4Q12 and 2012
Results

February 27, 2013
SCHEDULE

Providência USA

HIGHLIGHTS

RESULTS

OUTLOOK

Providência USA

2
HIGHLIGHTS 4Q12 & 2012
Inauguration, in June, of our 2nd Production Line in Pouso Alegre, Minas Gerais,
expanding the Company’s total capacity by 20%;

The consolidation of the investments resulted in a record Adjusted EBITDA of R$
127.0 million for the year, 24.4% higher than 2011, and R$ 33.8 million in 4Q12,
16.3% more than for the same quarter in 2011;
Net Earnings, also record, amounted to R$ 45.1 million in 2012 and to R$ 11.3
million in 4Q12, an increase of 53.0% and of 143.8% respectively;
Net Cash Generation reached R$ 161.2 million, a 127.5% increase in relation to
the previous year;
Subject to the approval of the AGM, the Company proposes the distribution of R$
53.1 million, corresponding to 100% of the adjusted dividend calculation base for
the year. Of this amount, R$ 19.3 million was paid in November/2012 and, subject
to AGM approval, R$ 33.8 million will be paid in 2013.
SCHEDULE

HIGHLIGHTS

RESULTS

OUTLOOK

4
SALES VOLUME
(in thousands of tons)
Sales Volume amounted to
, a growth of 12.5% in relation to the preceding year,
98.7

reflecting the initial sales from the 2nd production line at
87.8

the Pouso Alegre plant, inaugurated in June/12.

8.6

7.5

26.1
22.9
2.3

20.6

4Q11

24.9

2.5

2.1

23.6

22.8

3Q12

4Q12

90.1
80.3

2011

Nonwovens

Others

2012
NET REVENUE
(in millions of Reais)
Net Revenue reached R$ 152.8 million in 4Q12, a growth of
7.6% in relation to 4Q11. In 2012, Net Revenue reached R$
608.6 million, an increase of 15.6% against 2011. This growth
620,0
reflects the increase in Sales Volume and prices realignment.
600,0

142.0

4Q11

166.7

152.8

3Q12

4Q12

580,0
560,0
540,0
520,0
500,0
480,0
460,0
440,0
420,0
400,0
380,0
360,0
340,0
320,0
300,0
280,0
260,0
240,0
220,0
200,0
180,0
160,0
140,0
120,0
100,0
80,0
60,0
40,0
20,0
-

608.6
526.6

2011

2012

6
COGS (Cost of Goods Sold)
(in millions of Reais)
The unit COGS in 4Q12 was stable compared to the 4Q11, small
change of 0.95%. In 2012, COGS was R$ 423.1 million, representing
R$ 4.29

460,0
440,0
an increase of 15.8% in relation to 2011. This increase is largely the
420,0
400,0

result of higher Sales Volume in 2012, since unit COGS recorded an
380,0

R$ 4.16

360,0

increase of only 3.1%.

340,0
320,0

R$ 4.19

R$ 4.39

R$5,00

300,0
280,0

R$ 4.23

260,0
240,0
220,0

423.1

200,0
180,0

365.2

160,0

140,0
120,0

95.8

114.3

100,0

105.4

80,0
60,0
40,0
20,0
R$-

4Q11

3Q12

4Q12

-

2011

2012

7
EBITDA (in millions of Reais)
and EBITDA MARGIN (%)
Adjusted EBITDA reached the record of R$ 127.0 million in
140,0

2012, a 24.4% growth comparing to 2011, and R$ 33.8 million

19.4%

20.9%

80,0

in 4Q12, also a fourth quarter record.

