November 7, 2013 3Q13 Results
Jun 09, 2015
November 7, 2013
3Q13 Results
SCHEDULE
HIGHLIGHTS
RESULTS
OUTLOOK
2
Providência USA
Providência USA
Sales Volume amounted to 31.4 thousand tons, an increase of 20.5% in relation to the same
period in 2012. On a quarter-on-quarter comparative basis there was an increase of 3.0%;
The Company reported Net Revenue of R$ 211.1 million, a 26.6% increase on 3Q12, largely
reflecting increasing sales volume;
Adjusted EBITDA reached R$ 40.1 million, an 11.0% improvement on 3Q12 and 25.0%
compared with 2Q13;
Net Income in the period amounted to R$ 10.0 million, a 21.0 % improvement on 2Q13;
The Company posted an increase in Net Debt of R$ 44.3 million, 9.9% greater than 3Q12, a
consequence of the currency variation on US dollar denominated financing;
Approval was given for the distribution of interim dividends of R$ 17.9 million, totaling 100% of
the adjusted dividend calculation base in the first half of 2013.
HIGHLIGHTS 3Q13
SCHEDULE
HIGHLIGHTS
RESULTS
OUTLOOK
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SALES VOLUME (in thousands of tons)
Sales of nonwovens grew 23.7% compared with 3Q12 due to the full capacity reached by KAMI
13, the 2nd production line in the US, that started up this year.
3Q12 2Q13 3Q13
23.6 28.0 29.2
2.5 2.5 2.5
26.1 30.5 31.4
Nonwovens Others
Sales Volume / Quarter
YTD 2012 YTD 2013
67.2 81.5
6.5
7.4 73.7
88.9
Nonwovens Others
Sales Volume Accumulated
R$ 6.20 R$ 6.35
Unitary Net Revenue
YTD 2012 YTD 2013
457.2 564.8
Net Revenue
Net revenue Accumulated
R$ 6.40 R$ 6.33 R$ 6.72
Unitary Net Revenue
3Q12 2Q13 3Q13
166.7 193.1 211.1
Net Revenue
Net revenue / Quarter
6
NET REVENUE (in millions of Reais)
The increase is largely due to the higher sales volume.
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Net revenue from sales for 3Q13 amounted to R$ 211.1 million, an increase of 26.6% compared
with 3Q12. When compared with 2Q13, growth was 9.3%, in large part due to an increase in sales
volume;
R$ 4.39
R$ 4.66 R$ 4.99
Unitary COGS (R$)
R$ 4.33
R$ 4.66
Total unitary COGS (R$)
YTD 2012 YTD 2013
319.0 413.9
COGS (R$ thousand)
GOGS Accumulated
3Q12 2Q13 3Q13
114.3 142.0
156.9
COGS (R$ thousand)
GOGS / Quarter
The cost of goods sold (COGS) totaled R$ 156.9 million in 3Q13, 37.2% higher against the
R$ 114.3 million recorded in 3Q12 and an increase of 10.5% compared with the R$ 142.0 million in
2Q13.
COGS (Cost of Goods Sold) (in millions of Reais)
7 7
This performance is largely the result of higher sales volume and increased raw material costs.
20.4%
17.3%
Ebitda Margin (%)
21.7%
16.6%
19.0%
Ebitda Margin (%)
YTD 2012 YTD 2013
93.2
98.0
EBITDA
EBITDA Accumulated
3Q12 2Q13 3Q13
36.1
32.1
40.1
EBITDA
EBITDA / Quarter
Adjusted EBITDA in 3Q13 reached R$ 40.1 million, an improvement of 11.0% when compared
with the R$36.1 million reported in 3Q12. In relation to 2Q13, adjusted EBITDA increased by 25.0%.
EBITDA (in millions of Reais) and EBITDA MARGIN (%)
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11.4%
4.3%
4.7%
Net Margin (%)
7.4%
4.1%
Net Margin (%)
3Q12 2Q13 3Q13
18.9
8.2 10.0
Net income
Net Income / Quarter
9
NET INCOME (in millions of Reais)
and NET MARGIN(%)
25,0
9
The adjusted dividend calculation base for the quarter was R$ 12.5 million, the difference
representing the realization of the deemed cost for the quarter, net of tax.
Net income for the quarter amounted to R$ 10.0 million.
YTD 2012 YTD 2013
33.8
23.2
Net income
Net income Accumulated
A Net Debt increased 12.4% when compared with 3Q12 due to an increase in Gross Debt of R$
19.6 million as well as a reduction in cash and liquid hedge instruments of R$ 34.8 million. Net
Debt fell 0.2% in relation to 2Q13;
NET DEBT (in millions of Reais)
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.
3Q12 2Q13 3Q13
439.9
495.1 494.3
Net Debt
Net Debt / Quarter
27%
73%
Local currency Foreign currency
Total Debt %
Consolidated Net Debt
DEBT / CASH (in millions of Reais)
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In R$ (MM) 3Q12 2Q13 3Q13Ch. 3Q13 /
3Q12Short Term 127.0 117.7 51.4 -59.5%
Long Term 428.5 349.2 523.6 22.2%
Total 555.4 466.8 575.0 3.5%
Cash and liquid hedge instruments 115.5 70.4 80.7 -30.1%
Net Debit 439.9 396.5 494.3 12.4%
Shareholders' Equity 697.8 678.7 662.1 -5.1%
Net Debt / Adjusted EBITDA 3.68 3.95 3.86 4.9%
0.18
0.24 0.22
Dividend/Share
The Board of Directors decided at its meeting held on September 17, 2013 on the distribution of
100% of dividends calculated on the data base June 30, 2013, representing R$ 17.9 MM to be payed
on November 25, 2013.
DIVIDENDS (in millions of Reais)
25,0
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This calculation base corresponds to:
1º Half 2013 Net income 13.3 MM
(-) Legal Reserves legal (5%) 0.7 MM
(+) Realization of deemed cost 2011: 5.1 MM(+) 1 Reversal of plan Stockoptions: 0.2 MM
Dividends payable 17.9 MM
1st Half 2011 1st Half 2012 1st Half 2013
14,1
19,2 17,9
Dividends Paid (R$ MM)
Dividends Payable
MARKET VALUE RATIOS
25,0
13
3Q12 2Q13 3Q13
0.79 0.99 0.96
Share Price / Asset Value per share
PRVI3 Asset Value / Quarter
2010 2011 2012
5.54%
8.06% 7.37%
Dividend Yield
PRVI3 - Proportion of dividends paid on the share value in the last three years
PRVI3 15,6%
IBOVESPA -11,6%
Change 3T13 / 3T12
R$ 6,85
R$ 8,95 R$ 8,70
R$ 8,25 R$ 7,92
R$ 5
R$ 6
R$ 7
R$ 8
R$ 9
R$ 10
set/12 dez/12 mar/13 jun/13 set/13
Share Value - IBOVESPA
HIGHLIGHTS
RESULTS
OUTLOOK
SCHEDULE
OUTLOOK
With the 2nd Statesville nonwovens line now operating at full capacity, the objective is to
improve the mix by increasing the percentage of higher value added products;
Installed capacity will have reached 140 thousand tons/year by year-end, reaffirming the
Company’s ranking as one of the largest and most modern players in the global nonwovens
industry.
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K12 K13
CEO/CFO: Hermínio V. S. 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.twiter.com/providencia_ri
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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 .