3. HIGHLIGHTS 3Q13
Sales Volume amounted to 31.4 thousand tons, an increase of 20.5% in relation to the same
period in 2012. On a quarter-on-quarter comparative basis there was an increase of 3.0%;
The Company reported Net Revenue of R$ 211.1 million, a 26.6% increase on 3Q12, largely
reflecting increasing sales volume;
Adjusted EBITDA reached R$ 40.1 million, an 11.0% improvement on 3Q12 and 25.0%
compared with 2Q13;
Net Income in the period amounted to R$ 10.0 million, a 21.0 % improvement on 2Q13;
The Company posted an increase in Net Debt of R$ 44.3 million, 9.9% greater than 3Q12, a
consequence of the currency variation on US dollar denominated financing;
Approval was given for the distribution of interim dividends of R$ 17.9 million, totaling 100% of
the adjusted dividend calculation base in the first half of 2013.
5. SALES VOLUME
(in thousands of tons)
Sales of nonwovens grew 23.7% compared with 3Q12 due to the full capacity reached by KAMI
13, the 2nd production line in the US, that started up this year.
Sales Volume / Quarter
Sales Volume Accumulated
88.9
30.5
26.1
23.6
73.7
7.4
6.5
2.5
2.5
3Q12
31.4
2.5
28.0
29.2
2Q13
Nonwovens
3Q13
Others
81.5
67.2
YTD 2012
YTD 2013
Nonwovens
Others
6. NET REVENUE
(in millions of Reais)
Net revenue from sales for 3Q13 amounted to R$ 211.1 million, an increase of 26.6% compared
with 3Q12. When compared with 2Q13, growth was 9.3%, in large part due to an increase in sales
volume;
Net revenue Accumulated
Net revenue / Quarter
R$ 6.40
R$ 6.72
R$ 6.33
R$ 6.35
R$ 6.20
564.8
166.7
3Q12
Net Revenue
193.1
2Q13
457.2
211.1
YTD 2012
3Q13
Unitary Net Revenue
Net Revenue
YTD 2013
Unitary Net Revenue
The increase is largely due to the higher sales volume.
6
7. COGS (Cost of Goods Sold)
(in millions of Reais)
The cost of goods sold (COGS) totaled R$ 156.9 million in 3Q13, 37.2% higher against the
R$ 114.3 million recorded in 3Q12 and an increase of 10.5% compared with the R$ 142.0 million in
2Q13.
GOGS / Quarter
GOGS Accumulated
R$ 4.66
R$ 4.66
R$ 4.99
R$ 4.33
R$ 4.39
114.3
3Q12
142.0
2Q13
COGS (R$ thousand)
156.9
413.9
319.0
3Q13
Unitary COGS (R$)
YTD 2012
COGS (R$ thousand)
YTD 2013
Total unitary COGS (R$)
This performance is largely the result of higher sales volume and increased raw material costs.
7
8. EBITDA (in millions of Reais)
and EBITDA MARGIN (%)
Adjusted EBITDA in 3Q13 reached R$ 40.1 million, an improvement of 11.0% when compared
with the R$36.1 million reported in 3Q12. In relation to 2Q13, adjusted EBITDA increased by 25.0%.
EBITDA Accumulated
EBITDA / Quarter
20.4%
21.7%
17.3%
16.6%
19.0%
98.0
40.1
36.1
32.1
93.2
3Q12
EBITDA
2Q13
3Q13
Ebitda Margin (%)
YTD 2012
EBITDA
YTD 2013
Ebitda Margin (%)
9. 25,0
NET INCOME (in millions of Reais)
and NET MARGIN(%)
Net income for the quarter amounted to R$ 10.0 million.
Net Income / Quarter
Net income Accumulated
11.4%
7.4%
4.3%
4.1%
4.7%
18.9
33.8
8.2
3Q12
2Q13
Net income
23.2
10.0
3Q13
Net Margin (%)
YTD 2012
Net income
YTD 2013
Net Margin (%)
The adjusted dividend calculation base for the quarter was R$ 12.5 million, the difference
representing the realization of the deemed cost for the quarter, net of tax.
9
10. NET DEBT
(in millions of Reais)
A Net Debt increased 12.4% when compared with 3Q12 due to an increase in Gross Debt of R$
19.6 million as well as a reduction in cash and liquid hedge instruments of R$ 34.8 million. Net
Debt fell 0.2% in relation to 2Q13;
Net Debt / Quarter
495.1
27%
494.3
73%
439.9
3Q12
Total Debt %
2Q13
Net Debt
3Q13
Local currency
Foreign currency
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. DEBT / CASH
(in millions of Reais)
Consolidated Net Debt
In R$ (MM)
3Q12 2Q13 3Q13
Ch. 3Q13 /
3Q12
Short Term
127.0
117.7
51.4
-59.5%
Long Term
428.5
349.2
523.6
22.2%
Total
Cash and liquid hedge instruments
555.4
466.8
575.0
3.5%
115.5
70.4
80.7
-30.1%
Net Debit
Shareholders' Equity
439.9
396.5
494.3
12.4%
697.8
678.7
662.1
-5.1%
3.68
3.95
3.86
4.9%
Net Debt / Adjusted EBITDA
11
12. 25,0
DIVIDENDS
(in millions of Reais)
The Board of Directors decided at its meeting held on September 17, 2013 on the distribution of
100% of dividends calculated on the data base June 30, 2013, representing R$ 17.9 MM to be payed
on November 25, 2013.
Dividends Payable
0.24
0.22
0.18
19,2
17,9
This calculation base corresponds to:
1º Half 2013 Net income
(-) Legal Reserves legal (5%)
14,1
(+) Realization of deemed cost 2011:
(+) 1 Reversal of plan Stockoptions:
Dividends payable
1st Half 2011
1st Half 2012
Dividends Paid (R$ MM)
13.3 MM
0.7 MM
5.1 MM
0.2 MM
17.9 MM
1st Half 2013
Dividend/Share
12
13. 25,0
MARKET VALUE RATIOS
PRVI3 Asset Value / Quarter
0.99
0.79
PRVI3 - Proportion of dividends paid on the
share value in the last three years
0.96
8.06%
7.37%
5.54%
3Q12
2Q13
3Q13
2010
Share Price / Asset Value per share
2011
2012
Dividend Yield
Share Value - IBOVESPA
R$ 10
R$ 8,95
R$ 9
R$ 8,70
R$ 8,25
R$ 7,92
R$ 8
Change 3T13 / 3T12
PRVI3
IBOVESPA
R$ 6,85
R$ 7
15,6%
-11,6%
R$ 6
R$ 5
set/12
dez/12
mar/13
jun/13
set/13
13
15. OUTLOOK
With the 2nd Statesville nonwovens line now operating at full capacity, the objective is to
improve the mix by increasing the percentage of higher value added products;
Installed capacity will have reached 140 thousand tons/year by year-end, reaffirming the
Company’s ranking as one of the largest and most modern players in the global nonwovens
industry.
K12
K13
15
16. CEO/CFO: Hermínio V. S. de Freitas
RI
: Gabriela Las Casas
Danielle Cabrini
Tel: +55 (41) 3381-8673
Fax: +55 (41) 3381-7656
São José dos Pinhais – PR
www.providencia.com.br/ri
www.twiter.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 .
16