3. HIGHLIGHTS 2Q13
The principal highlight in the quarter was the pace at which production from our 13th
nonwovens line was ramped up and exceeding expectations. This line is our second at the
Statesville plant in North Carolina, adding a further 20 thousand tons to the Company’s
annual installed capacity to make a total of 140 thousand tons;
In May, the Company concluded the payout of an additional R$ 33.8 million in dividends,
approved by the E/AGM of April 1, 2013, amounting to 100% of the adjusted dividend
calculation base for 2012;
Sales Volume totaled 30.5 thousand tons, a growth of 24.1% compared with the same
period in 2012. Quarter-on-quarter growth was 13.0%;
Net Income in the period amounted to R$ 8.2 million, 5.0% more than 2Q12 and 63.0%
higher than 1Q13.
5. SALES VOLUME
(in thousands of tons)
During the quarter, Sales Volume totaled
, a growth of 24.1%
compared with the same period in 2012;
30.5
24.6
2.3
27.0
2.5
2,6
22.3
24.4
28.0
2Q12
1Q13
2Q13
Nonwovens
Other
The increase was mainly due to the 2nd production line at the Pouso Alegre (MG) facility,
that started up in June/2012 and to our 2 nd machine in Statesville/USA, that started up in
March/2013.
6. NET REVENUE
(in millions of Reais)
Net Revenue for 2Q13 amounted to
, an increase of 27.9% compared
with 2Q12. When compared with 1Q13, growth was 20.2%;
R$ 6.33
R$ 6.15
R$ 5.95
193.1
151.0
160.6
2Q12
1Q13
Net Revenue
2Q13
Unitary Net Revenue
The increase is largely due to the higher sales volume.
6
7. COGS (Cost of Goods Sold)
(in millions of Reais)
The COGS totaled
in 2Q13, a growth of 31.4% against the R$ 108.1
million recorded in 2Q12 and an increase of 23.6% compared with the R$ 114.9 million in
1Q13;
R$ 4.66
R$ 4.40
R$ 4.26
142.0
108.1
114.9
2Q12
1Q13
2Q13
COGS (R$ thousand)
Unitary COGS (R$)
This performance is largely the result of higher sales volume and the increased costs of raw
material.
7
8. EBITDA (in millions of Reais)
and EBITDA MARGIN (%)
Adjusted EBITDA in 2Q13 reached
, corresponding to a 24.4% improvement
compared with 1Q13 and 13.7% more than 2Q12. Adjusted EBITDA margin was 16.6%, a slight
rise of 0.5 p.a. compared with 1Q13.
18.7%
16.1%
16.6%
32.1
28.2
25.8
2Q12
Ebitda
1Q13
2Q13
Ebitda Margin (%)
9. 25,0
NET INCOME (in millions of Reais)
and NET MARGIN(%)
Net Income in the period amounted to
, 5.0% more than 2Q12 and 63.0%
higher than 1Q13;
5.2%
4.3%
3.1%
8.2
7.8
5.1
-
0,0%
2Q12
1Q13
Net Income
2Q13
Net Margin
The adjusted dividend calculation base for the quarter was R$ 10.9 million, the difference
representing the realization of the deemed cost for the quarter, net of tax.
9
10. NET DEBT
(in millions of Reais)
Net Debt increased 24.9% when compared
with 2Q12 due to an increase in Gross Debt of
R$ 126.7 million against a growth of R$ 28.1
million in cash and liquid hedge instruments. Net
Debt increased 8.5% in relation to 1Q13;
456.2
495.1
396.5
The foreign currency named debt was mainly
borrowed in the USA with a natural hedge in the
form of Providência’s revenue flows and assets
in that country.
Local
Currency
28%
2Q12
1Q13
2Q13
72%
Foreign
Currency
11. DEBT / CASH
(in millions of Reais)
Consolidated Net Debt
R$ (MM)
Total Debt
Short Term
Long Term
Total
6/30/2012 3/31/2013 6/30/2013
Ch. 2Q13 /
2Q12
117.7
349.2
466.8
114.5
475.5
590.0
67.4
526.2
593.5
-42.8%
50.7%
27.1%
70.4
133.8
98.4
39.7%
Net Debt
396.5
456.2
495.1
24.9%
Shareholders' Equity
678.7
696.1
670.0
-1.3%
3.35
3.70
3.95
17.9%
2.33
2.24
2.63
12.9%
Cash and liquid hedge instruments
Net Debt / Adjusted EBITDA
Net Debt / Adjusted EBITDA
without the Preoperational lines Debt*
11
12. 25,0
DIVIDENDS
(in millions of Reais)
The Company concluded the payout of an additional R$ 33.8 million in dividends, approved
by the E/AGM of April 1, 2013, amounting to 100% of the adjusted dividend calculation base for
2012.
0.66
0,60
0.49
0,50
This calculation base corresponds to:
0.41
0,40
33.8
25.4
21.7
14.1
11.1
19.3
Net Income for the financial year in 2012
(-) Legal Reserve (5%)
0,30
(+) Realization of the deemed cost:
Dividend Calculation Base
0,20
R$ 45.1 million
R$ 2.2 million
R$ 10.2 million
R$ 53.1 million
0,10
0,00
2010
1° Half
2011
2º Half
2012
Dividends/Share
12
15. OUTLOOK
With the unveiling in 1Q13 of the second production line in Statesville – the Company’s 13th
- and the conclusion to the respective ramping up of output, Providência’s objective is now to
increase the use of installed capacity with a consequent growth in sales as well as an enhanced
product mix;
By the year-end, Companhia Providência’s installed capacity will have reached 140 thousand
tons/year, consolidating the Company’s ranking as one of the largest and most modern players
in the global nonwovens industry.
K12
K13
15
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/ri
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 .
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