prazo
- 2005
- 2006
- 2007
42.573
42.573
-
41.081
41.081
-
CONSOLIDADO
30/06/04
31/03/04
29.142
29.967
534.181
405.347
451.321
319.984
82.860
85.363
273.837
246.842
273.837
246.842
11.793
21.901
848.953
575.702
273.251
183.671
58.505
31.075
704.057
442.116
261.941
177.481
55.374
29.086
06 - CONTAS A RECEBER DE CLIENTES
Mercado Interno
Mercado Externo
Adiantamentos de Câmbio – ACE
Provisão com Perdas de Créditos de Clientes
Total
CONSOLIDADO
30/06/04
31/03/04
167.601
164.279
225.767
277.473
(4.994)
(5.837)
(7.152)
(5.358)
379.694
432.085
07 - ESTOQUES
CONSOLIDADO
30/06/04
31/03/04
234.905
206.221
81.695
58.956
76.686
60.343
393.286
325.520
Produtos Acabados
Produtos em Elaboração
Matérias-primas e Outros
Total
262
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 30/06/2004
00541-0 WEG SA
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
08 - IMPOSTOS A RECUPERAR
ICMS
IPI
Ressarcimento Crédito Presumido IPI
Imposto de Renda
Contribuição Social
IVA (Controladas Exterior)
Outros
Total
Curto Prazo
Longo Prazo
CONTROLADORA
30/06/04
31/03/04
1.198
2.284
176
122
1.374
2.406
1.374
2.406
-
CONSOLIDADO
30/06/04
31/03/04
23.607
18.157
3.723
1.307
11.360
6.536
9.111
12.290
228
122
4.782
4.637
616
246
53.427
43.295
44.872
35.012
8.555
8.283
Os créditos serão realizados pela empresa e suas controladas, através de restituição e
compensação com impostos e contribuições conforme legislação.
09 - IMPOSTO DE RENDA E CONTRIBUIÇÃO SOCIAL DIFERIDOS
Os créditos fiscais diferidos de Imposto de Renda e Contribuição Social sobre o lucro,
registrados no ativo, foram apurados em conformidade com o pronunciamento do IBRACON,
aprovado pela Deliberação CVM nº 371/02:
CONTROLADORA
Base para constituição dos impostos diferidos:
Ativos
- Provisões não dedutíveis
- Contingências trabalhistas/cíveis
- Tributos em discussão judicial
- Prejuízo Fiscal do I.R.
- Base Negativa da CSSL
- Total
CONSOLIDADO
30/06/04
31/03/04
30/06/04
31/03/04
1.394
1.394
1.394
1.394
260
2.916
9.047
2.058
759
15.040
239
2.757
9.047
2.493
916
15.452
A realização dos créditos tributários, irá ocorrer a médio/longo prazo, de acordo com o
andamento dos processos judiciais. A Administração prevê a recuperação dos prejuízos nos
próximos 2 anos.
263
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 30/06/2004
00541-0 WEG SA
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
10 - INVESTIMENTOS
a) COMPOSIÇÃO DOS INVESTIMENTOS
CONTROLADORA
30/06/04
31/03/04
- Investimentos em Controladas
- Outros Investimentos
Total
865.394
63.692
929.086
CONSOLIDADO
30/06/04
31/03/04
804.503
60.241
864.744
71.361
71.361
67.959
67.959
b) INVESTIMENTOS EM CONTROLADAS
As sociedades controladas incluídas na consolidação das demonstrações financeiras são as
seguintes:
CONTROLADAS
Patrimônio
Resultado
Participação %
Equivalência
Valor
Líquido
Líquido do
Capital
Social/Votante
Patrimonial
Patrimonial
do
Ajustado
Período
Direta
Indireta
WEG Indústrias S.A.
630.781
147.870
99,94
-
159.747
630.410
WEG Exportadora S.A.
237.073
26.909
99.94
-
26.893
236.931
WEG Chile S.A.
944
411
-
91,85
-
-
WEG Colômbia Ltda.
294
(51)
-
99,99
-
-
30.112
5.162
20,70
79,29
1.436
6.234
WEG Equip. Electricos S.A.
WEG Inds. Venezuela C.A.
WEG México S.A de C.V.
WEG Electric Motors Corp.
WEG Overseas S.A
WEG Europe S.A
WEG Germany GmbH
Investimento
1.436
1.082
-
99,99
-
-
52.928
(822)
0,03
99,97
1
14
176.554
(1.354)
0,99
99,01
105
1.753
2.879
(30)
100,00
-
174
2.879
25.547
396
7,59
92,40
767
1.939
4.740
1.068
35,10
64,90
(183)
1.664
WEG Ibéria S.A
1.062
(7)
-
100,00
-
-
WEG Electric Motors UK Ltd.
2.798
(1.151)
-
100,00
-
7
WEG Itália S.R.L
WEGeuro Inds. Electricas S.A
WEG Scandinávia AB
WEG Austrália PTY
720
54
1,00
99,00
1
15.660
(3.292)
-
99,99
-
-
(290)
(170)
-
100,00
-
-
26.438
2.522
3,34
96,66
85
883
WEG Japan CO Ltd.
130
770
36,97
63,03
48
48
WEG Electric Motors Japan CO Ltd.
380
(55)
-
70,00
-
-
264
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 30/06/2004
00541-0 WEG SA
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
11 - IMOBILIZADO
Terrenos e Construções
Equipamentos e Instalações
Hardware/Software
Móveis e Utensílios
Veículos
Imobilizações em Curso
Reflorestamento
Outros
Taxa Anual de
Depreciação
CONTROLADORA
%
00 a 04
10 a 30
20 a 30
10 a 30
20 a 30
-
30/06/04 31/03/04
4.736
4.736
270
270
-
Sub Total
Depreciações Acumuladas
-
5.006
(2.905)
5.006
(2.863)
2.101
2.143
Total
CONSOLIDADO
30/06/04
157.258
574.013
46.400
40.654
4.207
18.486
8.479
38.925
31/03/04
155.322
551.636
43.260
39.460
4.368
17.443
8.256
30.759
888.422
850.504
(509.456) (493.228)
378.966
357.276
12 - DIFERIDO
Especificação
Custo
Projetos de Pesquisa e Desenvolvimento
Projetos de Tecnologia de Informação
Projetos em Empresas do Exterior
Total
25.373
19.320
8.972
53.665
CONSOLIDADO
Amortização
Saldo Líquido
Acumulada 30/06/04 31/03/04
222
25.151
17.936
19.320
16.724
3.505
5.467
5.458
3.727
49.938
40.118
13 - FINANCIAMENTOS
Exigível a Curto Prazo
Modalidade
Capital de giro
Capital de giro
Capital de giro (ACC`s)
Capital de giro
Ativo Imobilizado
Ativo Imobilizado
Outras
Total
Encargos Anuais
TJLP (+) 1,0 a 3,15% a.a.
