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Conference Call
 2nd Quarter 2007
EBITDA and EBITDA Margin
EBITDA and EBITDA Margin
R$ millions and % of the Net Revenue            Adjusted EBITDA grew 10%,
                                                mainly due to the higher sales in
                                                the domestic market (nonwovens)
     37.0                                       and the reduction in COGS.

                  30.7
   28.7%                                        Growth should have been even
                                         26.3
                                23.9            better, had it not been impacted
                26.4%
                                        24.4%   by:
                             21.7%
                                                • the one-time reduction in sales
                                                abroad on account of the more
                                                severe winter in South America;

                                                • Lower production and sales of
                                                PVC related to unscheduled
 2Q06         4Q06         1Q07        2Q07     maintenances.
Sales Volume
                   SALES VOLUME (tons)


12.7
                    12.0               12.1                  12.6               • The Company has been
                                                                                gradually expanding its sales
                                                                                volumes, particularly in the
                                                                                nonwovens segment.
       7.0
                           6.4
                                              5.6                               • PVC production and sales
                                                                    5.0
                                                                                were affected by unscheduled
                                                                                maintenance

             0.7                 0.5                0.4                   0.6   • We will limit sales to the
                                                                                public sector, whose margins
3Q06                 4Q06              1Q07                   2Q07              are smaller.
       Nonwovens       Tubes and Connections              Packaging
Gross Revenues
           Gross Revenues
           R$ millions


 143.0
                130.1
                            121.6                  • In the domestic market,
                                           118.0
 44.9                                              nonwovens posted a 6.4% sales
                39.3                               growth
                           41.8            36.9
                                                   • Nonwovens exports revenues fell
 98.1                                              as a consequence the Brazilian
               90.7                                Real appreciation in relation to the
                           79.8            81.1    US dollar

                                                   • The lower PVC sales negatively
                                                   impacted this quarter’s results

2Q06          4Q06        1Q07        2Q07


        Domestic Market   Exports Market
Cost of Goods Sold
                 COGS / COGS MARGIN


                 74.8%
                             74.4%
                                      73.5%
                                              • The continued reduction
                                              in COGS has been
                                              improving our operating
 88.2                                         efficiency and guaranteeing
                86.8
        69.9%                                 greater operating margins
                            81.9
                                      79.1


 3Q06           4Q06        1Q07      2Q07


                COGS     MARGIN
Operating Expenses
  Operating Expenses and Financial Results
  R$ millions



                           2Q07 1Q07     %       • R$ 2.5 million - Expenses related to the
                                                 acquisition;
-Administrative Expenses   (12.7) (6.3) 102.3%   • R$ 0.7 million - IPO-related expenses;
                                                 • R$ 1.9 million - Price Adjustment, owed
                                                 to former shareholders in compliance
                                                 with the contract of purchase and sale;
                                                 • R$ 1.0 million - Non-recurring
                                                 expenses with personnel restructuring,
                                                 labor and civil claims contingencies.

                                                 • Interest on the debt contracted for
-Financial Result, net     (17.5) (9.9) 77.6%    financing the acquisition of the
                                                 Company (promissory notes)
Net Income
Net Income
R$ million
                                       • A combination of non-recurring
                                       expenses and financial charges was
                                       responsible for the loss recorded in the
                                       quarter
      31.1
                                       • Financial expenses will be reduced as
                                       of the 3rd quarter, due to the new debt
                                       position.
               9.8     9.7

                               (9.2)




  2Q06       4Q06    1Q07    2Q07
Net Debt
Composition of the Net Debt
R$ millions


                                                                                 Current
         (R$ Million)                                                            06/30/07               After IPO

       Total Debt

            Financing of the Acquisition plus interest                            499.5                            -
            Isofilme Acquisition                                                    97.0                     73.6
            Financing of Machine 09                                                 70.4                     70.4

            Promissory Notes II                                                                            250.0
                                                                                  666.9                    394.0
       Cash                                                                         57.0                     57.0
       Net proceeds from the IPO                                                          -              170.31

       Net Debt                                                                   609.9                    166.7

       Net Debt/ EBITDA LTM2                                                        5.8x                     1.6x
     1 Based in EBITDA LTM of R$ 105 million, as of march 31, 2007
     2 Preliminary Offering of R$ 451,7 million (net), less R$ 255,0 million related to the Promissory Notes and R$ 26.4 million from the
       payment of Isofilme
Operating Highlights

• Conclusion of Machine 09 financing; civil works finished and on-going
assembly process;


• Acquisition of Isofilme;


• New ERP (SAP) recently contracted – fully operational by the end of 1Q08;


• Sales department restructuring;


• Our IPO was successfully concluded, what was a critical step to reduce net
debt and prepare the Company for future acquisitions.
IR Contact
 Rubens Sardenberg
 IR Officer
 Phone: 55 (41) 3381-7600
 Fax: 55 (41) 3283-5909
 São José dos Pinhais – PR
 rubens@providencia.com.br
 www.providencia.com.br/ri

