Date post: | 22-Jun-2015 |
Category: |
Technology |
Upload: | providencia |
View: | 199 times |
Download: | 0 times |
3Q08 ResultsNovember 13, 2008
2
Agenda
• 3Q08 Operational/ Administrative Highlights
• 3Q08 Results
• Outlook
3
Operational and
Administrative Highlights
Sell of the Pipes and Fittings division - Provinil:
Focus in the nonwovens: our core business, presenting margins of 23.6% versus
9.6% of the Pipes and Fittings Division;
Share Purchase Agreement signed with Aliaxis on September 18, 2008;
R$82 million, equivalent to 7.5x the Ebitda generated in the last 12 months;
Deal expected to be closed during the 4Q08.
4
Debentures issued on December/2007:
Rating annual review;
Rating maintained at a brA level, despite the world crisis;
Síntese Analítica released by Standard & Poor’s on October 28,2008.
Operational and
Administrative Highlights
5
Specialty hygienic and medical:
Investments in progress in laminated
and printed hygienic disposable
production lines, at full capacity at the
1Q09.
Laminated and printed will account for
up to 18% of our production capacity.
We started on 3Q08 the sales of high
performance medical disposables, made
at KAMI9, reaching 145 tons in the
quarter.
Volume, in tons, of laminated, printed
and medical disposables
Price premium of specialties versus
commodity disposables
Operational and
Administrative Highlights
3Q07 2Q08 3Q08
1,671
2,084
1,923
Volume
17%
19%
16%
PMU
6
Others:
Conclusion of the Share Buyback Program, totaling 3.1 million shares, in August/
2008. The total cost was R$ 22.3 million, and the average price was R$ 7.09/share;
Implementation (go live) of SAP system on July 1st, 2008.
Operational and
Administrative Highlights
7
Agenda
• 3Q08 Operational/ Administrative Highlights
• 3Q08 Results
• Outlook
8
Sales Volume
In thousand tons
3Q07 2Q08 3Q08
13.8
17.9 17.7
5.7
5.7 5.9 0.5
0.6
0.5 0.8
Sales Volume(thousand tons)
Others Packaging Pipes and Fittings Nonwovens
Increase of 28.8% in relation to
the 3Q07 mainly due to the
nonwovens division that growth
28.5% in the same comparison
because of Isofilme volume that
started from the 3Q07, and begin of
KAMI9 operations last April;
In relation to the previous quarter
there was a 200 tons decrease in
nonwovens due to shipment delays
caused by SAP go live.
9
Gross Revenues
Increase of 16.6% in relation to
the 3Q07, and of 2.7% comparing
to the 2Q08;
In the export market our
revenues increased 23.5% in
relation to the 3Q07 and 7.1% in
relation to the 2Q08, even with the
appreciation of the real against the
dollar;
In the domestic market our
gross revenues increased 13.6%
in relation to the 3Q07 and 0.7%
comparing to the 2Q08, also due
to shipment delays caused by SAP
go live.In thousand Reais
3Q07 2Q08 3Q08
91.8 103.6 104.3
39.5
45.5 48.7
Gross Revenue
Domestic Market Export Market
131.3
149.1153.0
10
EBITDA (R$ million) and EBITDA Margin (%)
Adjusted EBITDA reached R$ 26.4
million (20.1% margin), 7.7% less than
in the 3Q07;
EBITDA adjusted by operational
hedge* totaled R$ 27.1 million (20.7%
margin), 8.8% bellow the same period
in 2007;
In relation to the 2Q08 there was a
decrease of 14.6% due to smaller
volumes because of the SAP go live
and because of the increase in raw
material prices.3Q07 2Q08 3Q08
28.6
30.9
26.4
1.1
0.5
0.7
Adjusted Ebitda (R$ million) and
Ebitda Margin (Hedge) (%)
Operational Hedge Adjusted Ebitda
25.5%24.2%
20.1%
26.5%
24.6%
20.7%
Adjusted Ebitda Margin % Adjusted Ebitda Margin (Hedge) %
Operational hedge*: The result of exchange-rate lock forward contracts
on accounts receivables from the export market.
11
Net Result (R$ million) and Net Margin (%)
3Q07 2Q08 3Q08
(2.5)
13.8
(2.2)
Net Income (R$ million) and
Net Income Margin (%)
-2.2%
10.8%
-1.7%
Net Margin
Our net result was negative
in R$ 2.2 million with negative
net margin of 1.7% due to a
negative financial result of R$
16.4 millions, mainly due to
variations in the exchange
rates regarding our debt of R$
20.4 millions, without cash
effect.
3Q07 2Q08 3Q08
13.8
17.9 17.7
Volume(thousand tonnes)
3Q07 2Q08 3Q08
85.5
103.7 104.9
Net Revenue(R$ million)
12
Nonwovens Division
Net revenues of R$ 104.9 millions, 22.7%
above the 3Q07 and 1.2% above the 2Q08
The increase in the 3Q08 in relation to the
2Q08 was due to a 2.3% increase in the
average price of sales.
