APIMEC 2014 CURITIBA

COMPANHIA PROVIDÊNCIA INDÚSTRIA E COMÉRCIO

Curitiba, November 25, 2014

Agenda

The Company

Sector

Highlights

3Q14 Results

Sale of the Company’s control

Mission

To create a world:

Safer Cleaner Healthier

Shareholders’ Composition

PRVI3 – 80 Million shares

Companhia Providência (PRVI3) is listed on the Novo Mercado segment at BM&F Bovespa, thehighest Corporate Governance standards. Among the main practices are:

Corporate governance structure

General Shareholders` Meeting

Fiscal Council

Board of Directors

Board of Executive Officers

Independent extern auditors

Organizational chart

CEOCEO

CFO/ IR

Finance

Controller

Commercial Office

Sales

Customer Service

Operations, Engineering and Technology Office

Operations

Maintenance

USA

Administrativeand

Human Resources Quality Assurance

Controller

I.R.

I.T.

Legal

Customer Service

ProductDevelopment

Purchasing

Maintenance

Engineering

Logistics

Quality Processes

and

Manufacture

Total: 887

675

13181

Employees in September, 2014

São Jose dos Pinhais Pouso Alegre United States

76%

15%9%

Corporate structure

Companhia Providência Indústria e Comércio

Providencia USA Inc.

1963 | 1970 | 1980 | 1990 | 2000 | 2007 | 2008 | 2011 | 2012 | 2013 | 20141963 | 1970 | 1980 | 1990 | 2000 | 2007 | 2008 | 2011 | 2012 | 2013 | 2014

Founded in 1963, became a pioneer in the manufacture of plastics in the South of Brazil;

Started the production of nonwovens;

IPO and acquisition of Isofilme, a nonwovens company located in Pouso Alegre (MG);

Focus on nonwovens: Sale of the division of pipes and fittings;

Start up of the first overseas factory in Statesville, North Carolina - USA;

Sale of Control to PGI Brazil and merger of Isofilme into Companhia Providência.

Statesville – NCStatesville – NCStatesville – NC

Plants

Installed Capacity: 40 thousand ton/year - 2 Production Lines

Area:16.3 thousand m2 of built area on

land of 174 thousand m2

Pouso Alegre – MGInstalled Capacity : 30 thousand ton/year – 2 Production Lines

Area:

São José dos Pinhais – PR

Area:25 thousand m² of built area on

land of 210 thousand m²

Installed Capacity : 70 thousand ton/year – 9 Production Lines

Area:72 thousand m² m² of built area on

land of 189 thousand m²

Most recent expansion

KAMI 13: Second line in Statesville. Doubled the capacity in the USA.Capacity: 20 thousand ton/year of nonwovensInvestment: USD 63 millionAdditional Employees: 40Inaugurated in March, 2013.

KAMI12: : Second line in Pouso Alegre/MG Capacity: 20 thousand ton/year of nonwovensInvestment: USD 60 millionAdditional Employees: 40

São José dos Pinhais – PR

Additional Employees: 40Inaugurated in June, 2012.

In thousands of tons of nonwovens

Agenda

Sector

The Company

Highlights

3Q14 Results

Sale of the Company’s control

Uses

NonwovensNonwovens Main usesMain uses Main CustomersMain Customers

�Hygienic�Baby diapers

� Incontinence

Largest manufacturer of nonwovens in Latin America �Durable

�Medical

� Incontinence

�sanitary pads

�Furniture and mattresses

�agricultural roofing

�Packaging

�Surgical disposable

�Medical disposable aprons

Active base of around

1,000 customers

B2B focus on consumer industries

Durable

Sales volume 2013Sales volume 2013

Hygienic

GrossGrossRevenueRevenue

20%

Gross Gross RevenueRevenue

Medical

RevenueRevenue

75%

5%

Nonwoven Market – Projected demand (in thousand tons)

NaftaNafta (Mexico and USA) consumption (Mexico and USA) consumption growth: 3% per year.growth: 3% per year.

300

400

500

600

700

2010 2011 2012 2013

567 584 602 620

South and Central America (except Brazil) South and Central America (except Brazil) Consumption growth: 8% per year.Consumption growth: 8% per year.

40

60

80

100

120

2010 2011 2012 2013

83 90 97 105

BrazilBrazilConsumption growth: 8% per year.Consumption growth: 8% per year.

