4Q13

Results

February 27, 2014

Results

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;

HIGHLIGHTS 4Q13HIGHLIGHTS 4Q13

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.

Sales Volume / Quarter

SALES VOLUME SALES VOLUME (in thousands of tons)(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 /Accumulated

4Q12 3Q13 4Q13

22,8 29,2 29,6

2,1 2,2 0,4

25,0

31,4 30,0

Nonwovens Others

2012 2013

90,1 111,1

8,6 7,8

98,7 118,9

Others Nonwovens

R$6,58

Net Revenue / Quarter

NET REVENUE NET REVENUE (in millions of Reais)(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%;

R$6,72 R$7,24

Net Revenue Accumulated

R$6,17

Unitary Net Revenue

4Q12 3Q13 4Q13

152,8

211,1 217,2

Net Revenue

4

This growth was mainly due to increased sales volume.

4

R$6,12

R$6,72

Unitary Net Revenue

2012 2013

608,6

782,0

Net Revenue

COGS / Quarter

R$4,22

R$4,99

R$5,49

COGS Accumulated

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 (Cost of Goods Sold)COGS (Cost of Goods Sold)

((in millions of Reaisin millions of Reais))

R$4,29

R$4,87

4Q12 3Q13 4Q13

105,4

156,9 164,7

COGS Unitary COGS (R$)

2012 2013

423,1

578,6

COGS

55

This performance is largely the result of higher sales volume and increased raw material costs.

R$4,29

Unitary COGS (R$)

EBITDA Accumulated

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

and EBITDA MARGIN and EBITDA MARGIN (%) (%)

EBITDA / Quarter

2012 2013

127,0

132,6

EBITDA

20,9%17,0%

Ebitda Margin (%)

6

4Q12 3Q13 4Q13

33,8

40,1

34,7

EBITDA

22,1%19,0%

16,0%

Ebitda Margin (%)

7,4%

Net Income AccumulatedNet Income / Quarter

7,4%

4,7%

NET INCOME NET INCOME ((in millions of Reaisin millions of Reais) )

and NET MARGINand NET MARGIN(%)(%)

Net income for the quarter amounted to R$ 3.7 million.

3,4%

Net Margin (%)

2012 2013

45,1

26,9

Net income

4Q12 3Q13 4Q13

11,3

10,0

3,7

Net income

1,7%

Net Margin (%)

77

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 DEBTNET DEBT(in millions of Reais)(in millions of Reais)

Total Debt %Net Debt

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.

28%

72%

Local currency Foreign currency

4Q12 3Q13 4Q13

451,6

494,3 502,0

Net Debt

Consolidated Net DebtConsolidated Net Debt

DEBT / CASHDEBT / CASH

(in thousands of Reais)(in thousands of Reais)

4Q13 3Q13 4Q12Ch. 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%

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Cas h and l i quid hedge ins truments 88.924 80.743 84.145 5,7%

Net Debt 502.006 494.302 451.562 11,2%

Shareholders ' Equi ty 665.550 662.099 689.977 -3,5%

Net Debt / Adjus ted EBITDA 3,98 3,86 3,58 11,2%

Dividends Payable

0.18

0.24 0.22

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

This calculation base corresponds to:

1st Half 2011 1st Half 2012 1st Half 2013

14,1

19,217,9

Dividends Paid (R$ MM) Dividend/Share

10

This calculation base corresponds to:

13,3 MM

0,7 MM

5,1 MM

0,2 MM

17,9 MM

1st Half 2013 Net income

(-) Legal Reserves legal (5%)

(+) Realization of deemed cost:

(+) Reversal of stock options plan:

Dividends payable

MATERIAL FACTMATERIAL FACT

Published on February 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;

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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.

CEO/CFO: Hermínio V. S. de Freitas

RI : Gabriela Las Casas

Danielle Cabrini

Tel: +55 (41) 3381-8673

Fax: +55 (41) 3381-7656Fax: +55 (41) 3381-7656

São José dos Pinhais – PR

www.providencia.com.br/ri

www.twitter.com/providencia_ri

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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 .