2. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
Providência USA
2
3. HIGHLIGHTS
Sales Volume amounted to 20.0 thousand tons in the quarter, a growth of 7.1% in
relation to the same period in 2010;
Our first production line in the United States, inaugurated last January, has already
contributed 492 tons sold in 1Q11, in line with the Company’s forecasts for ramping up
production, expected to be operating at full capacity by the beginning of the third quarter
of 2011;
The signing of the debt agreement with the Bank HSBC, guaranteed by Hermes,
comprising the two new lines that will start up in 2012. The US$ 85 million loan has a
term of 10 years with 2 year grace period, Libor to dollar-based interest rates;
The Annual and Extraordinary General Meeting of April 27 2011 approved an additional
dividend payout of R$ 21.8 million, totaling 100% of the adjusted dividend calculation
base in 2010. The share will become ex-dividend on May 17 2011 and payout will take
place on May 25 2011.
3
4. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
4
5. SALES VOLUME
(in thousands of tons)
tons)
During the quarter, the Company posted an
20,2 20,0
18,7 increase in sales volume of 7.1% compared
1,2 1,4
0,9 with the same period in 2010;
Sales of nonwovens reported a growth of
19,0 18,6
17,8 4.8% when compared with 1Q10;
Our first production line in the United
States, inaugurated last January, has already
1Q10 4Q10 1Q11
contributed 492 tons sold in 1Q11, in line
Others Total
with the Company’s forecasts for ramping up
production.
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6. NET REVENUE
NONWOVENS (in millions of Reais)
Net revenue reached R$ 115.1 million in
1Q11, a growth of 10.2% in relation to 1Q10,
while in relation to 4Q10 there was a small
decline of 0.7%;
116,0 115,1
104,5
The increase is preponderantly due to an
increase in the sales volume in the domestic
market and the production start-up of the
1Q10 4Q10 1Q11
new machine in the United States.
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7. COGS (Cost of Goods Sold)
(Cost
NONWOVENS (in millions of Reais)
Reais)
R$ 8,00
90,0 Cost of goods sold (COGS) totaled a growth
79,1
80,0 75,9 of 11.7% when compared with 1Q10;
R$ 7,00
70,8
70,0
R$ 6,00
60,0
Compared with 4Q10, growth was 4.2%;
50,0
R$ 5,00
40,0
R$ 3,79
R$ 3,96 The increase in relation to 1Q10 is largely
R$ 3,76 R$ 4,00
30,0
linked to:
20,0
R$ 3,00
10,0
• The greater sales volume in 1Q11;
- R$ 2,00 • Higher polypropylene prices.
1Q10 4Q10 1Q11
COGS (R$ thousand) Unitary COGS (R$)
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8. EBITDA (in millions of Reais)
and EBITDA Margin (%)
45,0%
The Adjusted Ebitda reached R$ 22.2
28,4 million in 1Q11, corresponding to a 2.7%
decline compared with 1Q10. In relation to
22,7
4Q10, there was a decline of 22.1%;
22,2 35,0%
This reduction reflected:
24,5%
25,0% • The start up of the USA production
21,8% line, including all the required
19,2% operational adjusts;
• The 22% increase in the prices of our
15,0% principal raw material, polypropylene,
1Q10 4Q10 1Q11 according to Chemical Data (CDI).
Ebitda Ebitda Margin (%)
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9. NET INCOME (in millions of Reais)
and NET MARGIN (%)
8,0
In this quarter, Company net income rose
7,1
7,0
279.5% reaching R$ 7.1 million against R$
6,0 5,6
6,2%
1.9 million in 1Q10;
5,0
4,0
4,8% Net income increased 26,8% in relation to
3,0
4Q10;
1,9
2,0
1,0
1,8% Adjusted base for calculating dividends
-
1Q10 4Q10 1Q11 for the quarter (Retained Earnings) totaled
(1,0) 0,0%
5,3% R$ 9.7 million, since realization of deemed
Net Earnings Net Margin (%)
costs in the quarter is added in net of tax.
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10. CASH AND CASH EQUIVALENTS
(in millions of Reais)
The Company reported an increase in its
cash position of 8,6% or R$ 21.5 million at
the end of the period reflecting its
operational, investment and financing
activities during 1Q11.
270,6
264,0
249,1
1Q10 4Q10 1Q11
10
11. NET DEBT
(in millions of Reais)
The company’s net debt increased 31.6%
compared with 1Q10 due in large part to 62% of its debt in local currency while the
additional funding for financing capex for remaining 38% was foreign currency
expansion of the US plant and a new denominated.
production line which will go into operation
in Brazil next year;
Compared with 4Q10, net debt fell by 243,9
224,3
8.0%. This reduction is due to the greater 170,5
generation of cash reported for the
quarter;
1Q10 4Q10 1Q11
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12. DEBT / CASH (in millions of Reais)
(in
Consolidated Net Debt
Ch. 1Q11 /
Colunas1 03/31/2010 03/31/2011
1Q10
Total Debt
Short Term 132,9 266,1 100,3%
Long Term 301,6 228,8 -24,1%
Total 434,5 494,9 13,9%
Cash 264,0 270,6 2,5%
Net Debt 170,5 224,3 31,6%
Net Debt / Adjusted EBITDA 1,8 2,6 44,4%
Shareholders' Equity 511,5 704,3 37,7%
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13. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
14. OUTLOOK
Forecast for 2011 is for an increase in sales volume and for full capacity utilization of
Providência’s US production line by early second half of the year, and keep current
production levels in Brazil;
The signing of the debt agreement with the Bank HSBC, guaranteed by Hermes,
comprising the two new lines that will start up in 2012. The US$ 85 million loan has a
term of 10 years with 2 year grace period, Libor to dollar-based interest rates. The first
tranche is estimated by early second half of the year;
The Company’s principal investment projects are in line with its expansion plans and
during the 1Q11 we effected the down payments for two new production lines. The start
up of both lines will be in 2012 and their investment will total approximately US$ 123
million and will increase our installed capacity by 40% approximately, i.e., additional 40
thousand tons/year of nonwovens.
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15. 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 .
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