Cesta de Moedas (+) 2,4 a 3.0% a.a.
Juros 1,25 a 2,86% a.a.(+) Variação Cambial
LIBOR (+) 0,63 a 3,40% a.a.
TJLP (+) 2,5 a 3,5% a.a.
IGPM (+) 1,0% a.a.
-
265
CONSOLIDADO
30/06/04 31/03/04
112.578
54.023
9.978
9.413
219.245
47.544
158.713 229.633
3.467
3.867
1.464
1.173
2.065
2.488
507.510 348.141
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
Exigível a Longo Prazo
Modalidade
Encargos Anuais
Capital de giro
TJLP (+) 1,0 a 3,15% a.a.
Capital de giro
Cesta de Moedas (+) 3,0 a 3,25% a.a.
Capital de giro
LIBOR (+) 0,63 a 3,4% a.a.
Ativo Imobilizado
TJLP (+) 2,5 a 3,5% a.a.
Ativo Imobilizado
IGPM (+) 1,0% a.a.
Outras
Total
CONSOLIDADO
30/06/04 31/03/04
100.593 159.754
23.087
21.172
116.446
40.959
3.310
3.758
53.465
53.180
800
297.701 278.823
Os vencimentos dos financiamentos de longo prazo, têm a seguinte composição:
Consolidado
30/06/04 31/03/04
Vencimento
58.780
82.746
75.292
40.325
17.478
23.080
2005
2006
2007
2008
2009
2010 em diante
Total
297.701
104.316
39.871
61.623
33.076
16.226
23.711
278.823
Os financiamentos são garantidos por avais, alienação fiduciária e/ou hipoteca de bens.
Os financiamentos captados em moeda estrangeira basicamente abrangem os ACC's no montante
de R$ 219,2 milhões e BNDES EXIM e FINEM em cesta de moedas no montante de R$ 33,1
milhões. A Companhia conta com hedge natural de suas exportações que atingiram o montante de
US$ 118,2 milhões no 1º semestre de 2004.
Os financiamentos tomados pelas controladas do exterior, são em dólares e/ou nas moedas de
cada país, num montante de R$ 275,2 milhões em 30 de junho de 2004, equivalente a US$ 88,5
milhões.
14 - PROVISÃO PARA IMPOSTO DE RENDA E CONTRIBUIÇÃO SOCIAL
A provisão para imposto de renda foi constituída com alíquota de 15%, acrescida do adicional
de 10%, e da contribuição social com alíquota de 9%, de acordo com a legislação em vigor.
Os impostos das empresas do exterior estão constituídos conforme a legislação vigente de
cada país. Os valores contabilizados no resultado do exercício são os seguintes:
Imposto de Renda
Contribuição Social
Total
CONTROLADORA
30/06/04 30/06/03
1.315
1.451
444
484
1.759
1.935
266
CONSOLIDADO
30/06/04
30/06/03
30.941
31.245
13.163
13.937
44.104
45.182
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
15 - EMPRESAS CONTROLADAS/CONTROLADORA
A Companhia possui operações de mútuo com partes relacionadas com encargos financeiros
compatíveis com os de mercado, contabilizado conforme demonstrativo abaixo:
CONTROLADORA
30/06/04 31/03/04
Ativo Realizável a Longo Prazo
- WEG Indústrias S.A.
Passivo Exigível a Longo Prazo
- WEG Exportadora S.A.
- WEG Participações e Serviços S.A.
CONSOLIDADO
30/06/04
31/03/04
578
784
-
-
190
-
-
3.030
2.818
16 - PROGRAMA DE RECUPERAÇÃO FISCAL – REFIS
A Companhia em 12/12/00 aderiu ao Programa de Recuperação Fiscal – REFIS com o objetivo de
reduzir contingências fiscais, optando, como forma de pagamento, pelo parcelamento alternativo,
sendo que os valores são atualizados pela TJLP.
- Curto Prazo
- Longo Prazo
Total
CONTROLADORA
30/06/04
31/03/04
126
136
23
126
159
CONSOLIDADO
30/06/04
31/03/04
4.682
5.022
837
4.682
5.859
17 - PROVISÃO PARA CONTINGÊNCIAS
A Companhia constituiu provisões para contingências sobre processos em andamento de
natureza trabalhista, cível e tributária. Os valores provisionados são suficientes para cobrir
eventuais perdas.
Tributárias
Trabalhistas
Cíveis e Outros
Total
CONTROLADORA
30/06/04
31/03/04
6.602
6.602
6.602
6.602
CONSOLIDADO
30/06/04
31/03/04
93.168
90.912
3.446
2.573
23.892
21.337
120.506
114.822
As contingências tributárias decorrem de processos tributários a nível federal e estadual. Os
principais processos em discussão abrangem: IR e CSSL s/ Correção Monetária
Complementar do Plano Verão e Pis/Cofins sobre Receitas Financeiras.
267
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00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
18 – PARTICIPAÇÃO NOS RESULTADOS
A Companhia e suas controladas, mantém política de conceder participação nos lucros e
resultados a seus colaboradores, vinculado ao Programa WEG de Qualidade e Produtividade,
que estabelece objetivos específicos no início de cada ano. Em 30 de junho de 2004 e 2003
foram provisionados os montantes de R$ 31.622 e R$ 17.832 respectivamente, contabilizado
em outras despesas operacionais.
19 - PATRIMÔNIO LÍQUIDO
a) Capital Social
Na AGO/E de 05 de abril de 2004, foi aprovado o aumento do capital social de R$ 600.000
para R$ 750.000, sem modificação do número de ações, mediante aproveitamento das
seguintes reservas:
- Reserva Legal
15.390
- Reserva para Orçamento de Capital
134.610
O capital social, em 30 de junho de 2004 é formado por 617.955.200 ações, sendo
288.000.000 ordinárias e 329.955.200 preferenciais, todas sem valor nominal. As ações
preferenciais tem as seguintes vantagens asseguradas no Estatuto Social:
I. Direito de serem incluídas na oferta pública de alienação de controle da Companhia, de
modo a lhes assegurar o preço mínimo igual a 80% (oitenta por cento) do valor pago
por ação com direito a voto integrante do bloco de controle, nos termos do artigo 254-A,
da Lei 6.404/76, com redação dada pela Lei 10.303/01;
II. Prioridade no reembolso de capital, em caso de encerramento das atividades da
Companhia;
III. Participação em igualdade de condições com as demais ações, na distribuição de
dividendos, no recebimento de bonificações provenientes de reserva de capital, de
reavaliação de ativos, de capitalização de reservas de lucros ou de utilização de
quaisquer fundos.
b) Reserva de Reavaliação
Em 30 de junho de 2004 foi realizado por depreciações e baixas dos bens reavaliados na
controlada WEG Industrias S.A., o montante acumulado de R$ 291, contabilizado
diretamente na conta de resultados acumulados.
c) Ações em Tesouraria
Em 30 de junho de 2004 e 2003, as ações em tesouraria totalizavam 10.359.000 e
8.293.537 ações preferenciais nominativas respectivamente, a um custo médio ponderado
de aquisição de R$ 2,66 por ação, sendo o custo mínimo de R$ 1,95 e o máximo de R$
3,50 por ação. O valor de mercado destas ações em 30 de junho de 2004 era de R$ 7,35
por ação.
