3. HIGHLIGHTS 3Q 2012
Sales Volume 14.6% higher than 3Q11 reaching 26.1 thousand tons. This increase is due
to the start of sales from our 2nd production line in Pouso Alegre and also the full capacity
reached by our 1st production in the United States;
Adjusted EBITDA reported a record R$ 36.1 million in 3Q12, a growth of 14.0% in relation
to the same period in 2011;
Net Income was also a record at R$ 18.9 million in 3Q12, 23.1% higher than 3Q11, with a
Margin of 11.4%. For the YTD12, we posted a net income of R$ 33.8 million, 36.2% more
than for the same period 2011;
Operating Cash generation amounted to R$ 118.9 million in the first nine months of the
year, a 108.2% increase over the same period for 2011;
The expansion project in Statesville (NC) in the United States is progressing according to
plan. It will add another 20 thousand tons/year to production capacity in that country.
3
5. SALES VOLUME
(in thousands of tons)
The growth of 14.6% in 3Q12 compared with 3Q11 reflects both the full capacity at which
our 1st US line of production is operating as well as the initial sales from the 2nd production
line at the Pouso Alegre plant, inaugurated in June/12.
73.7
64.8
5.1
22.7
24.6
6.5
26.1
1.6
2.3
2.5
21.1
22.3
2Q12
3Q12
67.2
23.6
3Q11
59.7
YTD 11
Nonwovens
Others
YTD 12
5
6. NET REVENUE
(in millions of Reais)
The amount of R$ 166.7 million in Net Revenue in
3Q12 is the result of 16.8% growth in relation to 3Q11, in
turn reflecting the increase in sales volume, improvement
in the product mix, price realignment and the foreign460,0
exchange translation effect.
142.7
151.0
166.7
3Q11
2Q12
3Q12
440,0
420,0
400,0
380,0
360,0
340,0
320,0
300,0
280,0
260,0
240,0
220,0
200,0
180,0
160,0
140,0
120,0
100,0
80,0
60,0
40,0
20,0
-
457.2
384.6
YTD 11
YTD 12
6
7. COGS (Cost of Goods Sold)
(in millions of Reais)
COGS totaled R$ 114.3 million in 3Q12, an increase of 19.5% in relation to 3Q11. This result
is mainly a reflection of the higher sales volume, given that unit COGS posted a year-on-year
rise of only 4.2%.
R$ 4.33
360,0
340,0
0,0
320,0
0,0
300,0
0,0
280,0
0,0
260,0
0,0
240,0
0,0
220,0
0,0
R$ 4.40
0,0
R$ 4.39
0,0
0,0
R$ 4.16
200,0
R$
180,0
319.0
160,0
R$ 4.21
140,0
0,0
120,0
0,0
100,0
0,0
269.3
80,0
0,0
0,0
95.7
108.1
114.3
60,0
40,0
20,0
0,0
R$3,70 -
-
3Q11
2Q12
3Q12
R$
YTD 11
YTD 12
7
8. EBITDA (in millions of Reais)
and EBITDA MARGIN (%)
Adjusted EBITDA reached R$ 36.1 million, a year-on-year growth of
14.0%. EBITDA was a record for a single quarter;
80,0
60,0
20.4%
22,2%
21,7%
60,0
18,7%
18.1%
40,0
93.2
40,0
69.6
20,0
31.7
36.1
20,0
28.2
-
0,0%
3Q11
2Q12
3Q12
-
0
YTD 11
YTD 12
For the YTD12, the company reported a total of R$ 93.2 million, 33.9% more than the
8
same period in 2011.
9. 25,0
NET INCOME (in millons of Reais)
and NET MARGIN(%)
11.4%
10.8%
The calculation base for adjusted
Dividends in 3Q12, considering the
deemed cost, reached R$ 21.5 million,
5.2%
18.9
and R$ 40.7 million in YTD12.
15.4
7.8
7.4%
0,0%
3Q11
2Q12
6.5%
3Q12
20,0
33.8
Net Income totaled R$ 18.9 million in 3Q12, an
24.8
increase of 23.1% comparing to 3Q11. For the YTD12,
the company reported a total of R$ 33.8 million,
36.2% more than the same period in 2011;
-
9
YTD 11
YTD 12
0
10. NET DEBT
(in millions of Reais)
Net Debt increased 47.8% when compared
with 3Q11 due to new investments coming on
line during the course of the year. The
majority of the financing for new lines is
already in place and the debt balance is
expected to begin a downward trend;
403.1
450.0
304.5
The foreign currency named debt was
mainly borrowed in the USA with a natural
hedge in the form of Providência’s revenue
flows and assets in that country.
30.5%
1Q11
2Q11
3Q11
Foreign
Currency
69.5%
Local
Currency
10
11. DEBT / CASH
(in millions of Reais)
Consolidated Net Debt
R$ (MM)
09/30/2011 09/30/2012
Ch. 3Q12 /
3Q11
Total Debt
Short Term
Long Term
Total
312.8
314.7
627.5
127.0
428.5
555.5
-59.%
36.2%
-11.5%
Cash
323.0
105.5
-67.3%
Net Debt
304.5
450.0
47.8%
Shareholders' Equity
698.9
697.8
-0.2%
3.4
3.7
8.2%
2.8
2.3
-18.1%
11
Net Debt / Adjusted EBITDA
Net Debt / Adjusted EBITDA
without the lines that startup in 2012
12. 25,0
DIVIDENDS
(in millions of Reais)
The Company announced the distribution of Dividends at 100% of the calculation base for
the adjusted net profit in the period ending June 30, 2012 in the amount of R$ 19.2 million,
in excess of R$ 0.24 per share. Payout will take place on 11/26/2012, the share trading exdividends from 11/14/2012.
R$0,24
22,0
R$0,18
17,0
0,25
0,20
R$0,14
0,15
12,0
0,10
19,2
0,05
14,1
7,0
11,1
0,00
2,0
-0,05
-3,0
1st Half
2010
1st Half
2011
Dividends Paid (R$ million)
1st Half
2012
Dividend/Share
-0,10
12
13. 25,0
MARKET VALUE RATIOS
Dividend Yield *
3,83%
2,95%
2,33%
1st Half
2010
1,40
1st Half
2011
1st Half1,20
2012
1,00
* Dividend per Share / Share price at the end of the period.
Share Price / Book Value per Share
0,80
0,60
0,40
0,66
0,74
0,79
2Q12
13
3Q12
0,20
-
3Q11
15. OUTLOOK
Dividend payout was 100% of the adjusted Net Income in the period ending June 30 2012,
amounting to R$ 19.2 million, in excess of R$ 0.24 per share. The value will be paid out on
November 26, 2012, the shares trading ex-dividends in November 14, 2012;
The goal is for the 2nd production line in Pouso Alegre (MG) – the Company’s 12nd –
unveiled in June/12 and with 20 thousand tons/year of capacity, to reach full capacity by the
end of this year;
According to the expected schedule, we shall be concluding the 13th production line - the
second in Statesville (NC) – at the end of 2012, increasing the production capacity in the
United States from 20 to 40 thousand tons/year;
Providência will end 2012 with a capacity of 140 thousand tons/year, underscoring its
position as one of the largest and most modern players in the world nonwovens industry.
15
16. CEO: Hermínio V. S. de Freitas
CFO: Eduardo Feldmann Costa
IR : Gabriela Las Casas
Beatriz Tokarski
Tel: +55 (41) 3381-8673
Fax: +55 (41) 3283-5909
São José dos Pinhais – PR
www.providencia.com.br/ir
www.twitter.com/providencia_ri
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 .