Results Presentation 1Q09
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Results Presentation 1Q09






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    Results Presentation 1Q09 Results Presentation 1Q09 Presentation Transcript

    • 1Q09 Results May 14, 2009
    • Shareholders’ Composition March 31, 09 Block of Control Espírito Treasury AIG group Asas Fund G&G Santo and others Group 19.0% 18.3% 19.0% 10.2% 6.5% 27.0% Total: 82.5 million shares
    • Agenda • Highlights • 1Q09 Results • Outlook 3
    • Highlights  Project for the production of specialty disposable hygiene products nearing completion, which will represent a capacity increase of 70% in this family of products:  When fully operational, these products will account for up to 18% of the Company’s total production capacity .  Cessation of tax credits accumulation in the acquisition of raw materials:  Utilization of Federal Government benefits halted tax credit growth.  2nd Share Buyback Program started on November 26, 2008 and ended on April 17, 2009:  Total of 2.442 million shares, representing 10% of the free-float in November 2008,;  Total investment of R$ 6.4 million. 4
    • Agenda • Highlights • 1Q09 Results • Outlook 5
    • Sales Volume Total 21.4  There was a slight decrease in Total 0.7 19.0 Nonwovens volume, at around Total 5.7 1.6 15.9 2.0% in 1Q09 compared to 1Q08, - 1.2 substantially due to the downturn in the world economy that affected mainly the durable goods segment; 17.3 15.1 14.8  The decrease in relation to 4Q08 was 14.8%, due to historical first quarter seasonality. 1Q08 4Q08 1Q09 Others Pipes and Fittings Nonwovens In thousand tonnes 6
    • Net Revenues Nonwovens Division  Net revenues totalled R$ 98.2 124.4 million in 1Q09, an improvement of 12.5% in relation to 1Q08 – despite 98.2 87.3 the slight reduction in sales volumes – mainly due to a better sales mix in relation to the same quarter in 2008. In 2009, with KAMI 9 fully operational, we increased the production of higher value-added 1Q08 4Q08 1Q09 products such as special hygienic disposable and medical disposable nonwovens. In R$ millions 7
    • Cost of Goods Sold  The cost of goods sold (COGS) amounted to R$ 59.1 million in 1Q09, a 82.9 84.5 decrease of 28.7% compared to R$ 82.9 million in 1Q08; 59.1  In relation to 4Q08 the decrease in 4.46 COGS of 30.0% is due to lower export 3.87 3.71 volumes;  Unitary COGS showed a 4.3% decrease in relation to 1Q08; 1Q08 4Q08 1Q09  Unitary COGS decreased 16.8% from Unitary COGS 4Q08. 8
    • EBITDA (R$ million) and EBITDA Margin (%) 33.3  EBITDA of the Nonwovens 31.5 Division reached R$ 31.5 million, with 32.1% margin, an increase of 21.4 47.7% in relation to 1Q08. 32.1%  In relation to 4Q08, despite the 24.5% 26.8% 5.4% reduction in absolute figures, EBITDA margin increased 5.3 p.p. 1Q08 4Q08 1Q09 EBITDA Margin% 9
    • Net Earnings (R$ million) And Net Margin (%) 19.0  In 1Q09 net earnings reached R$ 10.9 million (10.9% 10.9 9.0 margin), against R$ 9.0 million 15.0% earnings in 1Q08 and R$ 19.0 7.9% 10,9% million earnings in 4Q08. 1Q08 4Q08 1Q09 Net Margin 10
    • Debt & Cash Consolidated Net Debt (R$ MM) 12/31/08 03/31/09 Total Debt Long term 38.4 41.4 Short term 454.3 458.4 Total 492.7 499.8 235.4 246.5 Cash 257.3 253.3 Net Debt
    • Debt & Cash  No significant net debt change, with a decrease of 2.0% in relation to the previous period;  Debt maturity is primarily long-term;  The increase of R$ 11.1 million in our cash flow was originated entirely from operating activities;  Accrued financial expenses reached R$ 14.4 million in 1Q09 with no substantial short-term cash disbursement effects;  On March 31, 2009 we had two interest swap agreements, due to loans and financing, being one CDI vs. US$ totaling US$11.3 million maturing in December 2012 and another fixed rate Libor vs. Libor totaling US$50 million maturing in June 2013.
    • Agenda • Highlights • 1Q09 Results • Outlook 13
    • Outlook  Expansion in production of specialty disposable hygiene nonwovens, in the final stages of completion, output to reach 1,200 tons/month after machine start-up;  Expansion in output of high performance disposable medical products with greater value-added, the Company’s goal being that this line should reach 10% of total volume over the long term;  Creation of a Risk Management Committee, in January 30, 2009 Board of Directors Meeting. Since that date the Committee is developing our Risk Management Policy, to standardize the financial tools to be adopted in order to reduce the uncertainty over our cash flow;  Fiscal Council reinstalled in the Ordinary Shareholders’ Meeting that took place on April 30, 2009. 14
    • CFO: Eduardo Feldmann Costa IR Manager: Gabriela Las Casas Phone: +55 (41) 3381-7639 Fax: +55 (41) 3283-5909 São José dos Pinhais – PR - Brazil 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 15 presentation with new information and/or future events .