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May 15, 2014
1Q14
Results
Sales Volume amounted to 29.4 thousand tons, a growth of 9.1% when compared with the
same period in 2013;
Net Revenue reached R$ 211.7 million, 31.8% above 1Q13, basically due to the increase in sales
volume;
Adjusted EBITDA reached 38.8 million, 11.8% greater than 1Q13;
Gross Profit posted growth of R$ 5.5 million, or 12.1% in relation to 1Q13;
Net Debt increased by R$ 51.3 million or 11.2% year-on-year, largely as result of the currency
translation effect on US dollar denominated financing.
HIGHLIGHTS 1Q14HIGHLIGHTS 1Q14
SALES VOLUMESALES VOLUME
(in millions of tons)(in millions of tons)
During the quarter, the Company reported an increase of 9.1% in total sales volume
compared with the same period in 2013. Sales of nonwovens posted 13.6% growth compared
with 1Q13.
4
NET REVENUENET REVENUE
(in millions of Reais)(in millions of Reais)
This growth was mainly due to increased sales volume.
4
The Company reported net revenue of R$ 211.7 million in 1Q14, an increase of 31.8% when
compared with 1Q13;
The cost of goods sold (COGS) totaled R$ 160.6 million in 1Q14, a 39.7% rise compared with
R$ 114.9 million reported in 1Q13 but a decrease of 2.5% in relation to the R$ 164.7 million in
4Q13;
COGS (Cost of Goods Sold)COGS (Cost of Goods Sold)
((in millions of Reaisin millions of Reais))
55
The year-on-year increase is mainly a reflection of higher sales volume and the increased cost
of raw material in Reais.
Adjusted EBITDA in 1Q14 reached R$ 28.8 million, a growth of 11.8% compared with the R$ 25.8
million posted in 1Q13. Quarter-on-quarter, there was a reduction of 16.8%;
EBITDA (EBITDA (in millions of Reaisin millions of Reais))
and EBITDA MARGINand EBITDA MARGIN (%)(%)
The reduction in EBITDA is due to increased fixed costs in 1Q14 in relation to 4Q13, directly
related to personnel expenses, mainly payroll, profit sharing plan and vacation.
7
NET RESULTNET RESULT ((in millions of Reaisin millions of Reais))
and NET MARGINand NET MARGIN(%)(%)
7
The Company recorded a net loss of R$ 1.7 million for the quarter since the Company stopped
recording income and social contribution taxes on accumulated tax losses to comply with CVM
Instruction #371/02. The impact on the 1Q14 result and on the deferred income tax and social
contribution accounts on balance sheet was R$ 4.1 million.
Net Debt increased 11.2% when compared with 1Q13 due to a reduction in cash and liquidity
hedge instruments of R$ 71.6 million. Net Debt increased 1.1% in relation to 4Q13;
NET DEBTNET DEBT
(in millions of Reais)(in millions of Reais)
The foreign currency denominated debt was mainly borrowed in the USA with a natural hedge
in the form of Providencia’s revenue flows and assets in that country.
Consolidated Net DebtConsolidated Net Debt
DEBT / CASHDEBT / CASH
(in milions of Reais)(in milions of Reais)
9
1Q13 4Q13 1Q14 Ch. 1Q14 / 1Q13
114.5 83.7 95.8 -16.4%
475.5 507.2 474,0 -0.3%
590.0 590.9 569.7 -3.4%
133.8 88.9 62.2 -53.6%
456.2 502.0 507.6 11.2%
696.1 665.6 664.3 -4.6%
3.70 3.98 3.97 7.3%
Cash and liquid hedge instruments
Net Debit
Shareholders' Equity
Net Debt / Adjusted EBITDA
Consolidated Net Debt
In R$ (MM)
Short Term
Long Term
Total
MARKETMARKET VALUE RATIOSVALUE RATIOS
10
-7,5%
-10,5%IBOVESPA
Change 1Q14 / 1Q13
PRVI3
ADVERSE EFFECT – 1Q14ADVERSE EFFECT – 1Q14
11
On April 1st
, 2014, nonwovens lines 6, 7, 8 and other equipment at São José dos Pinhais plant
were partially shutdown by the Ministry of Labor until the Company reaches full compliance to
NR12;
The Company intensified its projects to adequate to NR12 and the machines are being
gradually restarted, with full compliance expected by the end of May, 2014;
The impact in terms of volume during the 2Q14 is estimated to be approximately 5,000 tons of
nonwovens;
To mitigate impacts to the market we redirected the production for the contracted hygiene
clients to other production lines in Brazil. The production for disposable medical clients was
redirected to our North American plant, thus the loss of sales volume affected mainly non-
contract hygiene clients.
SALE OF CONTROLSALE OF CONTROL
12
According to the Material Fact published on January, 27 2014 the closing of the Transaction
of sale of control to PGI is subject to verification and fulfillment of certain conditions
precedent usual in similar transactions, including the prior approval by the antitrust
authorities;
CADE approved the Transaction without restrictions;
As soon as the remaining precedent conditions are fulfilled the closing of the Transaction
will occur;
PGI Brazil undertook 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.
