Apresentação 3Q09 - Inglês


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Apresentação 3Q09 - Inglês

  1. 1. 3Q09 RESULTS November 4th 2009
  3. 3. HIGHLIGHTS OPERATIONAL/ADMINISTRATIVE Recovery in sales volumes to levels prior to the onset of the crisis at the end of 2008, with the Company again operating at close to full capacity; The operating cash generation during this year reached R$ 90.3 million, higher 40.7% in the same period from 2008. Recovery of R$ 4.2 million in federal tax credits originating in previous fiscal years; An adjustment in accumulated depreciation through September 2009 and booked to the figures for 3Q09 to reflect the revision in the useful life of our permanent assets in line with Technical Pronouncement CPC 13 – Initial Adoption of the Changes of Law 11.638/07. This change is deemed a fair adjustment to Cia. Providência’s results since the useful life of our equipment is much above the rates of depreciation practiced 3 hitherto (10 years)
  5. 5. SALES VOLUME 24,4 Sales volume of Nonwovens 5,9 19,1 reported growth of 15.1% in 3Q09 0,8 1,4 16,4 1,0 compared with 2Q09, with volume recovered during the year; 17,7 17,7 15,4 Compared with 3Q08, the increase was 0.1%, returning to pre-crisis level volumes. 3Q08 2Q09 3Q09 Nonwovens Others Pipes and Fittings In thousand tonnes 5
  6. 6. NET REVENUE NONWOVENS DIVISION Net Revenue from Nonwovens reported an increase of 8.4% in relation to 2Q09, releated to higher 104,9 100,7 92,9 sales volume during the quarter; Compared to 3Q08, there was a 3Q08 2Q09 3Q09 reduction of 4.0%, due to sales product mix and exchange variation. In R$ millions 6
  7. 7. COGS NONWOVENS DIVISION R$ ,0 72,9 R$ R$ Cost of goods sold (COGS) comparing R$ R$ ,0 R$ 60,7 R$ R$ 3Q09 vs 3Q08, had the principal factors, the R$ ,0 56,0 R$ R$ R$ 3,95 R$ R$ R$ depreciation, the decrease price of raw ,0 R$ R$ 3,71 R$ R$ ,0 R$ R$ materials and logistics costs; R$ R$ R$ ,0 R$ R$ 2,93 R$ R$ R$ ,0 R$ R$ R$ The reduction comparing 3Q09 vs 2Q09 is R$ ,0 R$ R$ R$ R$ R$ related to the depreciation. - R$ 3Q08 2Q09 3Q09 COGS (R$ thousand) Unitary COGS (R$) 7
  8. 8. EBITDA (R$ million) and EBITDA Margin (%) Nonwovens Division Ebitda ended 3Q09 higher than 3Q08, 0 due to the price reduction of raw 27,1 26,1 0 24,0 materials and logistics, creating 0 3.0 p.p. of margin increase. 29,2% 15,0 25,9% 0 22,9% Compared with 2Q09 the 0 reduction of R$ 1 million was due to the volume recovery, returning 3Q08 2Q09 3Q09 to pre-crisis level. Ebitda Ebitda Margin (%) 8
  9. 9. Net Earnings (R$ millions) and Net Margin (%) 18,0 In 3Q09, the Company 30,0% posted net earnings of R$ 18.0 11,1 17,4% 20 million (17.4% margin), 11,8% against a loss of R$ 2.4 million 10 in 3Q08 and a net profit of R$ -1,8% 0 11.1 million in 2Q09. 3Q08 2Q09 3Q09 -2,4 - Net Earnings Net Margin (%) 9
  10. 10. CASH AND CASH EQUIVALENTS The Company’s cash position increased by R$ 101.4 million, equivalent to 59.5% compared with 3Q08, principally a result of an improvement in operational margins stemming mainly from better tax 268,3 272,0 planning and management of the 170,6 working capital accounts (inventory, customers and suppliers); 3Q08 2Q09 3Q09 When compared with 2Q09, the cash position posted growth - despite In R$ millions the payment of semi-annual interest and principal on debt. 10
  11. 11. NET DEBT Net Debt of Company reduced in relation to 3Q08, largely due to the operational cash generation, payments from the sale of the Pipes and Fittings division and Dollar taxes reduction; 289,0 181,8 161,2 The reduction from 2Q09 to 3Q09 is related to greater operational cash generation, decrease in Total Debt of 3Q08 2Q09 3Q09 R$ 16.9 million due to the payment of semi-annual interest and principal, and In R$ millions an 8.9% lower US dollar-Real exchange rate at the end of the period. 11
  12. 12. CASH & DEBT Consolidated Net Debt R$ (MM) 06/30/2009 09/30/2009 Total Debt Short Term 56.9 60.8 Long Term 393.1 372.5 Total 450.0 433.2 Cash 268.3 272.0 Net Debt 181.7 161.2 Net Debt / Adjusted EBITDA 1.5 1.4 Shareholders' Equity 489.6 508.0 12
  14. 14. OUTLOOK During the course of the past few months we have detected clear signs of recovery in sales volumes at levels prior to the onset of the crisis at the end of 2008. We believe that the final quarter of the year will see a consolidation of this trend with Cia. Providência operating up to its installed capacity; In 2010 we expect to work at a sales volume in line with fully utilized production capacity given that nonwoven fabrics are a raw material used in the manufacture of non-durable consumer goods, the commercialization of which is directly related to monthly household income which has been reporting overall growth. 14
  15. 15. CEO: Hermínio V. S. de Freitas CFO: Eduardo Feldmann Costa RI : Gizele Rigoni Tel: + 55 (41) 3381-8673 Fax:+ 55 (41) 3283-5909 São José dos Pinhais – PR www.providencia.com.br/ir 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 .