August 8, 2013

2Q13 Results

SCHEDULE

HIGHLIGHTS

RESULTS

OUTLOOK

2

Providência USA

Providência USA

The principal highlight in the quarter was the pace at which production from our 13th

nonwovens line was ramped up and exceeding expectations. This line is our second at the

Statesville plant in North Carolina, adding a further 20 thousand tons to the Company’s

annual installed capacity to make a total of 140 thousand tons;

In May, the Company concluded the payout of an additional R$ 33.8 million in dividends,

approved by the E/AGM of April 1, 2013, amounting to 100% of the adjusted dividend

calculation base for 2012;

Sales Volume totaled 30.5 thousand tons, a growth of 24.1% compared with the same

period in 2012. Quarter-on-quarter growth was 13.0%;

Net Income in the period amounted to R$ 8.2 million, 5.0% more than 2Q12 and 63.0%

higher than 1Q13.

HIGHLIGHTS 2Q13

SCHEDULE

HIGHLIGHTS

RESULTS

OUTLOOK

4

22.3 24.4 28.0

2.3 2,6

2.5 24.6

27.0 30.5

2Q12 1Q13 2Q13

Nonwovens Other

SALES VOLUME (in thousands of tons)

The increase was mainly due to the 2nd production line at the Pouso Alegre (MG) facility,

that started up in June/2012 and to our 2 nd machine in Statesville/USA, that started up in

March/2013.

During the quarter, Sales Volume totaled , a growth of 24.1%

compared with the same period in 2012;

151.0 160.6 193.1

R$ 6.15

R$ 5.95

R$ 6.33

2Q12 1Q13 2Q13

Net Revenue Unitary Net Revenue

6

NET REVENUE (in millions of Reais)

The increase is largely due to the higher sales volume.

6

Net Revenue for 2Q13 amounted to , an increase of 27.9% compared

with 2Q12. When compared with 1Q13, growth was 20.2%;

The COGS totaled in 2Q13, a growth of 31.4% against the R$ 108.1

million recorded in 2Q12 and an increase of 23.6% compared with the R$ 114.9 million in

1Q13;

108.1 114.9

142.0

R$ 4.40 R$ 4.26

R$ 4.66

2Q12 1Q13 2Q13

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

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

7 7

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

material.

28.2 25.8

32.1

18.7%

16.1% 16.6%

2Q12 1Q13 2Q13

Ebitda Ebitda Margin (%)

Adjusted EBITDA in 2Q13 reached , corresponding to a 24.4% improvement compared with 1Q13 and 13.7% more than 2Q12. Adjusted EBITDA margin was 16.6%, a slight

rise of 0.5 p.a. compared with 1Q13.

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

8

7.8

5.1

8.2

5.2%

3.1%

4.3%

0,0% -

2Q12 1Q13 2Q13

Net Income Net Margin

9

NET INCOME (in millions of Reais)

and NET MARGIN(%)

25,0

9

The adjusted dividend calculation base for the quarter was R$ 10.9 million, the difference

representing the realization of the deemed cost for the quarter, net of tax.

Net Income in the period amounted to , 5.0% more than 2Q12 and 63.0%

higher than 1Q13;

Net Debt increased 24.9% when compared

with 2Q12 due to an increase in Gross Debt of

R$ 126.7 million against a growth of R$ 28.1

million in cash and liquid hedge instruments. Net

Debt increased 8.5% in relation to 1Q13;

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.

396.5 456.2

495.1

2Q12 1Q13 2Q13

NET DEBT (in millions of Reais)

28%

72% Foreign

Currency

Local Currency

Consolidated Net Debt

DEBT / CASH (in millions of Reais)

11

R$ (MM) 6/30/2012 3/31/2013 6/30/2013 Ch. 2Q13 /

2Q12

Total Debt

Short Term 117.7 114.5 67.4 -42.8%

Long Term 349.2 475.5 526.2 50.7%

Total 466.8 590.0 593.5 27.1%

Cash and liquid hedge instruments 70.4 133.8 98.4 39.7%

Net Debt 396.5 456.2 495.1 24.9%

Shareholders' Equity 678.7 696.1 670.0 -1.3%

Net Debt / Adjusted EBITDA 3.35 3.70 3.95 17.9%

Net Debt / Adjusted EBITDA

without the Preoperational lines Debt* 2.33 2.24 2.63 12.9%

Net Income for the financial year in 2012 R$ 45.1 million

(-) Legal Reserve (5%) R$ 2.2 million

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

Dividend Calculation Base R$ 53.1 million

11.1 14.1 19.3

21.7 25.4

33.8

0.41

0.49

0.66

0,00

0,10

0,20

0,30

0,40

0,50

0,60

2010 2011 2012

1° Half 2º Half Dividends/Share

The Company concluded the payout of an additional R$ 33.8 million in dividends, approved

by the E/AGM of April 1, 2013, amounting to 100% of the adjusted dividend calculation base for

2012.

DIVIDENDS (in millions of Reais)

25,0

12

This calculation base corresponds to:

R$5

R$6

R$7

R$8

R$9

R$10

Jun-12 Sep-12 Dec-12 Mar-13 Jun-13

MARKET VALUE RATIOS

25,0

13

Dividend Yield* Share Price / Book Value per Share

PRVI3 Ch.2Q13/2Q12

* Dividend per Share / Share price at the end of the period.

5,54%

8,06% 7,37%

2010 2011 2012

0.74

1.00 0.99

-

0,20

0,40

0,60

0,80

1,00

1,20

1,40

2Q12 1Q13 2Q13

HIGHLIGHTS

RESULTS

OUTLOOK

SCHEDULE

OUTLOOK

With the unveiling in 1Q13 of the second production line in Statesville – the Company’s 13th

- and the conclusion to the respective ramping up of output, Providência’s objective is now to

increase the use of installed capacity with a consequent growth in sales as well as an enhanced

product mix;

By the year-end, Companhia Providência’s installed capacity will have reached 140 thousand

tons/year, consolidating the Company’s ranking as one of the largest and most modern players

in the global nonwovens industry.

15 K12 K13

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/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 .