Volume reached 17,700 tons, 28.5%
above the 3Q07. In the domestic market
the increase was 42.9% (mainly Isofilme)
comparing to the 3Q07, and in the export
market it was at around 30.8% due to
KAMI9;
Comparing to the 2Q08 there was a
decrease of 1.1%.
3Q07 2Q08 3Q08
9.1
10.1
9.0
Fixed Costs(R$ million)
0.66 0.57 0.51
Unitary Fixed Costs
133Q07 2Q08 3Q08
3.82
3.66
4.06
Unitary Variable Costs(R$ - raw material, comissions and shipping)
Nonwovens Division
There was an increase of 6.4% in relation to
the 3Q07, and of 10.9% in relation to the 2Q08
due to the increase in raw-material prices.
Unitary fixed cost 22.7% lower than in
the 3Q07;
In relation to the 2Q08 there was a
decrease of 10.5% due to efficiency and
scale gains.
14
3Q07 2Q08 3Q08
23.9
27.9
24.0
Ebita (R$ million)
and Ebitda Margin
28.0% 26.9%22.9%
Ebitda Margin%
3Q07 2Q08 3Q08
25.0
28.4
24.8
Ajusted Ebitda (Hedge)(R$ million)
29.2% 27.4% 23.6%
Ajusted Ebitda Margin (Hedge) %
Nonwovens Division
Ebitda of R$ 24.0 millions, with 22.9% margin,
0.4% above the 3Q07;
In relation to the 2Q08 there was a decrease
of 14.0% due to the increase in variable costs.
Ebitda adjusted by operational hedge*
was R$ 24.8 millions (23.6% margin),
0.8% bellow the 3Q07.
Operational hedge*: The result of exchange-rate lock forward contracts on accounts receivable from the export market.
3Q07 2Q08 3Q08
21.8 22.8
24.3
Net Revenue(R$ million)
15
Pipes and Fittings Division
3Q07 2Q08 3Q08
5.7 5.7 5.9
Volume(thousand tonnes)
The volume was 5,900 tons in the 3Q08,
3.5% higher than in the 2Q08 and in the
3Q07.
Net revenues of R$ 24.3 millions, an
increase of 11.3% in relation to the 3Q07
and of 6.6% in relation to the 2Q08.
In relation to the 2Q08 the unitary
average price was 3.0% higher.
16
3Q07 2Q08 3Q08
2.66 2.92
3.24
Unitary Variable Costs(R$ - raw material, comissions and shipping)
3Q07 2Q08 3Q08
3.0
3.2
2.7
Fixed Costs and Unitary Costs(R$ million)
0.52 0.55 0.46
Unitary Fixed Costs
Pipes and Fittings Division
Increase of 21.7% in relation to the
3Q07 and of 11.0% in relation to the
2Q08;
There was a price increase in raw-
materials in relation to the 2Q08.
Decrease in fixed costs of 12.0% in relation
to the 3Q07;
Comparing to the 2Q08 there was a 17.3%
decrease.
17
3Q07 2Q08 3Q08
3.6
2.9
2.3
Ebitda (R$ million) and
Ebitda Margin (%)
16.6%12.9%
9.6%
Ebitda Margin %
Pipes and Fittings Division
EBITDA of R$ 2.3 millions,
with a 9.6% margin, a decrease
of 35.9% in relation to the 3Q07
and of 21.2% in relation to the
2Q08.
Consolidated Net Debt
Debt
6.7
377.7
384.4
175.5
208.9
18.0
441.6
459.6
170.6
289.0
Total Debt
Short term
Long term
Total
Cash and equivalents
Net debt
(R$ Million) 06/30/08 09/30/08
Debt
The increase in the net debt was mainly due to financings and loans at an amount of R$
48.0 millions, and to interests and restatements.
In the quarter we accounted for R$43.9 million in financial expenses, 96% without cash
outlay.
Currency variation represented R$20.4 million in our financial result, due to the 20% impact
on our debt from the depreciation of the real against the dollar.
On September 30, 2008 we had two interest swap agreements, due to loans and financing,
one CDI vs. US$ totaling US$20 million maturing in December 2012 and another fixed rate
Libor vs. Libor totaling US$50,000 maturing in June 2013, as well as US$22,000 in currency
hedge operations. As a result, third-quarter net income was a negative R$2.2 million.
20
Agenda
• 3Q08 Operational/ Administrative Highlights
• 3Q08 Results
• Outlook
Outlook
21
Increase in the production capacity of specialty hygienic disposables,
from 700 tons/month in the 3Q08 to 1,200 tons/month when the
investments are concluded and operational in the first quarter 2009;
Development and expansion of the production of high performance
medical disposable, with higher added-value, to reach 300 tons/month in
2009;
Focus in the operations through stabilizing SAP;
Drawback verde e amarelo to acquire raw-material in products for
export.
22
CFO: Eduardo Feldmann CostaIR Manager: Gabriela Las CasasPhone: +55 (41) 3381-7600 Fax: +55 (41) 3283-5909São José dos Pinhais – PR - Brazilwww.providencia.com.br/ir
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 .