Em 02 de julho de 2004, nos termos da Instrução CVM nº 358, de 3 de janeiro de 2002, a
WEG S.A., (“Companhia”) comunicou aos seus acionistas e ao mercado em geral que a
Companhia, juntamente com BTAM – Bradesco Templeton Asset Management Ltda., na
268
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EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
qualidade de administrador do Fundo Bradesco Templeton de Valor e Liquidez – Fundo de
Investimento em Ações, PREVI – Caixa de Previdência dos Funcionários do Banco do
Brasil e Banco Nacional de Desenvolvimento Econômico e Social – BNDES, na qualidade
de gestor do Fundo de Participação Social, nesta data, protocolou perante a Comissão de
Valores Mobiliários – CVM pedido de registro de oferta pública de distribuição secundária
de até 40.000.000 de ações preferenciais nominativas escriturais, sem valor nominal, de
emissão da Companhia, de titularidade da própria Companhia e dos referidos acionistas.
Essa quantidade poderá ser elevada: (a) a critério das instituições financeiras contratadas
para efetuar a oferta pública de distribuição, em até 4.359.000 de ações preferenciais, para
atender a eventual excesso de demanda pelas ações; e (b) a critério dos ofertantes das
ações acima nomeados, em até 20% (não computadas as ações indicadas no item (a)). A
oferta pública de distribuição secundária está sujeita à aprovação da CVM e do Conselho
de Administração da Companhia.
d) Dividendos Intermediários
Na reunião do Conselho de Administração de 23 de julho de 2004 foi aprovado distribuir
dividendos no valor de R$ 85.063 correspondente a R$ 0,14 por ação.
Os dividendos serão pagos para um capital social de 607.596.200 ações, já deduzidas as
10.359.000 ações que se encontram em tesouraria (Capital Social total 617.955.200
ações), no dia 18 de agosto de 2004, sendo considerados "Ex-dividendos" após a data de
23 de julho de 2004.
20 - WEG SEGURIDADE SOCIAL
Entidade mantida pela controladora e suas controladas, com plano de contribuição
definida, objetivando assegurar a seus funcionários suplementação de
proventos,
aposentadoria e outros benefícios previdenciários. A suplementação é calculada de acordo
com a reserva matemática constituída. A controladora e suas controladas contribuíram em 30
de junho de 2004 e 2003, respectivamente com R$ 3.228 e R$ 2.676.
21 - COBERTURA DE SEGUROS
Os valores são contratados em bases técnicas e estimados suficientes para coberturas de
eventuais perdas decorrentes de sinistros com bens do ativo permanente e estoques, cujo
risco declarado é de R$ 761.524.
22 – AVAIS
A WEG S.A., e suas controladas receberam aval da controladora WEG Participações e
Serviços S.A., referente a contratação de financiamentos no montante de R$ 90.898 que são
remunerados em 1% (um por cento) a.a., sobre o saldo devedor vigente.
269
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EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
23 – INSTRUMENTOS FINANCEIROS
A Companhia possuía os seguintes saldos de instrumentos financeiros, sendo seus valores de
mercado equivalentes aos saldos contábeis:
DESCRIÇÃO
- Disponibilidades
- Aplicações Financeiras
- Tributos a Recuperar
- Tributos Diferidos
- Mútuos a Receber
- Financiamentos
- Mútuos a Pagar
CONTROLADORA
30/06/04
31/03/04
47
39
42.526
41.042
1.374
2.406
1.394
1.394
578
784
190
-
CONSOLIDADO
30/06/04
31/03/04
29.142
29.967
819.811
674.090
53.427
43.295
15.040
15.452
805.211
626.964
3.030
2.818
a) Os valores de realização calculados de ativos e passivos financeiros da Companhia foram
determinados por meio de informações disponíveis no mercado e metodologias
apropriadas de avaliações, que não indicam, necessariamente, os montantes que poderão
ser realizados no mercado de troca corrente. O uso de diferentes metodologias de
mercado pode ter um efeito nos valores calculados de realização.
A administração desses instrumentos é efetuada por meio de estratégias operacionais,
visando liquidez, rentabilidade e segurança. A política de controle consiste em
acompanhamento permanente das taxas contratadas versus as vigentes no mercado. A
Companhia e suas controladas aplicam em derivativos sem caráter especulativo,
objetivando redução dos riscos.
b) As aplicações financeiras (R$ 273.837) no exterior em títulos do Governo Brasileiro estão
atualizadas até 30 de junho de 2004 com base nas taxas de remuneração contratadas,
sendo previsto a manutenção até os vencimentos.
Em 30 de junho de 2004, se as operações fossem realizadas pelas condições do mercado,
representariam um ganho financeiro adicional de aproximadamente R$ 13.848.
c) A Companhia realiza operações de swap com o objetivo de se proteger dos efeitos de
variações em operações de investimentos:
I. No Exterior
- De dólar norte-americano mais juros para 105% do CDI referente a aplicação
financeira em títulos do governo brasileiro no exterior de R$ 147.152 (valor original);
- De dólar norte-americano mais juros para 100% do CDI referente a aplicação
financeira em títulos do governo brasileiro no exterior de R$ 55.526 (valor original);
II. No Brasil
- De CDI para dólar norte-americano mais juros, referente a aplicação financeira no
montante de R$ 39.723 (valor original).
- De CDI para TJLP mais juros, referente a aplicação financeira no montante de R$
40.000 (valor original).
