Quarterly Information 09/30/2018 WEG S/A. Composition of capital 1. Cash dividends 2. Balance sheet - Assets 3

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1 Contents Company information Composition of capital 1 Cash dividends 2 Individual financial statements Balance sheet - Assets 3 Balance sheet - Liabilities and equity 4 Income statements 5 Statement of comprehensive income 6 Cash flow statement 7 Statement of changes in equity Statements of changes in equity - 01/01/2018 to 09/30/ Statements of changes in equity - 01/01/2017 to 09/30/ Statements of value added 10 Consolidated financial statements Balance sheet - Assets 11 Balance sheet - Liabilities and equity 12 Income statement 14 Statement of comprehensive income 15 Cash flow statement 16 Statement of changes in equity Statements of changes in equity - 01/01/2018 to 09/30/ Statements of changes in equity - 01/01/2017 to 09/30/ Statements of value added 19 Comments on performance 20 Notes to financial statements 28 Opinions and Statements Qualified Report on Review of Quarterly Information 53 Opinions and Statements Officers Statement on the Quarterly Information 55 Opinions and Statements Officers Statement on the Independent Auditor s Report 56

2 Company information/composition of capital Number for shares (Units) Current quarter 9/30/2018 Paid-in capital Common shares 2,098,658,999 Preferred shares - Total 2,098,658,999 Treasury shares Common shares 1,494,283 Preferred shares - Total 1,494,283 PAGE: 1 of 56

3 Company information/cash dividends Amount Event Approval Type Date of payment Type of share Class of share per share - (Reais/share) Board of Directors Meeting 03/20/2018 Interest on capital 8/15/2018 Common Board of Directors Meeting 6/26/2018 Interest on capital 8/15/2018 Common Board of Directors Meeting 7/17/2018 Dividend 8/15/2018 Common Board of Directors Meeting 9/18/2018 Interest on capital 3/13/2019 Common PAGE: 2 of 56

4 Individual financial statements/balance sheet - Assets R$ (in thousands) Code Description Current quarter 9/30/2018 Prior year 12/31/ Total assets 7,726,320 6,891, Current assets 1,257,082 1,369, Cash and cash equivalents 173, , Cash and banks 1, Short-term investments 172, , Short-term investments 985, , Taxes recoverable 34,933 4, Current taxes recoverable 34,933 4, Other current assets 63, , Others 63, , Dividends - 2, Interest on capital 63, , Noncurrent assets 6,469,238 5,522, Long-term receivables 7,455 6, Deferred taxes 2,789 1, Deferred income tax and social contribution 2,789 1, Receivables from related parties Receivables from subsidiaries Other noncurrent assets 4,657 4, Judicial deposits 4,657 4, Investments 6,457,456 5,511, Equity interests 6,457,456 5,511, Interest in subsidiaries 6,457,456 5,511, Property, plant and equipment 4,327 4, Property, plant and equipment in operation 4,327 4,393 PAGE: 3 of 56

5 Individual financial statements/balance sheet - Liabilities and equity R$ (in thousands) Code Description Current quarter 9/30/2018 Prior year 12/31/ Total liabilities 7,726,320 6,891, Current liabilities 94, , Social and labor obligations 7,652 8, Social obligations 7,652 8, Tax obligations 12, Federal tax obligations 12, Income tax and social contribution payable Other tax obligations 12, Other obligations 74, , Others 74, , Dividends and interest on capital payable 73, , Others 1,061 1, Noncurrent liabilities 4,730 4, Provisions 4,730 4, Equity 7,627,454 6,716, Paid-in capital 5,504,517 3,533, Capital reserves (89,914) (91,997) Options granted 7,876 4, Treasury shares (15,261) (17,392) Premium on capital transaction (82,529) (79,042) Revaluation reserves 3,630 3, Earnings reserves 298,892 2,401, Legal reserve - 218, Statutory reserve 298,892 2,050, Additional dividend proposed - 132, Retained earnings/accumulated losses 595, Carrying value adjustments 391, , Deemed cost 391, , Other comprehensive income 922, , Derivative financial instruments (17,145) (11,355) Cumulative translation adjustments 939, ,699 PAGE: 4 of 56

6 Individual financial statements/income statements R$ (in thousands) Current quarter 7/1/2018 to 9/30/2018 YTD current year 01/01/2018 to 9/30/2018 Prior year 7/1/2017 to 9/30/2017 YTD prior year 01/01/2017 to 9/30/2017 Code Description 3.04 Operating income/expenses 370, , , , General and administrative expenses (1,346) (3,824) (988) (2,887) Management fees (642) (1,893) (598) (1,737) Other administrative expenses (704) (1,931) (390) (1,150) Other operating expenses (2,444) (6,565) (1,491) (4,807) Share of profit or loss of investees 374, , , , Profit before finance income (costs) and taxes 370, , , , Finance income (costs) 10,530 32,739 19,111 66, Finance income 10,617 32,988 19,170 66, Finance costs (87) (249) (59) (191) 3.07 Profit before taxes on income 381,453 1,002, , , Income tax and social contribution (23) 427 (86) Current (210) (418) (102) (222) Deferred (1,188) 3.09 Profit for the period from continuing operations 381,430 1,003, , , Profit/loss for the period 381,430 1,003, , , Earnings per share - (Reais / share) Basic earnings per share Common shares Diluted earnings per share Common shares PAGE: 5 of 56

