4Q09 Results4Q09 Results

February 25February 25thth 20102010

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HIGHLIGHTS

First year in which the Company’s Financial Statements originated exclusively from the

nonwovens business. In preceding years the figures incorporated the pipes and fittings

division and flexible packaging business. This is an important landmark event in

Providência’s existence and indicative that its strategic plan is being consistently

implemented ;

Resumption of the project for building the Company’s first plant in the United States,

with an installed capacity of 20 thousand tons of nonwovens and investments worth US$

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with an installed capacity of 20 thousand tons of nonwovens and investments worth US$

80 million;

Interim dividend payment of R$ 10.5 million, corresponding to 50% of the

accumulated net income in the first half of 2009;

Standard & Poor’s maintained the rating assigned to both the Company and its

debentures stable at brA following the annual review.

Recovery in sales volume in the quarter exceeded pre-world crisis level, our

production reaching close to full capacity.

2009 Nonwovens:

Ebitda: R$ 116.5 million

Net Income: R$ 51.0 million

Operating Cash Generation: R$ 120.9 million

HIGHLIGHTS

Operating Cash Generation: R$ 120.9 million

Cash: R$ 265.2 million

Net Debt: R$ 153.2 million

Dividends: R$ 24.2 million

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

17,3

88,9

71,3

The accumulated total for the year, excluding the pipes and fittings division, reported

stability in spite of the “world crisis”;

Growth of 5.1% in 4Q09 in relation to 4Q08;

As from the second half, sales volumes recovered.

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68,0 66,5

3,6 4,8

2008 2009

Nonwovens Others Pipes and Fittings

17,3 17,7 18,7

1,6 1,4 1,2

19,0 19,1 19,9

4Q08 3Q09 4Q09

NET REVENUE NET REVENUE

NONWOVENS DIVISION NONWOVENS DIVISION (in (in millionmillion Reais)Reais)

For fiscal year 2009, we recorded a reduction of R$ 20.4 million compared with 2008,

largely a reflection of currency variations;

Net Income registered a reduction of R$ 15.2 million compared with 4Q08, again

reflecting currency variations. On a 4Q09 vs 3Q09 comparative basis, there was an increase

of 7.8% due to the increase in volume.

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421,3 401,0

2008 2009

124,4 100,7 109,1

4Q08 3Q09 4Q09

COGSCOGS

NONWOVENS DIVISIONNONWOVENS DIVISION

294,8 0

0 84,5

70,6

The 2009 vs 2008 decline of 16.4% reflects the adjustment in depreciation and reduction in

raw material prices, the same factors explaining the variations between 4Q09 and 4Q08;

The increase of 4Q09 vs 3Q09 is due basically to the adjustment in depreciation in 3Q09.

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246,4

R$ 4,12

R$ 3,45 0

0

0

0

0

2008 2009

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

56,0

70,6

R$ 4,45

R$ 2,93

R$ 3,55

4Q08 3Q09 4Q09

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

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

107,8

116,5

0

0 33,3 31,8

EBITDA for the Nonwoven Division in fiscal year 2008 reported year on year growth of

8.1%, corresponding to an additional R$ 8.8 million, thanks to better margins;

4Q09 posted an improvement over 3Q09 principally in function of the greater volume,

with better margins when comparing the two quarters.

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25,6%

29,1%

0

0

0

0

0

2008 2009

2008 2009

Ebitda Ebitda Margin (%)

26,1

26,8%25,9%

29,2%

4Q08 3Q09 4Q09

Net Earnings (R$ millions) Net Earnings (R$ millions)

and Net Margin (%)and Net Margin (%)

51,0

For the accumulated year 2009, net income was 26.6% higher than 2008. Note, that in

2008, results included the pipes and fittings division as well as the result of the division’s

divestment;

Net income in 4Q09 was less than recorded in 4Q08 when results included the sale of

the Pipes and Fittings Division. In 3Q09 there was a positive adjustment for depreciation.

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40,3

8,1%

12,4%

2008 2009

19,018,0

10,9 15,0%

17,4%

9,5%

4Q08 3Q09 4Q09

Net Earnings Net Margin (%)

CASH AND CASH EQUIVALENTS

(in million Reais)

The Company’s cash position increased

R$ 29.9 million, equivalent to 12.7%

compared with 2008, principally due to

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235,4

265,2

2008 2009

the improvement in operating margins,

better tax planning and improved

management of the working capital

accounts (inventory, accounts receivable

and suppliers).

NET DEBT

(in million Reais)

257,3

The Company’s Net Debt fell sharply by

40.5%, compared with 2008, a reduction

of R$ 104.1 million, the highlights being

operating cash generation of R$ 120.9

million and a positive currency translation

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257,3

153,2

2008 2009

million and a positive currency translation

effect;

72% of debt is local currency-based and

28% US Dollar denominated.

CASH & DEBTCASH & DEBT

Consolidated Net DebtConsolidated Net Debt

R$ (MM) 12/31/2008 12/31/2009Var 2009 /

2008

Total Debt

Short Term 38.4 125.6 226.7%

Long Term 454.2 292.8 -35.5%

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Long Term 454.2 292.8 -35.5%

Total 492.7 418.4 -15.1%

Cash 235.4 265.2 12.7%

Net Debt 257.3 153.2 -40.5%

Net Debt / Adjusted EBITDA 2.2 1.3 (0.9)

Shareholders' Equity 471.6 506.9 7.5%

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Prospects for 2010 are for an increase in sales volume and operations running at full

capacity given that nonwoven products are sold as a raw material for non-durable

consumer goods. In turn the sale of such goods is directly related to monthly

household income which has been reporting consistent growth for some time and

should continue this trend in the coming years;

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The Company’s principal investment, the plant in the United States, is progressing in

line with the forecasted schedule. We believe that it will be possible to maintain the

initial forecast so that operations can begin in the first half of 2011.

CEO: Hermínio V. S. de FreitasCEO: Hermínio V. S. de Freitas

CFO: Eduardo Feldmann Costa

IR : Gizele Rigoni

Tel: +55 (41) 3381-8673

Fax: +55 (41) 3283-5909

São José dos Pinhais – PR

www.providencia.com.br/ir

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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 .