Presentation 3Q11 eng

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3Q11 Financial Results

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Presentation 3Q11 eng

  1. 1. 3Q11 Results November 9th, 2011
  2. 2. SCHEDULE Providência USA HIGHLIGHTS RESULTS OUTLOOK Providência USA 2
  3. 3. HIGHLIGHTS 3Q11 Sales Volume amounted to 22.7 thousand tons in the quarter, a growth of 15.3% in relation to thesame period in 2010 and 3.2% as compared with 2Q11; Adjusted 3Q11 EBITDA was R$ 32.8 million, an increase of 9.0% compared to 3Q10, and 81.4% inrelation to 2Q11; Evolution of the Company’s production at the first plant in the US. From January to September2011, sales volume reached 5,530 tons. In 3Q11 this plant generated a positive EBITDA and NetIncome; Approval was given on September 20 and took place on October 31 the full prepayment of theCompany’s 15,000 debentures trading in the market. The outstanding principal balance totals R$100.5 million; The Company contracted an export pre-payment line amounting to USD 52.5 million with aprefixed rate of interest of 4.85% plus restatement at the foreign exchange variation and a 7-yearmaturity. A Swap Operation was also contracted, the asset side of the transaction being set under thesame conditions of this financing and the liability side at CDI plus 1.7%; The start of the 3ʳᵈ Share Buyback Program of up to 2,260,000 shares for holding as treasury stockor cancelation meets the interests of Providência in view of the price at which its shares are tradingon BM&FBOVESPA. 3
  4. 4. SCHEDULE Providência USA HIGHLIGHTS RESULTS OUTLOOK 4
  5. 5. SALES VOLUME (in thousands of tons) tons) During the 3Q11, the Company posted growth in 64,7 5,1Sales Volume of 15.3% compared with 3Q10 and 15. 60,0 58,4 3,83.2% over 2Q11; 50,0 40,0 Título do Eixo 30,0 59,6 22,8 54,6 22,0 19,7 2,1 1,6 20,0 1,6 19,9 21,2 10,0 18,1 - 3Q10 2Q11 3Q11 YTD 10 YTD 11 Our first production line in the US has already reached 5,530 tons in sales volume, in line with the volume Company’s forecast for ramping up production, contributing to the 10.8% increase. 10.
  6. 6. NET REVENUE (in millions of Reais) Net Revenue reached R$ 142.7 million in 3Q11 a growth of 22.4% in relation to 3Q10. Against 2Q11, 142. 11, 22. the increase was 12.5%; 12. 380,0380,00 360,0360,00 340,0340,00 320,0320,00 300,0300,00 280,0280,00 260,0260,00 240,0240,00 220,0220,00 200,0200,00 384,6 180,0180,00 337,4 160,0160,00 140,0140,00 120,0120,00 100,0100,00 80,00 80,0 142,7 60,00 116,6 126,8 60,0 40,00 40,0 20,00 20,0 0,00 - 3Q10 2Q11 3Q11 YTD 10 YTD 11 The increase is due to the realignment of prices and to the startup of the new production line in the United States. 6
  7. 7. R$ 10,00 260,0 COGS (Cost of Goods Sold) (Cost 240,0 R$ 9,00 (in millions of Reais) 220,0 R$ 8,00 200,0 R$ 7,00 Cost of Goods Sold (COGS) totaled a rise of 26.0% when compared with 3Q10 and 1.3% in 180,0 26. R$ 6,00comparison with 2Q11; 160,0 R$ 5,00 140,0 R$ 4,29 R$ 4,21 R$ 3,85 120,0 R$ 4,00 100,0 R$ 3,00 80,0 R$ 2,00 60,0 94,5 95,7 R$ 1,00 40,0 76,0 R$ - 20,0 - -R$ 1,00 3Q10 2Q11 3Q11 COGS (R$ thousand) Unitary COGS (R$) • The higher Sales Volume in 3Q11; The increase is largely linked to: •The significant hike in polypropylene prices. 7
  8. 8. EBITDA (in millions of Reais) and EBITDA Margin (%) 60,0 70,0% Adjusted EBITDA in this quarter R$ 32.8 million, a 9.0% improvement when compared with 3Q10. In 32. millionrelation to 2Q11, there was a rise of 81.4%; 81. 40,0 25.8% 23.0% 14.3% 20,0% 20,0 -30,0% 32,8 30,1 18,1 - -80,0% 3Q10 2Q11 3Q11 Ebitda Ebitda Margin (%) •Increase in sales volume; These increases are directly related to: •Recover of margins; •Foreign exchange translation impact. 8
