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3Q07 Results
   November 14, 2007
Highlights
 Sales volume increased 7.9% in the 3Q07 compared to the 2Q07;

 Gross Revenue was R$ 124.6 million, a 5.6% growth over the 2Q07;

 Net Revenue was R$ 113.3 million, 5.3% higher than in the 2Q07 (R$ 107.6 million);

 COGS per unit declined by 2.1% compared to the 2Q07;

 Adjusted EBITDA reached R$ 27.7 million in the quarter, an increase of 5.6% compared to the 2Q07.
EBITDA margin was 24.5%, practically the same as in the previous quarter. Consolidated EBITDA (with
Isofilme) reached R$ 28.5 million;

 Adjusted Net Income stood at R$ 12.2 million, reversing the loss posted in the 2Q07;

 IPO concluded in July, raising a net amount of R$ 451 million;

 Acquisition of Isofilme concluded;

 Closure of operations in the flexible packaging division.
Sales Volume

                                Sales Volume (tonnes thd)

                                                                      13.1                     The Company recovers sales volumes in
12.7                                         12.6
                         12.1
                                                                                             its core businesses.

                                                                                              4% growth in the nonwovens segment.

       6.9                                                                                    14% growth in the PVC segment,
                                5.6                                          5.7
                                                    5.0
                                                                                             including the recovery relating to the 2Q07,
                                                                                             when       there     was        unscheduled
                                                                                             maintenance.

             0.7                      0.4                 0.6                      0.5 0.4    Packaging segment showed slight
                   0.2                                          0.2
                                                                                             decrease in volume reflecting the
       3Q06                     1Q07                2Q07                     3Q07            slowdown on account of the closing down
  Nonwoven               Tubes and Connections              Packaging              Others    of its activities.
Gross Revenue

     Gross Revenue(R$ million)            5.6% revenue growth between the 2Q07 and the
 140.0                                   3Q07.
            121.6      118.0     124.6

 41.5                                     In the external market, revenues grew 6.9%,
            41.8       36.9      39.5
                                         mainly due to the increase in sales volume,
 98.5                                    because prices fell due to the strengthening of the
            79.8       81.1      85.1
                                         Brazilian Real against the dollar.

3Q06      1Q07       2Q07      3Q07        In the internal market, gross profit increased 4.9%
    Foreign Market    Domestic Market
                                         also due to the growth in sales volume, especially
                                         in the tubes and connections segment.
Cost of Goods Sold (COGS)

 Cost of Goods Sold (R$ million)
 88.2
                                           The unit cost of goods sold declined 2.1% in
                                   83.7
           81.9                           comparison with the previous quarter.
                      79.1
                                           Stronger Real compensated for the pressure
                                          on resin prices.




3Q06      1Q07      2Q07      3Q07
Operating (Expenses) Revenues
                                                                 Selling expenses: 18.2% increase over the
   Operating (Expenses) Revenues (R$ million)                  previous quarter, mainly due to the increase in
     17.1         15.9           18.7         36.3
                                                               freight on account of higher sales volume and
                                                               provision for doubtful accounts.

     6.0                          6.5         7.7
     6.0            7.5                                         Administrative   expenses:  excluding  the
                    7.5                                        non-recurring expenses of the 3Q07 (IPO
                    6.3                                        expense of R$20.1 million) and of the 2Q07
     8.1
     8.1            6.3                       28.5
                                 12.8                          (acquisition process of R$ 2.6 million),
                    7.8                                        administrative expenses declined 17.6% in
     4.7
     4.7            7.8                        5.8
                                  2.0                          comparison with the 2Q07.
    (1.6)
    (1.6)          (5.7)         (2.5)        (5.6)
                   (5.7)
                                                                Depreciation and Amortization: increase is due
 3Q06            1Q07       2Q07          3Q07                 to reversal (credit) in the goodwill amortization in
Sales Expenses                      Administrative Expenses    the 2Q07 because of the change in the
Depreciation and Amortization       Other Operating Revenues   amortization period from 5 to 10 years.

                                                                Other operating expenses/revenues: result of
                                                               Isofilme according to the equity method was
                                                               R$ 4 million..
EBITDA and EBITDA Margin

Adjusted EBITDA (R$ million) and EBITDA Margin (%)    Adjusted EBITDA was R$27.7 million, with
                                                     growth of 5.6% in relation to the 2Q07.
       32.1                                          Including Isofilme, adjusted EBITDA reached
                                26.3        27.7     R$ 28.5 million
                  23.9
      25.4%
                                                      EBITDA margin remained stable at 24.5%,
                              24.4%        24.5%
                                                     reflecting the fall in selling prices in Reais.