7 Individual financial statements/statement of comprehensive income R$ (in thousands) Current quarter 7/1/2018 to YTD current year 01/01/2018 to Prior year 7/1/2017 to YTD prior year 01/01/2017 to Code Description 9/30/2018 9/30/2018 9/30/2017 9/30/ Profit for the period 381,430 1,003, , , Other comprehensive income 92, ,437 (97,796) 83, Cumulative translation adjustments 72, ,227 (97,068) 73, Hedge Accounting 20,305 (5,790) (728) 10, Total comprehensive income for the period 473,971 1,463, , ,380 PA GE: 6 of 56

8 Individual financial statements/cash flow statement R$ (in thousands) YTD current year 01/01/2018 to 9/30/2018 YTD prior year 01/01/2017 to 9/30/2017 Code Description 6.01 Net cash from operating activities 3,338 44, Cash from operations 26,606 62, Profit before taxes 1,002, , Depreciation and amortization Share of profit or loss of investees (980,262) (782,016) Stock option plan expenses 4,191 2, Provision for tax, civil and labor liabilities Changes in assets and liabilities (23,268) (17,274) (Increase)/decrease in trade receivables (33,544) (9,713) Increase/(decrease) in trade payables 10,742 (7,218) Income tax and social contribution paid (466) (309) Employee profit sharing paid - (34) 6.02 Net cash from investing activities (26,026) 554, Dividends and interest on capital received 529, , Investments - (17,527) Short-term investments held-to-maturity (562,574) Redemption of short-term investments 34, Income from financial investments (27,503) (29,246) 6.03 Net cash from financing activities (602,017) (554,252) Dividends and interest on capital paid (604,148) (548,380) Treasury shares 2,131 (5,872) 6.05 Increase (decrease) in cash and cash equivalents (624,705) 45, Cash and cash equivalents at the beginning of the period 798, , Cash and cash equivalents at the end of the period 173, ,635 PAGE: 7 of 56

9 Individual financial statements /Statements of changes in equity - 01/01/2018 to 09/30/2018 R$ (in thousands) Capital reserves, options granted and treasury shares Retained earnings or accumulated losses Other comprehensive income Earnings Code Description Paid-in capital reserves Equity 5.01 Opening balances 3,533,973 (88,367) 2,269, , ,584 6,716, Adjusted opening balances 3,533,973 (88,367) 2,269, , ,584 6,716, Capital transactions with shareholders 1,970,544 2,083 (1,970,544) (422,567) - (420,484) Capital increases 1,970,544 - (1,970,544) Options granted recognized - 3,439 - (579) - 2, Treasury shares sold - 3, , Dividends (172,788) (172,788) Interest on capital (249,200) - (249,200) Capital transactions - (5,104) (5,104) 5.05 Total comprehensive income ,017, ,901 1,463, Profit for the period ,003,039-1,003, Other comprehensive income , , , Translation adjustments for the period , , Hedge Accounting (5,790) (5,790) Realization of deemed cost ,536 (14,536) Internal changes in equity (131,619) - (131,619) Payment of dividends (132,455) - (132,455) Prescribed dividends Closing balances 5,504,517 (86,284) 298, ,844 1,314,485 7,627,454 PAGE: 8 of 56

10 Individual financial statements /Statements of changes in equity - 01/01/2017 to 09/30/2017 R$ (in thousands) Capital reserves, options granted and treasury shares Retained earnings or accumulated losses Other comprehensive income Earnings Code Description Paid-in capital reserves Equity 5.01 Opening balances 3,533,973 (64,462) 1,890, , ,732 5,962, Adjustments from prior years - - (193,719) - 165,795 (27,924) 5.03 Adjusted opening balances 3,533,973 (64,462) 1,697, , ,527 5,934, Capital transactions with shareholders - (4,671) - (382,754) - (387,425) Options granted recognized - 1,740 - (491) - 1, Treasury shares acquired - (8,676) (8,676) Treasury shares sold - 4, , Dividends (85,489) - (85,489) Interest on capital (296,774) - (296,774) Capital transactions - (1,954) (1,954) 5.05 Total comprehensive income ,301 58, , Profit for the period , , Other comprehensive income ,402 58,079 83, Translation adjustments for the period ,290 73, Hedge Accounting ,191 10, Realization of deemed cost ,402 (25,402) Internal changes in equity (101,919) - (101,919) Payment of dividends (102,750) - (102,750) Prescribed dividends Closing balances 3,533,973 (69,133) 1,697, , ,606 6,370,986 PAGE: 9 of 56

11 Individual financial statements/ Statements of value added R$ (in thousands) YTD current year 01/01/2018 to 9/30/2018 YTD prior year 01/01/2017 to 9/30/2017 Code Description 7.02 Inputs acquired from third parties (4,889) (3,527) Materials, electric power, third-party services and others (694) (325) Loss/recovery of assets (4,195) (3,202) 7.03 Gross value added (4,889) (3,527) 7.04 Retentions (65) (65) Depreciation, amortization and depletion (65) (65) 7.05 Wealth created by the Company (4,954) (3,592) 7.06 Wealth received in transfer 1,013, , Share of profit or loss of investees 980, , Finance income 32,988 66, Wealth for distribution 1,008, , Wealth distributed 1,008, , Personnel 4,482 3, Salaries and wages 4,262 3, Benefits Severance pay fund (FGTS) Taxes, fees and contributions 526 (572) Federal 526 (572) Lenders and lessors Interest Lenders and lessors 1,003, , Interest on capital 249, , Dividends 172,178 85, Retained earnings / Loss for the period 581, ,636 PAGE: 10 of 56

