September 24, 2015
APIMEC 2015 CURITIBA
Companhia Providência
 Agenda
 The Company
Sector
Highlights
2Q15 Results
Environmental responsibility
Tender offer
MISSION
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Safer Cleaner Healthier
To create a world:
SHAREHOLDERS’ COMPOSITION
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PRVI3 – 80 Million shares
CORPORATE GOVERNANCE STRUCTURE
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Companhia Providência (PRVI3) is listed on the Novo Mercado segment at
BM&FBovespa, the highest Corporate Governance standards. Among the main
practices are:
General Shareholders` Meeting
Fiscal Council
Board of Directors
Board of Executive Officers
Independent extern auditors
ORGANIZATIONAL CHART
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CEO
CFO/ IR
Finance
Controller
IR
IT
Legal
Commercial Office
Sales
Customer Service
Product
Development
Operations, Engineering and Tecnology Office
Operations
Maintenance
Enginnering
Logistics
Quality Processes
Quality Assurance
Purchasing
USA
Administrative
and
Manufacture
Human Resources
617
120
71
Employees in June, 2015
São Jose dos Pinhais Pouso Alegre United States
76%
15%
9%
Total: 808
CORPORATE STRUCTURE
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Companhia Providência Indústria e Comércio
Providencia USA Inc.
1963 | 1980 | 1990 | 2000 | 2007 | 2008 | 2011 | 2012 | 2013 | 2014 | 2015
Founded in 1963, became a pioneer in the manufacture of plastics in the South of Brazil;
Started the production of nonwovens;
IPO and acquisition of Isofilme, a nonwovens company located in Pouso Alegre (MG);
Focus on nonwovens: Sale of the division of pipes and fittings;
Start up of the first overseas factory in Statesville, North Carolina - USA;
Sale of Control to PGI Brazil and merger of Isofilme into Companhia Providência;
Tender Offer.
PLANTS
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Installed Capacity:
40 thousand ton/year - 2
Production Lines
Area:
16.3 thousand m2 of built area on
land of 174 thousand m2
Installed Capacity :
30 thousand ton/year – 2
Production Lines
Area:
25 thousand m² of built area on
land of 210 thousand m²
Installed Capacity :
70 thousand ton/year – 9 Production
Lines
Area:
72 thousand m² m² of built area on
land of 189 thousand m²
Statesville – NC
Pouso Alegre – MG
São José dos Pinhais – PR
 Agenda
 The Company
Sector
Highlights
2Q15 Results
Environmental responsibility
Tender offer
USES
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Nonwovens Main uses Main Customers
 Hygienic
 Durable
 Medical
 Baby diepers
 Incontinence
 Sanitary pands
 Furniture and mattresses
 Agricultural roofing
 Packaging
 Surgical disposable
 Medical disposable aprons
Active base of around
1,000 customers
Largest manufacturer
of nonwovens in
Latin America
B2B FOCUSED FOR CONSUMER GOODS
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Durable
Nonwovens Sales Volume 2015 /
Gross Revenue
Hygienic
Medical
 Agenda
 The Company
Sector
Highlights
2Q15 Results
Environmental responsibility
Tender offer
CORPORATE HIGHLIGHTS
 On June 4, 2015 our indirect parent company PGI rebranded to Avintiv, a more Advanced,
Inventive and Innovative company focused on specialty materials. Companhia
Providência changed its logo to Avintiv;
 On July 31, 2015, Avintiv, Inc. and Berry Plastics Group, Inc. entered into an Agreement
and Plan of Merger pursuant to which Avintiv would be the survivor of a merger with a
wholly-owned subsidiary of Berry. As a result of the Merger, Providência would become an
indirect subsidiary of Berry. Berry will receive new shares of Avintiv and the former owners
of Avintiv, Blackstone Capital Partners (Cayman) V LP, will have their shares canceled in
exchange for remuneration due Merger. Under the Merger Agreement, the price
attributed to Providência shares was R$ 10.27 per share.
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OPERATIONAL HIGHLIGHTS
 Sales Volume amounted to 26.5 thousand tons, a 17.1% increase on the same period in
2014 – a period when some machines and equipment at the São José dos Pinhais plant
were shut down;
 Net Revenue was R$ 221.9 million, 35.5% more than 2Q14 and a 1.4% increase in relation
to 1Q15, respectively due to the partial shutdown in 2Q14 and to the price realignment in
relation to the increase in raw materials costs;
 Adjusted EBITDA reached R$ 37.2 million, a R$ 30.0 million improvement over 2Q14;
 Despite the operational recovery, net result was R$ 40.3 million loss due to deferred
income tax that was negative in R$ 64.4 million. This result was due to the application of
fiscal rules in the United States to our full subsidiary Providencia USA, that had
accumulated tax losses on the acquisition date. As a result of the change of control there
are some limits to the use of this losses.
