teleconferencia providencia 2_q12
TRANSCRIPT
2Q 2012 Results
August 14th, 2012
SCHEDULE
HIGHLIGHTS
RESULTS
OUTLOOK
2
Providência USA
Providência USA
HIGHLIGHTS 2Q 2012
The startup, in June 4th 2012, of the second production line at the Pouso
Alegre facility in the state of Minas Gerais;
Work on the project for expanding the Statesville (NC) facility in the US is
running to schedule – our 13rd Production Line ;
By year-end 2012, Providência’s capacity will have reached 140 thousand
tons/year, reaffirming the Company’s ranking as one of the major players in the
nonwovens industry;
Payout of R$ 25.4 million on May 25 of the remaining balance in dividends for
fiscal year 2011, totaling R$ 39.5 million. 3
SCHEDULE
HIGHLIGHTS
RESULTS
OUTLOOK
4
38.5 43.6
3.5
4.0
1H11 1H12
47.7
42.0
19.9 21.3 22.3
2.1 1.8 2.3
22,0 23,1
24,6
2Q11 1Q12 2Q12
Nonwovens Others
24.6 23.1
22.0
The increase was mainly due to the
first production line of the United
States, that started up in January/2011.
During the quarter, the Company
reported an increase in total Sales Volume
of 11.6% compared with the same period in
2011;
SALES VOLUME (in thousands of tons)
5
Net Revenue increased 19.1% in
relation to the 2Q11, and 8.3%
comparing to the 1Q12;
241.9
290.5
-
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
180,0
200,0
220,0
240,0
260,0
280,0
300,0
1H11 1H12
126.8 139.4 151.0
2Q11 1Q12 2Q12
NET REVENUE (in millions of Reais)
6
This increase is mainly related to the
increase in Sales Volume and price
realignment as well as the devaluation of
the Real.
The increase of 14.4% compared with 2Q12 is mainly a reflection of the higher Sales
Volume in 2Q12, given that unit COGS posted a rise of only 2.5%, impacted by rising prices in
the Company’s principal cost component, polypropylene.
94.5 96.6 108.1
R$ 4.29 R$ 4.18
R$ 4.40
R$ 2,50
R$ 3,50
-
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
180,0
200,0
2Q11 1Q12 2Q12
173.6
204.7
R$ 4.14 R$ 4.29
2
3
4
-
20,0
40,0
60,0
80,0
100,0
120,0
140,0
160,0
180,0
200,0
1H11 1H12
COGS (Cost of Goods Sold) (in millions of Reais)
7
18.1
28.9 28.2
14.3%
20.7%
18.7%
0,0% -
20,0
40,0
60,0
2Q11 1Q12 2Q12
40.2
57.1
16.6%
19.7%
0 0,0
20,0
40,0
60,0
1H11 1H12
EBITDA (in millions of Reais) and EBITDA MARGIN (%)
8
Adjusted EBITDA in 2Q12 reached R$ 28.2 million, a growth of 55.8% when compared
with R$ 18.1 million reported in 2Q11 and Adjusted EBITDA margin rose 4.4 p.p. in the
same period;
The EBITDA increase was mainly due to the higher Sales Volume and to the prices recovery.
9.5
14.9
3.9%
5.1%
0,0% -
1H11 1H12
Net Income totaled R$ 7.8 million in
2Q12, an increase of 11.1% comparing to
the 1Q12 and 237.1% in relation to the
2Q11;
2.3
7.1 7.8
1.8%
5.1% 5.2%
0,0% -
2Q11 1Q12 2Q12
NET INCOME (in millons of Reais) and NET MARGIN(%)
25,0
9
Calculation base for the annually adjusted
dividends for the quarter (retained profits) reached
R$ 10.4 million, since the realization of the deemed
cost in the quarter, net of tax, is added.
218.8
93.0 63.7
-
50,0
100,0
150,0
200,0
250,0
2Q11 1Q12 2Q12
Total
CASH AND CASH EQUIVALENTS (in millions of Reais)
10
In 1H12, the Company reported operational cash generation of R$ 79.0 million, 60.2%
higher than for 1H11, due to the performance of the plant in the United States which began to
generate an operational cash flow from the middle of the 2H11 and to the success of the work
involved in reducing the need for working capital.
In 2Q12 the Company reported a decrease in Cash and Cash Equivalents, comparing to
2Q11 and 1Q12, due to investments in the new production lines in Brazil and the United
States and the payout of R$ 25.4 million in dividends;
258.3
355.3
403.1
50,0
100,0
150,0
200,0
250,0
300,0
350,0
400,0
2Q11 1Q12 2Q12
NET DEBT (in millions of Reais)
Net Debt increased 56.0% when compared
with 2Q11 mainly due to new investments
coming on stream during the course of the
year and to the foreign exchange translation
effect on dollar-denominated debt;
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.
11
Local Currency
36%
64%
Foreign Currency
DEBT / CASH (in millions of Reais)
Consolidated Net Debt
12
R$ (MM) 06/30/2011 06/30/2012 Ch. 2Q12 /
2Q11
Total Debt
Short Term 260.0 117.7 -54.7% Long Term 217.1 349.2 60.8%
Total 477.2 466.8 -2.2%
Cash 218.8 63.7 -70.9%
Net Debt 258.3 403.1 56.0%
Shareholders' Equity 685.1 678.7 -0.9% Net Debt / Adjusted EBITDA 3.0 3.7 22.7% Net Debt / Adjusted EBITDA without the lines that startup in 2012 Debt
2.9 2.6 -9.1%
5.25% 5.54%
8.06%
2009 2010 2011
Dividend Yield*
MARKET VALUE RATIOS
0.70 0.80 0.74
-
0,20
0,40
0,60
0,80
1,00
1,20
1,40
1,60
1,80
2,00
2Q11 1Q12 2Q12
25,0
13
Share Price / Book Value per Share
* Dividend per Share / Share price at the end of the period.
HIGHLIGHTS
RESULTS
OUTLOOK
SCHEDULE
OUTLOOK
15
The 2nd production line at the Pouso Alegre plant – the Company’s 12th - inaugurated in
June 2012, is expected to reach full capacity during the course of 4Q12 with a
corresponding increase in Sales Volume. This unit will ramp up Providência’s capacity by 20
thousand tons annually, production largely going to the disposable hygienic goods market;
During the 4th quarter of 2012 we will startup on schedule the 13th production line – the
second at the Statesville (NC) plant, so increasing our production capacity in the United
States from 20 to 40 thousand tons/year;
By year-end 2012, Companhia Providência’s capacity will have reached 140 thousand
tons/year, reaffirming the Company’s ranking as one of the major players in the global
nonwovens industry.
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/ir 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 .