120,0

22.1%
100,0

21.7%

60,0

80,0

40,0

20.5%

127.0

60,0

102.1
40,0

20,0

29.1

36.1

33.8

20,0

-

-

4Q11

3Q12

4Q12

Ebitda

0

2011
Ebitda Margin (%)

2012
25,0

NET INCOME (in millons of Reais)
and NET MARGIN(%)
Net Income totaled R$ 45.1 million in 2012, an increase of
comparing to 2011. For the 4Q12, the company reported

7.4%

a total of R$ 11.3 million, 143.8% more than 4Q11;
40,0

5.6%
11.4%

0

45.1

7.4%
20,0

29.5
3.2%

18.9
11.3

4.6
0,0%-

4Q11

3Q12

4Q12
Net Income

0,0%

2011
Net Margin

2012

9
NET DEBT
(in millions of Reais)
Net debt was stable compared to the 3Q12,
and increased by R$ 110.8 million in relation to
4Q11, the increase reflecting the funding of the
new machines in Brazil and in the USA;
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.
450.0

451.6

340.8

Foreign
Currency

30%
70%

4Q11

3Q12

4Q12

Local
Currency
DEBT / CASH
(in millions of Reais)
Consolidated Net Debt
R$ (MM)

12/31/2011

09/30/2012

12/31/2012

Ch. 4Q12 /
4Q11

Total Debt
Short Term

73.6

127.0

112.4

52.7%

Long Term

348.4

428.5

423.3

21.5%

Total

422.0

555.5

535.7

26.9%

Cash

81.2

105.5

84.1

3.7%

Net Debt

340.8

450.0

451.6

32.5%

Shareholders' Equity

689.3

697.8

690.0

0.1%

Net Debt / Adjusted EBITDA

3.3

3.7

3.6

7.8%

Net Debt / Adjusted EBITDA
without the lines that startup in 2012

2.9

2.3

2.2

-22.2%
11
25,0

DIVIDENDS
(in millions of Reais)
Subject to the resolution of the AGM, Management is proposing the distribution to 100% of
the adjusted dividend calculation base for the year, totaling R$ 53.1 million. Of this amount, R$
19.3 million was paid on November/2012.
R$ 0.66

0

R$ 0.49
R$ 0.41

R$ 0,50

0

This calculation base corresponds to :
R$ 0,30

0

53.1

0

39.5
32.9

0

R$ 45.1 million
R$ 2.2 million
R$ 10.2 million
R$ 53.1 million

R$ (0,30)

0

0

R$ 0,10
Net Income for the financial year in 2012
(-) Legal Reserve (5%)
(+)(0,10)
Realization of the deemed cost:
R$
Dividend Calculation Base

2010

2011

2012**

Dividends Paid (R$ million)

Dividend/Share

** To be ratified at the AGM

R$ (0,50)

12
25,0

MARKET VALUE RATIOS
Capital Markets 2012
R$ 8,95

R$9
R$8
R$7

R$ 6,20

R$6

R$5
Dec 11

Mar

Jun

Sep

Dividend Yield*

Dec 12

1,40

Share Price / Book Value per Share

1,20
1,00

8,06%

7,37%

0,80
0,60

5,54%

0,40

1,04
0,72

0,79

4Q11

3Q12

0,20
-

2010

2011

2012

* Dividend per Share / Share price at the end of the period.

4Q12
SCHEDULE

HIGHLIGHTS

RESULTS

OUTLOOK
OUTLOOK
The target for the second Statesville production line - the Company’s 13th – is to reach full
capacity on the second half of 2013 with a corresponding increase in Sales Volume. This unit
will ramp up Providência’s output by 20 thousand tons annually, doubling capacity in the
United States;
On 2013, Providência’s capacity reached 140 thousand tons/year, underscoring the
Company’s ranking as one of the leading and most modern players in the global nonwovens
industry.

15
EXPANSION
KAMI 13: Progress of the expansion project is running
to plan, doubling the Company’s US production
capacity.
São José dos Pinhais – PR
Production Capacity: 20 thousand tons/year.
Inauguration: First quarter 2013

NC

KAMI12: Second production line in Pouso Alegre (MG)
Production Capacity: 20 thousand tons/year
Unveiled in June/2012.

.