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 Agenda
 The Company
Sector
Highlights
2Q15 Results
Environmental responsibility
Tender offer
SALES VOLUME (in thousand of tons)
The Company posted an increase in total sales volume of 17.1% in 2Q15 compared to the
same period in 2014 due to the partial shutdown in the São José dos Pinhais plant. The
decrease in relation to the 1Q15 reflected the currently macroeconomic scenario.
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2Q14 1Q15 2Q15
21.3 23.6 23.5
1.3
3.0 3.0
22.6 26.6 26.5
Nonwovens Others
Net revenue amounted to R$ 221.9 million in 2Q15, 35.5% greater than 2Q14 and 1.4% higher
than 1Q15 due respectively to the recovery in sales volume and realignment of prices.
NET REVENUE (in million of tons)
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R$ 7.25 R$ 8.21
R$ 8.39
Unitary Net Revenue
2Q14 1Q15 2Q15
163.8
218.8 221.9
Net Revenue
2Q14 1Q15 2Q15
135.8
157.2
160.4
COGS
R$ 6.01
R$ 5.90
R$ 6.06
Unitary COGS (R$)
COGS – COST OF GOODS SOLD (in millions of reais)
Cost of goods sold (COGS) totaled R$ 160.4 million in 2Q15, 18.1% more than the R$ 135.8
million reported in 2Q14 and an increase of 2.0% compared with the R$157.2 million in 1Q15.
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Adjusted EBITDA in 2Q15 was R$ 37.2 million, an increase of 415.3% when compared with the
R$ 7.2 million reported in 2Q14. In relation to 1Q15, there was a decrease of 16.2%.
ADJUSTED EBITDA (in millions of reais) AND ADJUSTED EBITDA MARGIN (%)
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2Q14 1Q15 2Q15
7.2
44.4
37.2
EBITDA
4.4%
20.3%
16.8%
Ebitda Margin (%)
NET RESULT (in millions of reais) AND NET MARGIN (%)
The Company recorded a net loss of R$ 40.3 million mainly driven by the deferred tax impact
described above, despite the R$ 24.7 million of Operating profit generated in 2Q15.
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2Q14 1Q15 2Q15
(45.4)
(1.8)
(40.3)
Net income
-27.7%
-0.8%
-18.2%
Net Margin (%)
DEBT (in millions of reais)
Net Debt increased by 21.0% in relation to 2Q14 due to the Real’s 40.9% devaluation against the
US Dollar in the period. In relation to 1Q15, there was a reduction of 6.7%, once more due to
foreign exchange variation in the period when the Real appreciated by 3.3% in relation to the US
Dollar.
Total Debt increased 20.6% in 2Q15 when compared with 2Q14, again largely a reflection of
currency variation.
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In R$ (MM) 2Q14 1Q15 2Q15 Ch. 2Q15 / 2Q14
Short Term 114.6 162.4 272.7 138.0%
Long Term 449.2 563.8 407.0 -9.4%
Total 563.8 726.1 679.8 20.6%
Cash and liquid hedge instruments 41.1 48.1 47.1 14.4%
Net Debit 522.7 678.1 632.7 21.0%
Shareholders' Equity 619.2 591.4 551.3 -11.0%
Consolidated Net Debt
7%
93%
Local currency Foreign currency
Total Debt %
MARKET VALUE RATIOS
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The book value of the Company shares increased
6.4% compared to 1Q15, and 17.6% related to the
same period last year.
2Q14 1Q15 2Q15
0.97 1.13
1.28
Share Price / Book Value per share
PRVI3 - Book Value / Quarter
17.6%
-0,2%
PRVI3
IBOVESPA
Change 2Q15 / 2Q14
 Agenda
 The Company
Sector
Highlights
2Q15 Results
Environmental responsibility
Tender offer
SOCIO ENVIRONMENTAL RESPONSIBILITY
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Bosques – Unidade São José dos Pinhais/PR
Internal recycling program of materials Waste management program
Preservation of green areas and
protection of rivers
Providência holds 19 000 m2, including
the permanent preservation, with some
species of native vegetation;
The Company has 4 extruders type
machines for recycling part of the
nonwoven chips generated during the
manufacturing process;
Waste, recovered materials and leftovers
are referred for treatment only in
companies duly licensed by the
responsible environmental agency.
