1Q12 Presentation English


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Providência (PRVI3) 1Q12 Financial Results

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1Q12 Presentation English

  1. 1. 1Q 2012 Results May 15th, 2012
  3. 3. HIGHLIGHTS 1Q 2012 The first production line of the United States reached record production aftercompletion of the technical adjustments necessary for the full operation of equipment; The second production line at the Pouso Alegre (MG) site is in the finalimplementation phase and will go into operation in early June of this year. This line willadd 20 thousand tons to the Company’s capacity and will produce disposable hygienicand medical products mainly directed to the domestic market, the total investmentbeing worth US$ 63 million; The Extraordinary and Annual General Meeting of March 29, 2012 approved anadditional payout of R$ 25.4 million in dividends, totaling 100% of the 2011 annualadjusted dividend calculation base. The shares will trade ex-dividend on May 15, 2012and payout will take place on May 25, 2012. 3
  5. 5. SALES VOLUME (in thousands of tons) During the quarter, the Companyreported an increase in total sales 23.1 22.9volume of 15.5% compared with the 20.1 2.3 1.8same period in 2011; 1,5 The increase was mainly due to tje 20.6 21.3first production line of the United 18.6States, that started up inJanuary/2011 and on 4Q11 had thetechnical adjustments necessary for 1Q11 4Q11 1Q12 Nonwovens Othersthe full operation of equipmentcompleted. 5
  6. 6. NET REVENUE (in millions of Reais) The Company posted Net Revenue of R$ 139.4 million in 1Q12, a growth of 21.1% when compared with 1Q11; 142.0 139.4115.1 This increase is principally related to the increase in sales volume, price realignment and to the1Q11 4Q11 1Q12 valuation of the US Dollar. 6
  7. 7. COGS (Cost of Goods Sold) (in millions of Reais) 140,0 This increase of 22.1% compared R$ 4.17 R$ 4.18 R$ 3.95 120,0with 1Q11 is mainly a reflection of thehigher sales volume in 1Q12, since100,0unit COGS posted a year-on-year 80,0increase of only 5.7%, impacted by 60,0 96.6rising prices in the Company’s principal 95.8cost component, polypropylene; 40,0 79.1 20,0 In relation to the 4Q11 the unitaryCOGS remained stable, despite the - 1Q11 4Q11 1Q1212% increase of polypropylene COGS (R$ thousand) Unitary COGS (R$)according to the Chemical Data Index. 7
  8. 8. EBITDA (in millions of Reais) and EBITDA MARGIN (%)0 20.5% 20.7% 19.2% Adjusted EBITDA in 1Q12 reached R$ 28.9 million, a growth of 30.6% when0 compared with R$ 22.1 million 29.1 28.9 reported in 1Q11; 22.2 The EBITDA increase was mainly due to the higher sales volume and to the prices 10,0% recovery. 1Q11 4Q11 1Q12 Ebitda Ebitda Margin (%) 8
  9. 9. 25,0 NET INCOME (in millons of Reais) and NET MARGIN(%) 6.2% 5.1% 3.2% Net Income totaled R$ 7.1 million in 1Q12, stable in relation to 1T11 and 52.9% higher than in the 4Q11; Calculation base for the annually 7.1 7.1 adjusted dividends for the quarter 4.6 (retained profits) reached R$ 9.6 million, since the realization of the -10,0% 1Q11 4Q11 1Q12 deemed cost in the quarter, net of tax is added. Net Income Net Margin 9
  10. 10. CASH AND CASH EQUIVALENTS (in millions of Reais) Total In 1Q12 the Company reported a decrease in 250,0Cash and Cash Equivalents, comparing to 1Q11,due to the strategy of the Company to pay some 200,0Debt, mainly Debentures and Exim-BNDES in4Q11; 150,0 270.6 In relation to the 4Q11 , the increase is directly 100,0related to the generation of operational 50,0resources of R$ 40.0 million, and to the success 81.2 93.0in the reduction of working capital need. - 1Q11 4Q11 1Q12 10
  11. 11. NET DEBT (in millions of Reais) Net debt increased 58.4% when300,0 compared with 1Q11 due to the new investments that will start up in 2012;250,0200,0 The foreign currency named debt 340.8 355.3150,0 was mainly taken in the USA, because100,0 224.3 of its natural hedge due to the revenue and assets in that country. 50,0 - Foreign 1Q11 4Q11 1Q12 Currency 38% 62% Local Currency 11
  12. 12. DEBT / CASH (in millions of Reais) Consolidated Net Debt Ch. 1Q12 /R$ (MM) 03/31/11 03/31/12 1Q11Total Debt Short Term 266,1 73,5 -72,4% Long Term 228,8 374,9 63,8%Total 494,9 448,3 -9,4%Cash 270,6 93,0 -65,6%Net Debt 224,3 355,3 58,4%Shareholders Equity 704,3 671,3 -4,7%Net Debt / Adjusted EBITDA 2,6 3,6 38,1%Net Debt / EBITDA 2,4 2,5 4,2% 12without the Preoperational lines Debt
  13. 13. 25,0 DIVIDENDS (in millions of Reais) The Ordinary and Extraordinary General Meeting held on March 29, 2012 approved an additional payout of R$ 25.4 million in dividends, totaling R$ 39.5 million for the 2011 fiscal year. R$ 0,41 R$ 0,49 R$ 0,50 45 39,5 R$ - 40 Ex-dividend: May, 15 Payout: May, 25 35 32,8 -R$ 0,50 30 2º Half1,00 -R$ 25,4 25 1° Half 21,7 -R$ 1,50 20 Dividends/ Share 15 -R$ 2,00 10 14,1 -R$ 2,50 5 11,1 0 -R$ 3,00 2010 2011 13
  15. 15. OUTLOOK The outlook for 2012 is for an increase in sales volume with the entry into operation ofthe second plant at the Pouso Alegre (MG) unit in early June 2012. This line will add 20thousand tons to the Company’s capacity and will produce disposable hygienic and medicalitems mainly directed to the domestic market, the total investment being worth US$ 63million; Work on the installation of a second production line at our Statesville (NC) plant in theUnited States is running to schedule. The line will go into operation during the course of the4th quarter 2012 and will ramp up production by an annual 20 thousand tons; By the end of 2012 the Company will reach 140 thousand tons annually, confirming hisreputation as one of the major players in the nonwovens industry; Companhia Providencia USA concluded the final audit for International Organization forStandardization 9001 Certification, that will be favorable recommended within a few days. 15
  16. 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_riThe words “believe”, “anticipate”, “expect”, “estimate”, “will”, “plan”, “may”, “intend”, “foresee”, “project” and other similar expressions indicate forward-lookingstatements. These forward-looking statements involve uncertainties, risks and assumptions, since they include information related to our potential or assumed futureoperating results, business strategy, financing plans, competitive position in the market, industry environment, potential growth opportunities and the effects of futureregulations 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 futureperformance. Providência is under no obligation to update this presentation with new information and/or future events .