12 Consolidated financial statements Balance sheet - Assets R$ (in thousands) Code Description Current quarter 9/30/2018 Prior year 12/31/ Total assets 16,274,130 13,981, Current assets 10,075,121 9,415, Cash and cash equivalents 1,818,725 3,162, Cash and banks 343, , Short-term investments 1,475,319 2,938, Short-term investments 2,119,155 1,411, Trade receivables 2,564,768 2,242, Customers 2,564,768 2,242, Inventories 2,518,626 1,852, Taxes recoverable 453, , Current taxes recoverable 453, , Other current assets 600, , Others 600, , Derivative financial instruments 204,061 11, Others 396, , Noncurrent assets 6,199,009 4,565, Long-term receivables 1,391, , Short-term investments at fair value through profit or loss 630, Securities designated at fair value 630, Deferred taxes 164, , Deferred income tax and social contribution 164, , Other noncurrent assets 595, , Judicial deposits 55,683 50, Taxes recoverable 160,958 9, Derivative financial instruments 282, , Others 96,298 64, Investments 18, Equity interests 18, Interests in associates 18, Other investments Property, plant and equipment 3,493,399 3,160, Property, plant and equipment in operation 3,493,399 3,160, Intangible assets 1,296, , Intangible assets 153, , Others 153, , Goodwill 1,142, ,570 PAGE: 11 of 56

13 Consolidated financial statements/balance sheet - Liabilities and equity R$ (in thousands) Code Description Current quarter 9/30/2018 Prior year 12/31/ Total liabilities 16,274,130 13,981, Current liabilities 5,579,559 4,326, Social and labor obligations 370, , Social obligations 370, , Trade payables 878, , Tax obligations 150, , Federal tax obligations 150, , Income tax and social contribution payable 59,343 29, Others 90,897 73, Borrowings and financing 2,653,066 2,014, Borrowings and financing 2,653,066 2,014, In local currency 503,920 1,300, In foreign currency 2,149, , Other obligations 1,526,860 1,247, Others 1,526,860 1,247, Dividends and interest on capital payable 73, , Advances from customers 622, , Profit sharing 111, , Derivative financial instruments 20,162 12, Payables to foreign subsidiaries 241, , Others 457, , Noncurrent liabilities 2,922,452 2,815, Borrowings and financing 2,118,054 2,041, Borrowings and financing 2,118,054 2,041, In local currency 398, , In foreign currency 1,719,115 1,584, Other obligations 164, , Others 164, , Tax obligations 3,919 2, Derivative financial instruments 8,588 40, Others 152, , Deferred taxes 81, , Deferred income tax and social contribution 81, , Provisions 558, , Consolidated equity 7,772,119 6,838, Paid-in capital 5,504,517 3,533, Capital reserves (89,914) (91,997) Options granted 7,876 4, Treasury shares (15,261) (17,392) Premium on capital transaction (82,529) (79,042) Revaluation reserves 3,630 3, Earnings reserves 298,892 2,401, Legal reserve 0 218, Statutory reserve 298,892 2,050, Additional dividend proposed 0 132, Retained earnings/accumulated losses 595,844 - PAGE: 12 of 56

14 Consolidated financial statements/balance sheet - Liabilities and equity R$ (in thousands) Code Description Current quarter 9/30/2018 Prior year 12/31/ Carrying value adjustments 391, , Deemed cost 391, , Other comprehensive income 922, , Derivative financial instruments (17,145) (11,355) Cumulative translation adjustments 939, , Noncontrolling interests 144, ,381 PAGE: 13 of 56

15 Consolidated financial statements/income statement R$ (in thousands) Current quarter 7/1/2018 to 9/30/2018 YTD current year 01/01/2018 to 9/30/2018 Prior year 7/1/2017 to 9/30/2017 YTD prior year 01/01/2017 to 9/30/2017 Code Description 3.01 Revenue from sale of products and/or services 3,237,309 8,845,433 2,435,085 6,850, Cost of sales and services (2,288,304) (6,293,846) (1,701,858) (4,798,392) 3.03 Gross profit 949,005 2,551, ,227 2,051, Operating income/expenses (540,158) (1,447,732) (416,881) (1,173,119) Selling expenses (312,897) (839,623) (238,374) (656,991) General and administrative expenses (154,625) (429,101) (125,875) (361,577) Management fees (6,402) (18,873) (5,893) (17,618) Other administrative expenses (148,223) (410,228) (119,982) (343,959) Other operating income 3,940 16,716 5,339 17, Other operating expenses (78,647) (198,088) (57,971) (172,393) Share of profit or loss of investees 2,071 2, Profit before finance income (costs) and taxes 408,847 1,103, , , Finance income (costs) 8,481 29,945 26,731 64, Finance income 233, , , , Finance costs (224,943) (582,628) (152,047) (550,650) 3.07 Profit before taxes on income 417,328 1,133, , , Income tax and social contribution (37,216) (126,504) (30,188) (98,720) Current (59,705) (159,403) (48,180) (137,900) Deferred 22,489 32,899 17,992 39, Profit for the period from continuing operations 380,112 1,007, , , Consolidated profit/loss for the period 380,112 1,007, , , Attributable to owners of the Company 381,430 1,003, , , Attributable to noncontrolling interests (1,318) 4, , Earnings per share - (Reais / share) Basic earnings per share Common shares Diluted earnings per share Common shares PAGE: 14 of 56

