2. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
Providência USA
2
3. HIGHLIGHTS 4Q 2011
Sales Volume amounted to 87.7 thousand tons in 2011, a growth of 11.7% in relation to the
preceding year. In 4Q11 we reported 23.0 thousand tons, 14.0% more than in 4Q10;
Net Revenue reached R$ 526.6 million during the year, 16.2% more than 2010, basically reflecting
an increase in sales volume. In 4Q11 we reached R$ 142.0 million, 22.5% more than in 4Q10;
Gross Profits were R$ 161.4 million in 2011 and R$ 46.2 million in 4Q11, a 7.4% increase in the
year and 15.3% in the quarter;
In November, the Company drew down the value on an export finance line from the BNDES
amounting to R$ 50 million at an annual fixed rate of interest of 9.0%, repayable in 18 months;
On November 25, the Company made an interim dividend payment of R$ 14.1 million, relating to
100% of the adjusted net income for the first half of 2011 and, subject to approval by the AGM, is
proposing the distribution of 100% of the annual adjusted dividend calculation base, equivalent to
R$ 39.5 million, R$ 25.4 million of which will be paid out in 2012.
3
4. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
4
5. SALES VOLUME
(in thousands of tons)
In 2011 the Company reported an increase in
23,0
Total Sales Volume of 11.7% in relation to the 22,8
20,2
preceding year; 1,2
1,6 2,4
19,0 21,2 20,6
87,8
78,6 7,5
4Q10 3Q11 4Q11
5,0
In 4Q11 we reported 23.0 thousand tons and sales
of nonwovens grew 8.7% compared with 4Q10;
80,3
73,6
Our first production line in the US reached more
than 1,000 tons sales/month, in line with the
Company’s forecast for ramping up production,
contributing to the increase in sales volume.
2010 2011 5
Nonwovens Others
6. NET REVENUE
(in millions of Reais)
Aggregate Net Revenue for fiscal year 2011
reached R$ 526.6 million, a 16.2% increase in
relation to the R$ 453.3 million in 2010; 116,0 142,7 142,0
4Q10 3Q11 4Q11
In 4Q11 the Company’s Net Revenue was R$ 142.0
million, equivalent to a growth of 22.5% when
compared with 4Q10;
526,6
453,3
This growth principally reflects an increase in sales
volume, price realignment as well as greater use of
production capacity which recorded a volume of 23
thousand tons in the quarter.
2010 2011 6
7. COGS (Cost of Goods Sold)
(in millions of Reais)
R$5,00
R$4,21 R$4,17
R$3,77
COGS totaled R$ 95.8 million in 4Q11, an increase
of 26.2% against 4Q10. For fiscal year 2011, the
75,9 95,7 95,8
Company reported a 20.5% rise in relation to 2010;
R$-
4Q10 3Q11 4Q11
R$20,00
R$19,00
R$18,00
R$17,00
This was principally due to higher sales volume in
R$16,00
R$15,00
R$14,00
R$13,00
R$12,00
R$11,00
2011 since on a unit COGS basis, the increase was
R$10,00
R$9,00
R$8,00
R$7,00
R$4,16 R$6,00
R$5,00
R$4,00
R$3,86
only 7.9% in relation to 2010, a reflection of the
R$3,00
R$2,00
R$1,00
R$-
R$(1,00)
R$(2,00)
principal cost component, polypropylene, which
R$(3,00)
R$(4,00)
R$(5,00)
R$(6,00)
R$(7,00)
R$(8,00)
365,2 reported higher prices during the year under review.