270
SERVIÇO PÚBLICO FEDERAL
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ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 30/06/2004
00541-0 WEG SA
84.429.695/0001-11
04.01 - NOTAS EXPLICATIVAS
24 - DEMONSTRAÇÕES DOS FLUXOS DE CAIXA
CONTROLADORA
30/06/04 30/06/03
Atividades Operacionais
Resultado líquido do exercício
Imposto de renda e contribuição social
Depreciações e Amortizações
Equivalência patrimonial e ganhos de capital
Participação dos minoritários
Perda ativo imobilizado baixado
Provisões:
Participação no resultado
Outros
Variação do capital de giro
200.845
139.376
1.753
1.844
80
80
(201.834) (141.284)
779
781
Caixa líquido de atividades operacionais
CONSOLIDADO
30/06/04 30/06/03
200.845
38.153
31.894
(12.760)
138
346
139.376
56.555
27.747
(512)
58
194
31.622
614
21.888
11.703 (164.019)
17.832
6.432
54.263
2.404
12.333
148.107
301.945
Atividades de Investimentos
Títulos do Governo de Longo Prazo
Investimento
Ações em tesouraria
Imobilizado
Diferido
(2)
-
(9.288)
-
(27.098)
(68.462)
(19.195)
(10.966)
(75)
(9.288)
(71.118)
(4.753)
Aplicação de caixa em investimentos
(2)
(9.288) (114.755)
(96.200)
Atividades de Financiamentos
Financiamento de capital de giro
Financiamento de longo prazo
Recebimentos de dividendos/ juros s/ capital próprio
Pagamento de dividendos/juros s/ capital próprio
Pagamento participação no resultado
Pagamento imposto de renda e contribuição social
77.471
(73.491)
(1.745)
84.281
(58.025)
(1.918)
193.223 (142.349)
12.320
(16.302)
2.293
(73.535)
(58.082)
(30.922)
(18.932)
(38.500)
(37.661)
Caixa líquido de atividades de financiamentos
2.235
24.338
64.879 (273.326)
Variação no saldo do caixa
4.637
27.383
98.231
(67.581)
37.936
42.573
31
27.414
477.471
575.702
581.292
513.711
Saldo de Caixa:
No início do período
No final do período
271
SERVIÇO PÚBLICO FEDERAL
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ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
05.01 - COMENTÁRIO DO DESEMPENHO DA COMPANHIA NO TRIMESTRE
VIDE COMENTÁRIO CONSOLIDADO
272
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 30/06/2004
ITR - INFORMAÇÕES TRIMESTRAIS
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
06.01 - BALANÇO PATRIMONIAL ATIVO CONSOLIDADO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
1
Ativo Total
3 - 30/06/2004
2.349.070
4 - 31/03/2004
2.030.241
1.01
Ativo Circulante
1.474.876
1.206.268
1.01.01
Disponibilidades
575.702
442.116
1.01.02
Créditos
432.085
379.694
1.01.03
Estoques
393.286
325.520
1.01.04
Outros
73.803
58.938
1.01.04.01
Impostos a Recuperar
44.872
35.012
1.01.04.02
Despesas do Exercício Seguinte
1.01.04.03
Outros Créditos
1.02
Ativo Realizável a Longo Prazo
1.02.01
Créditos Diversos
1.02.02
2.397
3.322
26.534
20.604
373.929
358.620
0
0
Créditos com Pessoas Ligadas
0
0
1.02.02.01
Com Coligadas
0
0
1.02.02.02
Com Controladas
0
0
1.02.02.03
Com Outras Pessoas Ligadas
0
0
1.02.03
Outros
373.929
358.620
1.02.03.01
Aplicações Financeiras
273.251
261.941
1.02.03.02
Depósitos Judiciais
73.152
71.330
1.02.03.03
Impostos a Recuperar
1.02.03.04
Impostos Diferidos
1.02.03.05
Outros
1.03
Ativo Permanente
1.03.01
1.03.01.01
1.03.01.02
Participações em Controladas
1.03.01.03
Outros Investimentos
1.03.02
1.03.02.01
8.555
8.283
15.040
15.452
3.931
1.614
500.265
465.353
Investimentos
71.361
67.959
Participações em Coligadas
63.686
60.235
0
0
7.675
7.724
Imobilizado
378.966
357.276
Imóveis
113.809
112.495
1.03.02.02
Máquinas e Equipamentos
182.170
162.343
1.03.02.03
Móveis e Utensílios
15.312
14.958
1.03.02.04
Hardware e Sofware
23.403
24.071
1.03.02.05
Outros
44.272
43.409
1.03.03
Diferido
49.938
40.118
273
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 30/06/2004
ITR - INFORMAÇÕES TRIMESTRAIS
Legislação Societária
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
06.02 - BALANÇO PATRIMONIAL PASSIVO CONSOLIDADO (Reais Mil)
1 - CÓDIGO
2 - DESCRIÇÃO
2
Passivo Total
2.01
3 - 30/06/2004
4 - 31/03/2004
2.349.070
2.030.241
Passivo Circulante
948.181
673.609
2.01.01
Empréstimos e Financiamentos
507.510
348.141
2.01.02
Debêntures
2.01.03
Fornecedores
2.01.04
2.01.04.01
0
0
130.194
139.361
Impostos, Taxas e Contribuições
94.377
81.490
Obrigações Sociais
63.885
50.713
2.01.04.02
Obrigações Tributárias
13.710
13.731
2.01.04.03
Imposto de Renda - P. J.