                 21.7%                                We estimate our EBITDA “loss” in the 3Q07 at
                                                     R$ 2.7 million, due to the impact of the
                                                     weakening Dollar on prices in the external and
                                                     internal markets.
    3Q06        1Q07         2Q07          3Q07
                  Adjusted EBITDA Margin              Non recurring expenses which influenced
                                                     EBITDA in 3Q07:
                                                         IPO expenses: R$ 20.1 million
                                                         Inventory adjustment: R$ 2.7 million
                                                         Acquisition of Isofilme and discontinuity of
                                                       transporter and flexible packaging division:
                                                       R$ 2.9 million
Net Income and Net Margin

Adjusted Net Income (R$ million) and Net Margin (%)
                                                       Adjusted Net income in the 3Q07 was
  21.9
                                                      R$ 12.2 million, reversing the negative result
                                                      of the 2Q07. Net margin was 10.8%

                                             12.2
 17.4%                                                 This   positive  result     reflects    the
                                                      improvements in the operations and
                                            10.8%     Company’s new cash position after the IPO.
                 2.4
                                -3.8
                2.3%
                               -3.6%



3Q06         1Q07             2Q07        3Q07
                  Net Margin Adjusted
Consolidated Debt

 Composition of Net Debt
    (R$ million)                                                        09/30/07   06/30/07
    Total Debt

         Short-Term                                                        283.2    499.6

         Long-Term                                                         109.7     30.7

         Total                                                             392.3    530.3

    Cash and Commercial Markeable Securities                               210.5     57.8

    Net Debt                                                               182.4    472.5

       Net Debt / EBITDA (1)                                                1.6X     4.5X
 (1) Adjusted EBITDA in the quarter + EBITDA of Isofilme, annualized.
Debt (cont.)

Providencia intends to continue its strategy of profile extension and debt cost reduction.
Next stages:

1) Elimination of Isofilme’s short-term debt of approximately R$ 25 million, through capital
   injection;

2) Redemption of Eurobond in the value of $10 million issued by Isofilme at a cost of
   US$ + 9% per year;

3) Conclusion of redemption of the promissory notes (approximately R$ 250 million) used
   to finance the Company acquisition;

4) The funds required for these operations and to rebuild Company’s cash position will be
   raised through a debenture issue and/or long-term bank loan.
Operational Highlights

1) KAMI 9 Project
     • Construction concluded and machinery deployed within schedule;
     • Operations start in January 2008;
     • Investments within the budget.

2) Nonwovens – Laminates
     • Sales as per plans. Full production capacity in the 4Q07.

3) Nonwovens – Medical Disposables
     • Product planning and development already started;
     • Executive with vast experience in the segment hired;
     • Sales expected to commence in the 1H08.

4) ISOFILME
     • Acquisition completed;
     • Sales, controllership and finance departments already integrated;
     • Investment s to streamline operations in order to attain full
     production capacity will be concluded by year-end.
Operational Highlights (Cont.)

5) Flexible Packaging Segment
     • Operations closed on September 30;
     • Sale of equipment and installation should be concluded by year-end.

6) SAP Project
     • Project officially started in August;
     • Conclusion by the end of 1Q08.

7) PVC Tubes and Connections Division
     • Recruitment of a General Manager with vast experience in this segment;
     • New connection molds received according to schedule in order to increase
       capacity;
     • Schedule for installation of extruder for large diameters is on as planned, will start
       operating in the 4Q07.
IR Contact
       Rubens Sardenberg
       IR Officer
       Tel.: 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, 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 .