  9. 9. NET INCOME (in millions of Reais) and NET MARGIN (%) Net Income was R$ 15.4 million in 3Q11, 31.4% up 15. 31. 27,0 26,0 5,4% 6,5% 10,0% 25,027,0 on 3Q10, and 560.7% higher than 2Q11; 560. 40,0% 24,0 0,0%26,0 23,025,0 22,024,0 30,0% -10,0% 21,023,022,0 20,021,0 19,0 20,0% -20,0%20,0 18,019,0 10.0% 10.8% 17,018,0 1.8% 10,0% 16,0 -30,0%17,0 15,016,0 14,015,0 0,0% -40,0% 13,014,0 24,813,0 12,012,0 11,0 -10,0% -50,0%11,0 10,010,0 9,0 18,2 9,0 -20,0% 8,0 -60,0% 8,0 15,4 7,0 7,0 6,0 6,0 11,7 -30,0% 5,0 -70,0% 5,0 4,0 4,0 3,0 3,0 -40,0% -80,0% 2,0 2,0 1,0 2,3 1,0 - --50,0% -90,0% 3Q10 2Q11 3Q11 YTD 10 YTD 11 Net Earnings Net Margin (%) Compared with the same period from the previous year, net proft has increased by 36.3%. 36. 9
  10. 10. CASH AND CASH EQUIVALENTS (in millions of Reais) Company reported an increase in its Cash position of 47.6% in relation to 2Q11 and 38.6% when 47. 38.compared to the same period in 2010; 350,0 300,0 250,0 200,0 323,0 150,0 233,0 218,8 100,0 50,0 - 3Q10 2Q11 3Q11 This increase is directly related to the entry of the export pre-payment line amounting to USD 52.5 52.million;million; 10
  11. 11. NET DEBT (in millions of Reais) Net Debt posted an increase of 32.1%, in relation to 3Q10 due to additional funding for plant expansion 32.in the United States and for a new production line which will go into operation in Brazil next year.Compared with 2Q11, there was a 17.9% increase 17. 350,0 300,0 250,0 200,0 150,0 304,5 258,3 230,5 100,0 50,0 - 3Q10 2Q11 3Q11 At the end of the quarter, the Company held 47% of its debt in local currency while the remaining 47%53% was foreign currency denominated.53% 11
  12. 12. DEBT / CASH (in millions of Reais) Consolidated Net Debt Ch. 3Q11 /R$ (MM) 09/30/2010 09/30/2011 3Q10 Total Debt Short Term 145,3 312,8 115,3% Long Term 318,1 314,7 -1,1% Total 463,4 627,5 35,4% Cash 233,0 323,0 38,6% Net Debt 230,5 304,5 32,1% Shareholders Equity 702,5 698,9 -0,5% 12
  13. 13. DIVIDENDS (in millions of Reais) Notice was given of payout of Dividends at 100% of the adjusted net profit calculation base for the period 100%ending June 30 2011 in the amount of R$ 14.1 million, equivalent to approximately an earnings per share 14. millionof R$ 0.18 Payout will take place on 11/25/2011, the share trading ex-dividend as of 10/31/2011. 18. In 2009 and 2010 the payout corresponded, respectively, to R$ 48.4 million and R$ 32.9 million, anearnings per share of R$ 0.30 and R$ 0.41. 16,0 R$ 0,18 R$ 0,20 R$ 0,13 R$ 0,13 14,0 R$ 0,10 12,0 R$ - 10,0 R$ (0,10) 8,0 14,1 R$ (0,20) 11,1 6,0 10,5 R$ (0,30) 4,0 2,0 R$ (0,40) 0,0 R$ (0,50) 1st Half 1st Half 1st Half 2009 2010 2011 13 Dividends paid (R$ million) Dividend/share
  14. 14. SCHEDULE Providência USA HIGHLIGHTS RESULTS OUTLOOK
  15. 15. OUTLOOK Payout of dividends at 100% of the adjusted net profit calculation base for the period ending June 30 100% 2011 in the amount of R$ 14.1 million, equivalent to approximately an earnings per share of R$ 0.18 14. million 18. Payout will take place on November 25 2011, the share trading ex-dividend as of October 31; On 4Q11, Nonwovens Sales Volume around 21 thousand tons, same level of 3Q11; The two production lines that will start up in 2012 – Pouso Alegre, MG, Brazil in the first half, and Alegre, MG Brazil, Statesville, NC, USA, in the second half, are the Company’s main investment projects totaling a USD USA 123 million investment They are in execution according to schedule and will add 40,000 tons to our investment. 40, current installed capacity, that is, a 40% increase. 40% KAMI 12 – Pouso Alegre/MG 15KAMI 13 – Statesville/NC
  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 .

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