1Q 2012 Results

May 15th, 2012

SCHEDULE

HIGHLIGHTS

RESULTS

OUTLOOK

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Providência USA

Providência USA Providência USA

HIGHLIGHTS 1Q 2012

The first production line of the United States reached record production after

completion of the technical adjustments necessary for the full operation of equipment;

The second production line at the Pouso Alegre (MG) site is in the final

implementation phase and will go into operation in early June of this year. This line will

add 20 thousand tons to the Company’s capacity and will produce disposable hygienic

and medical products mainly directed to the domestic market, the total investment

being worth US$ 63 million;

The Extraordinary and Annual General Meeting of March 29, 2012 approved an

additional payout of R$ 25.4 million in dividends, totaling 100% of the 2011 annual

adjusted dividend calculation base. The shares will trade ex-dividend on May 15, 2012

and payout will take place on May 25, 2012.

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SCHEDULE

HIGHLIGHTS

RESULTS

OUTLOOK

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Providência USA

SALES VOLUME (in thousands of tons)

5

The increase was mainly due to tje

first production line of the United

States, that started up in

January/2011 and on 4Q11 had the

technical adjustments necessary for

the full operation of equipment

completed.

During the quarter, the Company

reported an increase in total sales

volume of 15.5% compared with the

same period in 2011;

18.6 20.6 21.3

1,5

2.3 1.8

1Q11 4Q11 1Q12

Nonwovens Others

20.1

22.9 23.1

115.1

142.0 139.4

1Q11 4Q11 1Q12

NET REVENUE (in millions of Reais)

6

The Company posted Net Revenue

of R$ 139.4 million in 1Q12, a

growth of 21.1% when compared

with 1Q11;

This increase is principally related

to the increase in sales volume,

price realignment and to the

valuation of the US Dollar.

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

This increase of 22.1% compared

with 1Q11 is mainly a reflection of the

higher sales volume in 1Q12, since

unit COGS posted a year-on-year

increase of only 5.7%, impacted by

rising prices in the Company’s principal

cost component, polypropylene;

7

In relation to the 4Q11 the unitary

COGS remained stable, despite the

12% increase of polypropylene

according to the Chemical Data Index.

79.1 95.8

96.6

R$ 3.95 R$ 4.17 R$ 4.18

-

20,0

40,0

60,0

80,0

100,0

120,0

140,0

1Q11 4Q11 1Q12

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

EBITDA (in millions of Reais) and EBITDA MARGIN (%)

Adjusted EBITDA in 1Q12

reached R$ 28.9 million, a

growth of 30.6% when

compared with R$ 22.1 million

reported in 1Q11;

8

The EBITDA increase was mainly due to the higher sales volume and to the prices recovery.

22.2

29.1 28.9

19.2%

20.5% 20.7%

10,0% -

20,0

40,0

1Q11 4Q11 1Q12

Ebitda Ebitda Margin (%)

NET INCOME (in millons of Reais) and NET MARGIN(%)

25,0

9

7.1

4.6

7.1

6.2%

3.2%

5.1%

-10,0% -

1Q11 4Q11 1Q12

Net Income Net Margin

Net Income totaled R$ 7.1 million

in 1Q12, stable in relation to 1T11

and 52.9% higher than in the 4Q11;

Calculation base for the annually

adjusted dividends for the quarter

(retained profits) reached R$ 9.6

million, since the realization of the

deemed cost in the quarter, net of tax

is added.

CASH AND CASH EQUIVALENTS (in millions of Reais)

270.6

81.2 93.0

-

50,0

100,0

150,0

200,0

250,0

1Q11 4Q11 1Q12

Total

10

In 1Q12 the Company reported a decrease in

Cash and Cash Equivalents, comparing to 1Q11,

due to the strategy of the Company to pay some

Debt, mainly Debentures and Exim-BNDES in

4Q11;

In relation to the 4Q11 , the increase is directly

related to the generation of operational

resources of R$ 40.0 million, and to the success

in the reduction of working capital need.

NET DEBT (in millions of Reais)

Net debt increased 58.4% when

compared with 1Q11 due to the new

investments that will start up in 2012;

The foreign currency named debt

was mainly taken in the USA, because

of its natural hedge due to the

revenue and assets in that country.

11

224.3

340.8 355.3

-

50,0

100,0

150,0

200,0

250,0

300,0

1Q11 4Q11 1Q12

Local Currency

38%

62%

Foreign Currency

DEBT / CASH (in millions of Reais)

Consolidated Net Debt

12

R$ (MM) 03/31/11 03/31/12 Ch. 1Q12 /

1Q11

Total Debt Short Term 266,1 73,5 -72,4% Long Term 228,8 374,9 63,8%

Total 494,9 448,3 -9,4% Cash 270,6 93,0 -65,6%

Net Debt 224,3 355,3 58,4%

Shareholders' Equity 704,3 671,3 -4,7%

Net Debt / Adjusted EBITDA 2,6 3,6 38,1%

Net Debt / EBITDA without the Preoperational lines Debt

2,4 2,5 4,2%

DIVIDENDS (in millions of Reais)

25,0

13

The Ordinary and Extraordinary General Meeting held on March 29, 2012 approved an

additional payout of R$ 25.4 million in dividends, totaling R$ 39.5 million for the 2011

fiscal year.

11,1 14,1

21,7

25,4

R$ 0,41 R$ 0,49

-R$ 3,00

-R$ 2,50

-R$ 2,00

-R$ 1,50

-R$ 1,00

-R$ 0,50

R$ -

R$ 0,50

0

5

10

15

20

25

30

35

40

45

2010 2011

2º Half

1° Half

Dividends/ Share

32,8

39,5 Ex-dividend: May, 15

Payout: May, 25

HIGHLIGHTS

RESULTS

OUTLOOK

SCHEDULE

Providência USA

OUTLOOK

The outlook for 2012 is for an increase in sales volume with the entry into operation of

the second plant at the Pouso Alegre (MG) unit in early June 2012. This line will add 20

thousand tons to the Company’s capacity and will produce disposable hygienic and medical

items mainly directed to the domestic market, the total investment being worth US$ 63

million;

Work on the installation of a second production line at our Statesville (NC) plant in the

United States is running to schedule. The line will go into operation during the course of the

4th quarter 2012 and will ramp up production by an annual 20 thousand tons;

By the end of 2012 the Company will reach 140 thousand tons annually, confirming his

reputation as one of the major players in the nonwovens industry;

Companhia Providencia USA concluded the final audit for International Organization for

Standardization 9001 Certification, that will be favorable recommended within a few days. 15

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 .