MG

65

75

80

82

2008

2009

2010

100

120

140

PR

2007

2011

2012

2013

*In thousands of tons
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 .

17

Teleconferencia 4 q12

  • 1.
  • 2.
  • 3.
    HIGHLIGHTS 4Q12 &2012 Inauguration, in June, of our 2nd Production Line in Pouso Alegre, Minas Gerais, expanding the Company’s total capacity by 20%; The consolidation of the investments resulted in a record Adjusted EBITDA of R$ 127.0 million for the year, 24.4% higher than 2011, and R$ 33.8 million in 4Q12, 16.3% more than for the same quarter in 2011; Net Earnings, also record, amounted to R$ 45.1 million in 2012 and to R$ 11.3 million in 4Q12, an increase of 53.0% and of 143.8% respectively; Net Cash Generation reached R$ 161.2 million, a 127.5% increase in relation to the previous year; Subject to the approval of the AGM, the Company proposes the distribution of R$ 53.1 million, corresponding to 100% of the adjusted dividend calculation base for the year. Of this amount, R$ 19.3 million was paid in November/2012 and, subject to AGM approval, R$ 33.8 million will be paid in 2013.
  • 4.
  • 5.
    SALES VOLUME (in thousandsof tons) Sales Volume amounted to , a growth of 12.5% in relation to the preceding year, 98.7 reflecting the initial sales from the 2nd production line at 87.8 the Pouso Alegre plant, inaugurated in June/12. 8.6 7.5 26.1 22.9 2.3 20.6 4Q11 24.9 2.5 2.1 23.6 22.8 3Q12 4Q12 90.1 80.3 2011 Nonwovens Others 2012
  • 6.
    NET REVENUE (in millionsof Reais) Net Revenue reached R$ 152.8 million in 4Q12, a growth of 7.6% in relation to 4Q11. In 2012, Net Revenue reached R$ 608.6 million, an increase of 15.6% against 2011. This growth 620,0 reflects the increase in Sales Volume and prices realignment. 600,0 142.0 4Q11 166.7 152.8 3Q12 4Q12 580,0 560,0 540,0 520,0 500,0 480,0 460,0 440,0 420,0 400,0 380,0 360,0 340,0 320,0 300,0 280,0 260,0 240,0 220,0 200,0 180,0 160,0 140,0 120,0 100,0 80,0 60,0 40,0 20,0 - 608.6 526.6 2011 2012 6
  • 7.
    COGS (Cost ofGoods Sold) (in millions of Reais) The unit COGS in 4Q12 was stable compared to the 4Q11, small change of 0.95%. In 2012, COGS was R$ 423.1 million, representing R$ 4.29 460,0 440,0 an increase of 15.8% in relation to 2011. This increase is largely the 420,0 400,0 result of higher Sales Volume in 2012, since unit COGS recorded an 380,0 R$ 4.16 360,0 increase of only 3.1%. 340,0 320,0 R$ 4.19 R$ 4.39 R$5,00 300,0 280,0 R$ 4.23 260,0 240,0 220,0 423.1 200,0 180,0 365.2 160,0 140,0 120,0 95.8 114.3 100,0 105.4 80,0 60,0 40,0 20,0 R$- 4Q11 3Q12 4Q12 - 2011 2012 7
  • 8.
    EBITDA (in millionsof Reais) and EBITDA MARGIN (%) Adjusted EBITDA reached the record of R$ 127.0 million in 140,0 2012, a 24.4% growth comparing to 2011, and R$ 33.8 million 19.4% 20.9% 80,0 in 4Q12, also a fourth quarter record. 120,0 22.1% 100,0 21.7% 60,0 80,0 40,0 20.5% 127.0 60,0 102.1 40,0 20,0 29.1 36.1 33.8 20,0 - - 4Q11 3Q12 4Q12 Ebitda 0 2011 Ebitda Margin (%) 2012
  • 9.