R$(9,00)
R$(10,00)
R$(11,00)
R$(12,00)
R$(13,00)
303,0 R$(14,00)
R$(15,00)
R$(16,00)
R$(17,00)
R$(18,00)
R$(19,00)
R$(20,00)
R$(21,00)
R$(22,00)
R$(23,00)
R$(24,00)
R$(25,00)
R$(26,00)
R$(27,00)
R$(28,00)
R$(29,00)
R$(30,00)
R$(31,00)
R$(32,00)
R$(33,00)
R$(34,00)
R$(35,00)
2010 2011
8. 100,0
EBITDA (in millions of Reais)
80,0
and EBITDA Margin (%)
60,0
24,5% 23,0%
The Adjusted EBITDA reached R$ 102.1 million in 20,5%
2011 and totaled R$ 29.1 million in 4Q11, a growth
40,0
of 2.2% when compared with the R$ 28.4 million
20,0
reported in 4Q10; 28,4 32,8 29,1
- 4
23,4% 19,4%
4
3
3
2
2
1
1
4Q10 3Q11 4Q11
0
-1
-1
-2
-2
-3
-3
-4
-4
-5
-5
-6
-6
-7
-7
-8
-8
-9
-9
-10
-10
-11
-11
-12
-12
-13
-13
-14
-14
-15
-15
-16
-16
In 4Q11 EBITDA Margin amounted to 20.5%, 4.1
-17
-17
-18
-18
-19
-19
-20
p.p. down on 4Q10;
-20
-21
-21
-22
-22
-23
106,2 -23
-24
102,1 -24
This year-on-year reduction is directly related
-25
-25
-26
-26
-27
-27
-28
to:
-28
-29
-29
-30
-30
-31
-31
-32
-32
-33
-33
• The increase in the prices of our main raw
-34
-34
-35
-35
-36
-36
-37
-37
-38
-38
-39
-39
material, polypropylene.
-40
-40
-41
-41
-42
-42
• The startup and adjustments in the US
-43
-43
-44
-44
-45
-45
production line. 8
2010 2011
9. NET INCOME (in millions of Reais) 70,0%
and NET MARGIN (%)
20,0
10,8% 20,0%
Net Income for the year was R$ 29.5 million, an 4,8% 3,2%
increase of 23.7% in relation to the preceding year;
-30,0%
15,4
800,0%
750,0%
700,0%
650,0%
600,0%
550,0%
500,0%
5,6% 450,0%
400,0%
350,0% 5,6 4,6
5,3% 300,0%
250,0%
200,0%
150,0%
100,0%
- 50,0%
0,0% -80,0%
-50,0%
-100,0%
-150,0%
-200,0%
-250,0%
-300,0% 4Q10
-350,0%
-400,0%
-450,0%
-500,0%
3Q11 4Q11
-550,0%
-600,0%
-650,0%
-700,0%
-750,0%
-800,0% Net Income Net Margin
-850,0%
-900,0%
-950,0%
-1000,0%
-1050,0%
-1100,0%
-1150,0%
-1200,0%
-1250,0%
-1300,0%
-1350,0%
-1400,0%
-1450,0%
-1500,0%
-1550,0%
-1600,0%
-1650,0%
-1700,0%
-1750,0%
-1800,0%
-1850,0%
-1900,0%
-1950,0%
-2000,0%
-2050,0%
-2100,0%
-2150,0%
-2200,0%
-2250,0%
-2300,0%
-2350,0%
-2400,0%
The calculation base for the annual adjusted
-2450,0%
-2500,0%
-2550,0%
-2600,0%
-2650,0%
-2700,0%
-2750,0%
-2800,0%
29,5 -2850,0%
-2900,0%
-2950,0%
-3000,0%
-3050,0%
dividends reached R$ 39.5 million reflecting the
-3100,0%
-3150,0%
-3200,0%
-3250,0%
-3300,0%
23,8 -3350,0%
-3400,0%
-3450,0%
-3500,0%
-3550,0%
-3600,0%
-3650,0%
-3700,0%
realization of deemed cost and the reversal of a
-3750,0%
-3800,0%
-3850,0%
-3900,0%
-3950,0%
-4000,0%
-4050,0%
-4100,0%
-4150,0%
-4200,0%
-4250,0%
-4300,0%
-4350,0%
provision for the first Stock Option Plan.
