INVESTOR

WEG in Numbers
+ + + +
40,000 4,700 60 thousand 1 million square meters
employees engineers motors produced largest industrial plant
worldwide per day for electric motors in the world
(in Jaraguá do Sul / SC)

52 in 15 in 4 59%
of 2022’s revenue came from
Stock Market (Ticker)

manufacturing countries continents

sites products that were launched in

the last 5 years

Distributors in 120 + countries
Index

R$ 32.5 billion R$ 155 billion

Net operating revenue (2023) in market value (Dec/2023)
2
End to End of the Wire
T H E G L O B A L S O L U T I O N I N E L E C T R I C M A C H I N E S , A U T O M AT I O N A N D D I G I TA L I Z AT I O N
F O R I N D U S T R Y, I N F R A S T R U C T U R E , E L E C T R I C M O B I L I T Y A N D E N E R G Y S Y S T E M S

DIGITAL
BUSINESSES

INDUSTRY

CITY

ENERGY
DISTRIBUTION PROTECTION FARMS
TRANSMISSION
OF ELECTRICAL
INSTALLATIONS

POWER
GENERATION

PAINTS AND
VARNISHES

3
Best way to invest
IN FAST GROW ING GLOBAL ENERGY EFFICIENCY AND
R E N E WA B L E E N E R G Y G E N E R AT I O N B U S I N E S S E S

One of the highest Diversified product WEG Long Term Unique business model
growth capital goods lines allows strong Strategic Plan aims for based on vertical
companies; number one growth across continuous and integration, production
or number two in all different market sustainable growth flexibility and
product lines in Latin cycles, segments through international technological
America and geographies and product line innovation
expansion

A history of achieving CAGR of 18.5% over past 26 years through organic growth and accretive acquisitions

4
 Renewable
Energies
▪ Solar power will become
more representative in the
power grid.
▪ Solar energy generation,
along with wind generation,
should grow significantly in
the coming years.
▪ Energy storage will be
crucial in the new phase of
electrification, as well as
systems with batteries, also
the use of hydrogen should
Energy become more viable.
Efficiency
▪ Solutions that make
electric motors,
gearboxes and drives
even more efficient.
▪ Energy Managing
Systems which
optimize operational
processes.
▪ Higher productivity
and better
performance.
Electrical
Mobility
▪ Electrical Mobility
global growth.
▪ Increase of
infrastructure for
battery charging.
▪ Expansion of the
electric vehicles
market.
▪ Powertrain
solutions for the
transport segment.
Digital
Solutions
▪ Increasingly
automated industries
and machines.
▪ Operational
processes becoming
increasingly digital.
▪ IoT, Big Data and AI
will drive productivity.
▪ Growth of data
centers and rise of
new "communication
network" technologies
and solutions.
5
ADVANTAGES
A UNIQUE BUSINESS MODEL
C R E AT E S I M P O RTA N T
C O M P E T I T I V E A D VA N TA G E S

Vertical Diversification Modular Mass Simple and Financial

Integration Expansion Customization Committed Strength
A varied mix of
Production flexibility solutions that meets Production system We understand needs to Allows WEG to pursue growth
We keep the
that reduces costs market's requirements dedicated to meet objectives and thus opportunities as they become
commitment
and optimizes and consolidates our maximizing return on develop customized available. These opportunities
and the simplicity in
processes global presence capital and minimizing solutions range from raw materials
our relationship with
demand risks the stakeholders procurement at attractive
conditions to acquisitions of
new business

6
 Revenue Profile 2023
DISTRIBUTION OF NET REVENUE ACCORDING TO GEOGRAPHIC DISTRIBUTION

14%

25% Europe

North America
5%

Asia-Pacific

4%
6%
47% Africa
Central & South
America
Brazil

 Manufacturing Sites (15 countries)

 Commercial Operations (37 countries)
7
Strategic Positioning
A COMPLETE RANGE OF ELECTRIC PRODUCTS AND
S Y S T E M S W I T H A N I N T E G R AT E D O N E - S TO P S O L U T I O N
Commercial
& Appliance
Industrial Electro-Electronic Equipment Energy Generation, Transmission and Distribution (GTD) Motors

Industrial Industrial Gear Small Power Dry Distribution

Drives Controls Panels Alternators Thermal Wind Solar Substations Fractional Appliance
LV HV Boxes Hydro Transformer Transformer Transformer

☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑
☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑
☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑
☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑ ☑
☑ ☑ ☑ ☑ ☑ ☑
☑ ☑ ☑ ☑ ☑ ☑ ☑
☑ ☑ ☑ ☑ ☑ ☑ ☑
8
WEG Business
DIVERSIFIED PRODUCT LINE ALLOWS FOR STRONG GROWTH
ACROSS DIFFERENT MARKET CYCLES

Revenue Breakdown Year to Date:

External Market 53% 47% Domestic Market

1% 5% 16% 31% 16% 24% 3% 4%

∆% 12M23 / 12M22
Domestic Market External Market Total Net Revenue

Industrial Electro-Electronic Equipment (EEI) +11% +4% +6%

Energy Generation, Transmission and Distribution (GTD) -3% +47% +13%
Commercial and Appliance Motors (MCA) +10% +4% +7%
Paints and Varnishes (T&V) +4% +7% +5%
9
 Solid Growth Track Record
BUSINESS MODEL ALLOWS TO FIND AND EXPLORE GROWTH OPPORTUNITIES
E V E N U N D E R U N FAV O R A B L E M A C R O E C O N O M I C C O N D I T I O N S

