4Q 2011 and 2011

Results

February 28th, 2012

SCHEDULE

HIGHLIGHTS

RESULTS

OUTLOOK

2

Providência USA

Providência USAProvidência USA

HIGHLIGHTS 4Q 2011

Sales Volume amounted to 87.7 thousand tons in 2011, a growth of 11.7% in relation to the

preceding year. In 4Q11 we reported 23.0 thousand tons, 14.0% more than in 4Q10;

Net Revenue reached R$ 526.6 million during the year, 16.2% more than 2010, basically reflecting

an increase in sales volume. In 4Q11 we reached R$ 142.0 million, 22.5% more than in 4Q10;

Gross Profits were R$ 161.4 million in 2011 and R$ 46.2 million in 4Q11, a 7.4% increase in the

year and 15.3% in the quarter;

In November, the Company drew down the value on an export finance line from the BNDES

amounting to R$ 50 million at an annual fixed rate of interest of 9.0%, repayable in 18 months;

On November 25, the Company made an interim dividend payment of R$ 14.1 million, relating to

100% of the adjusted net income for the first half of 2011 and, subject to approval by the AGM, is

proposing the distribution of 100% of the annual adjusted dividend calculation base, equivalent to

R$ 39.5 million, R$ 25.4 million of which will be paid out in 2012.

3

HIGHLIGHTS

RESULTS

OUTLOOK

4

SCHEDULE

Providência USA

73,6 80,3

5,0

7,5 78,6

87,8

2010 2011Nonwovens Others

19,0 21,2 20,6

1,2 1,6 2,4

20,2 22,8

23,0

4Q10 3Q11 4Q11

SALES VOLUME(in thousands of tons)

In 2011 the Company reported an increase in

Total Sales Volume of 11.7% in relation to the

preceding year;

5

Our first production line in the US reached more

than 1,000 tons sales/month, in line with the

Company’s forecast for ramping up production,

contributing to the increase in sales volume.

In 4Q11 we reported 23.0 thousand tons and sales

of nonwovens grew 8.7% compared with 4Q10;

Aggregate Net Revenue for fiscal year 2011

reached R$ 526.6 million, a 16.2% increase in

relation to the R$ 453.3 million in 2010;

453,3

526,6

2010 2011

116,0 142,7 142,0

4Q10 3Q11 4Q11

NET REVENUE (in millions of Reais)

6

This growth principally reflects an increase in sales

volume, price realignment as well as greater use of

production capacity which recorded a volume of 23

thousand tons in the quarter.

In 4Q11 the Company’s Net Revenue was R$ 142.0

million, equivalent to a growth of 22.5% when

compared with 4Q10;

COGS (Cost of Goods Sold)(in millions of Reais)

303,0

365,2

R$3,86

R$4,16

R$(35,00) R$(34,00) R$(33,00) R$(32,00) R$(31,00) R$(30,00) R$(29,00) R$(28,00) R$(27,00) R$(26,00) R$(25,00) R$(24,00) R$(23,00) R$(22,00) R$(21,00) R$(20,00) R$(19,00) R$(18,00) R$(17,00) R$(16,00) R$(15,00) R$(14,00) R$(13,00) R$(12,00) R$(11,00) R$(10,00) R$(9,00) R$(8,00) R$(7,00) R$(6,00) R$(5,00) R$(4,00) R$(3,00) R$(2,00) R$(1,00) R$- R$1,00 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 R$11,00 R$12,00 R$13,00 R$14,00 R$15,00 R$16,00 R$17,00 R$18,00 R$19,00 R$20,00

2010 2011

75,9 95,7 95,8

R$3,77 R$4,21 R$4,17

R$-

R$5,00

4Q10 3Q11 4Q11

COGS totaled R$ 95.8 million in 4Q11, an increase

of 26.2% against 4Q10. For fiscal year 2011, the

Company reported a 20.5% rise in relation to 2010;

This was principally due to higher sales volume in

2011 since on a unit COGS basis, the increase was

only 7.9% in relation to 2010, a reflection of the

principal cost component, polypropylene, which

reported higher prices during the year under review.

106,2 102,1

23,4% 19,4%

-45-45-44-44-43-43-42-42-41-41-40-40-39-39-38-38-37-37-36-36-35-35-34-34-33-33-32-32-31-31-30-30-29-29-28-28-27-27-26-26-25-25-24-24-23-23-22-22-21-21-20-20-19-19-18-18-17-17-16-16-15-15-14-14-13-13-12-12-11-11-10-10-9-9-8-8-7-7-6-6-5-5-4-4-3-3-2-2-1-1011223344

2010 2011

28,4 32,8 29,1

24,5% 23,0% 20,5%

-

20,0

40,0

60,0

80,0

100,0

4Q10 3Q11 4Q11

EBITDA (in millions of Reais)

and EBITDA Margin (%)

The Adjusted EBITDA reached R$ 102.1 million in

2011 and totaled R$ 29.1 million in 4Q11, a growth

of 2.2% when compared with the R$ 28.4 million

reported in 4Q10;

8

This year-on-year reduction is directly related

to:

• The increase in the prices of our main raw

material, polypropylene.

• The startup and adjustments in the US

production line.