-4400,0%
-4450,0%
-4500,0%
-4550,0%
-4600,0%
-4650,0%
-4700,0%
-4750,0%
-4800,0%
-4850,0%
-4900,0%
-4950,0%
-5000,0%
-5050,0%
-5100,0%
-5150,0%
-5200,0%
-5250,0%
-5300,0%
-5350,0%
-5400,0%
-5450,0%
-5500,0%
2010 2011 9
10. CASH AND CASH EQUIVALENTS
(in millions of Reais)
The Company reported a reduction in its year-on-year
outstanding Cash balance of 67.4% or R$ 168.0 million
and 74.9% or R$ 241.8 million against 3Q11; 300,0
250,0
This reduction is directly related to:
• The strategy of reducing our Total Debt (early
200,0
settlement of R$ 106.5 million in debentures and
323,0
150,0
of R$ 152.6 million in contracts under the BNDES-
249,1
Exim Pre-Shipment Program) that consequently
100,0
reduced our Cash level;
50,0
• The down payment effected for the two lines 81,2
that will startup in 2012; -
4Q10 3Q11 4Q11
• Interim dividend payment of R$ 14.1 million.
10
11. NET DEBT
(in millions of Reais)
Net Debt recorded an increase of R$ 96.9
million, or 39.7%, in relation to 4Q10, the principal
factor being additional funding for investments in
the projects of new lines in Brazil and the USA;
In 4Q11, the Company drew down the value on
an export finance line from the BNDES amounting
340,8
304,5 to R$ 50 million at an annual fixed rate of interest
243,9 of 9.0%, repayable in 18 months. Resources from
this line will be used by the Company for export
operations;
4Q10 3Q11 4Q11
Of total debt, the Company has 35% in local currency and 65%, foreign currency denominated mainly in
11
the US with natural hedge due to sales and assets in that country.
12. DEBT / CASH
(in millions of Reais)
Consolidated Net Debt
Ch. 4Q11 /
R$ (MM) 12/31/2010 12/31/2011
4Q10
Total Debt
Short Term 262,2 73,6 -71,9%
Long Term 230,8 348,4 50,9%
Total 493,1 422,0 -14,4%
Cash 249,1 81,2 -67,4%
Net Debt 243,9 340,8 39,7%
Shareholders' Equity 697,1 689,3 -1,1%
12
13. DIVIDENDS (in millions of Reais)
Management is proposing payment of a dividend in addition to the minimum mandatory payment, of R$
25.4 million, subject to resolution by the AGM. This will raise the Company’s dividend payout to 100% of
the calculation base for adjusted annual dividends, totaling R$ 39.5 million for the 2011 fiscal year,
equivalent to approximately an earnings per share of R$ 0,49.
R$ 0,49
45,0 R$ 0,50
40,0 R$ 0,41 R$ 0,45
The calculation base corresponds to :
35,0 R$ 0,40
R$ 0,35
30,0 R$ 0,30
Net income for the fiscal year 2011 R$ 29.5 million
R$ 0,30
25,0 (-) Legal Reserve (5%) R$ 1.5 million
R$ 0,25
(+) Realization of the Deemed cost: R$ 10.2 million
20,0 39,5 R$ 0,20 Reversal of the provision for the
(+)
15,0
32,9
R$ 0,15 Stock Option Plan
first R$ 1,3 million
24,2 Calculation base for the annual adjusted
10,0 R$ 0,10
dividends R$ 39.5 million
5,0 R$ 0,05
0,0 R$ -
2009 2010 2011**
Dividends Paid (R$ million) Dividend/Share
** To be ratified at the AGM 13
14. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
15. OUTLOOK
An increase in sales volume is expected for 2012 with the entry into operation in the 2nd quarter of
the production line in Pouso Alegre (MG) and in the 4th quarter, the production line in Statesville (NC).
The two projects are part of the scheduled expansion plan and will add a further 40 thousand tons to
our current installed capacity - representing a 40% increase.
KAMI 12 – Pouso Alegre/MG – February 2012
KAMI 13 – Statesville/NC – February 2012
15
KAMI 13 – Statesville/NC
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 .
