2. 2014 was a year of great oportunities as well as challenges for Companhia
Providência:
On the strategic side, Polymer Group Inc. (PGI) concluded the acquisition of
Companhia Providência control on June 11th
, 2014. This partnership will bring
opportunities to the continuity of success in our markets.
On the operational side, the partial shutdown of some production lines at
the São José dos Pinhais facility during the 2Q14 by the Ministry of Labor until
the Company reached full compliance with NR 12 (Regulatory Standard –
Machinery and Equipment). The first impact was sales volume, of
approximately 6,500 tons, with direct reflex on the Company results and cash.
HIGHLIGHTS 2014HIGHLIGHTS 2014
3. SALES VOLUMESALES VOLUME (in thousand of tons)(in thousand of tons)
During the quarter, the Company recorded a year-on-year reduction in sales volume of 2.6% in
relation to the same period in 2013. Annual Sales volume of nonwovens declined by 7.5% in
relation to 2013.
4. NET REVENUENET REVENUE (in millions of Reais)(in millions of Reais)
The Company reported total net revenue of R$ 224.3 million in 4Q14, a 3.3% increase when
compared with 4Q13. In relation to 3Q14 this same item registered growth of 10.7%, largely due
to the passing on of raw material costs to prices, as well as to the devaluation of Real against US
Dollar that impacted positively the sales at Statesville plant and the exports from Brazil.
The net revenue increased 2,5% in 4Q14 compared to the previous
year.
5. COGS - COST OF GOODS SOLDCOGS - COST OF GOODS SOLD (in millions of Reais)(in millions of Reais)
Cost of Goods Sold (COGS) amounted to R$ 184.2 million in 4Q14, 11.8% higher when
compared to the R$ 164.7 million reported in 4Q13 and 14.2% in relation to the R$ 161.3
million in 3Q14;
This increase reflects higher polypropylene costs, our main raw material.
As polypropylene cost is linked to US Dollar, it also registered the impact
of Real devaluation.
6. Adjusted EBITDAAdjusted EBITDA (in million of(in million of ReaisReais) and) and Adjusted EBITDA MARGINAdjusted EBITDA MARGIN(%)(%)
Adjusted EBITDA in 4Q14 amounted to R$27.8 million, a reduction of 19.9% when compared to
the R$34.7 million registered in 4Q13. In relation to 3Q14, there was an increase of 75.6%.
7. NET LOSSNET LOSS ((in millions of Reaisin millions of Reais)) andand NET MARGINNET MARGIN (%)(%)
The Company reported a net loss of R$ 16.9 million in 4Q14, principally due to the devaluation
of Real against US Dollar that impacted directly the financial expenses as well as lower
comparative output and sales volumes, combined with the higher costs.
8. NET DEBTNET DEBT (in million of(in million of ReaisReais))
Total Debt increased 7.8% in 4Q14 when compared with 4Q13, principally due to the foreign
exchange translation effect on US dollar denominated financing.
Net Debt increased by 19.6% compared with 4Q13 due to a R$ 46.0 million increase in Gross Debt
as well as a reduction in cash and cash equivalents (hedge) of R$ 52.5 million. In relation to 3Q14,
outstanding Net Debt rose 3.3%.
.
4Q13 3Q14 4Q14 Ch. 4Q14 / 3Q14
Short Term 83,7 141,6 161,3 92,7%
Long Term 507,2 469,0 475,6 -6,2%
Total 590,9 610,5 636,9 7,8%
Cash and liquid hedge instruments 88,9 29,5 36,4 -59,1%
Net Debt 502,0 581,1 600,5 19,6%
Shareholders' Equity 665,6 610,2 593,7 -10,8%
Net Debt / Adjusted EBITDA 3,79 6,72 7,54 99,2%
Consolidated Net Debt
9. MARKET VALUE RATIOSMARKET VALUE RATIOS
The book value of the Company shares increased
4.9% compared to 3T14 and 9.0% over the same
period last year.
R$ 7,89
R$ 8,05
R$ 7,51
R$ 8,20
R$ 8,60
R$ 7
R$ 8
R$ 9
Dec-13 Mar-14 Jun-14 Sep-14 Dec-14
Share Value - IBOVESPA
9,0%
-2,9%
PRVI3
IBOVESPA
Change 4Q14 / 4Q13
10. STATUS – SALE OF THE COMPANY`S CONTROL TO PGISTATUS – SALE OF THE COMPANY`S CONTROL TO PGI
On January 22, 2015 the Brazilian Securities and Exchange Commission
(Comissão de Valores Mobiliários - CVM) determined the suspension of the
Unified Tender Offer to be conducted by PGI until further studies and
analysis are completed.
On March 27, 2015 the Brazilian Securities and Exchange Commission
(Comissão de Valores Mobiliários - CVM) notified the Company that SEP –
Superintendent of Companies Relationships understood that the payment of
the transaction expenses by the Company was irregular. The Company
intends to appeal to CVM Collegiate against this.
11. CEO/CFO: Hermínio Vicente Smania de Freitas
RI : Gabriela Las Casas
Danielle Cabrini
Tel: +55 (41) 3381-8673
Fax: +55 (41) 3381-7656
São José dos Pinhais – PR
www.providencia.com.br/ri
www.twitter.com/providencia_ri
CONTACTSCONTACTS
The words “believe”, “anticipate”, “expect”, “estimate”, “will”, “plan”, “may”, “intend”, “foresee”, “project” and other similar
expressions indicate forward-looking statements. These forward-looking statements involve uncertainties, risks and assumptions,
since they include information related to our potential or assumed future operating results, business strategy, financing plans,
competitive position in the market, industry environment, potential growth opportunities and the effects of future regulations and
competition. In addition, forward-looking statements refer only to the date on which they were made and should not be taken as a
guarantee of future performance. Providência is under no obligation to update this presentation with new information and/or
future events.