16 Consolidated financial statements/statement of comprehensive income R$ (in thousands) Current quarter 7/1/2018 to YTD current year 01/01/2018 to Prior year 7/1/2017 to YTD prior year 01/01/2017 to Code Description 9/30/2018 9/30/2018 9/30/2017 9/30/ Consolidated profit for the period 380,112 1,007, , , Other comprehensive income 94, ,451 (100,826) 88, Cumulative translation adjustments 73, ,241 (100,098) 78, Hedge Accounting 20,305 (5,790) (728) 10, Consolidated comprehensive income for the period 474,312 1,478, , , Attributable to owners of the Company 473,971 1,463, , , Attributable to noncontrolling interests ,271 (2,161) 7,508 PAGE: 15 of 56

17 Consolidated financial statements/cash flow statement R$ (in thousands) YTD current year 01/01/2018 to 9/30/2018 YTD prior year 01/01/2017 to 9/30/2017 Code Description 6.01 Net cash from operating activities 910, , Cash from operations 1,717,296 1,566, Profit before taxes 1,133, , Depreciation, amortization and depletion 230, , Employee profit sharing 162, , Stock option plan expenses 4,329 2, Provision for credit risk 5,834 (3,411) Provision for tax, civil and labor liabilities 51,375 68, Provision for inventory losses 22,328 11, Provision for product warranty 29,468 29, Loss on disposal of property, plant and equipment and intangible assets 8,532 6, Accrued interest on borrowings 70, , Share of profit (loss) of subsidiaries (2,364) Changes in assets and liabilities (806,940) (591,089) (Increase)/decrease in trade receivables (282,344) (66,662) Increase/(decrease) in trade payables 256,179 (4,523) (Increase)/decrease in inventories (458,108) (198,933) Income tax and social contribution paid (129,734) (132,833) Employee profit sharing paid (192,933) (188,138) 6.02 Net cash from investing activities (1,706,121) (389,587) Property, plant and equipment (240,334) (179,760) Intangible assets (18,985) (11,045) Proceeds from the sale of property, plant and equipment and intangible assets 8,079 6, Acquisition of company - Business combination (128,567) (95,828) Cash acquired in a business combination 12,432 1, Short-term investments held-to-maturity (1,324,669) Redemption of short-term investments 137,566 31, Income from financial investments (151,643) (142,913) 6.03 Net cash from financing activities (583,044) (709,321) Proceeds from borrowings and financing 1,194, , Repayment of borrowings and financing (1,111,749) (508,091) Interest paid on borrowings and financing (63,201) (284,939) Treasury shares 2,131 (5,872) Dividends and interest on capital paid (604,308) (550,384) 6.04 Exchange rate changes on cash and cash equivalents 34,849 6, Increase (decrease) in cash and cash equivalents (1,343,960) (117,423) Cash and cash equivalents at the beginning of the period 3,162,685 3,390, Cash and cash equivalents at the end of the period 1,818,725 3,273,239 PAGE: 16 of 56

18 Consolidated financial statements/statements of changes in equity - 01/01/2018 to 09/30/2018 R$ (in thousands) Code Description Paid-in capital Capital reserves, options granted and treasury shares Earnings reserves Retained earnings or accumulated losses Other comprehensive income Equity Noncontrolling interests Consolidated equity 5.01 Opening balances 3,533,973 (88,367) 2,269, , ,584 6,716, ,381 6,838, Adjusted opening balances 3,533,973 (88,367) 2,269, , ,584 6,716, ,381 6,838, Capital transactions with shareholders 1,970,544 2,083 (1,970,544) (422,567) - (420,484) 7,013 (413,471) Capital increases 1,970,544 - (1,970,544) Options granted recognized - 3,439 - (579) - 2,860-2, Treasury shares sold - 3, ,748-3, Dividends (172,788) - (172,788) - (172,788) Interest on capital (249,200) - (249,200) - (249,200) Capital transactions - (5,104) (5,104) 7,013 1, Total comprehensive income ,017, ,901 1,463,476 15,271 1,478, Profit for the period ,003,039-1,003,039 4,257 1,007, Other comprehensive income , , ,437 11, , Translation adjustments for the period , ,227 11, , Hedge Accounting (5,790) (5,790) - (5,790) Realization of deemed cost ,536 (14,536) Internal changes in equity (131,619) - (131,619) - (131,619) Payment of dividends (132,455) - (132,455) - (132,455) Prescribed dividends Closing balances 5,504,517 (86,284) 298, ,844 1,314,485 7,627, ,665 7,772,119 PAGE: 17 of 56

19 Consolidated financial statements/statements of changes in equity - 01/01/2017 to 09/30/2017 R$ (in thousands) Code Description Paid-in capital Capital reserves, options granted and treasury shares Earnings reserves Retained earnings or accumulated losses Other comprehensive income Equity Noncontrolling interests Consolidated equity 5.01 Opening balances 3,533,973 (64,462) 1,890, , ,732 5,962, ,958 6,070, Adjustments from prior years - - (193,719) - 165,795 (27,924) - (27,924) 5.03 Adjusted opening balances 3,533,973 (64,462) 1,697, , ,527 5,934, ,958 6,042, Capital transactions with shareholders - (4,671) - (382,754) - (387,425) (2,901) (390,326) Options granted recognized - 1,740 - (491) - 1,249-1, Treasury shares acquired - (8,676) (8,676) - (8,676) Treasury shares sold - 4, ,219-4, Dividends (85,489) - (85,489) - (85,489) Interest on capital (296,774) - (296,774) - (296,774) Capital transactions - (1,954) (1,954) (2,901) (4,855) 5.05 Total comprehensive income ,301 58, ,380 7, , Profit for the period , ,899 2, , Other comprehensive income ,402 58,079 83,481 4,870 88, Translation adjustments for the period ,290 73,290 4,870 78, Hedge Accounting ,191 10,191-10, Realization of deemed cost ,402 (25,402) Internal changes in equity (101,919) - (101,919) - (101,919) Payment of dividends (102,750) - (102,750) - (102,750) Prescribed dividends Closing balances 3,533,973 (69,133) 1,697, , ,606 6,370, ,565 6,483,551 PAGE: 18 of 56

