2Q10 2Q10 ResultsResults

August 6 2010August 6 2010

SCHEDULESCHEDULE

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RESULTSRESULTSRESULTSRESULTS

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HIGHLIGHTS

In April 2010, the Company obtained R$ 13 million refund of tax claims of IPI

concerning the financial year 2008 and complement of the refund of the claim

concerning the financial year 2006;

Disbursement of R$ 16.5 million of the Recovery Zone Facility Bond, created by the

U.S. Federal Government, to finance “shovel-ready” investment projects. This loan is

destined to the construction of the Company’s first overseas plant in North Carolina,

USA, with maturity of 20 years;USA, with maturity of 20 years;

During 2Q10, COGS was impacted by approximately 14% price increase of our main

raw-material, polypropylene. This increase, totaling approximately 35% in 1st half of

2010, was mainly due to temporary supply restrictions of its feedstock, propylene, and

the delayed start-ups of new petrochemical plants in Asia. We emphasize that this

negative effect was partially offset by savings in labor, maintenance, energy and other

cost items.

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SALES VOLUME SALES VOLUME ((in thousands of tonsin thousands of tons))

Growth of 21.7% in volume of

nonwovens compared with 2Q09 and17,8 18,7

1,0

0,9 1,3

16,4

18,7 20,0

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5.3% in relation to 1Q10.15,4 17,8 18,7

2Q09 1Q10 2Q10

Nonwovens Others

NET REVENUE NET REVENUE

NONWOVENS DIVISION NONWOVENS DIVISION (in (in millionsmillions ofof Reais)Reais)

Compared with 2Q09, we recorded an

increase of R$ 21.9 million, equivalent to

23.6%, and 13.2% when compared with

1Q10;

114,8

The principal factors explaining the

increase in net revenues are: higher sales

volume, price readjustment and the

currency translation effect.

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92,9 101,5

114,8

2Q09 1Q10 2Q10

The increase in absolute terms of 38.9%

compared with 2Q09 and 14.1% with 1Q10,

is largely due to greater sales volume and an

increase in polypropylene prices;

The increase in unit COGS reflects prices

COGSCOGS

NONWOVENS DIVISIONNONWOVENS DIVISION

55,0

67,0

76,4

of our principal raw material

(polypropylene), which rose about 35%

during the 1st half of 2010. However, the

other components of COGS (direct labor

costs, maintenance, electricity and other

inputs), contributed to ensuring that the

effects were minimized.

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R$ 3,36 R$ 3,58

R$ 3,82

2Q09 1Q10 2Q10

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

EBITDA (R$ EBITDA (R$ millions) millions)

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

Nonwovens EBITDA closed 2Q10 ,

with an increase of 9.2% or R$ 2.1

million in relation to 1Q10 and a

reduction of 0.8 p.p. in the EBITDA

27,1

22,8

24,9

29,2%

margin.

In comparison with 2Q09, there

was a reduction of R$ 2.2 million and

7.5 p.p. in the EBITDA margin.

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22,4% 21,7%

2Q09 1Q10 2Q10

Ebitda Ebitda Margin (%)

NET INCOME (NET INCOME (R$ R$ millions) millions)

AND NET MARGIN AND NET MARGIN (%)(%)

The increase in net income in 2Q10

x 1Q10 is due to the increase in sales

volume, passing on of costs to prices

and lower financial expenses.

14,9

7,2

9

and lower financial expenses.

Compared with 2Q09, the principal

differences are due to non-recurring

expenses and the currency translation

effect which benefited the net

financial result.

4,5 15,7%

4,3%6,2%

2Q09 1Q10 2Q10

Net Earnings Net Margin (%)

CASH AND CASH EQUIVALENTS

(in millions of Reais)

The Company’s cash position fell 14.4% or

R$ 38.1 million, compared with 1Q10,

principally due to payment of principal andprincipally due to payment of principal and

semi-annual interest on debt, in addition to

dividends.

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268,3 264,0 225,8

2Q09 1Q10 2Q10

The Company’s Net Debt increased 5.9%,

or R$ 10.7 million compared with 2Q09,

mainly due to the drawdown of resources

under the Recovery Zone Facility Bond

program of R$ 16.5 million for financing civil

NET DEBT

(in millions of Reais)

181,8 170,5 192,5

construction work in the USA;

67% of the debt is denominated in Reais

and 33% currency-based.

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181,8 170,5 192,5

2Q09 1Q10 2Q10

DEBT/DEBT/

CASHCASH

ConsolidatedConsolidated Net Net DebtDebt

R$ (MM) 06/30/2009Var 2Q10 /

2Q09

Var 1Q10 /

1Q09

Total Debt

Short Term 56.9 126.7 122.7%

Long Term 393.1 291.6 -25.8%

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Long Term 393.1 291.6 -25.8%

Total 450.0 418.4 -7.0%

Cash 268.3 225.8 -15.8%

Net Debt 181.7 192.5 6.0%

Net Debt / Adjusted EBITDA 1.5 2.2 0.5

Shareholders' Equity 497.0 506.6 1.9%

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High expectation of full capacity utilization during 2nd half of 2010, as strongly

indicated by 3Q10 customer purchase orders already booked;

The end of this quarter already signaled stabilization of polypropylene prices, which

we expect will contribute to the improvement of our margins in 3Q10;

The plant in North Carolina, our Company’s main investment project this year, is

progressing according to schedule and budget. The first of a total of 5 shipments took

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progressing according to schedule and budget. The first of a total of 5 shipments took

place in July and equipment assembly is due to begin by mid-August;

Providência USA shall provide approximately 10 thousand tonnes/year of

nonwovens to North American customers currently supplied from Brazil. Furthermore,

the Company is establishing supply agreements of an estimated additional amount of 5

thousand tonnes/year, upon the start-up of the subsidiary’s operations.

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CEO: Hermínio V. S. de Freitas

CFO: Eduardo Feldmann CostaCFO: 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/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 .