CEO/CFO: Hermínio V. S. de Freitas
IR Team : 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
13
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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Results presentation 1_q14

  • 2. Sales Volume amounted to 29.4 thousand tons, a growth of 9.1% when compared with the same period in 2013; Net Revenue reached R$ 211.7 million, 31.8% above 1Q13, basically due to the increase in sales volume; Adjusted EBITDA reached 38.8 million, 11.8% greater than 1Q13; Gross Profit posted growth of R$ 5.5 million, or 12.1% in relation to 1Q13; Net Debt increased by R$ 51.3 million or 11.2% year-on-year, largely as result of the currency translation effect on US dollar denominated financing. HIGHLIGHTS 1Q14HIGHLIGHTS 1Q14
  • 3. SALES VOLUMESALES VOLUME (in millions of tons)(in millions of tons) During the quarter, the Company reported an increase of 9.1% in total sales volume compared with the same period in 2013. Sales of nonwovens posted 13.6% growth compared with 1Q13.
  • 4. 4 NET REVENUENET REVENUE (in millions of Reais)(in millions of Reais) This growth was mainly due to increased sales volume. 4 The Company reported net revenue of R$ 211.7 million in 1Q14, an increase of 31.8% when compared with 1Q13;
  • 5. The cost of goods sold (COGS) totaled R$ 160.6 million in 1Q14, a 39.7% rise compared with R$ 114.9 million reported in 1Q13 but a decrease of 2.5% in relation to the R$ 164.7 million in 4Q13; COGS (Cost of Goods Sold)COGS (Cost of Goods Sold) ((in millions of Reaisin millions of Reais)) 55 The year-on-year increase is mainly a reflection of higher sales volume and the increased cost of raw material in Reais.
  • 6. Adjusted EBITDA in 1Q14 reached R$ 28.8 million, a growth of 11.8% compared with the R$ 25.8 million posted in 1Q13. Quarter-on-quarter, there was a reduction of 16.8%; EBITDA (EBITDA (in millions of Reaisin millions of Reais)) and EBITDA MARGINand EBITDA MARGIN (%)(%) The reduction in EBITDA is due to increased fixed costs in 1Q14 in relation to 4Q13, directly related to personnel expenses, mainly payroll, profit sharing plan and vacation.
  • 7. 7 NET RESULTNET RESULT ((in millions of Reaisin millions of Reais)) and NET MARGINand NET MARGIN(%)(%) 7 The Company recorded a net loss of R$ 1.7 million for the quarter since the Company stopped recording income and social contribution taxes on accumulated tax losses to comply with CVM Instruction #371/02. The impact on the 1Q14 result and on the deferred income tax and social contribution accounts on balance sheet was R$ 4.1 million.
  • 8. Net Debt increased 11.2% when compared with 1Q13 due to a reduction in cash and liquidity hedge instruments of R$ 71.6 million. Net Debt increased 1.1% in relation to 4Q13; NET DEBTNET DEBT (in millions of Reais)(in millions of Reais) The foreign currency denominated debt was mainly borrowed in the USA with a natural hedge in the form of Providencia’s revenue flows and assets in that country.
  • 9. Consolidated Net DebtConsolidated Net Debt DEBT / CASHDEBT / CASH (in milions of Reais)(in milions of Reais) 9 1Q13 4Q13 1Q14 Ch. 1Q14 / 1Q13 114.5 83.7 95.8 -16.4% 475.5 507.2 474,0 -0.3% 590.0 590.9 569.7 -3.4% 133.8 88.9 62.2 -53.6% 456.2 502.0 507.6 11.2% 696.1 665.6 664.3 -4.6% 3.70 3.98 3.97 7.3% Cash and liquid hedge instruments Net Debit Shareholders' Equity Net Debt / Adjusted EBITDA Consolidated Net Debt In R$ (MM) Short Term Long Term Total
  • 10. MARKETMARKET VALUE RATIOSVALUE RATIOS 10 -7,5% -10,5%IBOVESPA Change 1Q14 / 1Q13 PRVI3
  • 11. ADVERSE EFFECT – 1Q14ADVERSE EFFECT – 1Q14 11 On April 1st , 2014, nonwovens lines 6, 7, 8 and other equipment at São José dos Pinhais plant were partially shutdown by the Ministry of Labor until the Company reaches full compliance to NR12; The Company intensified its projects to adequate to NR12 and the machines are being gradually restarted, with full compliance expected by the end of May, 2014; The impact in terms of volume during the 2Q14 is estimated to be approximately 5,000 tons of nonwovens; To mitigate impacts to the market we redirected the production for the contracted hygiene clients to other production lines in Brazil. The production for disposable medical clients was redirected to our North American plant, thus the loss of sales volume affected mainly non- contract hygiene clients.
  • 12. SALE OF CONTROLSALE OF CONTROL 12 According to the Material Fact published on January, 27 2014 the closing of the Transaction of sale of control to PGI is subject to verification and fulfillment of certain conditions precedent usual in similar transactions, including the prior approval by the antitrust authorities; CADE approved the Transaction without restrictions; As soon as the remaining precedent conditions are fulfilled the closing of the Transaction will occur; PGI Brazil undertook 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.
  • 13. CEO/CFO: Hermínio V. S. de Freitas IR Team : 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 13 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 .