WEGE3

WEG, issuer of WEGE3 shares traded on B3, originated in 1961 in the city of Jaraguá do Sul, in the state of Santa Catarina, initially under the name Eletromotores Jaraguá Ltda. From the very first motor manufactured, the WEG brand began to identify its products, formed from the initials of the three founders: Werner Ricardo Voigt, Eggon João da Silva and Geraldo Werninghaus. Already in the 1960s, the company adopted as a strategy the creation of a broad network of qualified technical assistance and created CentroWEG, a vocational school focused on training labor for its production processes, linking industrial growth to technical training. Over the following decades, the company underwent a continuous process of national and international expansion, portfolio diversification and acquisition of companies in Brazil and abroad, consolidating its position in the electric equipment market and expanding its activities into different industrial and energy segments.

Throughout its history, WEG evolved from a manufacturer of electric motors into a large industrial group with a highly integrated and vertically structured business model. The company manufactures in-house several critical components, such as rotors and stators, cast-iron housings and end caps, shafts, copper and aluminum wires, wooden packaging, and special tools and machines. This verticalization aims at flexibility in production, control over factory supplies, the ability to customize at scale and cost reduction, allowing the company to serve different markets with shorter delivery times and products tailored to customer needs. Its production processes comply with standards and certifications from bodies such as INMETRO and international quality entities in the countries where it operates, which reinforces the standardization and technical compliance required for industrial and energy equipment.

From an operational standpoint, WEG organizes its communication with the market into four major business areas: Industrial Electro-Electronic Equipment (EEI), Power Generation, Transmission and Distribution (GTD), Commercial Motors and Appliance (MCA), and Paints and Varnishes (T&V). In 2024, EEI accounted for 47.2% of net revenue, GTD for 41.5%, MCA for 7.3% and T&V for 4.0%, which highlights the predominance of industrial equipment lines and solutions for the energy sector. Internally, however, the organization is structured into seven Business Units – Industrial Motors, Commercial Motors and Appliance, Automation, Digital & Systems, Energy, Transmission & Distribution, and Paints & Varnishes – which are connected to the business areas in a matrix structure. For the WEGE3 investor, these data show the profile of a capital goods company with a strong presence in industrial equipment and systems for energy infrastructure, with complementary businesses in motors for durable consumer goods and industrial paints.

In the Industrial Electro-Electronic Equipment area, the company’s historical core, WEG manufactures low-, medium- and high-voltage electric motors, gearboxes and geared motors, drives and controls, as well as a range of industrial automation, electrical infrastructure and digital solutions. These pieces of equipment are used in applications such as compressors, pumps, fans and handling systems in virtually all industrial sectors. The company also develops powertrains for electric vehicles and charging stations, serving e-mobility demand, and offers energy storage systems. The line also includes circuit breakers, switchboards, starters, pushbuttons, signaling devices, custom-made E-houses, panels for construction and infrastructure, industrial plugs, distribution boards, residential sockets and switches, rectifiers and stabilizers. This is a broad portfolio, aimed mainly at original equipment manufacturers (OEMs) and large industries, with a competitive presence in the main global markets.

In Power Generation, Transmission and Distribution, WEG supplies complete solar generation systems, including modules, inverters, transformers, cubicles and substations for residential, commercial and industrial applications. It also operates in wind generation, with wind turbines, and in hydro and steam (biomass) thermal generation through hydraulic turbines, hydro generators, turbo generators, alternators and gearboxes. The company designs and manufactures oil-filled and dry-type transformers for different power ratings and applications, and also develops, builds, implements and manages conventional and mobile substations on a turn-key basis. This scope is complemented by control panels, measuring instruments and system integration services. Altogether, this positions WEG as a supplier of equipment and solutions for energy infrastructure projects, serving utilities, industries and other players in the energy sector, although the company does not operate directly as a public utility service provider.

The Commercial Motors and Appliance area focuses on single-phase motors intended for commercial and residential applications, such as motor pumps, electric gates, kitchen hoods, food processors, pool pumps, washing machines and air conditioners. In the Brazilian market, WEG reports that it is a leader among the main manufacturers of this equipment, which reflects a strong presence in the durable consumer goods chain. Internationally, it has been expanding this area with a portfolio of commercial motors for global customers, in a short-cycle business where fluctuations in end consumer demand rapidly impact production and revenue. In Paints and Varnishes, the company offers primers, varnishes and custom-made paints for automotive refinishing, high-resistance liquid paints for industrial uses, insulating varnishes for motors, generators and transformers, powder coatings for home appliances, lighting fixtures, tubular furniture and auto parts, as well as marine and anticorrosive solutions for vessels and structures exposed to harsh environments.

WEG has a strong geographic presence both in Brazil and abroad. In Brazil, it maintains manufacturing units in several states, with emphasis on Jaraguá do Sul, which houses the main industrial plant and corporate functions, producing electric motors, generators, wind turbines, capacitors, drives, panels, digital solutions, sockets, switches and services. Other units are spread across Santa Catarina, Rio Grande do Sul, São Paulo, Minas Gerais, Espírito Santo and Amazonas, manufacturing gearboxes, different types of transformers, substations, turbines, paints, varnishes, commercial motors and associated equipment. Abroad, the company operates plants in countries such as Mexico, Argentina, China, India, the United States, Germany, Italy, South Africa, Portugal, Turkey, Canada, the Netherlands, Colombia, Algeria and others, producing industrial and commercial motors, gearboxes, drives, transformers, electrical panels, gearboxes, automation systems, generators and components. In addition to its production base, there is an extensive network of distribution and sales units in various regions of the world, supporting its global service strategy.

From a regulatory standpoint, WEG highlights that, as a rule, it does not operate directly in heavily regulated segments, but as a supplier of products and services to companies supervised by agencies such as Aneel, ANP and ANA. Thus, its authorizations are concentrated on legal requirements and environmental licenses typical of industrial activity. The company states that it observes the environmental and social laws of the countries where it operates, with preliminary, installation and operating licenses issued for each production unit, subject to renewal and possible changes in conditions. In terms of environmental, social and governance practices, WEG maintains corporate policies on the environment, energy efficiency and social responsibility, with commitments to legal compliance, continuous improvement through environmental targets, prevention and protection of the environment, development of eco-efficient products and consideration of consumer health and safety requirements. On the social front, the company states that it seeks a good relationship with employees and stakeholders, aligned with local regulations. These elements, combined with its production structure and business diversification, form the context in which WEGE3 shares are evaluated by investors on B3.