3Q11 Results

November 9th, 2011

SCHEDULESCHEDULE

HIGHLIGHTSHIGHLIGHTS

RESULTSRESULTS

Providência USAProvidência USA

RESULTSRESULTS

OUTLOOKOUTLOOK

2

Providência USA

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;

HIGHLIGHTS 3Q11

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

HIGHLIGHTSHIGHLIGHTS

RESULTSRESULTS

SCHEDULESCHEDULE

Providência USA

RESULTSRESULTS

OUTLOOKOUTLOOK

4

59,6

3,8

5,1 58,4

64,7

30,0

40,0

50,0

60,0

Tít

ulo

do

Eix

o

22,8

During the 3Q11, the Company posted growth in

Sales Volume of 1515..33%% compared with 3Q10 and

33..22%% over 2Q11;

SALES VOLUMESALES VOLUME((in thousands of tonsin thousands of tons))

54,6 59,6

-

10,0

20,0

YTD 10 YTD 11

Tít

ulo

do

Eix

o

18,1 19,9 21,2

1,6

2,1 1,6 19,7

22,0

22,8

3Q10 2Q11 3Q11

Our first production line in the US has already

reached 55,,530530 tonstons inin salessales volumevolume, in line with the

Company’s forecast for ramping up production,

contributing to the 1010..88%% increase.

240,0

260,0

280,0

300,0

320,0

340,0

360,0

380,0

240,00

260,00

280,00

300,00

320,00

340,00

360,00

380,00

NET REVENUE NET REVENUE (in (in millionsmillions ofof Reais)Reais)

Net Revenue reached RR$$ 142142..77 millionmillion inin 33QQ1111, a growth of 2222..44%% in relation to 3Q10. Against 2Q11,

the increase was 1212..55%%;

337,4

384,6

-

20,0

40,0

60,0

80,0

100,0

120,0

140,0

160,0

180,0

200,0

220,0

YTD 10 YTD 11

116,6 126,8 142,7

0,00

20,00

40,00

60,00

80,00

100,00

120,00

140,00

160,00

180,00

200,00

220,00

240,00

3Q10 2Q11 3Q11

6

The increase is due to the realignment of prices and to the startup of the new production line in

the United States.

R$ 3,85

R$ 4,29 R$ 4,21

R$ 2,00

R$ 3,00

R$ 4,00

R$ 5,00

R$ 6,00

R$ 7,00

R$ 8,00

R$ 9,00

R$ 10,00

60,0

80,0

100,0

120,0

140,0

160,0

180,0

200,0

220,0

240,0

260,0

COGS (COGS (Cost of Goods Sold)Cost of Goods Sold)(in (in millionsmillions ofof Reais)Reais)

Cost of Goods Sold (COGS) totaled a rise of 2626..00%% when compared with 3Q10 and 11..33%% in

comparison with 2Q11;

76,0 94,5 95,7

-R$ 1,00

R$ -

R$ 1,00

-

20,0

40,0

60,0

3Q10 2Q11 3Q11

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

The increase is largely linked to:

• The higher Sales Volume in 3Q11;

•The significant hike in polypropylene prices.7

25.8%

14.3%

23.0%

20,0%

70,0%

20,0

40,0

60,0

EBITDA EBITDA ((in millions of Reaisin millions of Reais) )

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

Adjusted EBITDA in this quarter RR$$ 3232..88 millionmillion, a 99..00%% improvement when compared with 3Q10. In

relation to 2Q11, there was a rise of 8181..44%%;;

30,1

18,1

32,8

-80,0%

-30,0%

-

20,0

3Q10 2Q11 3Q11

Ebitda Ebitda Margin (%)

8

These increases are directly related to:

•Increase in sales volume;

•Recover of margins;

•Foreign exchange translation impact.