16.782
17.046
2.01.05
Dividendos a Pagar
85.670
595
2.01.05.01
Dividendos
85.619
537
2.01.05.02
Juros s/ Capital Próprio
51
58
2.01.06
Provisões
0
0
2.01.07
Dívidas com Pessoas Ligadas
0
0
2.01.08
Outros
130.430
104.022
2.01.08.01
Adiantamento de Clientes
41.186
37.939
2.01.08.02
Participação nos Resultados
31.662
13.216
2.01.08.03
Outras Obrigações
57.582
52.867
2.02
Passivo Exigível a Longo Prazo
422.928
398.986
2.02.01
Empréstimos e Financiamentos
297.701
278.823
2.02.02
Debêntures
0
0
2.02.03
Provisões
0
0
2.02.04
Dívidas com Pessoas Ligadas
3.030
2.818
2.02.05
Outros
122.197
117.345
2.02.05.01
Tributos em Contingências
120.506
114.822
2.02.05.02
Obrigações Sociais e Tributárias
940
1.878
2.02.05.03
Outras Obrigações
751
645
2.03
Resultados de Exercícios Futuros
2.04
Participações Minoritárias
2.05
2.05.01
2.05.02
Reservas de Capital
2.05.03
Reservas de Reavaliação
2.05.03.01
Ativos Próprios
2.05.03.02
Controladas/Coligadas
2.05.04
Reservas de Lucro
2.05.04.01
Legal
2.05.04.02
Estatutária
2.05.04.03
2.05.04.04
0
0
708
716
Patrimônio Líquido
977.253
956.930
Capital Social Realizado
750.000
600.000
0
0
9.088
9.226
0
0
9.088
9.226
102.047
252.047
0
15.390
129.684
264.294
Para Contingências
0
0
De Lucros a Realizar
0
0
2.05.04.05
Retenção de Lucros
0
0
2.05.04.06
Especial p/ Dividendos Não Distribuídos
0
0
2.05.04.07
Outras Reservas de Lucro
(27.637)
(27.637)
2.05.04.07.01
Ações em Tesouraria
(27.637)
(27.637)
2.05.05
Lucros/Prejuízos Acumulados
116.118
95.657
274
275
3 - 01/04/2004 a 30/06/2004
2 - DESCRIÇÃO
Receita Bruta de Vendas e/ou Serviços
Deduções da Receita Bruta
Receita Líquida de Vendas e/ou Serviços
Custo de Bens e/ou Serviços Vendidos
Resultado Bruto
Despesas/Receitas Operacionais
Com Vendas
Gerais e Administrativas
Financeiras
Receitas Financeiras
Despesas Financeiras
Outras Receitas Operacionais
Outras Despesas Operacionais
Resultado da Equivalência Patrimonial
Resultado Operacional
Resultado Não Operacional
Receitas
Despesas
Resultado Antes Tributação/Participações
Provisão para IR e Contribuição Social
IR Diferido
Participações/Contribuições Estatutárias
Participações
Contribuições
Reversão dos Juros sobre Capital Próprio
1 - CÓDIGO
3.01
3.02
3.03
3.04
3.05
3.06
3.06.01
3.06.02
3.06.03
3.06.03.01
3.06.03.02
3.06.04
3.06.05
3.06.06
3.07
3.08
3.08.01
3.08.02
3.09
3.10
3.11
3.12
3.12.01
3.12.02
3.13
(3.746)
0
(2.943)
(2.943)
(347)
(25.487)
137.910
(4.983)
207
(4.776)
142.686
7.197
(19.789)
14.058
(30.756)
36.985
6.229
(26.308)
(60.488)
(79.101)
221.787
(312.307)
534.094
(94.564)
628.658
4 - 01/01/2004 a 30/06/2004
(3.746)
0
(4.863)
(4.863)
2.250
(44.104)
251.428
(5.056)
464
(4.592)
256.020
12.751
(39.846)
24.175
(53.362)
68.622
15.260
(50.536)
(112.088)
(150.284)
406.304
(592.025)
998.329
(182.942)
1.181.271
5 - 01/04/2003 a 30/06/2003
5.382
0
(1.366)
(1.366)
(1.088)
(24.652)
88.693
(1.043)
64
(979)
89.672
1.117
(17.344)
2.769
(37.515)
48.498
10.983
(20.791)
(45.695)
(68.961)
158.633
(244.506)
403.139
(72.978)
476.117
5.382
0
(2.844)
(2.844)
(11.364)
(45.182)
193.461
(4.771)
411
(4.360)
197.821
512
(33.760)
8.313
(66.574)
101.558
34.984
(40.158)
(89.419)
(119.528)
317.349
(478.185)
795.534
(148.919)
944.453
6 - 01/01/2003 a 30/06/2003
84.429.695/0001-11
WEG SA
07.01 - DEMONSTRAÇÃO DO RESULTADO CONSOLIDADO (Reais Mil)
3 - CNPJ
2 - DENOMINAÇÃO SOCIAL
00541-0
Legislação Societária
Divulgação Externa
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 30/06/2004
ITR - INFORMAÇÕES TRIMESTRAIS
SERVIÇO PÚBLICO FEDERAL
276
3 - 01/04/2004 a 30/06/2004
0
4 - 01/01/2004 a 30/06/2004
(120)
5 - 01/04/2003 a 30/06/2003
(35)
607.596
0,17345
Participações Minoritárias
Lucro/Prejuízo do Período
NÚMERO AÇÕES, EX-TESOURARIA (Mil)
LUCRO POR AÇÃO
3.15
PREJUÍZO POR AÇÃO
105.387
2 - DESCRIÇÃO
1 - CÓDIGO
3.14
0,33056
607.596
200.845
0,10979
609.661
66.934
(77)
0,22861
609.661
139.376
6 - 01/01/2003 a 30/06/2003
84.429.695/0001-11
WEG SA
07.01 - DEMONSTRAÇÃO DO RESULTADO CONSOLIDADO (Reais Mil)
3 - CNPJ
2 - DENOMINAÇÃO SOCIAL
00541-0
Legislação Societária
Divulgação Externa
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
Data-Base - 30/06/2004
ITR - INFORMAÇÕES TRIMESTRAIS
SERVIÇO PÚBLICO FEDERAL
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
08.01 - COMENTÁRIO DO DESEMPENHO CONSOLIDADO NO TRIMESTRE
1 - ESTRUTURA ORGANIZACIONAL
1.1 - WEG S.A .
Atua como “Holding” do Grupo WEG, cabendo-lhe a administração,
controladoria, definição de políticas e estratégias para as empresas, bem como
avaliar novas oportunidades de investimentos e negócios. O desempenho da
empresa está relacionado ao desempenho das controladas e seus resultados são
apresentados pela Equivalência Patrimonial.
1.2 - WEG INDÚSTRIAS S.A.
Atua como empresa operacional do Grupo WEG, cabendo-lhe a industrialização,
desenvolvimento e comercialização de:
a) Sistemas industriais eletro-eletrônicos, fornecendo soluções industriais atuando
principalmente no:
• Fornecimento de pacotes elétricos e sistemas de automação industrial;
• Instalação de subestações até 100 MVA;
• Instalação de soluções para geração de energia: hidrelétricas até 25.000
KVA, termelétricas até 50.000 KVA, eólica até 3.000 KVA e co-geração.
b) Produtos:
• Motores Elétricos de Baixa e Alta Tensão
- Motores elétricos monofásicos e trifásicos;
• Motores Fracionários
- Motores NEMA monofásicos e trifásicos de 1/8 a 3 CV
• Variação de Velocidade
- Inversores de freqüência e acionamentos CA/CA, potência até 1000 CV,
- Chaves de partida Soft-Starter, potência até 1000 CV;
- Servomotores e servoconversores;
- Conversores e acionamentos CA/CC, potência até 1000 KW;
- Motordrives.
• Comando e Proteção
- Contatores e relés de sobrecarga;
- Disjuntor motor;
- Botões e sinaleiras;
- Fusíveis tipo D e NH;
- Chaves de partida;
- Temporizadores e protetores eletrônicos;
- Capacitores.
277
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EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
08.01 - COMENTÁRIO DO DESEMPENHO CONSOLIDADO NO TRIMESTRE
• Automação de Processos Industriais
- Controladores programáveis;
- Sistemas de suspensão e controle;
- Centros de controle de motores;
- Controladores de posição.