20 Consolidated financial statements/statements of value added R$ (in thousands) YTD current year 01/01/2018 to 9/30/2018 YTD prior year 01/01/2017 to 9/30/2017 Code Description 7.01 Revenues 9,891,350 7,728, Sales of goods, products and services 9,868,626 7,681, Other revenues 28,558 44, Allowance for / Reversal of allowance for doubtful debts (5,834) 3, Inputs acquired from third parties (5,602,791) (4,174,135) Materials, electric power, third-party services and others (5,576,344) (4,132,204) Loss/recovery of assets (26,447) (41,931) 7.03 Gross value added 4,288,559 3,554, Retentions (230,392) (211,445) Depreciation, amortization and depletion (230,392) (211,445) 7.05 Wealth created by the Company 4,058,167 3,343, Wealth received in transfer 614, , Share of profit or loss of investees 2, Finance income 612, , Wealth for distribution 4,673,104 3,958, Wealth distributed 4,673,104 3,958, Personnel 1,959,813 1,623, Salaries and wages 1,682,895 1,398, Benefits 207, , Severance pay fund (FGTS) 69,356 63, Taxes, fees and contributions 1,089, , Federal 982, , State 96,164 71, Municipal 10,750 10, Lenders and lessors 616, , Interest 579, , Rentals 36,777 31, Lenders and lessors 1,007, , Interest on capital 249, , Dividends 172,788 85, Retained earnings / Loss for the period 581, , Noncontrolling interests 4,257 2,638 PAGE: 19 of 56

21 CONSISTENT REVENUE GROWTH AND RETURN ON INVESTED CAPITAL IN EXPANSION Net Operating Revenues were R$ 3,237.3 million in 3Q18, 32.9% higher than 3Q17 and 5.9% higher than 2Q18. Adjusted for the effects of the consolidation of acquisitions of WEG Transformers USA (WTU) and TGM, net revenues would show a 29.3% increase vs. 3Q17 and 6.6% increase vs. 2Q18; EBITDA reached R$ million, 25.9% higher than 3Q17 and 5.0% higher than 2Q18, while EBITDA margin was 15.1%, 0.9 p.p. lower than 3Q17 and 0.1 p.p. lower than 2Q18; Return on Invested Capital (ROIC) reached 17.2% in 3Q18, up 0.6 p.p. from 3Q17 and up 0.3 p.p. from 2Q18. Revenue growth keeps pace in the third quarter in Brazil and abroad. In Brazil the highlight was the revenue from new businesses, such as solar power plants and the recent acquisition of TGM, a steam turbine company. In the external markets, growth remains consistent in short-cycle equipment sales and we have already seen new opportunities in projects that require long-cycle equipment, mainly for oil & gas, pulp & paper and mining segments. ROIC expansion was highlighted again this quarter confirm the strategy to invest in new business with attractive returns. Volatility over operating margins, especially in GTD in Brazil and abroad, was more than offset by efficient capital allocation and scale gains. Main Highlights PAGE: 20 of 56

22 Net Operating Revenues Net Operating Revenues (NOR) reached R$ 3,237.3 million in 3Q18, up 32.9% year-over-year and up 5.9% quarterover-quarter. If adjusted for acquisitions of WEG Transformers USA and TGM, revenues were up 29.3% over 3Q17 and up 6.6% in relation to 2Q18. As has been the case for some quarters, Energy Generation, Transmission, and Distribution (GTD) led consolidated growth. In Brazil, GTD s expansion is mainly explained by the following factors: a) revenue recognition in more significant solar power projects, b) TGM acquisition, a steam turbine company and c) gradual improvement in revenue from WEG Transformers. Recent acquisitions, WEG Transformers USA and TGM, explain much of the revenue growth in external markets. In Industrial Electro-Electronic Equipment, the global industrial investments growth combined with some commodities (oil and metals) prices recovery have contributed positively to the revenues growth, mainly in the external markets. In Motors for Domestic Use, there was a slight growth in revenue in Brazil, reflecting consumption activity, and the continuation of revenue declines abroad, mainly explained by specific dynamics in China and Argentina. The Paint and Varnishes business area continued to benefit from the gradual recovery of Brazilian industry, its main consumer market. In this quarter, revenue was positively impacted by average Brazilian Real/US dollar Exchange rate that went from R$ 3.16 in 3Q17 to R$ 3.96 in 3Q18, with a 25.2% depreciation of the Brazilian Real. Net Operating Revenues by Market (Figures in R$ Million) The breakdown of Net Operating Revenue in 3Q18 by market was: Brazilian Market: R$ 1,375.4 million, representing 42% of revenues, up 36.4% vs. 3Q17 and up 4.3% vs. 2Q18. Disregarding the effects of the TGM acquisition, revenues would be up 33.4% vs. 3Q17 and up 4.9% vs. 2Q18; External Market: R$ 1,861.9 million, equivalent to 58% of revenues. We almost always set our sales prices in different markets in local currency amounts, according to local competitive conditions. In 3Q18 revenues in external markets were as follows: o o o Measured in Brazilian Reais: 30.5% above 3Q17 and 7.1% above 2Q18. Disregarding the effects of the WEG Transformers USA and TGM acquisitions, revenues would have been up by 26.3% vs. 3Q17 and up 7.9% vs. 2Q18; Measured in the quarterly averaged US dollar: up 4.2% vs. 3Q17 and down 2.7% vs. 2Q18. Disregarding the effects of the WEG Transformers USA and TGM acquisitions, revenues would have been up 0.9% vs. 3Q17 and down 2.0% vs. 2Q18; Measured in local currencies, weighted by the revenues in each Market and adjusted for the WEG Transformers USA and TGM acquisitions: a 6.0% increase vs. 3Q17. PAGE: 21 of 56