32,504
Operating Revenue
Manufactured and sold in Brazil
Manufactured in Brazil and exported
Manufactured and sold overseas
CAGR 47%

18.0%
24%

4,392
61%
29%
372 32%
7%
1997

1999

2001

2003

2005
2006
2007
2008

2010

2012

2014

2016

2018

2020

2022
2023
1996

1998

2000

2002

2004

2009

2011

2013

2015

2017

2019

2021
(BRL million) 10
Strong Margin and Disciplined Capital Allocation
R E S U LT I N G I N A A B O V E AV E R A G E R O I C A N D E B I T D A M A R G I N

39.2%

30.5% 29.4%

25.5%
21.8%
20.2% 19.9% 18.8%
17.2% 16.6% 17.6%
16.0% 15.0%
18.7% 7,090
17.0% 16.8%
15.1% 15.4% 15.2%
14.0%
5,617
4,679

3,268

2,245
1,824
1,345 1,478 1,407 1,466

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

EBITDA (BRL million) EBITDA Margin ROIC

(BRL million) 11
Margin Dynamics
M A R G I N S A R E T H E R E S U LT O F P R O D U C T M I X A N D P R O D U C T P R I C I N G C O N D I T I O N S ,
AND TEND TO TRACK GLOBAL ECONOMIC CYCLE

Product Pricing
Average
Margin

Short Cycle Product Mix Long Cycle 12

 Portfolio Strategy
C L E A R V I E W O N AT T R A C T I V E N E S S O F
O P P O RT U N I T I E S A N D S T R AT E G I C F I T

2019
2011
2010

2019

2010 2016
MARKET ACCESS

* 2011
*
2011

2022
2015 2017

* 2014
2014 2015 2016
2022 2014

*
*
2015
2013
*
2012 2014
2019
2020
2011
2020 2019 *
2012

2014 2012 2010

2010
2016

TECHNOLOGY

*Acquisition of specific technology or businesses. 13

Use of Cash
Working Capital (% of Net Revenue)
Working Capital Clients Inventories Suppliers Advances from Customers
40%
35%
30%
25%
20%
15%
10%
5%
0%
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Net Earnings and Dividends (BRL million)

Net Earnings Dividends Pay-out (%)
55% 55% 55%
53% 53% 53% 54%
51% 52%
50%

5,732
4,208
3,586
2,880
2,341 1,903 2,252
1,156 1,142 1,338 1,615 1,292
955 1,118
521 593 579 607 704 892

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
14
Use of Cash
CAPEX (BRL million)
% Net Revenue
5.4% 5.1%
4.8%
3.6% 3.9% 3.6% 4.0%
3.5% 3.1%
2.8%
1,659

1,193
847
468 524 538
425 326 429
266
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Research & Development (BRL million)

% Net Revenue
2.9% 2.9% 2.6% 2.7% 2.7%
2.6% 2.5% 2.3% 2.6%
2.2%

832
647
549
469
308 339
284 247 259
224

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
15
 WEG Long Term Strategic Plan
CORPORATE ASPIRATION OF CONTINUOUS AND SUSTAINABLE GROW TH, AIMING FOR HISTORICAL
GROW TH RATES W ITH A DISCIPLINED APPROACH TO ORGANIC AND NON ORGANIC EXPANSION

Our products/markets enjoy a strong organic growth trend. For example, the global market
for the electric motor industry is estimated to grow by 5-10% per year. If we are able to
maintain our position in the market, both of leadership and/or strong brand recognition,
we will be in an advantageous position in this dynamic of healthy growth.

We will continue to expand into new geographies,

leveraging the benefits of our strong position in
the electric motor market to increase product line
expansion. We will also continue to invest in our
factories abroad, replicating the vertical
integration model in Brazil.
32,504

We will continue to expand the product line into

businesses/products that complement the
portfolio and allow us to support our customers
with more complete and efficient solutions.
372
1996 ... 2023 16
Net Revenue (BRL million) Future Revenue
Shareholding Structure

33% 33% 33%

Werner Eggon Geraldo
Voigt Silva Werninghaus

14% 50% 1% 35%

Founder’s WPA Treasury and Free Float
Families Management
(directly)

WEG S.A.

17
Capital Markets Information
Issuer ▪ WEG S.A.

Ticker ▪ WEGE3 (B3) / WEGZY (OTC – ADR Level 1)

Listing Segment ▪ Novo Mercado (since 2007)

▪ Issued: 4,197,317,998
Number of Shares
▪ In treasury: 2,083,696
2023-12-31
▪ Ex-treasury: 4,195,234,302

▪ On 2022-12-31 : BRL 38.51

Share Price
▪ On 2023-12-31 : BRL 36.91

Market Value
▪ On 2022-12-31 : BRL 161.6 billion
▪ On 2023-12-31 : BRL 154.9 billion
Liquidity ▪ In 2022: BRL 264.8 million / day
(average daily volume) ▪ In 2023: BRL 267.7 million / day
Composition of ▪ 52% - Foreign institutions
Free Float ▪ 5% - Brazilian institutions
2023-12-31 ▪ 43% - Others (individuals, etc)

18
 André Menegueti Salgueiro Felipe Scopel Hoffmann
Finance Director and Investor Relations Manager
Investor Relations Officer

+55 47 3276 6106

ri@weg.net
twitter.com/weg_ir For more information, visit our results center:
https://ri.weg.net/en/financial-information/results-center