2. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
Providência USA
2
3. HIGHLIGHTS 1Q 2012
The first production line of the United States reached record production after
completion of the technical adjustments necessary for the full operation of equipment;
The second production line at the Pouso Alegre (MG) site is in the final
implementation phase and will go into operation in early June of this year. This line will
add 20 thousand tons to the Company’s capacity and will produce disposable hygienic
and medical products mainly directed to the domestic market, the total investment
being worth US$ 63 million;
The Extraordinary and Annual General Meeting of March 29, 2012 approved an
additional payout of R$ 25.4 million in dividends, totaling 100% of the 2011 annual
adjusted dividend calculation base. The shares will trade ex-dividend on May 15, 2012
and payout will take place on May 25, 2012.
3
4. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
4
5. SALES VOLUME
(in thousands of tons)
During the quarter, the Company
reported an increase in total sales 23.1
22.9
volume of 15.5% compared with the 20.1 2.3 1.8
same period in 2011; 1,5
The increase was mainly due to tje
20.6 21.3
first production line of the United 18.6
States, that started up in
January/2011 and on 4Q11 had the
technical adjustments necessary for 1Q11 4Q11 1Q12
Nonwovens Others
the full operation of equipment
completed.
5
6. NET REVENUE
(in millions of Reais)
The Company posted Net Revenue
of R$ 139.4 million in 1Q12, a
growth of 21.1% when compared
with 1Q11;
142.0 139.4
115.1 This increase is principally related
to the increase in sales volume,
price realignment and to the
1Q11 4Q11 1Q12
valuation of the US Dollar.
6
7. COGS (Cost of Goods Sold)
(in millions of Reais)
140,0
This increase of 22.1% compared R$ 4.17 R$ 4.18
R$ 3.95
120,0
with 1Q11 is mainly a reflection of the
higher sales volume in 1Q12, since100,0
unit COGS posted a year-on-year
80,0
increase of only 5.7%, impacted by
60,0 96.6
rising prices in the Company’s principal
95.8
cost component, polypropylene; 40,0 79.1
20,0
In relation to the 4Q11 the unitary
COGS remained stable, despite the -
1Q11 4Q11 1Q12
12% increase of polypropylene
COGS (R$ thousand) Unitary COGS (R$)
according to the Chemical Data Index.
7
8. EBITDA (in millions of Reais)
and EBITDA MARGIN (%)
0
20.5% 20.7%
19.2% Adjusted EBITDA in 1Q12
reached R$ 28.9 million, a
growth of 30.6% when
0
compared with R$ 22.1 million
29.1 28.9 reported in 1Q11;
22.2
The EBITDA increase was
mainly due to the higher sales
volume and to the prices
10,0%
recovery.
1Q11 4Q11 1Q12
Ebitda Ebitda Margin (%)
8
9. 25,0
NET INCOME (in millons of Reais)
and NET MARGIN(%)
6.2%
5.1%
3.2% Net Income totaled R$ 7.1 million
in 1Q12, stable in relation to 1T11
and 52.9% higher than in the 4Q11;
Calculation base for the annually
7.1 7.1
adjusted dividends for the quarter
4.6
(retained profits) reached R$ 9.6
million, since the realization of the
-10,0%
1Q11 4Q11 1Q12
deemed cost in the quarter, net of tax
is added.
Net Income Net Margin
9
10. CASH AND CASH EQUIVALENTS
(in millions of Reais)
Total
In 1Q12 the Company reported a decrease in
250,0
Cash and Cash Equivalents, comparing to 1Q11,
due to the strategy of the Company to pay some
200,0
Debt, mainly Debentures and Exim-BNDES in
4Q11; 150,0
270.6
In relation to the 4Q11 , the increase is directly
100,0
related to the generation of operational
50,0
resources of R$ 40.0 million, and to the success 81.2 93.0
in the reduction of working capital need.
-
1Q11 4Q11 1Q12
10
11. NET DEBT
(in millions of Reais)
Net debt increased 58.4% when
300,0
compared with 1Q11 due to the new
investments that will start up in 2012;
250,0
200,0 The foreign currency named debt
340.8 355.3
150,0 was mainly taken in the USA, because
100,0
224.3 of its natural hedge due to the
revenue and assets in that country.
50,0
-
Foreign
1Q11 4Q11 1Q12
Currency
38%
62% Local
Currency
11
12. DEBT / CASH
(in millions of Reais)
Consolidated Net Debt
Ch. 1Q12 /
R$ (MM) 03/31/11 03/31/12
1Q11
Total Debt
Short Term 266,1 73,5 -72,4%
Long Term 228,8 374,9 63,8%
Total 494,9 448,3 -9,4%
Cash 270,6 93,0 -65,6%
Net Debt 224,3 355,3 58,4%
Shareholders' Equity 704,3 671,3 -4,7%
Net Debt / Adjusted EBITDA 2,6 3,6 38,1%
Net Debt / EBITDA
2,4 2,5 4,2%
12
without the Preoperational lines Debt
13. 25,0
DIVIDENDS (in millions of Reais)
The Ordinary and Extraordinary General Meeting held on March 29, 2012 approved an
additional payout of R$ 25.4 million in dividends, totaling R$ 39.5 million for the 2011
fiscal year.
R$ 0,41 R$ 0,49
R$ 0,50
45
39,5 R$ -
40
Ex-dividend: May, 15
Payout: May, 25
35 32,8 -R$ 0,50
30
2º Half1,00
-R$
25,4
25
1° Half
21,7 -R$ 1,50
20 Dividends/ Share
15
-R$ 2,00
10
14,1 -R$ 2,50
5 11,1
0 -R$ 3,00
2010 2011 13
14. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
15. OUTLOOK
The outlook for 2012 is for an increase in sales volume with the entry into operation of
the second plant at the Pouso Alegre (MG) unit in early June 2012. This line will add 20
thousand tons to the Company’s capacity and will produce disposable hygienic and medical
items mainly directed to the domestic market, the total investment being worth US$ 63
million;
Work on the installation of a second production line at our Statesville (NC) plant in the
United States is running to schedule. The line will go into operation during the course of the
4th quarter 2012 and will ramp up production by an annual 20 thousand tons;
By the end of 2012 the Company will reach 140 thousand tons annually, confirming his
reputation as one of the major players in the nonwovens industry;
Companhia Providencia USA concluded the final audit for International Organization for
Standardization 9001 Certification, that will be favorable recommended within a few days.
15
16. 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 .