23 Evolution of Net Revenue According to Geographic Market External Market Distribution of Net Revenue According to Geographic Market Business Area Industrial Electro-Electronic Equipment As observed in recent quarters, the good performance in the external markets was the highlight in this business area. We continue to notice a recovery in global industrial investment, although it is still focused on installed capacity maintenance. Brownfield or new greenfield projects show improvement abroad, but are still not consistently observed in Brazil. In Brazil, the sales of short cycle products especially low voltage motors and serial automation equipment, continue its growth path. Demand, however, continues to depend on investments in installed capacity maintenance, reducing the effect of Brazilian Real devaluation as a competitiveness advantage. Sales of long-cycle equipment, mainly automation panels, showed a slight decrease in the quarterly comparison. Despite the gradual improvement in order intake level the delivery of such equipment was lower than the same period of the previous year. Abroad, revenue growth was predominantly in short-cycle products, where we have been advancing through the expansion of our product line and market share gains. Capacity expansion projects and new plant construction, which also demand long-cycle products, continue to grow, following the same trend of previous quarters, mainly in industries related to oil & gas, infrastructure and pulp & paper production. Energy Generation, Transmission, and Distribution (GTD) The equipment in this business area is characteristically linked to renewable energies, with manufacturing deadlines that extend for several months. Thus, revenue growth, which remains strong, is resulting from the backlog execution that has been built in recent months. The highlight has been, for some quarters, solar power generation systems. It is important to remember that deliveries of solar systems began in 1Q18, which means that the growth rate in GTD is high by the low comparison base. In addition, it is worth mentioning that this is a still-maturing business, although it has an attractive return on invested capital, it has structurally lower operating margins. The performance in GTD also had a relevant contribution of the wind generation business, which grew significantly in relation to 3Q17. As reported at the time, in 3Q17 we postponed the delivery of an important wind generation project to 2018, reducing the revenue recognized in that quarter. PAGE: 22 of 56

24 For other renewable sources, notably hydro and biomass, improvement in order intake continues. This trend is expected to continue in 2018, signaling stability for upcoming months. It s worth nothing that starting in March 2018 we began consolidating TGM, the steam turbines manufacturing operation, which contributed to revenue growth in this quarter. In Transmission and Distribution (T&D), we began to observe a gradual improvement in revenues, mainly in distribution transformers and transformers and substations for renewable energy projects, reflecting the higher order intake observed in recent months. In addition, the transmission lines auctions held in the last years had a positive impact on our medium and long-term backlog and will contribute to the this business unit performance from the end of In external markets, the largest contribution was from the transformers business, which presented growth in all operations, highlighting the consolidation of the new US company, WEG Transformers USA. This acquisition complements our production platform in North America and offers significant synergies. The combination of largescale vertical operations and the flexibility of having production units in multiple geographies, opens up numerous opportunities for expansion abroad. Motors for domestic use In the domestic market we see small revenue growth compared to last year. Because of its short-cycle product characteristics, the dynamics of this business area closely related to the economy performance, mainly consumption, which has not yet presented a consistent recovery compared to last year. Outside Brazil, revenue declined mainly due to lower orders in the local market in China, coupled with the poor performance of Argentina operation, which is suffering from the recent problems faced by the local economy. Paints and Varnishes Domestic market performance continues to reflect the industrial and consumer goods markets performance, which show a gradual recovery throughout Reflecting the improvement in some segments, such as auto parts, road implements and water utilities, as well as normalization of preventive maintenance in important segments such as oil & gas, mining and shipping. The decrease in revenues in the external markets mainly reflects the difficulties of the economic scenario in Argentina, our main market for this business unit abroad. Distribution of Net Revenue by Business Area PAGE: 23 of 56

25 Cost of Goods Sold The Cost of Goods Sold (COGS) totaled R$ 2,288.3 million in 3Q18, up 34.5% vs. 3Q17 and up 5.1% vs. 2Q18. Gross margin was 29.3%, 0.8 p.p. lower vs. 3Q17, and 0.5 p.p. higher vs. 2Q18. The increase in costs and the consequent reduction in gross margin compared to 3Q17 is mainly due to the consolidation of the acquisition of WEG Transformers USA, increased sales of solar generation projects, in which operating margins are structurally lower, and also to the impact of near term exchange rate volatility on raw materials costs, especially on long-cycle projects. In 3Q18, the average price of copper in the spot market on the London Metal Exchange (LME) decreased 11.1% vs. 2Q18 and decreased 3.7% vs. 3Q17, while the average price of steel decreased 0.2% vs. 2Q18 and increased 13.3% vs. 3Q17. COGS Composition Sales, General, and Administrative Expenses Consolidated sales, general, and administrative expenses (SG&A) totaled R$ million in 3Q18, an increase of 28.4% vs. 3Q17 and of 8.9% vs. 2Q18. It is worth noting that some of these costs are for operations abroad and are also impacted by the recent depreciation of the Brazilian Real. When analyzed in relation to net operating revenue, these expenses accounted for 14.4%, down 0.6 p.p. vs. 3Q17 and up 0.4 p.p. vs. 2Q18. Revenue growth, combined with disciplined expense control, has increased operational efficiency, lessening the impact of increased participation of new businesses in sales. EBITDA and EBITDA Margin In 3Q18, EBITDA reached R$ million, up 25.9% vs. 3Q17 and up 5.0% vs. 2Q18. EBITDA margin was 15.1%, 0.9 p.p. lower vs. 3Q17 and 0.1 p.p. lower vs. 2Q18. EBITDA margin performance was stable compared to 2Q18 but below over 3Q17 due to the impacts of the acquisition of WEG Transformers USA and the rapid growth of new businesses, such as solar generation, with characteristics of lower operating margins and also the impact of near term exchange rate volatility on raw materials costs of long-cycle projects. PAGE: 24 of 56

