2. HIGHLIGHTS 4Q13
Sales Volume amounted to 29.9 thousand tons, an increase of 20.2% compared with the same
period in 2012 driven by sales from the Company’s 13th production line which began operations
in 1Q13. In 4Q13, there was a small quarter-on-quarter decrease of 4.5% although if nonwoven
volume is taken in isolation, there would have been a slight increase of 1.3%;
The Company reported Net Revenue of R$ 217.2 million, a 42.2% increase on 4Q12, largely
reflecting the increase in sales volume;
Adjusted EBITDA reached 34.7 million, 2.5% greater than 4Q12;
Net Debt reported an increase of R$ 50.4 million or 11.2% in relation to 4Q12, the principal
factor here being the currency translation effect on US Dollar denominated financing;
Interim dividends of R$ 17.9 million were paid out, totaling 100% of the first half 2013 adjusted
dividend calculation base.
3. SALES VOLUME
(in thousands of tons)
Sales of nonwovens posted 29.5% growth compared with 4Q12, reaching 29.6 thousand tons in
4Q13. The variation was due to the full capacity of the 2nd production line in the United States,
which came into operation in 2013.
Sales Volume / Quarter
31,4
Sales Volume /Accumulated
30,0
2,1
22,8
4Q12
2,2
0,4
29,2
29,6
3Q13
8,6
7,8
90,1
111,1
4Q13
2012
Nonwovens
118,9
98,7
25,0
Others
2013
Others
Nonwovens
4. NET REVENUE
(in millions of Reais)
Net revenue reached R$217.2 million in 4Q13, up 42.2% compared to 4Q12. Compared to the
3Q13, there was a growth of 2.9%;
Net Revenue / Quarter
Net Revenue Accumulated
R$7,24
R$6,72
R$6,12
R$6,17
211,1
217,2
Net Revenue
782,0
608,6
152,8
4Q12
R$6,58
3Q13
4Q13
Unitary Net Revenue
2012
Net Revenue
2013
Unitary Net Revenue
This growth was mainly due to increased sales volume.
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5. COGS (Cost of Goods Sold)
(in millions of Reais)
The cost of goods sold (COGS) totaled R$ 164.7 million in 4Q13, 56.3% higher against the
R$ 105.4 million recorded in 4Q12 and an increase of 5.0% compared with the R$ 156.9 million in
3Q13.
COGS / Quarter
COGS Accumulated
R$4,99
R$4,22
R$4,87
R$5,49
R$4,29
156,9
578,6
164,7
423,1
105,4
4Q12
COGS
3Q13
4Q13
Unitary COGS (R$)
2012
COGS
2013
Unitary COGS (R$)
This performance is largely the result of higher sales volume and increased raw material costs.
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6. EBITDA (in millions of Reais)
and EBITDA MARGIN (%)
Adjusted EBITDA in 4Q13 reached R$ 34.7 million, an improvement of 2.5% when compared with
the R$33.8 million reported in 4Q12. The adjusted EBITDA corresponds to 16.0%, 3.0p.p. lower
compared to 3T13.
EBITDA / Quarter
22,1%
EBITDA Accumulated
20,9%
19,0%
17,0%
16,0%
40,1
132,6
34,7
33,8
4Q12
3Q13
EBITDA
4Q13
Ebitda Margin (%)
127,0
2012
2013
EBITDA
Ebitda Margin (%)
6
7. NET INCOME (in millions of Reais)
and NET MARGIN(%)
Net income for the quarter amounted to R$ 3.7 million.
Net Income / Quarter
Net Income Accumulated
7,4%
4,7%
7,4%
3,4%
1,7%
11,3
10,0
45,1
26,9
3,7
4Q12
Net income
3Q13
4Q13
2012
Net Margin (%)
Net income
2013
Net Margin (%)
7
8. NET DEBT
(in millions of Reais)
Net Debt increased 11.2% when compared with 4Q12 due to the exchange variation that led to
the increase in gross debt of R$ 55.2 million, as well as a reduction of cash and financial liquidity
instruments (hedge) of R$ 4.8 million. Regarding 3Q13 Net Debt increased by 1.6% ;
Net Debt
494,3
Total Debt %
28%
502,0
72%
451,6
4Q12
3Q13
Net Debt
4Q13
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.
9. DEBT / CASH
(in thousands of Reais)
Consolidated Net Debt
4Q13
3Q13
4Q12
Ch. 4Q13 /
4Q12
Short term
83.694
51.436
112.361
-25,5%
Long Term
507.236
523.609
423.346
19,8%
Total
590.930
575.045
535.707
10,3%
88.924
80.743
84.145
5,7%
Net Debt
502.006
494.302
451.562
11,2%
Sha rehol ders ' Equi ty
665.550
662.099
689.977
-3,5%
3,98
3,86
3,58
11,2%
Ca s h a nd l i qui d hedge i ns truments
Net Debt / Adjus ted EBITDA
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10. DIVIDENDS
(in millions of Reais)
In November 2013, interim dividends of R$ 17.9 million were paid, totaling 100% of the adjusted
dividend calculation base for the first half of 2013.
Dividends Payable
0.24
0.22
0.18
19,2
17,9
This calculation base corresponds to:
1st Half 2013 Net income
13,3 MM
(-) Legal Reserves legal (5%)
0,7 MM
(+) Realization of deemed cost:
(+) Reversal of stock options plan:
14,1
5,1 MM
0,2 MM
Dividends payable
1st Half 2011
1st Half 2012
Dividends Paid (R$ MM)
17,9 MM
1st Half 2013
Dividend/Share
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11. MATERIAL FACT
Published on January 27, 2014;
The Block of Control (“Selling Shareholders”) entered into a Stock Purchase Agreement with PGI
Polímeros do Brasil S.A. and Polymer Group, Inc.
The purchase price per share that shall be paid to the Selling Shareholders subject to the some
adjustments is R$ 9.75, that will be paid as follows:
R$ 7.55 at the closing of the transaction;
R$ 0.32 of escrow account, will be deposited at closing of the Transaction in an escrow account in
Brazil and shall be used to guarantee the implementation of certain indemnification obligations
undertook by the Selling Shareholders;
R$ 1.87 of holdback, will be paid to the Selling Shareholders only in certain situations
contemplated by the SPA.
The closing of the Transaction will be subject to the verification and fulfillment of certain conditions
precedent usual in similar transactions, including the prior approval by the antitrust authorities
PGI Brazil undertook in the SPA the obligation to launch, after the closing of the Transaction, a tender
offer for the purchase of shares as a result of the sale of control.
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12. 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.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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