    25,0 NET INCOME (inmillons of Reais) and NET MARGIN(%) Net Income totaled R$ 45.1 million in 2012, an increase of comparing to 2011. For the 4Q12, the company reported 7.4% a total of R$ 11.3 million, 143.8% more than 4Q11; 40,0 5.6% 11.4% 0 45.1 7.4% 20,0 29.5 3.2% 18.9 11.3 4.6 0,0%- 4Q11 3Q12 4Q12 Net Income 0,0% 2011 Net Margin 2012 9
  • 10.
    NET DEBT (in millionsof Reais) Net debt was stable compared to the 3Q12, and increased by R$ 110.8 million in relation to 4Q11, the increase reflecting the funding of the new machines in Brazil and in the USA; 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. 450.0 451.6 340.8 Foreign Currency 30% 70% 4Q11 3Q12 4Q12 Local Currency
  • 11.
    DEBT / CASH (inmillions of Reais) Consolidated Net Debt R$ (MM) 12/31/2011 09/30/2012 12/31/2012 Ch. 4Q12 / 4Q11 Total Debt Short Term 73.6 127.0 112.4 52.7% Long Term 348.4 428.5 423.3 21.5% Total 422.0 555.5 535.7 26.9% Cash 81.2 105.5 84.1 3.7% Net Debt 340.8 450.0 451.6 32.5% Shareholders' Equity 689.3 697.8 690.0 0.1% Net Debt / Adjusted EBITDA 3.3 3.7 3.6 7.8% Net Debt / Adjusted EBITDA without the lines that startup in 2012 2.9 2.3 2.2 -22.2% 11
  • 12.
    25,0 DIVIDENDS (in millions ofReais) Subject to the resolution of the AGM, Management is proposing the distribution to 100% of the adjusted dividend calculation base for the year, totaling R$ 53.1 million. Of this amount, R$ 19.3 million was paid on November/2012. R$ 0.66 0 R$ 0.49 R$ 0.41 R$ 0,50 0 This calculation base corresponds to : R$ 0,30 0 53.1 0 39.5 32.9 0 R$ 45.1 million R$ 2.2 million R$ 10.2 million R$ 53.1 million R$ (0,30) 0 0 R$ 0,10 Net Income for the financial year in 2012 (-) Legal Reserve (5%) (+)(0,10) Realization of the deemed cost: R$ Dividend Calculation Base 2010 2011 2012** Dividends Paid (R$ million) Dividend/Share ** To be ratified at the AGM R$ (0,50) 12
  • 13.
    25,0 MARKET VALUE RATIOS CapitalMarkets 2012 R$ 8,95 R$9 R$8 R$7 R$ 6,20 R$6 R$5 Dec 11 Mar Jun Sep Dividend Yield* Dec 12 1,40 Share Price / Book Value per Share 1,20 1,00 8,06% 7,37% 0,80 0,60 5,54% 0,40 1,04 0,72 0,79 4Q11 3Q12 0,20 - 2010 2011 2012 * Dividend per Share / Share price at the end of the period. 4Q12
  • 14.
  • 15.
    OUTLOOK The target forthe second Statesville production line - the Company’s 13th – is to reach full capacity on the second half of 2013 with a corresponding increase in Sales Volume. This unit will ramp up Providência’s output by 20 thousand tons annually, doubling capacity in the United States; On 2013, Providência’s capacity reached 140 thousand tons/year, underscoring the Company’s ranking as one of the leading and most modern players in the global nonwovens industry. 15
  • 16.
    EXPANSION KAMI 13: Progressof the expansion project is running to plan, doubling the Company’s US production capacity. São José dos Pinhais – PR Production Capacity: 20 thousand tons/year. Inauguration: First quarter 2013 NC KAMI12: Second production line in Pouso Alegre (MG) Production Capacity: 20 thousand tons/year Unveiled in June/2012. . MG 65 75 80 82 2008 2009 2010 100 120 140 PR 2007 2011 2012 2013 *In thousands of tons
  • 17.
    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 . 17