In 4Q11 EBITDA Margin amounted to 20.5%, 4.1

p.p. down on 4Q10;

23,8

29,5

5,6% 5,3%

-5500,0%-5450,0%-5400,0%-5350,0%-5300,0%-5250,0%-5200,0%-5150,0%-5100,0%-5050,0%-5000,0%-4950,0%-4900,0%-4850,0%-4800,0%-4750,0%-4700,0%-4650,0%-4600,0%-4550,0%-4500,0%-4450,0%-4400,0%-4350,0%-4300,0%-4250,0%-4200,0%-4150,0%-4100,0%-4050,0%-4000,0%-3950,0%-3900,0%-3850,0%-3800,0%-3750,0%-3700,0%-3650,0%-3600,0%-3550,0%-3500,0%-3450,0%-3400,0%-3350,0%-3300,0%-3250,0%-3200,0%-3150,0%-3100,0%-3050,0%-3000,0%-2950,0%-2900,0%-2850,0%-2800,0%-2750,0%-2700,0%-2650,0%-2600,0%-2550,0%-2500,0%-2450,0%-2400,0%-2350,0%-2300,0%-2250,0%-2200,0%-2150,0%-2100,0%-2050,0%-2000,0%-1950,0%-1900,0%-1850,0%-1800,0%-1750,0%-1700,0%-1650,0%-1600,0%-1550,0%-1500,0%-1450,0%-1400,0%-1350,0%-1300,0%-1250,0%-1200,0%-1150,0%-1100,0%-1050,0%-1000,0%-950,0%-900,0%-850,0%-800,0%-750,0%-700,0%-650,0%-600,0%-550,0%-500,0%-450,0%-400,0%-350,0%-300,0%-250,0%-200,0%-150,0%-100,0%-50,0%0,0%50,0%100,0%150,0%200,0%250,0%300,0%350,0%400,0%450,0%500,0%550,0%600,0%650,0%700,0%750,0%800,0%

2010 2011

5,6

15,4

4,6

4,8%10,8%

3,2%

-80,0%

-30,0%

20,0%

70,0%

-

20,0

4Q10 3Q11 4Q11

Net Income Net Margin

NET INCOME (in millions of Reais)

and NET MARGIN (%)

Net Income for the year was R$ 29.5 million, an

increase of 23.7% in relation to the preceding year;

9

The calculation base for the annual adjusted

dividends reached R$ 39.5 million reflecting the

realization of deemed cost and the reversal of a

provision for the first Stock Option Plan.

249,1

323,0

81,2

-

50,0

100,0

150,0

200,0

250,0

300,0

4Q10 3Q11 4Q11

CASH AND CASH EQUIVALENTS(in millions of Reais)

10

The Company reported a reduction in its year-on-year

outstanding Cash balance of 67.4% or R$ 168.0 million

and 74.9% or R$ 241.8 million against 3Q11;

This reduction is directly related to:

• The strategy of reducing our Total Debt (early

settlement of R$ 106.5 million in debentures and

of R$ 152.6 million in contracts under the BNDES-

Exim Pre-Shipment Program) that consequently

reduced our Cash level;

• The down payment effected for the two lines

that will startup in 2012;

• Interim dividend payment of R$ 14.1 million.

NET DEBT(in millions of Reais)

Net Debt recorded an increase of R$ 96.9

million, or 39.7%, in relation to 4Q10, the principal

factor being additional funding for investments in

the projects of new lines in Brazil and the USA;

In 4Q11, the Company drew down the value on

an export finance line from the BNDES amounting

to R$ 50 million at an annual fixed rate of interest

of 9.0%, repayable in 18 months. Resources from

this line will be used by the Company for export

operations;

Of total debt, the Company has 35% in local currency and 65%, foreign currency denominated mainly in

the US with natural hedge due to sales and assets in that country.11

243,9

304,5 340,8

4Q10 3Q11 4Q11

DEBT / CASH(in millions of Reais)

Consolidated Net Debt

12

R$ (MM) 12/31/2010 12/31/2011Ch. 4Q11 /

4Q10

Total Debt

Short Term 262,2 73,6 -71,9%

Long Term 230,8 348,4 50,9%

Total 493,1 422,0 -14,4%

Cash 249,1 81,2 -67,4%

Net Debt 243,9 340,8 39,7%

Shareholders' Equity 697,1 689,3 -1,1%

DIVIDENDS (in millions of Reais)

24,2

32,9

39,5

R$ 0,30

R$ 0,41

R$ 0,49

R$ -

R$ 0,05

R$ 0,10

R$ 0,15

R$ 0,20

R$ 0,25

R$ 0,30

R$ 0,35

R$ 0,40

R$ 0,45

R$ 0,50

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

Dividends Paid (R$ million) Dividend/Share

Net income for the fiscal year 2011 R$ 29.5 million

(-) Legal Reserve (5%) R$ 1.5 million

(+) Realization of the Deemed cost: R$ 10.2 million

(+) Reversal of the provision for the

first Stock Option Plan R$ 1,3 million

Calculation base for the annual adjusted

dividends R$ 39.5 million

13

Management is proposing payment of a dividend in addition to the minimum mandatory payment, of R$

25.4 million, subject to resolution by the AGM. This will raise the Company’s dividend payout to 100% of

the calculation base for adjusted annual dividends, totaling R$ 39.5 million for the 2011 fiscal year,

equivalent to approximately an earnings per share of R$ 0,49.

The calculation base corresponds to :

** To be ratified at the AGM

2009 2010 2011**

HIGHLIGHTS

RESULTS

OUTLOOK

SCHEDULE

Providência USA

OUTLOOK

An increase in sales volume is expected for 2012 with the entry into operation in the 2nd quarter of

the production line in Pouso Alegre (MG) and in the 4th quarter, the production line in Statesville (NC).

The two projects are part of the scheduled expansion plan and will add a further 40 thousand tons to

our current installed capacity - representing a 40% increase.

15

KAMI 13 – Statesville/NC

KAMI 12 – Pouso Alegre/MG – February 2012

KAMI 13 – Statesville/NC – February 2012

CEO: Hermínio V. S. de Freitas

CFO: Eduardo Feldmann Costa

IR : Gabriela Las Casas

Beatriz Tokarski

Tel: +55 (41) 3381-8673

Fax: +55 (41) 3283-5909

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 .