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3Q07 Presentation

  • 1. 3Q07 Results November 14, 2007
  • 2. Highlights Sales volume increased 7.9% in the 3Q07 compared to the 2Q07; Gross Revenue was R$ 124.6 million, a 5.6% growth over the 2Q07; Net Revenue was R$ 113.3 million, 5.3% higher than in the 2Q07 (R$ 107.6 million); COGS per unit declined by 2.1% compared to the 2Q07; Adjusted EBITDA reached R$ 27.7 million in the quarter, an increase of 5.6% compared to the 2Q07. EBITDA margin was 24.5%, practically the same as in the previous quarter. Consolidated EBITDA (with Isofilme) reached R$ 28.5 million; Adjusted Net Income stood at R$ 12.2 million, reversing the loss posted in the 2Q07; IPO concluded in July, raising a net amount of R$ 451 million; Acquisition of Isofilme concluded; Closure of operations in the flexible packaging division.
  • 3. Sales Volume Sales Volume (tonnes thd) 13.1 The Company recovers sales volumes in 12.7 12.6 12.1 its core businesses. 4% growth in the nonwovens segment. 6.9 14% growth in the PVC segment, 5.6 5.7 5.0 including the recovery relating to the 2Q07, when there was unscheduled maintenance. 0.7 0.4 0.6 0.5 0.4 Packaging segment showed slight 0.2 0.2 decrease in volume reflecting the 3Q06 1Q07 2Q07 3Q07 slowdown on account of the closing down Nonwoven Tubes and Connections Packaging Others of its activities.
  • 4. Gross Revenue Gross Revenue(R$ million) 5.6% revenue growth between the 2Q07 and the 140.0 3Q07. 121.6 118.0 124.6 41.5 In the external market, revenues grew 6.9%, 41.8 36.9 39.5 mainly due to the increase in sales volume, 98.5 because prices fell due to the strengthening of the 79.8 81.1 85.1 Brazilian Real against the dollar. 3Q06 1Q07 2Q07 3Q07 In the internal market, gross profit increased 4.9% Foreign Market Domestic Market also due to the growth in sales volume, especially in the tubes and connections segment.
  • 5. Cost of Goods Sold (COGS) Cost of Goods Sold (R$ million) 88.2 The unit cost of goods sold declined 2.1% in 83.7 81.9 comparison with the previous quarter. 79.1 Stronger Real compensated for the pressure on resin prices. 3Q06 1Q07 2Q07 3Q07
  • 6. Operating (Expenses) Revenues Selling expenses: 18.2% increase over the Operating (Expenses) Revenues (R$ million) previous quarter, mainly due to the increase in 17.1 15.9 18.7 36.3 freight on account of higher sales volume and provision for doubtful accounts. 6.0 6.5 7.7 6.0 7.5 Administrative expenses: excluding the 7.5 non-recurring expenses of the 3Q07 (IPO 6.3 expense of R$20.1 million) and of the 2Q07 8.1 8.1 6.3 28.5 12.8 (acquisition process of R$ 2.6 million), 7.8 administrative expenses declined 17.6% in 4.7 4.7 7.8 5.8 2.0 comparison with the 2Q07. (1.6) (1.6) (5.7) (2.5) (5.6) (5.7) Depreciation and Amortization: increase is due 3Q06 1Q07 2Q07 3Q07 to reversal (credit) in the goodwill amortization in Sales Expenses Administrative Expenses the 2Q07 because of the change in the Depreciation and Amortization  Other Operating Revenues amortization period from 5 to 10 years. Other operating expenses/revenues: result of Isofilme according to the equity method was R$ 4 million..
  • 7. EBITDA and EBITDA Margin Adjusted EBITDA (R$ million) and EBITDA Margin (%) Adjusted EBITDA was R$27.7 million, with growth of 5.6% in relation to the 2Q07. 32.1 Including Isofilme, adjusted EBITDA reached 26.3 27.7 R$ 28.5 million 23.9 25.4% EBITDA margin remained stable at 24.5%, 24.4% 24.5% reflecting the fall in selling prices in Reais. 21.7% We estimate our EBITDA “loss” in the 3Q07 at R$ 2.7 million, due to the impact of the weakening Dollar on prices in the external and internal markets. 3Q06 1Q07 2Q07 3Q07 Adjusted EBITDA Margin Non recurring expenses which influenced EBITDA in 3Q07: IPO expenses: R$ 20.1 million Inventory adjustment: R$ 2.7 million Acquisition of Isofilme and discontinuity of transporter and flexible packaging division: R$ 2.9 million
  • 8. Net Income and Net Margin Adjusted Net Income (R$ million) and Net Margin (%) Adjusted Net income in the 3Q07 was 21.9 R$ 12.2 million, reversing the negative result of the 2Q07. Net margin was 10.8% 12.2 17.4% This positive result reflects the improvements in the operations and 10.8% Company’s new cash position after the IPO. 2.4 -3.8 2.3% -3.6% 3Q06 1Q07 2Q07 3Q07 Net Margin Adjusted
  • 9. Consolidated Debt Composition of Net Debt (R$ million) 09/30/07 06/30/07 Total Debt Short-Term 283.2 499.6 Long-Term 109.7 30.7 Total 392.3 530.3 Cash and Commercial Markeable Securities 210.5 57.8 Net Debt 182.4 472.5 Net Debt / EBITDA (1) 1.6X 4.5X (1) Adjusted EBITDA in the quarter + EBITDA of Isofilme, annualized.
  • 10. Debt (cont.) Providencia intends to continue its strategy of profile extension and debt cost reduction. Next stages: 1) Elimination of Isofilme’s short-term debt of approximately R$ 25 million, through capital injection; 2) Redemption of Eurobond in the value of $10 million issued by Isofilme at a cost of US$ + 9% per year; 3) Conclusion of redemption of the promissory notes (approximately R$ 250 million) used to finance the Company acquisition; 4) The funds required for these operations and to rebuild Company’s cash position will be raised through a debenture issue and/or long-term bank loan.
  • 11. Operational Highlights 1) KAMI 9 Project • Construction concluded and machinery deployed within schedule; • Operations start in January 2008; • Investments within the budget. 2) Nonwovens – Laminates • Sales as per plans. Full production capacity in the 4Q07. 3) Nonwovens – Medical Disposables • Product planning and development already started; • Executive with vast experience in the segment hired; • Sales expected to commence in the 1H08. 4) ISOFILME • Acquisition completed; • Sales, controllership and finance departments already integrated; • Investment s to streamline operations in order to attain full production capacity will be concluded by year-end.
  • 12. Operational Highlights (Cont.) 5) Flexible Packaging Segment • Operations closed on September 30; • Sale of equipment and installation should be concluded by year-end. 6) SAP Project • Project officially started in August; • Conclusion by the end of 1Q08. 7) PVC Tubes and Connections Division • Recruitment of a General Manager with vast experience in this segment; • New connection molds received according to schedule in order to increase capacity; • Schedule for installation of extruder for large diameters is on as planned, will start operating in the 4Q07.
  • 13. IR Contact Rubens Sardenberg IR Officer Tel.: 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, 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 .