Apresentação 3Q09 - Inglês

3Q09 RESULTS3Q09 RESULTS

November 4November 4thth 20092009

AGENDAAGENDA

HIGHLIGHTSHIGHLIGHTS


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OUTLOOKOUTLOOK

HIGHLIGHTS

OPERATIONAL/ADMINISTRATIVE

Recovery in sales volumes to levels prior to the onset of the crisis at the end of 2008,

with the Company again operating at close to full capacity;

The operating cash generation during this year reached R$ 90.3 million, higher 40.7%

in the same period from 2008. Recovery of R$ 4.2 million in federal tax credits

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in the same period from 2008. Recovery of R$ 4.2 million in federal tax credits

originating in previous fiscal years;

An adjustment in accumulated depreciation through September 2009 and booked to

the figures for 3Q09 to reflect the revision in the useful life of our permanent assets in

line with Technical Pronouncement CPC 13 – Initial Adoption of the Changes of Law

11.638/07. This change is deemed a fair adjustment to Cia. Providência’s results since

the useful life of our equipment is much above the rates of depreciation practiced

hitherto (10 years)

AGENDAAGENDA



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OUTLOOKOUTLOOK

0,8

1,0

1,4

5,9

24,4

16,4

19,1

Sales volume of Nonwovens

reported growth of 15.1% in 3Q09

compared with 2Q09, with volume

recovered during the year;

SALES VOLUMESALES VOLUME

17,7 15,4

17,7

3Q08 2Q09 3Q09

Nonwovens Others Pipes and Fittings

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recovered during the year;

Compared with 3Q08, the

increase was 0.1%, returning to

pre-crisis level volumes.

In thousand tonnes

NET REVENUE NET REVENUE

NONWOVENS DIVISIONNONWOVENS DIVISION

Net Revenue from Nonwovens

reported an increase of 8.4% in

relation to 2Q09, releated to higher104,9

6

In R$ millions

relation to 2Q09, releated to higher

sales volume during the quarter;

Compared to 3Q08, there was a

reduction of 4.0%, due to sales product

mix and exchange variation.

3Q08 2Q09 3Q09

104,9 92,9 100,7

COGSCOGS

NONWOVENS DIVISIONNONWOVENS DIVISION

Cost of goods sold (COGS) comparing

3Q09 vs 3Q08, had the principal factors, the

depreciation, the decrease price of raw

72,9

60,7 56,0

R$ 3,95 R$ 3,71

R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$

,0

,0

,0

,0

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materials and logistics costs;

The reduction comparing 3Q09 vs 2Q09 is

related to the depreciation.

R$ 3,95 R$ 3,71

R$ 2,93

R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$ R$

-

,0

,0

,0

,0

,0

3Q08 2Q09 3Q09

COGS (R$ thousand) Unitary COGS (R$)

EBITDA (R$ million) EBITDA (R$ million)

and EBITDA Margin (%) and EBITDA Margin (%)

Nonwovens Division Ebitda

ended 3Q09 higher than 3Q08,

due to the price reduction of raw

materials and logistics, creating24,0

27,1 26,1

0

0

8

3.0 p.p. of margin increase.

Compared with 2Q09 the

reduction of R$ 1 million was due

to the volume recovery, returning

to pre-crisis level.

22,9%

29,2%

25,9%

0

0

15,0

0

3Q08 2Q09 3Q09

Ebitda Ebitda Margin (%)

Net Earnings (R$ millions) Net Earnings (R$ millions) and Net Margin (%)and Net Margin (%)

In 3Q09, the Company

posted net earnings of R$ 18.0

million (17.4% margin),11,1

18,0

17,4% 20

30,0%

9

million (17.4% margin),

against a loss of R$ 2.4 million

in 3Q08 and a net profit of R$

11.1 million in 2Q09.

-2,4

11,1

-1,8%

11,8%

17,4%

-

0

10

20

3Q08 2Q09 3Q09

Net Earnings Net Margin (%)

CASH AND

CASH EQUIVALENTS

The Company’s cash position

increased by R$ 101.4 million,

equivalent to 59.5% compared with

3Q08, principally a result of an

improvement in operational margins

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In R$ millions

stemming mainly from better tax

planning and management of the

working capital accounts (inventory,

customers and suppliers);

When compared with 2Q09, the

cash position posted growth - despite

the payment of semi-annual interest

and principal on debt.

3Q08 2Q09 3Q09

170,6

268,3 272,0

NET DEBT

Net Debt of Company reduced in

relation to 3Q08, largely due to the

operational cash generation, payments

from the sale of the Pipes and Fittings

division and Dollar taxes reduction;

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In R$ millions

The reduction from 2Q09 to 3Q09 is

related to greater operational cash

generation, decrease in Total Debt of

R$ 16.9 million due to the payment of

semi-annual interest and principal, and

an 8.9% lower US dollar-Real exchange

rate at the end of the period.

3Q08 2Q09 3Q09

289,0

181,8 161,2

CASH & DEBTCASH & DEBT

Consolidated Net DebtConsolidated Net Debt

R$ (MM) 06/30/2009 09/30/2009Total Debt

Short Term 56.9 60.8 Long Term 393.1 372.5

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Long Term 393.1 372.5 Total 450.0 433.2

Cash 268.3 272.0

Net Debt 181.7 161.2

Net Debt / Adjusted EBITDA 1.5 1.4

Shareholders' Equity 489.6 508.0

AGENDAAGENDA



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OUTLOOKOUTLOOK

During the course of the past few months we have detected clear signs of

recovery in sales volumes at levels prior to the onset of the crisis at the end of

2008. We believe that the final quarter of the year will see a consolidation of this

trend with Cia. Providência operating up to its installed capacity;

OUTLOOKOUTLOOK

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In 2010 we expect to work at a sales volume in line with fully utilized

production capacity given that nonwoven fabrics are a raw material used in the

manufacture of non-durable consumer goods, the commercialization of which is

directly related to monthly household income which has been reporting overall

growth.

CEO: Hermínio V. S. de FreitasCEO: Hermínio V. S. de Freitas

CFO: Eduardo Feldmann Costa

RI : Gizele Rigoni

Tel: + 55 (41) 3381-8673

Fax:+ 55 (41) 3283-5909

São José dos Pinhais – PR

www.providencia.com.br/ir

The words “believe”, “anticipate”, “expect”, “estimate”, “will”, “plan”, “may”, “intend”, “foresee”, “project” and other similar expressions indicateforward-looking statements. These forward-looking statements involve uncertainties, risks and assumptions, since they include information relatedto 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 dateon which they were made and should not be taken as a guarantee of future performance. Providência is under no obligation to update thispresentation with new information and/or future events .

Apresentação 3Q09 - Inglês

Technology

Transcript of Apresentação 3Q09 - Inglês