• Geração, Transmissão e Distribuição de Energia
- Geradores para grupo geradores,
- Geradores especiais de grande porte;
- Quadros de comando e distribuição BT/MT;
- Transformadores trifásicos a óleo;
- Transformadores a seco.
• Tintas e Vernizes Industriais
- Tintas líquidas;
- Tintas em pó;
- Vernizes eletroisolantes;
- Resinas.
1.3 – WEG EXPORTADORA S.A.
Atua como trading do grupo WEG efetuando exportações e promoção dos
produtos WEG, além de participar nas controladas no exterior.
1.4 - EMPRESAS CONTROLADAS NO EXTERIOR
a) Controladas industriais que comercializam e distribuem produtos:
-WEG EQUIPAMIENTOS ELECTRICOS S.A. – Argentina.
Produtos: Motores elétricos e disjuntores.
-WEG MÉXICO S.A. DE C.V. – México.
Produtos: Motores elétricos de baixa tensão.
-WEGEURO INDÚSTRIAS ELÉCTRICAS S.A – Maia – Portugal.
Produtos: Motores elétricos acima de 50 CVs.
b) Controladas de comercialização e distribuição dos produtos WEG:
-WEG CHILE S.A. – Chile.
-WEG COLÔMBIA LTDA. – Colômbia.
-WEG INDÚSTRIAS VENEZUELA C.A. – Venezuela
-WEG ELECTRIC MOTORS CORP. – Estados Unidos.
-WEG AUSTRÁLIA PTY. LTD. – Austrália.
278
SERVIÇO PÚBLICO FEDERAL
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ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 30/06/2004
00541-0 WEG SA
84.429.695/0001-11
08.01 - COMENTÁRIO DO DESEMPENHO CONSOLIDADO NO TRIMESTRE
-WEG JAPAN C.O, LTD. – Japão.
-WEG ELECTRIC MOTORS JAPAN CO. LTD - Japão.
-WEG EUROPE S. A . – Bélgica.
-WEG FRANCE – França.
-WEG GERMANY Gmbh. – Alemanha
-WEG IBÉRIA – Espanha.
-WEG ELECTRIC MOTORS (U.K.) LTD. – Inglaterra.
-WEG ITÁLIA S.R.L. – Itália.
-WEG SCANDINAVIA AB – Suécia.
c) Constituição de controlada no exterior:
Com o objetivo de comercialização, distribuição, assistência técnica e promoção
dos produtos Weg, em maio de 2004 foi constituída a controlada WEG Electric
(Índia) Private Limited, com sede em Bangalore - Índia, com capital social inicial
equivalente a US$ 200.000.
2 - DESEMPENHO OPERACIONAL – CONSOLIDADO
2.1) Evolução e Distribuição da Receita Operacional Bruta Consolidada
Itens
1º Sem/04
1º Sem/03
%
Receita Operacional Bruta
R$ Milhões
1.181,3
944,5
25
- Mercado Interno
. Revenda
. OEM
. Eletrodoméstico
. Consumidor
. Outros
R$ Milhões
%
%
%
%
%
701,7
16
36
14
24
10
580,3
16
36
13
25
10
21
R$ Milhões
US$ Milhões
. América do Norte
%
. América do Sul e Central
%
. Europa
%
.Outros (África, Ásia e Oceania)
%
479,6
161,1
40
18
30
12
364,2
113,4
43
12
31
14
32
42
- Mercado Externo
279
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Legislação Societária
Data-Base - 30/06/2004
00541-0 WEG SA
84.429.695/0001-11
08.01 - COMENTÁRIO DO DESEMPENHO CONSOLIDADO NO TRIMESTRE
2.2) Resultados Consolidados
(R$ milhões)
Lucro
Líquido
após
os
Impostos/Participações
EBIT (Lucro antes dos juros,
impostos, equivalência patrimonial e
resultados não operacionais)
EBITDA (Lucro antes dos juros,
impostos,
depreciações,
amortizações e resultados não
operacionais)
2004
2003
2º Trim. Até Jun.
2º Trim. Até Jun.
Var.
%
04/03
105,4
200,8
67,0
139,4
44
138,5
253,2
94,4
190,0
33
172,0
306,5
101,5
206,0
49
3 – VENDAS FÍSICAS DE MOTORES ELÉTRICOS
a) Comparativo com o trimestre anterior
Motores Elétricos
2º Trim/04
1º Trim/04
Var. em %
- Monofásicos: em unidades
Em CV s
2.030.775
652.701
1.961.796
622.147
4
5
- Trifásicos: em unidades
Em CV s
347.046
3.113.832
300.416
2.508.886
16
24
b) Comparativo com igual trimestre do ano anterior
Motores Elétricos
2º Trim/04
2º trim/03
Var. em %
- Monofásicos: em unidades
Em CV s
2.030.775
652.701
1.785.408
567.654
14
15
- Trifásicos: em unidades
Em CV s
347.046
3.113.832
284.155
2.805.899
22
11
280
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ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
08.01 - COMENTÁRIO DO DESEMPENHO CONSOLIDADO NO TRIMESTRE
4 - INVESTIMENTOS
Investimentos em Ativos Fixos ( em R$ milhões)
1º Sem/04 1º Sem/03
- Consolidado
68,4
71,1
. No Brasil
53,1
57,3
. No Exterior
15,3
13,8
Obs.: O plano de investimento para 2004 prevê R$ 149,6 milhões na ampliação e
modernização fabril, sendo R$ 121,0 no Brasil.
281
282
WEG SA
00541-0
01
WEG INDÚSTRIAS S.A.
