2. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
Providência USA
2
3. HIGHLIGHTS 3Q11
Sales Volume amounted to 22.7 thousand tons in the quarter, a growth of 15.3% in relation to the
same period in 2010 and 3.2% as compared with 2Q11;
Adjusted 3Q11 EBITDA was R$ 32.8 million, an increase of 9.0% compared to 3Q10, and 81.4% in
relation to 2Q11;
Evolution of the Company’s production at the first plant in the US. From January to September
2011, sales volume reached 5,530 tons. In 3Q11 this plant generated a positive EBITDA and Net
Income;
Approval was given on September 20 and took place on October 31 the full prepayment of the
Company’s 15,000 debentures trading in the market. The outstanding principal balance totals R$
100.5 million;
The Company contracted an export pre-payment line amounting to USD 52.5 million with a
prefixed rate of interest of 4.85% plus restatement at the foreign exchange variation and a 7-year
maturity. A Swap Operation was also contracted, the asset side of the transaction being set under the
same conditions of this financing and the liability side at CDI plus 1.7%;
The start of the 3ʳᵈ Share Buyback Program of up to 2,260,000 shares for holding as treasury stock
or cancelation meets the interests of Providência in view of the price at which its shares are trading
on BM&FBOVESPA.
3
4. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
4
5. SALES VOLUME
(in thousands of tons)
tons)
During the 3Q11, the Company posted growth in 64,7
5,1
Sales Volume of 15.3% compared with 3Q10 and
15. 60,0 58,4
3,8
3.2% over 2Q11;
50,0
40,0
Título do Eixo
30,0 59,6
22,8 54,6
22,0
19,7
2,1 1,6
20,0
1,6
19,9 21,2 10,0
18,1
-
3Q10 2Q11 3Q11 YTD 10 YTD 11
Our first production line in the US has already
reached 5,530 tons in sales volume, in line with the
volume
Company’s forecast for ramping up production,
contributing to the 10.8% increase.
10.
6. NET REVENUE
(in millions of Reais)
Net Revenue reached R$ 142.7 million in 3Q11 a growth of 22.4% in relation to 3Q10. Against 2Q11,
142. 11, 22.
the increase was 12.5%;
12.
380,0
380,00 360,0
360,00 340,0
340,00 320,0
320,00 300,0
300,00 280,0
280,00 260,0
260,00 240,0
240,00 220,0
220,00
200,0
200,00 384,6
180,0
180,00 337,4
160,0
160,00
140,0
140,00
120,0
120,00
100,0
100,00
80,00 80,0
142,7
60,00 116,6 126,8 60,0
40,00 40,0
20,00 20,0
0,00 -
3Q10 2Q11 3Q11 YTD 10 YTD 11
The increase is due to the realignment of prices and to the startup of the new production line in
the United States.
6
7. R$ 10,00
260,0
COGS (Cost of Goods Sold)
(Cost
240,0
R$ 9,00
(in millions of Reais)
220,0 R$ 8,00
200,0
R$ 7,00
Cost of Goods Sold (COGS) totaled a rise of 26.0% when compared with 3Q10 and 1.3% in
180,0 26.
R$ 6,00
comparison with 2Q11;
160,0
R$ 5,00
140,0 R$ 4,29 R$ 4,21
R$ 3,85
120,0 R$ 4,00
100,0 R$ 3,00
80,0
R$ 2,00
60,0
94,5 95,7 R$ 1,00
40,0 76,0
R$ -
20,0
- -R$ 1,00
3Q10 2Q11 3Q11
COGS (R$ thousand) Unitary COGS (R$)
• The higher Sales Volume in 3Q11;
The increase is largely linked to: •The significant hike in polypropylene prices.
7
8. EBITDA (in millions of Reais)
and EBITDA Margin (%)
60,0
70,0%
Adjusted EBITDA in this quarter R$ 32.8 million, a 9.0% improvement when compared with 3Q10. In
32. million
relation to 2Q11, there was a rise of 81.4%;
81.
40,0
25.8% 23.0%
14.3% 20,0%
20,0
-30,0%
32,8
30,1
18,1
- -80,0%
3Q10 2Q11 3Q11
Ebitda Ebitda Margin (%)
•Increase in sales volume;
These increases are directly related to: •Recover of margins;
•Foreign exchange translation impact.
