2. Shareholders’ Composition
March 31, 09
Block of Control
Espírito
Treasury
AIG group Asas Fund G&G Santo
and others
Group
19.0% 18.3% 19.0% 10.2% 6.5% 27.0%
Total: 82.5 million
shares
4. Highlights
Project for the production of specialty disposable hygiene products nearing
completion, which will represent a capacity increase of 70% in this family of products:
When fully operational, these products will account for up to 18% of the
Company’s total production capacity .
Cessation of tax credits accumulation in the acquisition of raw materials:
Utilization of Federal Government benefits halted tax credit growth.
2nd Share Buyback Program started on November 26, 2008 and ended on April 17,
2009:
Total of 2.442 million shares, representing 10% of the free-float in November 2008,;
Total investment of R$ 6.4 million.
4
6. Sales Volume
Total
21.4 There was a slight decrease in
Total
0.7 19.0 Nonwovens volume, at around
Total
5.7 1.6 15.9 2.0% in 1Q09 compared to 1Q08,
-
1.2
substantially due to the downturn in
the world economy that affected
mainly the durable goods segment;
17.3
15.1 14.8
The decrease in relation to 4Q08
was 14.8%, due to historical first
quarter seasonality.
1Q08 4Q08 1Q09
Others Pipes and Fittings Nonwovens
In thousand tonnes
6
7. Net Revenues
Nonwovens Division
Net revenues totalled R$ 98.2
124.4 million in 1Q09, an improvement of
12.5% in relation to 1Q08 – despite
98.2
87.3 the slight reduction in sales volumes
– mainly due to a better sales mix in
relation to the same quarter in 2008.
In 2009, with KAMI 9 fully
operational, we increased the
production of higher value-added
1Q08 4Q08 1Q09
products such as special hygienic
disposable and medical disposable
nonwovens.
In R$ millions
7
8. Cost of Goods Sold
The cost of goods sold (COGS)
amounted to R$ 59.1 million in 1Q09, a
82.9 84.5
decrease of 28.7% compared to R$ 82.9
million in 1Q08;
59.1
In relation to 4Q08 the decrease in
4.46
COGS of 30.0% is due to lower export
3.87 3.71
volumes;
Unitary COGS showed a 4.3% decrease
in relation to 1Q08;
1Q08 4Q08 1Q09 Unitary COGS decreased 16.8% from
Unitary COGS
4Q08.
8
9. EBITDA (R$ million)
and EBITDA Margin (%)
33.3 EBITDA of the Nonwovens
31.5
Division reached R$ 31.5 million,
with 32.1% margin, an increase of
21.4 47.7% in relation to 1Q08.
32.1%
In relation to 4Q08, despite the
24.5% 26.8% 5.4% reduction in absolute figures,
EBITDA margin increased 5.3
p.p.
1Q08 4Q08 1Q09
EBITDA Margin%
9
10. Net Earnings (R$ million)
And Net Margin (%)
19.0
In 1Q09 net earnings
reached R$ 10.9 million (10.9%
10.9
9.0 margin), against R$ 9.0 million
15.0% earnings in 1Q08 and R$ 19.0
7.9% 10,9%
million earnings in 4Q08.
1Q08 4Q08 1Q09
Net Margin
10
11. Debt & Cash
Consolidated Net Debt
(R$ MM) 12/31/08 03/31/09
Total Debt
Long term 38.4 41.4
Short term 454.3 458.4
Total 492.7 499.8
235.4 246.5
Cash
257.3 253.3
Net Debt
12. Debt & Cash
No significant net debt change, with a decrease of 2.0% in relation to the previous period;
Debt maturity is primarily long-term;
The increase of R$ 11.1 million in our cash flow was originated entirely from operating
activities;
Accrued financial expenses reached R$ 14.4 million in 1Q09 with no substantial short-term
cash disbursement effects;
On March 31, 2009 we had two interest swap agreements, due to loans and financing,
being one CDI vs. US$ totaling US$11.3 million maturing in December 2012 and another
fixed rate Libor vs. Libor totaling US$50 million maturing in June 2013.
14. Outlook
Expansion in production of specialty disposable hygiene nonwovens, in the
final stages of completion, output to reach 1,200 tons/month after machine start-up;
Expansion in output of high performance disposable medical products with
greater value-added, the Company’s goal being that this line should reach 10% of
total volume over the long term;
Creation of a Risk Management Committee, in January 30, 2009 Board of
Directors Meeting. Since that date the Committee is developing our Risk
Management Policy, to standardize the financial tools to be adopted in order to
reduce the uncertainty over our cash flow;
Fiscal Council reinstalled in the Ordinary Shareholders’ Meeting that took place on
April 30, 2009.
14
15. CFO: Eduardo Feldmann Costa
IR Manager: Gabriela Las Casas
Phone: +55 (41) 3381-7639
Fax: +55 (41) 3283-5909
São José dos Pinhais – PR - Brazil
www.providencia.com.br/ir
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 15
presentation with new information and/or future events .