WEG EXPORTADORA S.A
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
02
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
04.719.045/0001-71
79.670.501/0001-35
(Mil)
799
FECHADA CONTROLADA
172.669
FECHADA CONTROLADA
8 - NÚMERO DE AÇÕES DETIDAS NO TRIMESTRE ATUAL
7 - TIPO DE EMPRESA
4 - CLASSIFICAÇÃO
3 - CNPJ
1- ITEM 2 - RAZÃO SOCIAL DA CONTROLADA/COLIGADA
09.01 - PARTICIPAÇÕES EM SOCIEDADES CONTROLADAS E/OU COLIGADAS
2 - DENOMINAÇÃO SOCIAL
1 - CÓDIGO CVM
01.01 - IDENTIFICAÇÃO
ITR - INFORMAÇÕES TRIMESTRAIS
Data-Base - 30/06/2004
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
SERVIÇO PÚBLICO FEDERAL
99,94
99,94
(Mil)
799
24,24
172.669
62,79
9 - NÚMERO DE AÇÕES DETIDAS NO TRIMESTRE ANTERIOR
5 - % PARTICIPAÇÃO 6 - % PATRIMÔNIO
NO CAPITAL DA
LÍQUIDO DA
INVESTIDA
INVESTIDORA
84.429.695/0001-11
3 - CNPJ
Legislação Societária
Divulgação Externa
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
CVM - COMISSÃO DE VALORES MOBILIÁRIOS
ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
00541-0 WEG SA
Legislação Societária
Data-Base - 30/06/2004
84.429.695/0001-11
16.01 - OUTRAS INFORMAÇÕES QUE A COMPANHIA ENTENDA RELEVANTES
1. POSIÇÃO ACIONÁRIA DO CAPITAL VOTANTE EM 30/06/04 (Nº AÇÕES/MIL)
1.1 WEG S/A
Acionistas
Weg Participações e Serviços S/A
Outros
Total
Ordinárias
279.211
8.789
% Preferenciais
96,95
30.023
3,05
299.932
288.000 100,00
1.2 WEG PARTICIPAÇÕES E SERVIÇOS S/A
(Composta somente por ações ordinárias)
Acionista
Ordinárias
Tânia Marisa da Silva
6.107
Décio da Silva
6.107
Solange da Silva Janssen
6.107
Katia da Silva Bartsch
6.107
Marcia da Silva Petry
6.107
Miriam Voigt Schwartz
10.178
Valsi Voigt
10.178
Cladis Voigt Trejes
10.178
Diether Werninghaus
7.684
Martin Werninghaus
7.684
Heidi Behnke
7.684
Outros
8.725
Total
92.846
%
50,04
49,96
329.955 100,00 617.955 100,00
%
6,58
6,58
6,58
6,58
6,58
10,96
10,96
10,96
8,28
8,28
8,28
9,38
100,00
2. POSIÇÃO ACIONÁRIA DA WEG S/A EM 30/06/04 (Nº AÇÕES/MIL)
Acionistas
Ordinárias
% Preferenciais
Controladores
279.211 96,95
110.369
Administradores
- Conselho de Administração
- Diretoria
Conselho Fiscal
Ações em Tesouraria
Outros
Total Geral
% Total
9,10 309.234
90,90 308.721
1.079
0,37
3
0,00
1.076
0,37
7.710
2,68
288.000 100,00
% Total
33,44 389.580
17.259
5,22 18.338
2,97
12.419
3,76 12.422
2,01
4.840
1,46
5.916
0,96
10.359
3,14 10.359
1,68
191.968 58,20 199.678 32,31
329.955 100,00 617.955 100,00
3. AÇÕES EM CIRCULAÇÃO DA WEG S/A EM 30/06/04 (Nº AÇÕES)
Acionistas
Ordinárias
% Preferenciais
%
Weg Particip. S/A e Famílias 279.211.430 96,95 110.369.191 33,45
Fundadores
Ações em Tesouraria
10.359.000
3,14
Ações em Circulação
8.788.570
3,05 209.227.009 63,41
Total
288.000.000 100,00 329.955.200 100,00
283
%
63,04
Total
389.580.621
%
63,04
10.359.000
1,68
218.015.579 35,28
617.955.200 100,00
SERVIÇO PÚBLICO FEDERAL
Divulgação Externa
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ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 30/06/2004
00541-0 WEG SA
84.429.695/0001-11
16.01 - OUTRAS INFORMAÇÕES QUE A COMPANHIA ENTENDA RELEVANTES
4. EVOLUÇÃO DA POSIÇÃO ACIONÁRIA DA WEG S/A (Nº AÇÕES/MIL)
4.1 AÇÕES ORDINÁRIAS
Acionistas
Controladores
30/06/03
%
31/07/03
%
31/08/03
%
30/09/03
%
31/10/03
%
279.158
96,93
279.158
96,93
279.158
96,93
279.160
96,93
279.160
96,93
Administradores
- Conselho de Administração
1.079
3
0,37
0,00
1.079
3
0,37
0,00
1.079
3
0,37
0,00
1.079
3
0,37
0,00
1.079
3
0,37
0,00
- Diretoria
1.076
0,37
1.076
0,37
1.076
0,37
1.076
0,37
1.076
0,37
Conselho Fiscal
-
-
-
-
-
-
-
-
-
-
Ações em Tesouraria
-
-
-
-
-
-
-
-
-
-
7.763
2,70
7.763
2,70
7.763
2,70
7.761
2,70
7.761
2,70
288.000
100,00
288.000
100,00
288.000
100,00
288.000
100,00
288.000
100,00
Outros
Total Geral
Acionistas
Controladores
30/11/03
%
31/12/03
279.160
96,93
279.162
Administradores
1.079
0,37
- Conselho de Administração
- Diretoria
3
1.076
0,00
0,37
Conselho Fiscal
-
Ações em Tesouraria
Outros
Total Geral
Acionistas
Controladores
279.170
1.079
0,37
3
1.076
0,00
0,37
-
-
-
-
7.761
288.000
30/04/04
%
29/02/04
96,93
279.170
1.079
0,37
3
1.076
0,00
0,37
-
-
-
-
2,70
7.759
100,00
288.000
%
31/05/04
96,94
279.174
Administradores
1.079
0,37
- Conselho de Administração
- Diretoria
3
1.076
0,00
0,37
Conselho Fiscal
-
Ações em Tesouraria
Total Geral
31/01/04
96,93
279.174
Outros
%
%
31/03/04
%
96,93
279.174
1.079
0,37
1.079
0,37
3
1.076
0,00
0,37
3
1.076
0,00
0,37
-
-
-
-
-
-
-
-
-
-
-
2,70
7.751
2,70
7.751
2,70
7.747
2,69
100,00
288.000
100,00
288.000
100,00
288.000
100,00
%
30/06/04
%
96,94
279.211
1.079
0,37
1.079
0,37
3
1.076
0,00
0,37
3
1.076
0,00
0,37
-
-
-
-
-
-
-
-
-
-
-
7.747
2,69
7.747
2,69
7.710
2,68
288.000
100,00
288.000
100,00
288.000
100,00
284
96,95
96,94
SERVIÇO PÚBLICO FEDERAL
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ITR - Informações Trimestrais
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
Legislação Societária
Data-Base - 30/06/2004
00541-0 WEG SA
84.429.695/0001-11
16.01 - OUTRAS INFORMAÇÕES QUE A COMPANHIA ENTENDA RELEVANTES
4.2 AÇÕES PREFERENCIAIS