26 (Figures in R$ Million) Net Financial Results The net financial result in 3Q18 was positive R$ 8.5 million (vs. positive R$ 26.7 million in 3Q17 and negative R$ 6.5 million in 2Q18), the decrease in the quarterly comparison is mainly due to the lower interest rates received on our cash position. Income Tax The provision for Income and Social Contribution on Net Profit in 3Q18 totaled R$ 59.7 million (vs. R$ 48.2 million and R$ 71.7 million in 3Q17 and 2Q18, respectively). Additionally, we credited R$ 22.5 million as Deferred Income Tax/Social Contribution in 3Q18 (vs. a credit of R$ 18.0 million in 3Q17 and credit of R$ 28.5 million in 2Q18). Net Income Net Income 3Q18 was R$ million, an increase of 22.2% vs. 3Q17 and an increase of 13.3% vs. 2Q18. Net margin reached 11.8%, 1.0 p.p. lower than 3Q17 and 0,8 p.p. higher than 2Q18. Cash Flow Cash generation in operating activities in the first nine months of 2018 was R$ million, a decrease of 6.6% compared to the same period of the previous year, a result of the increased need for working capital, mainly in the inventories, including exchange variation, to support the growth of the external market. The most significant growth in the disbursement of investment activities, which totaled R$ 1,706.1 million in the first nine months, is mainly due to the movement of long-term financial investments. The level of investment in modernization and expansion of production capacity showed a growth compared to 2017, in line with the approved capital budget at the beginning of the year. In the financing activities, we raised R$ 1,194.1 million and made amortizations of R$ 1,111.7 million, resulted in a net increase of debt of R$ 82.3 million. Interest on loans consumed R$ 63.2 million while payments to equity holders (dividends and interest on capital) totaled R$ million. The final result was consumption of R$ million in fiancing activities in the first nine months of (Figures in R$ Million) PAGE: 25 of 56

27 We point out that the chart above shows the cash and cash equivalents positions classified as current assets. Also, we have R$ 3,236.4 million in financial investments with no immediate liquidity (R$ 1,593.2 million in December 2017). Return on Invested Capital The Return on Invested Capital (ROIC) in 3Q18 (accumulated in the last 12 months) showed expansion of 0.6 p.p. over 3Q17, reaching 17.2%. Growth of Net Operating Profit After Taxes (NOPAT), due to revenue growth and expense control, more than offset the growth in capital employed, which expanded due to a greater need for working capital and investments in fixed and intangible assets over the last 12 months. Investments (CAPEX) In the first nine months of 2018, we invested R$ million in modernization and expansion of production capacity, machinery and equipment, and software licenses, 42% of which are for production units in Brazil and 58% for industrial plants and other facilities abroad. Considering the consolidation of fixed assets related to TGM acquisition the total investment in the first nine months of 2018 was R$ million. (Figures in R$ Million) Expenditures on research, development, and innovation activities totaled R$248.3 million, representing 2.8% of net operating revenue in PAGE: 26 of 56

28 Debt and Cash Position As of September 30, 2018, cash, cash equivalents, and financial investments totaled R$ 5,055.2 million and were invested in first-tier banks and denominated in Brazilian currency. Gross financial debt totaled R$ 4,799.9 million, of which 56% was in short-term operations and 44% in long-term operations. Net cash totaled R$ million. (Figures in R$ thousands) The characteristics of our indebtedness at the end of September were: The total duration of 18.7 months, with a duration of 36.4 months in the long term. In December 2017, these figures were 20.0 months and 32.3 months, respectively. The weighted average cost of debt denominated in Reais is approximately 7.1% pa (vs. 8.3% in December 2017). The post-fixed contracts are indexed mainly to the Brazilian long-term interest rate (TJLP). Dividends and Interest on Stockholders Equity From August 15, 2018, onwards, we started to pay dividends declared during the first half of 2018, as below: On March 20, as interest on stockholders equity (JCP), to the gross amount of R$ 84.6 million On June 26, as interest on stockholders equity (JCP), to the gross amount of R$ 82.2 million On July 17, as dividends referring to profit recorded in the first half of 2018, to the total amount of R$ million Also, On September 18, the Board of Directors approved interest on stockholders equity (JCP), to the gross amount of R$ 82.4 million. We will pay this JCP from March 13, 2019, onwards. Our practice is to declare interest on capital quarterly and dividends based on the profit obtained each half year, that is, six proceeds each year, paid semi-annually. PAGE: 27 of 56