10.0%

1.8%

10.8%

0,0%

10,0%

20,0%

30,0%

40,0%

15,0

16,0

17,0

18,0

19,0

20,0

21,0

22,0

23,0

24,0

25,0

26,0

27,0

5,4% 6,5%

-40,0%

-30,0%

-20,0%

-10,0%

0,0%

10,0%

13,0

14,0

15,0

16,0

17,0

18,0

19,0

20,0

21,0

22,0

23,0

24,0

25,0

26,0

27,0

NET INCOME NET INCOME ((in in millionsmillions ofof Reais) Reais)

and NET MARGIN (%)and NET MARGIN (%)

Net Income was RR$$ 1515..44 millionmillion in 3Q11, 3131..44%% up

on 3Q10, and 560560..77%% higher than 2Q11;

11,7

2,3

15,4

-50,0%

-40,0%

-30,0%

-20,0%

-10,0%

-

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

11,0

12,0

13,0

14,0

3Q10 2Q11 3Q11

Net Earnings Net Margin (%)

18,2

24,8

-90,0%

-80,0%

-70,0%

-60,0%

-50,0%

-

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

9,0

10,0

11,0

12,0

13,0

YTD 10 YTD 11

9

Compared with the same period from

the previous year, net proft has increased

by 3636..33%%..

250,0

300,0

350,0

CASH AND CASH EQUIVALENTS

((in millions of Reaisin millions of Reais) )

Company reported an increase in its Cash position of 4747..66%% in relation to 2Q11 and 3838..66%% when

compared to the same period in 2010;

233,0 218,8

323,0

-

50,0

100,0

150,0

200,0

3Q10 2Q11 3Q11

This increase is directly related to the entry of the export pre-payment line amounting to USDUSD 5252..55

millionmillion;;

10

300,0

350,0

NET DEBT

((in millions of Reais)in millions of Reais)

Net Debt posted an increase of 3232..11%%,, in relation to 3Q10 due to additional funding for plant expansion

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 1717..99%% increase

230,5 258,3

304,5

-

50,0

100,0

150,0

200,0

250,0

3Q10 2Q11 3Q11

At the end of the quarter, the Company held 4747%% of its debt in local currency while the remaining

5353%% was foreign currency denominated. 11

DEBT / CASH DEBT / CASH ((in millions of Reais)in millions of Reais)

Consolidated Net DebtConsolidated Net Debt

R$ (MM) 09/30/2010 09/30/2011Ch. 3Q11 /

3Q10

Total Debt

Short Term 145,3 312,8 115,3%

Long Term 318,1 314,7 -1,1%

12

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%

DIVIDENDS DIVIDENDS

Notice was given of payout of Dividends at 100100%% of the adjusted net profit calculation base for the period

ending June 30 2011 in the amount of RR$$ 1414..11 millionmillion, equivalent to approximately an earningsearnings perper shareshare

ofof RR$$ 00..1818. Payout will take place on 11/25/2011, the share trading ex-dividend as of 10/31/2011.

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.

((in in millionsmillions ofof Reais) Reais)

R$ 0,13 R$ 0,13 R$ 0,18

R$ 0,10

R$ 0,20

14,0

16,0

13

10,5

11,114,1

R$ (0,50)

R$ (0,40)

R$ (0,30)

R$ (0,20)

R$ (0,10)

R$ -

R$ 0,10

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

1st Half

2009

1st Half

2010

1st Half

2011

Dividends paid (R$ million) Dividend/share

HIGHLIGHTSHIGHLIGHTS

RESULTSRESULTS

SCHEDULESCHEDULE

Providência USA

RESULTSRESULTS

OUTLOOKOUTLOOK

OUTLOOKOUTLOOK

PayoutPayout ofof dividendsdividends at 100100%% of the adjusted net profit calculation base for the period ending June 30

2011 in the amount of RR$$ 1414..11 millionmillion, equivalent to approximately an earningsearnings perper shareshare ofof RR$$ 00..1818.

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 twotwo productionproduction lineslines that will start up in 20122012 – PousoPouso AlegreAlegre,, MGMG, BrazilBrazil, in the first half, and

Statesville,Statesville, NC,NC, USAUSA, in the second half, are the Company’s main investment projects totaling a USDUSD

123123 millionmillion investmentinvestment. They are in execution according to schedule and will add 4040,,000000 tonstons to our

15

123123 millionmillion investmentinvestment. They are in execution according to schedule and will add 4040,,000000 tonstons to our

current installed capacity, that is, a 4040%% increase.

KAMI 12 – Pouso Alegre/MG

KAMI 13 – Statesville/NC

CEO: Hermínio V. S. de Freitas

CFO: Eduardo Feldmann Costa

IR : Gabriela Las Casas

Beatriz Tokarski

Tel: +55 (41) 3381-8673

Fax: +55 (41) 3283-5909Fax: +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 .