8
9. NET INCOME (in millions of Reais)
and NET MARGIN (%)
Net Income was R$ 15.4 million in 3Q11, 31.4% up
15. 31. 27,0
26,0
5,4% 6,5% 10,0%
25,0
27,0 on 3Q10, and 560.7% higher than 2Q11;
560. 40,0%
24,0 0,0%
26,0 23,0
25,0
22,0
24,0 30,0% -10,0%
21,0
23,0
22,0 20,0
21,0 19,0
20,0% -20,0%
20,0 18,0
19,0 10.0% 10.8% 17,0
18,0 1.8% 10,0%
16,0 -30,0%
17,0 15,0
16,0
14,0
15,0 0,0% -40,0%
13,0
14,0 24,8
13,0 12,0
12,0 11,0
-10,0% -50,0%
11,0 10,0
10,0 9,0 18,2
9,0 -20,0%
8,0 -60,0%
8,0
15,4 7,0
7,0
6,0
6,0 11,7 -30,0%
5,0
-70,0%
5,0
4,0 4,0
3,0 3,0
-40,0% -80,0%
2,0 2,0
1,0 2,3 1,0
- --50,0% -90,0%
3Q10 2Q11 3Q11 YTD 10 YTD 11
Net Earnings Net Margin (%)
Compared with the same period from
the previous year, net proft has increased
by 36.3%.
36. 9
10. CASH AND CASH EQUIVALENTS
(in millions of Reais)
Company reported an increase in its Cash position of 47.6% in relation to 2Q11 and 38.6% when
47. 38.
compared to the same period in 2010;
350,0
300,0
250,0
200,0
323,0
150,0
233,0 218,8
100,0
50,0
-
3Q10 2Q11 3Q11
This increase is directly related to the entry of the export pre-payment line amounting to USD 52.5
52.
million;
million;
10
11. NET DEBT
(in millions of Reais)
Net Debt posted an increase of 32.1%, in relation to 3Q10 due to additional funding for plant expansion
32.
in the United States and for a new production line which will go into operation in Brazil next year.
Compared with 2Q11, there was a 17.9% increase
17.
350,0
300,0
250,0
200,0
150,0 304,5
258,3
230,5
100,0
50,0
-
3Q10 2Q11 3Q11
At the end of the quarter, the Company held 47% of its debt in local currency while the remaining
47%
53% was foreign currency denominated.
53% 11
12. DEBT / CASH (in millions of Reais)
Consolidated Net Debt
Ch. 3Q11 /
R$ (MM) 09/30/2010 09/30/2011
3Q10
Total Debt
Short Term 145,3 312,8 115,3%
Long Term 318,1 314,7 -1,1%
Total 463,4 627,5 35,4%
Cash 233,0 323,0 38,6%
Net Debt 230,5 304,5 32,1%
Shareholders' Equity 702,5 698,9 -0,5%
12
13. DIVIDENDS
(in millions of Reais)
Notice was given of payout of Dividends at 100% of the adjusted net profit calculation base for the period
100%
ending June 30 2011 in the amount of R$ 14.1 million, equivalent to approximately an earnings per share
14. million
of R$ 0.18 Payout will take place on 11/25/2011, the share trading ex-dividend as of 10/31/2011.
18.
In 2009 and 2010 the payout corresponded, respectively, to R$ 48.4 million and R$ 32.9 million, an
earnings per share of R$ 0.30 and R$ 0.41.
16,0 R$ 0,18 R$ 0,20
R$ 0,13 R$ 0,13
14,0 R$ 0,10
12,0
R$ -
10,0
R$ (0,10)
8,0
14,1 R$ (0,20)
11,1
6,0
10,5
R$ (0,30)
4,0
2,0 R$ (0,40)
0,0 R$ (0,50)
1st Half 1st Half 1st Half
2009 2010 2011
13
Dividends paid (R$ million) Dividend/share
14. SCHEDULE
Providência USA
HIGHLIGHTS
RESULTS
OUTLOOK
15. OUTLOOK
Payout of dividends at 100% of the adjusted net profit calculation base for the period ending June 30
100%
2011 in the amount of R$ 14.1 million, equivalent to approximately an earnings per share of R$ 0.18
14. million 18.
Payout will take place on November 25 2011, the share trading ex-dividend as of October 31;
On 4Q11, Nonwovens Sales Volume around 21 thousand tons, same level of 3Q11;
The two production lines that will start up in 2012 – Pouso Alegre, MG, Brazil in the first half, and
Alegre, MG Brazil,
Statesville, NC, USA, in the second half, are the Company’s main investment projects totaling a USD
USA
123 million investment They are in execution according to schedule and will add 40,000 tons to our
investment. 40,
current installed capacity, that is, a 40% increase.
40%
KAMI 12 – Pouso Alegre/MG
15
KAMI 13 – Statesville/NC
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 .