The words “believe”, “anticipate”, “expect”, “estimate”, “will”, “plan”, “may”, “intend”, “foresee”, “project”, and other similar expressions, are intended to indicate forward-looking
statements. Such forward-looking statements involve uncertainties, risks and assumptions, since they include information related to our possible or presumed future operating
results, business strategy, financing plans, competitive position in the market, sector 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 in the light of new information and/or future events

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2Q07 Presentation

  • 1. Conference Call 2nd Quarter 2007
  • 2. EBITDA and EBITDA Margin EBITDA and EBITDA Margin R$ millions and % of the Net Revenue Adjusted EBITDA grew 10%, mainly due to the higher sales in the domestic market (nonwovens) 37.0 and the reduction in COGS. 30.7 28.7% Growth should have been even 26.3 23.9 better, had it not been impacted 26.4% 24.4% by: 21.7% • the one-time reduction in sales abroad on account of the more severe winter in South America; • Lower production and sales of PVC related to unscheduled 2Q06 4Q06 1Q07 2Q07 maintenances.
  • 3. Sales Volume SALES VOLUME (tons) 12.7 12.0 12.1 12.6 • The Company has been gradually expanding its sales volumes, particularly in the nonwovens segment. 7.0 6.4 5.6 • PVC production and sales 5.0 were affected by unscheduled maintenance 0.7 0.5 0.4 0.6 • We will limit sales to the public sector, whose margins 3Q06 4Q06 1Q07 2Q07 are smaller. Nonwovens Tubes and Connections Packaging
  • 4. Gross Revenues Gross Revenues R$ millions 143.0 130.1 121.6 • In the domestic market, 118.0 44.9 nonwovens posted a 6.4% sales 39.3 growth 41.8 36.9 • Nonwovens exports revenues fell 98.1 as a consequence the Brazilian 90.7 Real appreciation in relation to the 79.8 81.1 US dollar • The lower PVC sales negatively impacted this quarter’s results 2Q06 4Q06 1Q07 2Q07 Domestic Market Exports Market
  • 5. Cost of Goods Sold COGS / COGS MARGIN 74.8% 74.4% 73.5% • The continued reduction in COGS has been improving our operating 88.2 efficiency and guaranteeing 86.8 69.9% greater operating margins 81.9 79.1 3Q06 4Q06 1Q07 2Q07 COGS MARGIN
  • 6. Operating Expenses Operating Expenses and Financial Results R$ millions 2Q07 1Q07 % • R$ 2.5 million - Expenses related to the acquisition; -Administrative Expenses (12.7) (6.3) 102.3% • R$ 0.7 million - IPO-related expenses; • R$ 1.9 million - Price Adjustment, owed to former shareholders in compliance with the contract of purchase and sale; • R$ 1.0 million - Non-recurring expenses with personnel restructuring, labor and civil claims contingencies. • Interest on the debt contracted for -Financial Result, net (17.5) (9.9) 77.6% financing the acquisition of the Company (promissory notes)
  • 7. Net Income Net Income R$ million • A combination of non-recurring expenses and financial charges was responsible for the loss recorded in the quarter 31.1 • Financial expenses will be reduced as of the 3rd quarter, due to the new debt position. 9.8 9.7 (9.2) 2Q06 4Q06 1Q07 2Q07
  • 8. Net Debt Composition of the Net Debt R$ millions Current (R$ Million) 06/30/07 After IPO Total Debt Financing of the Acquisition plus interest 499.5 - Isofilme Acquisition 97.0 73.6 Financing of Machine 09 70.4 70.4 Promissory Notes II 250.0 666.9 394.0 Cash 57.0 57.0 Net proceeds from the IPO - 170.31 Net Debt 609.9 166.7 Net Debt/ EBITDA LTM2 5.8x 1.6x 1 Based in EBITDA LTM of R$ 105 million, as of march 31, 2007 2 Preliminary Offering of R$ 451,7 million (net), less R$ 255,0 million related to the Promissory Notes and R$ 26.4 million from the payment of Isofilme
  • 9. Operating Highlights • Conclusion of Machine 09 financing; civil works finished and on-going assembly process; • Acquisition of Isofilme; • New ERP (SAP) recently contracted – fully operational by the end of 1Q08; • Sales department restructuring; • Our IPO was successfully concluded, what was a critical step to reduce net debt and prepare the Company for future acquisitions.
  • 10. IR Contact Rubens Sardenberg IR Officer Phone: 55 (41) 3381-7600 Fax: 55 (41) 3283-5909 São José dos Pinhais – PR rubens@providencia.com.br www.providencia.com.br/ri The words “believe”, “anticipate”, “expect”, “estimate”, “will”, “plan”, “may”, “intend”, “foresee”, “project”, and other similar expressions, are intended to indicate forward-looking statements. Such forward-looking statements involve uncertainties, risks and assumptions, since they include information related to our possible or presumed future operating results, business strategy, financing plans, competitive position in the market, sector 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 in the light of new information and/or future events