29 1 Information on the Company WEG S.A. ("Company") is a publicly-held corporation headquartered at Avenida Prefeito Waldemar Grubba, 3300, in Jaraguá do Sul - State of Santa Catarina (SC), Brazil, holding company comprising the WEG Group ("Group"), which is primarily engaged in the production and sale of capital goods such as electric motors, generators and transformers; gear units and geared motors; hydraulic (PCHs) and steam turbines; frequency converters; motor starters and maneuver devices; control and protection of electric circuits and industrial automation; electric traction solutions for land and sea transportation; solutions for the generation of renewable and distributed energy, exploring all opportunities in small hydro, thermal, biomass, wind and solar energy powerplants; no-breaks and alternators for groups of generators; electric substations; industrial electrical and electronic systems; and industrial paint & varnish. The operations are performed through manufacturing facilities located in Brazil, Argentina, Colombia, Mexico, United Stated, Portugal, Spain, Austria, Germany, South Africa, India, and China. The Company has shares traded on B3 under ticker symbol WEGE3 and has been listed since June 2007 in the special segment of corporate governance called Novo Mercado. The Company has American Depositary Receipts (ADRs) - Level 1 that are traded on the over-the-counter (OTC) market in the United States under the ticker symbol WEGZY. 2 Basis of preparation and significant accounting policies The Company s interim financial information, included in the Quarterly Information Form ITR for the quarter ended September 30, 2018 includes the individual and consolidated interim financial information prepared considering all significant information on the Company, which corresponds to that used by Management in managing the activities, with CPC 21 Interim Financial Reporting and IAS 34 Interim Financial Reporting, issued by the International Accounting Standard Board ( IASB ) and presented consistently with the standards issued by the Brazilian Securities and Exchange Commission ( CVM ) applicable to the preparation of Quarterly Information - ITR. The interim financial information has been prepared on the historical cost basis, except for the measurement of certain financial instruments at fair value, when required by the standard. The Company s consolidated interim financial information for the period ended September 30, 2018 was authorized for issue at the executive board's meeting held on October 15, The accounting policies, bases of consolidation and methods of calculation adopted in the preparation of the interim financial information, as well the key estimates and judgments used in applying the accounting policies are the same as those adopted in the preparation of the financial statements for the year ended December 31, 2017, including the adoption of the new accounting standards. 2.1 Restatement of accounting balances Based on the international standard IAS 8/ technical pronouncement CPC 23 Accounting Policies, Change in Accounting Estimates and Errors, the Interim Financial Information for the prior year and periods is being restated, for comparison purposes The Company s Management identified, during the preparation of the Interim Financial Information for the period ended June 30, 2018, that the goodwill based on future profitability arising from acquisition of foreign operations was carried as assets denominated in the functional currency of the acquirer company in Brazil. However, both the international accounting practices and those adopted in Brazil determine these assets related to foreign operations to be carried in the functional currency of the acquiree. Therefore, the corresponding figures of the prior year and periods, presented for comparison purposes, were adjusted and are being restated to reflect: (i) the accounting adjustments arising from foreign exchange differences on translation of goodwill of foreing operation; and (ii) the accounting adjustments of prior periods related to the impairment of goodwill, as shown below: PAGE: 28 of 56

30 Balance sheet as at December 31, 2017: 12/31/17 Accumulated adjustments PARENT 12/31/2017 adjusted 12/31/17 CONSOLIDATED Accumulated 31/12/17 adjustments adjusted ASSETS Current assets 1,369,011-1,369,011 9,415,667-9,415,667 Noncurrent assets 6,614-6, , ,844 Investments 5,516,084 (4,845) 5,511, Property, plant and equipment 4,393-4,393 3,160,111-3,160,111 Intangible assets ,097 (4,845) 961,252 TOTAL ASSETS 6,896,102 (4,845) 6,891,257 13,985,987 (4,845) 13,981,142 LIABILITIES Current liabilities 170, ,446 4,326,788-4,326,788 Noncurrent liabilities 4,730-4,730 2,815,892-2,815,892 Equity 6,720,926 (4,845) 6,716,081 6,843,307 (4,845) 6,838,462 Paid-in capital 3,533,973-3,533,973 3,533,973-3,533,973 Reserves 2,374,788 (193,719) 2,181,069 2,374,788 (193,719) 2,181,069 Carrying value adjustments 679, , , , , ,584 Additional dividends proposed 132, , , ,455 Noncontrolling interests , ,381 TOTAL LIABILITIES 6,896,102 (4,845) 6,891,257 13,985,987 (4,845) 13,981,142 Individual statement of comprehensive income as at September 30, 2017: Current quarter 7/1/2017 to 9/30/2017 A ccumulated adjustments Current quarter 7/1/2017 to 9/30/2017 Adjusted YTD current year 1/ 1/ 2017 to 9 / 30 / 2017 Accumulated adjustments YTD current year 1/ 1/ t o 9 / 3 0 / Adjusted Profit for the year 312, , , ,899 Hedge accounting (728) - (728) 10,191-10,191 Cumulative translation adjustments (82,294) (14,774) (97,068) 75,086 (1,796) 73,290 Total comprehensive income: 229,008 (14,774) 214, ,176 (1,796) 925,380 Consolidated statement of comprehensive income as at September 30, 2017: Current quarter 7/ 1/ 2017 to 9/ 30/ 2017 Accumulate d adjustments Current quarter 7/ 1/ 2017 to 9/ 30/ 2017 Adjusted YTD current year 1/ 1/ t o 9 / 3 0 / Accumulate d adjustments YTD current year 1/ 1/ t o 9 / 3 0 / Adjusted Profit for the year Hedge accounting (728) - (728) Cumulative translation adjustments (85.324) (14.774) ( ) (1.796) Total comprehensive income: (14.774) (1.796) Attributable to the owners of the Company (14.774) (1.796) Attributable to noncontrolling interests (2.161) - (2.161) PAGE: 29 of 56