SOCIO ENVIRONMENTAL RESPONSIBILITY
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Providência monitors the power consumption and acts to
reduce it. Employees are instructed on the importance of
avoiding waste;
All water used for heating and cooling equipment is again
stored in tanks, and then reused for the same purpose.
Commission to analysis the energy consumption Water - Monitoring consumer and closed circuit
 Agenda
 The Company
Sector
Highlights
2Q15 Results
Environmental responsibility
Tender offer
STATUS – SALE OF THE COMPANY`S CONTROL TO AVINTIV
• On their meeting at June 30, 2015, CVM Collegiate analyzed and was favorable to the
Unified Tender Offer, after some adjusts at the Tender Offer Notice;
• On September 3, 2015, the Superintendência de Registro de Valores Mobiliários of CVM,
has granted the registration for the launching of the unified tender offer for the
acquisition of the totality of the common shares issued by the Company, to be
conducted (i) due to the transfer of control of the Company; (ii) the delisting of the
Company; and (iii) the exit of the Company from the special segment for negotiation of
shares of BM&FBOVESPA called Novo Mercado;
• The Tender Offer Auction will take place on October 13, 2015, at 4pm (Brasília time)
through the trading electronic System of the BM&FBOVESPA.
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CONTACTS
CEO/CFO: Hermínio Vicente Smania de Freitas
IR : Gabriela Las Casas
Danielle Cabrini
Tel: +55 (41) 3381-8673
Fax: +55 (41) 3381-7656
São José dos Pinhais – PR
www.providencia.com.br/ri
www.twitter.com/providencia_ri
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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.
Apimec 2015 en

Apimec 2015 en

  • 1.
    September 24, 2015 APIMEC2015 CURITIBA Companhia Providência
  • 2.
     Agenda  TheCompany Sector Highlights 2Q15 Results Environmental responsibility Tender offer
  • 3.
    MISSION 10/8/2015 Interim PowerPointpresentation template 3 Safer Cleaner Healthier To create a world:
  • 4.
    SHAREHOLDERS’ COMPOSITION 10/8/2015 InterimPowerPoint presentation template 4 PRVI3 – 80 Million shares
  • 5.
    CORPORATE GOVERNANCE STRUCTURE 10/8/2015Interim PowerPoint presentation template 5 Companhia Providência (PRVI3) is listed on the Novo Mercado segment at BM&FBovespa, the highest Corporate Governance standards. Among the main practices are: General Shareholders` Meeting Fiscal Council Board of Directors Board of Executive Officers Independent extern auditors
  • 6.
    ORGANIZATIONAL CHART 10/8/2015 InterimPowerPoint presentation template 6 CEO CFO/ IR Finance Controller IR IT Legal Commercial Office Sales Customer Service Product Development Operations, Engineering and Tecnology Office Operations Maintenance Enginnering Logistics Quality Processes Quality Assurance Purchasing USA Administrative and Manufacture Human Resources 617 120 71 Employees in June, 2015 São Jose dos Pinhais Pouso Alegre United States 76% 15% 9% Total: 808
  • 7.
    CORPORATE STRUCTURE 10/8/2015 InterimPowerPoint presentation template 7 Companhia Providência Indústria e Comércio Providencia USA Inc. 1963 | 1980 | 1990 | 2000 | 2007 | 2008 | 2011 | 2012 | 2013 | 2014 | 2015 Founded in 1963, became a pioneer in the manufacture of plastics in the South of Brazil; Started the production of nonwovens; IPO and acquisition of Isofilme, a nonwovens company located in Pouso Alegre (MG); Focus on nonwovens: Sale of the division of pipes and fittings; Start up of the first overseas factory in Statesville, North Carolina - USA; Sale of Control to PGI Brazil and merger of Isofilme into Companhia Providência; Tender Offer.
  • 8.
    PLANTS 10/8/2015 Interim PowerPointpresentation template 8 Installed Capacity: 40 thousand ton/year - 2 Production Lines Area: 16.3 thousand m2 of built area on land of 174 thousand m2 Installed Capacity : 30 thousand ton/year – 2 Production Lines Area: 25 thousand m² of built area on land of 210 thousand m² Installed Capacity : 70 thousand ton/year – 9 Production Lines Area: 72 thousand m² m² of built area on land of 189 thousand m² Statesville – NC Pouso Alegre – MG São José dos Pinhais – PR
  • 9.
     Agenda  TheCompany Sector Highlights 2Q15 Results Environmental responsibility Tender offer
  • 10.
