2Q09 R lt2Q09 ResultsAugust 07, 2009

Agenda

• Highlights• Highlights

• 2Q09 Results• 2Q09 Results

• Outlook• Outlook

2

Highlights

O ti i ti f f d l t b fit hi h i ifi tl d th thOptimization of federal government benefits, which significantly capped the growthin the Company’s tax credits, largely generated from the acquisition of raw materials for

export products.p p

Recovery of R$ 9.9 million in federal tax credits generated in previous fiscal years.

Conclusion of the installation and assembly of new lamination and printing machinery,

already operating, and in process to increase to their full production capacity of 500tons/month by 4Q09tons/month by 4Q09.

On July 22 2009 our NBR ISO 90001-2008 certification was recertified for another three

year period as a result of the high standards the Company has reached in its integratedyear period, as a result of the high standards the Company has reached in its integrated

quality management systems combined with the excellence and continuous improvementof its products and services.

3

Agenda

• Highlights• Highlights

• 2Q09 Results• 2Q09 Results

• Outlook• Outlook

4

Cash

The Company Cash increased R$92 8 million 52 9% in relation to92.8 million – 52.9% - in relation to2Q08, and 8.8% comparing to 1Q09;

The increase mainly due to the175.5

246.5268.3

higher operating cash generation,that amounted to R$ 67.8 million, a70.2% increase in relation to 1H08.

2Q08 1Q09 2Q09

I illi f B ili R i

5

In millions of Brazilian Reais

Net Debt

Our Net Debt decreased 13.0%in relation to 2Q08 and 28 2% whenin relation to 2Q08, and 28.2% whencompared to 1Q09;

The decrease mainly due to the208.9

253.3

181.8higher operating cash generation,to a reduction in Total Debt of R$49.8 million following the payment ofsemi annual interest and principalsemi-annual interest and principaland a 15.7% decline in the USdollar-Real exchange rate at the endof June compared with the closing

2Q08 1Q09 2Q09

rate at the end of the precedingquarter.

I illi f B ili R i

6

In millions of Brazilian Reais

Cash & Debt

Consolidated Net DebtConsolidated Net Debt

Total Debt

(R$ MM) 03/31/09 06/30/09

56.9

393.1

Short term

Long term

41.4

458.4

450.0

268.3

Total

Cash

499.8

246.5

181.8

1.5

Net Debt

Net Debt / EBITDA

253.3

2.1

7

Sales Volume

Total24.1 Nonwowens volume increased

5.7

0.5

Total16.5

Total15 9

Nonwowens volume increased4.1% in 2Q09 in relation to 1Q09, agradual recovery during 1H09;

17.9

-1.2 1.0 16.515.9

In relation to 2Q08 there was a14.0% decrease mainly due to thedownturn in the world economy .

14.8 15.4

In tho sand tonnes

2Q08 1Q09 2Q9Others Pipes and Fittings Nonwovens

8

In thousand tonnes

Net Revenues Nonwovens Division

103 7

Nonwovens Net Revenuesdecreased 5 4% in relation to 1Q09103.7

98.292.9

decreased 5.4% in relation to 1Q09due to the appreciation of the Realagainst the US dollar in 2Q09, thataffected our exports;

In relation to 2Q08 there was a10.4% decrease mainly due to thedownturn in the world economy anddownturn in the world economy andto the decrease in our main raw-material cost, partially reflected inprice reductions to our clients.

I R$ illi

2Q08 1Q09 2Q9

9

In R$ millions

Cost of Goods Sold –Cost of Goods Sold –Nonwovens division

The cost of goods sold (COGS) amounted to R$ 60.7 million in 2Q09, aamounted to R$ 60.7 million in 2Q09, a decrease of 13.8% compared to R$ 70.4 million in 2Q08;

I l ti t 1Q09 th i

70.4

59.1 60.7

In relation to 1Q09 there was an increase in COGS of 2.7%;

Unitary COGS showed a decrease of3.83 Unitary COGS showed a decrease of 4.2% in relation to 2Q08;

Unitary COGS decreased 1.1% from 1Q09

3.713.67

1Q09.2Q08 1Q09 2Q09

Unitary COGS

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

and EBITDA Margin (%)

EBITDA of the Nonwovens Di i i h d R$ 27 1 illi

31.5Division reached R$ 27.1 million, with 29.2% margin, an increase of 2.3 p.p. in relation to 2Q08.

27.9 27.1

In relation to 1Q09 there was a decrease of 14.0% in absolute figures, and of 2.9 p.p. in margin.26.9%

32.1%

29.2%

2Q08 1Q09 2Q09

Adjusted EBITDA Margin %

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Net Earnings (R$ illi )Net Earnings (R$ million)

And Net Margin (%)

In 2Q09 net earnings13 8 In 2Q09 net earningsreached R$ 11.1 million (11.8%margin), against R$ 13.8million earnings in 2Q08 and

13.8

10.9 11.1

gR$ 10.9 million earnings in1Q09.

10.8% 10.9%

11.8%

2Q08 1Q09 2Q9

Net Margin

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Agenda

• Highlights• Highlights

• 2Q09 Results• 2Q09 Results

• Outlook• Outlook

13

Outlook

We are optimistic as to the outlook for the market over thecoming months. Volumes have reported a steady increase ingrowth and our plants are estimated to be operating up to fullgrowth and our plants are estimated to be operating up to fullproduction capacity by the end of the third quarter. We see thisrecovery – a gradual and continuous trend since early in 2Q09 – as

fl ti th f t th t t i l freflecting the fact that nonwovens are a raw material for consumernon-durables such as disposable diapers, sales of which aredirectly related to monthly household income;

Increase in installed capacity of nonwoven disposable laminatedand printed hygiene fabrics, reaching additional full productionp yg , g pcapacity of 500 tons/month by 4Q09.

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CEO: Hermínio S. de FreitasCFO: Eduardo Feldmann CostaIR Manager: Gabriela Las Casas

Gizele RigoniGizele RigoniPhone: +55 (41) 3381-8673 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

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e o ds be e e , a t c pate , e pect , est ate , , p a , ay , te d , o esee , p oject a d ot e s a e p ess o s d cateforward-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 .