Acionistas
Controladores
30/06/03
%
31/07/03
%
31/08/03
%
30/09/03
%
31/10/03
%
107.051
32,44
107.051
32,44
107.466
32,57
110.132
33,38
110.132
33,38
17.296
12.419
5,24
3,76
17.296
12.419
5,24
3,76
17.296
12.419
5,24
3,76
17.296
12.419
5,24
3,76
17.296
12.419
5,24
3,76
4.877
1,48
4.877
1,48
4.877
1,48
4.877
1,48
4.877
1,48
-
-
-
-
-
-
-
-
-
-
8.294
2,51
10.009
3,03
10.359
3,14
10.359
3,14
10.359
3,14
Outros
197.314
59,81
195.599
59,29
194.834
59,05
192.168
58,24
192.168
58,24
Total Geral
329.955
100,00
329.955
100,00
329.955
100,00
329.955
100,00
329.955
100,00
Administradores
- Conselho de Administração
- Diretoria
Conselho Fiscal
Ações em Tesouraria
Acionistas
Controladores
30/11/03
%
31/12/03
%
31/01/04
%
29/02/04
%
31/03/04
%
110.072
33,36
110.082
33,36
110.132
33,37
110.132
33,37
110.182
33,38
17.296
12.419
5,24
3,76
17.296
12.419
5,24
3,76
17.241
12.419
5,22
3,76
17.241
12.419
5,22
3,76
17.249
12.419
5,22
3,76
4.877
1,48
4.877
1,48
4.822
1,46
4.822
1,46
4.830
1,46
-
-
-
-
-
-
-
-
-
-
10.359
3,14
10.359
3,14
10.359
3,14
10.359
3,14
10.359
3,14
Outros
192.228
58,26
192.218
58,26
192.223
58,27
192.223
58,27
192.165
58,26
Total Geral
329.955
100,00
329.955
100,00
329.955
100,00
329.955
100,00
329.955
100,00
Administradores
- Conselho de Administração
- Diretoria
Conselho Fiscal
Ações em Tesouraria
Acionistas
Controladores
30/04/04
%
110.182
31/05/04
33,38
110.369
%
30/06/04
33,44
110.369
%
33,44
Administradores
17.249
5,22
17.259
5,22
17.259
5,22
- Conselho de Administração
12.419
3,76
12.419
3,76
12.419
3,76
4.830
1,46
4.840
1,46
4.840
1,46
-
-
-
-
-
-
10.359
3,14
10.359
3,14
10.359
3,14
Outros
192.165
58,26
191.968
58,20
191.968
58,20
Total Geral
329.955
100,00
329.955
100,00
329.955
100,00
- Diretoria
Conselho Fiscal
Ações em Tesouraria
285
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00541-0 WEG SA
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Data-Base - 30/06/2004
84.429.695/0001-11
17.01 - RELATÓRIO DA REVISÃO ESPECIAL - SEM RESSALVA
À
Conselho de Administração e aos Acionistas da
WEG S/A
Jaraguá do Sul - SC
Efetuamos uma revisão especial das informações trimestrais (ITR) da WEG S/A e dessa Companhia
e suas controladas (informações consolidadas) referentes ao trimestre findo em 30 de junho de
2004, compreendendo o balanço patrimonial, a demonstração do resultado, o relatório de
desempenho e as informações relevantes, preparadas de acordo com as práticas contábeis adotadas
no Brasil.
Nossa revisão foi efetuada de acordo com as normas específicas estabelecidas pelo IBRACON Instituto dos Auditores Independentes do Brasil, em conjunto com o Conselho Federal de
Contabilidade, e consistiu, principalmente, de: (a) indagação e discussão com os administradores
responsáveis pelas áreas contábil, financeira e operacional da Companhia e suas controladas, quanto
aos principais critérios adotados na elaboração das informações trimestrais; e (b) revisão das
informações e dos eventos subseqüentes que tenham ou possam vir a ter efeitos relevantes sobre a
situação financeira e as operações da Companhia e suas controladas.
Baseados em nossa revisão especial não temos conhecimento de qualquer modificação relevante
que deva ser feita nas informações trimestrais acima referidas para que essas estejam de acordo com
as práticas contábeis adotadas no Brasil e condizentes com as normas expedidas pela Comissão de
Valores Mobiliários, especificamente aplicáveis à elaboração das informações trimestrais
obrigatórias.
12 de julho de 2004
KPMG Auditores Independentes
CRC-SP-14.428/O-6-“F”-SC
Pedro Jaime Cervatti
Sócio
Contador CRC-SP-129.565/O-7 T-PR-S-SC
João Alberto da Silva Neto
Diretor
Contador CRC-RS-048.980/O-0 T-SC
286
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Data-Base - 30/06/2004
EMPRESA COMERCIAL, INDUSTRIAL E OUTRAS
01.01 - IDENTIFICAÇÃO
1 - CÓDIGO CVM
2 - DENOMINAÇÃO SOCIAL
3 - CNPJ
00541-0
WEG SA
84.429.695/0001-11
ÍNDICE
GRUPO QUADRO
DESCRIÇÃO
PÁGINA
01
01
IDENTIFICAÇÃO
1
01
02
SEDE
1
01
03
DIRETOR DE RELAÇÕES COM INVESTIDORES (Endereço para Correspondência com a Companhia)
1
01
04
REFERÊNCIA DO ITR
1
01
05
COMPOSIÇÃO DO CAPITAL SOCIAL
2
01
06
CARACTERÍSTICAS DA EMPRESA
2
01
07
SOCIEDADES NÃO INCLUÍDAS NAS DEMONSTRAÇÕES FINANCEIRAS CONSOLIDADAS
2
01
08
PROVENTOS EM DINHEIRO
2
01
09
CAPITAL SOCIAL SUBSCRITO E ALTERAÇÕES NO EXERCÍCIO SOCIAL EM CURSO
3
01
10
DIRETOR DE RELAÇÕES COM INVESTIDORES
3
02
01
BALANÇO PATRIMONIAL ATIVO
4
02
02
BALANÇO PATRIMONIAL PASSIVO
5
03
01
DEMONSTRAÇÃO DO RESULTADO
6
04
01
NOTAS EXPLICATIVAS
05
01
COMENTÁRIO DO DESEMPENHO DA COMPANHIA NO TRIMESTRE
20
06
01
BALANÇO PATRIMONIAL ATIVO CONSOLIDADO
21
06
02
BALANÇO PATRIMONIAL PASSIVO CONSOLIDADO
22
07
01
DEMONSTRAÇÃO DO RESULTADO CONSOLIDADO
24
08
01
COMENTÁRIO DO DESEMPENHO CONSOLIDADO NO TRIMESTRE
26
09
01
PARTICIPAÇÃO EM SOCIEDADES CONTROLADAS E/OU COLIGADAS
31
16
01
OUTRAS INFORMAÇÕES QUE A COMPANHIA ENTENDA RELEVANTES
32
17
01
RELATÓRIO DA REVISÃO ESPECIAL
36
8
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