    USES 10/8/2015 Interim PowerPointpresentation template 10 Nonwovens Main uses Main Customers  Hygienic  Durable  Medical  Baby diepers  Incontinence  Sanitary pands  Furniture and mattresses  Agricultural roofing  Packaging  Surgical disposable  Medical disposable aprons Active base of around 1,000 customers Largest manufacturer of nonwovens in Latin America
  • 11.
    B2B FOCUSED FORCONSUMER GOODS 10/8/2015 Interim PowerPoint presentation template 11 Durable Nonwovens Sales Volume 2015 / Gross Revenue Hygienic Medical
  • 12.
     Agenda  TheCompany Sector Highlights 2Q15 Results Environmental responsibility Tender offer
  • 13.
    CORPORATE HIGHLIGHTS  OnJune 4, 2015 our indirect parent company PGI rebranded to Avintiv, a more Advanced, Inventive and Innovative company focused on specialty materials. Companhia Providência changed its logo to Avintiv;  On July 31, 2015, Avintiv, Inc. and Berry Plastics Group, Inc. entered into an Agreement and Plan of Merger pursuant to which Avintiv would be the survivor of a merger with a wholly-owned subsidiary of Berry. As a result of the Merger, Providência would become an indirect subsidiary of Berry. Berry will receive new shares of Avintiv and the former owners of Avintiv, Blackstone Capital Partners (Cayman) V LP, will have their shares canceled in exchange for remuneration due Merger. Under the Merger Agreement, the price attributed to Providência shares was R$ 10.27 per share. 10/8/2015 Interim PowerPoint presentation template 13
  • 14.
    OPERATIONAL HIGHLIGHTS  SalesVolume amounted to 26.5 thousand tons, a 17.1% increase on the same period in 2014 – a period when some machines and equipment at the São José dos Pinhais plant were shut down;  Net Revenue was R$ 221.9 million, 35.5% more than 2Q14 and a 1.4% increase in relation to 1Q15, respectively due to the partial shutdown in 2Q14 and to the price realignment in relation to the increase in raw materials costs;  Adjusted EBITDA reached R$ 37.2 million, a R$ 30.0 million improvement over 2Q14;  Despite the operational recovery, net result was R$ 40.3 million loss due to deferred income tax that was negative in R$ 64.4 million. This result was due to the application of fiscal rules in the United States to our full subsidiary Providencia USA, that had accumulated tax losses on the acquisition date. As a result of the change of control there are some limits to the use of this losses. 10/8/2015 Interim PowerPoint presentation template 14
  • 15.
     Agenda  TheCompany Sector Highlights 2Q15 Results Environmental responsibility Tender offer
  • 16.
    SALES VOLUME (inthousand of tons) The Company posted an increase in total sales volume of 17.1% in 2Q15 compared to the same period in 2014 due to the partial shutdown in the São José dos Pinhais plant. The decrease in relation to the 1Q15 reflected the currently macroeconomic scenario. 10/8/2015 Interim PowerPoint presentation template 16 2Q14 1Q15 2Q15 21.3 23.6 23.5 1.3 3.0 3.0 22.6 26.6 26.5 Nonwovens Others
  • 17.
    Net revenue amountedto R$ 221.9 million in 2Q15, 35.5% greater than 2Q14 and 1.4% higher than 1Q15 due respectively to the recovery in sales volume and realignment of prices. NET REVENUE (in million of tons) 10/8/2015 Interim PowerPoint presentation template 17 R$ 7.25 R$ 8.21 R$ 8.39 Unitary Net Revenue 2Q14 1Q15 2Q15 163.8 218.8 221.9 Net Revenue
  • 18.
    2Q14 1Q15 2Q15 135.8 157.2 160.4 COGS R$6.01 R$ 5.90 R$ 6.06 Unitary COGS (R$) COGS – COST OF GOODS SOLD (in millions of reais) Cost of goods sold (COGS) totaled R$ 160.4 million in 2Q15, 18.1% more than the R$ 135.8 million reported in 2Q14 and an increase of 2.0% compared with the R$157.2 million in 1Q15. 10/8/2015 Interim PowerPoint presentation template 18
  • 19.
    Adjusted EBITDA in2Q15 was R$ 37.2 million, an increase of 415.3% when compared with the R$ 7.2 million reported in 2Q14. In relation to 1Q15, there was a decrease of 16.2%. ADJUSTED EBITDA (in millions of reais) AND ADJUSTED EBITDA MARGIN (%) 10/8/2015 Interim PowerPoint presentation template 19 2Q14 1Q15 2Q15 7.2 44.4 37.2 EBITDA 4.4% 20.3% 16.8% Ebitda Margin (%)
  • 20.
