Results presentation 4 q13


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Results presentation 4 q13

  1. 1. 4Q13 Results February 27, 2014
  2. 2. HIGHLIGHTS 4Q13 Sales Volume amounted to 29.9 thousand tons, an increase of 20.2% compared with the same period in 2012 driven by sales from the Company’s 13th production line which began operations in 1Q13. In 4Q13, there was a small quarter-on-quarter decrease of 4.5% although if nonwoven volume is taken in isolation, there would have been a slight increase of 1.3%; The Company reported Net Revenue of R$ 217.2 million, a 42.2% increase on 4Q12, largely reflecting the increase in sales volume; Adjusted EBITDA reached 34.7 million, 2.5% greater than 4Q12; Net Debt reported an increase of R$ 50.4 million or 11.2% in relation to 4Q12, the principal factor here being the currency translation effect on US Dollar denominated financing; Interim dividends of R$ 17.9 million were paid out, totaling 100% of the first half 2013 adjusted dividend calculation base.
  3. 3. SALES VOLUME (in thousands of tons) Sales of nonwovens posted 29.5% growth compared with 4Q12, reaching 29.6 thousand tons in 4Q13. The variation was due to the full capacity of the 2nd production line in the United States, which came into operation in 2013. Sales Volume / Quarter 31,4 Sales Volume /Accumulated 30,0 2,2 0,4 29,2 29,6 2,1 22,8 4Q12 3Q13 8,6 7,8 90,1 111,1 4Q13 2012 Nonwovens 118,9 98,7 25,0 Others 2013 Others Nonwovens
  4. 4. NET REVENUE (in millions of Reais) Net revenue reached R$217.2 million in 4Q13, up 42.2% compared to 4Q12. Compared to the 3Q13, there was a growth of 2.9%; Net Revenue / Quarter Net Revenue Accumulated R$7,24 R$6,72 R$6,12 R$6,17 211,1 217,2 Net Revenue 782,0 608,6 152,8 4Q12 R$6,58 3Q13 4Q13 Unitary Net Revenue 2012 Net Revenue 2013 Unitary Net Revenue This growth was mainly due to increased sales volume. 4
  5. 5. COGS (Cost of Goods Sold) (in millions of Reais) The cost of goods sold (COGS) totaled R$ 164.7 million in 4Q13, 56.3% higher against the R$ 105.4 million recorded in 4Q12 and an increase of 5.0% compared with the R$ 156.9 million in 3Q13. COGS / Quarter COGS Accumulated R$4,99 R$4,22 R$4,87 R$5,49 R$4,29 156,9 578,6 164,7 423,1 105,4 4Q12 COGS 3Q13 4Q13 Unitary COGS (R$) 2012 COGS 2013 Unitary COGS (R$) This performance is largely the result of higher sales volume and increased raw material costs. 5
  6. 6. EBITDA (in millions of Reais) and EBITDA MARGIN (%) Adjusted EBITDA in 4Q13 reached R$ 34.7 million, an improvement of 2.5% when compared with the R$33.8 million reported in 4Q12. The adjusted EBITDA corresponds to 16.0%, 3.0p.p. lower compared to 3T13. EBITDA / Quarter 22,1% EBITDA Accumulated 20,9% 19,0% 17,0% 16,0% 40,1 132,6 34,7 33,8 4Q12 3Q13 EBITDA 4Q13 Ebitda Margin (%) 127,0 2012 2013 EBITDA Ebitda Margin (%) 6
  7. 7. NET INCOME (in millions of Reais) Reais) and NET MARGIN(%) Net income for the quarter amounted to R$ 3.7 million. Net Income / Quarter Net Income Accumulated 7,4% 4,7% 7,4% 3,4% 1,7% 11,3 10,0 45,1 26,9 3,7 4Q12 Net income 3Q13 4Q13 2012 Net Margin (%) Net income 2013 Net Margin (%) 7
  8. 8. NET DEBT (in millions of Reais) Net Debt increased 11.2% when compared with 4Q12 due to the exchange variation that led to the increase in gross debt of R$ 55.2 million, as well as a reduction of cash and financial liquidity instruments (hedge) of R$ 4.8 million. Regarding 3Q13 Net Debt increased by 1.6% ; Net Debt 494,3 Total Debt % 28% 502,0 72% 451,6 4Q12 3Q13 Net Debt 4Q13 Local currency Foreign currency 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.
  9. 9. DEBT / CASH (in thousands of Reais) Consolidated Net Debt 4Q13 3Q13 4Q12 Ch. 4Q13 / 4Q12 Short term 83.694 51.436 112.361 -25,5% Long Term 507.236 523.609 423.346 19,8% Total 590.930 575.045 535.707 10,3% 88.924 80.743 84.145 5,7% Net Debt 502.006 494.302 451.562 11,2% Sha rehol ders ' Equi ty 665.550 662.099 689.977 -3,5% 3,98 3,86 3,58 11,2% Ca s h a nd l i qui d hedge i ns truments Net Debt / Adjus ted EBITDA 9
  10. 10. DIVIDENDS (in millions of Reais) In November 2013, interim dividends of R$ 17.9 million were paid, totaling 100% of the adjusted dividend calculation base for the first half of 2013. Dividends Payable 0.24 0.22 0.18 19,2 17,9 This calculation base corresponds to: 1st Half 2013 Net income 13,3 MM (-) Legal Reserves legal (5%) 0,7 MM (+) Realization of deemed cost: (+) Reversal of stock options plan: 14,1 5,1 MM 0,2 MM Dividends payable 1st Half 2011 1st Half 2012 Dividends Paid (R$ MM) 17,9 MM 1st Half 2013 Dividend/Share 10
  11. 11. MATERIAL FACT Published on February 27, 2014; The Block of Control (“Selling Shareholders”) entered into a Stock Purchase Agreement with PGI Polímeros do Brasil S.A. and Polymer Group, Inc. The purchase price per share that shall be paid to the Selling Shareholders subject to the some adjustments is R$ 9.75, that will be paid as follows: R$ 7.55 at the closing of the transaction; R$ 0.32 of escrow account, will be deposited at closing of the Transaction in an escrow account in Brazil and shall be used to guarantee the implementation of certain indemnification obligations undertook by the Selling Shareholders; R$ 1.87 of holdback, will be paid to the Selling Shareholders only in certain situations contemplated by the SPA. The closing of the Transaction will be subject to the verification and fulfillment of certain conditions precedent usual in similar transactions, including the prior approval by the antitrust authorities PGI Brazil undertook in the SPA the obligation to launch, after the closing of the Transaction, a tender offer for the purchase of shares as a result of the sale of control. 11
  12. 12. CEO/CFO: Hermínio V. S. de Freitas RI : Gabriela Las Casas Danielle Cabrini Tel: +55 (41) 3381-8673 Fax: +55 (41) 3381-7656 São José dos Pinhais – PR 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 . 12