    NET RESULT (inmillions of reais) AND NET MARGIN (%) The Company recorded a net loss of R$ 40.3 million mainly driven by the deferred tax impact described above, despite the R$ 24.7 million of Operating profit generated in 2Q15. 10/8/2015 Interim PowerPoint presentation template 20 2Q14 1Q15 2Q15 (45.4) (1.8) (40.3) Net income -27.7% -0.8% -18.2% Net Margin (%)
  • 21.
    DEBT (in millionsof reais) Net Debt increased by 21.0% in relation to 2Q14 due to the Real’s 40.9% devaluation against the US Dollar in the period. In relation to 1Q15, there was a reduction of 6.7%, once more due to foreign exchange variation in the period when the Real appreciated by 3.3% in relation to the US Dollar. Total Debt increased 20.6% in 2Q15 when compared with 2Q14, again largely a reflection of currency variation. 10/8/2015 Interim PowerPoint presentation template 21 In R$ (MM) 2Q14 1Q15 2Q15 Ch. 2Q15 / 2Q14 Short Term 114.6 162.4 272.7 138.0% Long Term 449.2 563.8 407.0 -9.4% Total 563.8 726.1 679.8 20.6% Cash and liquid hedge instruments 41.1 48.1 47.1 14.4% Net Debit 522.7 678.1 632.7 21.0% Shareholders' Equity 619.2 591.4 551.3 -11.0% Consolidated Net Debt 7% 93% Local currency Foreign currency Total Debt %
  • 22.
    MARKET VALUE RATIOS 10/8/2015Interim PowerPoint presentation template 22 The book value of the Company shares increased 6.4% compared to 1Q15, and 17.6% related to the same period last year. 2Q14 1Q15 2Q15 0.97 1.13 1.28 Share Price / Book Value per share PRVI3 - Book Value / Quarter 17.6% -0,2% PRVI3 IBOVESPA Change 2Q15 / 2Q14
  • 23.
     Agenda  TheCompany Sector Highlights 2Q15 Results Environmental responsibility Tender offer
  • 24.
    SOCIO ENVIRONMENTAL RESPONSIBILITY 10/8/2015Interim PowerPoint presentation template 24 Bosques – Unidade São José dos Pinhais/PR Internal recycling program of materials Waste management program Preservation of green areas and protection of rivers Providência holds 19 000 m2, including the permanent preservation, with some species of native vegetation; The Company has 4 extruders type machines for recycling part of the nonwoven chips generated during the manufacturing process; Waste, recovered materials and leftovers are referred for treatment only in companies duly licensed by the responsible environmental agency.
  • 25.
    SOCIO ENVIRONMENTAL RESPONSIBILITY 10/8/2015Interim PowerPoint presentation template 25 Providência monitors the power consumption and acts to reduce it. Employees are instructed on the importance of avoiding waste; All water used for heating and cooling equipment is again stored in tanks, and then reused for the same purpose. Commission to analysis the energy consumption Water - Monitoring consumer and closed circuit
  • 26.
     Agenda  TheCompany Sector Highlights 2Q15 Results Environmental responsibility Tender offer
  • 27.
    STATUS – SALEOF THE COMPANY`S CONTROL TO AVINTIV • On their meeting at June 30, 2015, CVM Collegiate analyzed and was favorable to the Unified Tender Offer, after some adjusts at the Tender Offer Notice; • On September 3, 2015, the Superintendência de Registro de Valores Mobiliários of CVM, has granted the registration for the launching of the unified tender offer for the acquisition of the totality of the common shares issued by the Company, to be conducted (i) due to the transfer of control of the Company; (ii) the delisting of the Company; and (iii) the exit of the Company from the special segment for negotiation of shares of BM&FBOVESPA called Novo Mercado; • The Tender Offer Auction will take place on October 13, 2015, at 4pm (Brasília time) through the trading electronic System of the BM&FBOVESPA. 10/8/2015 Interim PowerPoint presentation template 27
  • 28.
    CONTACTS CEO/CFO: Hermínio VicenteSmania de Freitas IR : Gabriela Las Casas Danielle Cabrini Tel: +55 (41) 3381-8673 Fax: +55 (41) 3381-7656 São José dos Pinhais – PR www.providencia.com.br/ri www.twitter.com/providencia_ri 10/8/2015 Interim PowerPoint presentation template 28 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.