40

60

80

100

120

2010 2011 2012 2013

79 87 96 106

Source: Providência + Reports John Starr

Consumption

Hygienic Market (retail / sales unit mm)B

aby

Dia

per

sB

aby

Dia

per

sSa

nit

ary

pad

sSa

nit

ary

pad

s

Change 2012 x 2013

Change 2012 x 2013

USA 1%

Brazil 5%

USA -1%

-

5.000

10.000

15.000

20.000

25.000

2008 2009 2010 2011 2012 2013

6.235 7.256 8.109 9.142 9.166 9.594

20.759 20.456 20.023 19.506 19.124 19.308

Brazil

USA

20.000

25.000 21.898 21.787 22.086 22.133 21.808 21.517 Brazil

USA

San

itar

y p

ads

San

itar

y p

ads

Inco

nti

nen

ceIn

con

tin

ence

Change 2012 x 2013

Source: Euromonitor International

USA -1%

Brazil 3%

USA 5%

Brazil 12%

-

5.000

10.000

15.000

2008 2009 2010 2011 2012 2013

7.637 7.698 8.421 8.432 8.526 8.762

-

1.000

2.000

3.000

4.000

5.000

2008 2009 2010 2011 2012 2013

350 416 528 637 729 820

3.430 3.580 3.775 4.052 4.284 4.479 Brazil

USA

Market share & Diapers Market (Volume 2013 )

Market Share Latin America, Market Share Latin America, except Mexico except Mexico

Market Share Brazil Market Share Brazil

Providência29%

FitesaFiberweb

15%

PGI31% Softbond

8%

Other18%

FitesaFiberweb

22%PGI5%

Softbond4%

Other15%

Providência54%

Evolution of the penetration of baby diapers in BrazilEvolution of the penetration of baby diapers in Brazil

1995 2000 2005 2009 2010 2011 2012 2013

15%20%

35%42%

48% 52%55% 57%

29% 15%

Source : Euromonitor International

Hygienic Market in Brazil (2013 volume)

Share Share –– Baby DiapersBaby Diapers Share Share –– Sanitary padsSanitary pads

P&G30%

KC26%

Hyper16%

Other28%

P&G28%

KC24%

Johnson &

Johnson 33%

Other15%

Share Share –– IncontinenceIncontinence

KC10%

Hyper33%

Other57%

Source : Euromonitor International

Penetration of baby diapers in the World

10

15

20

25

21 19

10 8 8

5 3 3

29

20

10 7 8

5 3 3

Mill

ion

Source: Euromonitor International

-

5

China USA Brazil Japan Mexico Russia United Kingdom Germany

Effective consumption Expected Average 2014 - 2018

Hygienic Market - USA – Global (USA – 2013)

Share Share –– Baby DiapersBaby Diapers

P&G36%

Private Label20%

KC37%

Other7%

Share Share –– Sanitary pads Sanitary pads Share Share -- IncontinenceIncontinence

P&G46%

Private Label17%

KC14%

Other12%

Johnson&

Johnson11%

Private Label31%KC

56%

SCA10%

Other2%

�In 2013 there was an overall growth of 3% in the sanitary industry, about US$2.7 billion over the�In 2013 there was an overall growth of 3% in the sanitary industry, about US$2.7 billion over theprevious year, mainly due to emerging countries beyond the forecast average growth of 4% by 2018;

�The incontinence market had the strongest growth among all categories of hygienic, 6% (2012 – 2013),mainly in developed countries;

�Brazil also excelled in the incontinence market and grew by 12% (2013 x 2012). In the same period theUnited States grew by only 5%. According to the IBGE in 2012 the population over 60 years accounted

for 12%, this percentage should reach 18% by 2030;

�In Latin America there will probably happen the strongest growth prospects for wipes of6% compared to 2% at a global level. This variation is mainly due to the increase in consumption and baby wipes and make-up removal.

Fonte: Euromonitor International

Agenda

Highlights

The Company

Sector

3Q14 Results

Sale of the Company’s control

Highlights

�The third quarter saw resumption in production from machines and equipment that had beenshutdown on Ministry of Labor orders on April 1, 2014 and gradually brought back on streamby the first week in July 2014;

� During the course of the quarter, our financial performance continued to be affected by thestoppage and reallocation of production as well as a 2.8% increase in fixed costs;

� Sales Volume amounted to 29.2 thousand tons, down 7.1% compared to 3Q13 due to� Sales Volume amounted to 29.2 thousand tons, down 7.1% compared to 3Q13 due toinefficiencies associated with the resumption of operations with certain machines andequipment at the São José dos Pinhais plant after the lines were shut down on the orders of theMinistry of Labor during 2Q14;

� The Company posted Net Revenues of R$ 202.6 million, 4.0% less than in 3Q13, thisalso reflecting the impact of lower output from manufacturing operations;

� Cost of goods sold were higher by R$4.4 million due to start-upcosts and higher maintenance expense during the quarter.

Agenda

The Company

Sector

Highlights

3Q14 Results

Sale of the Company’s control

7.4 5.2

88.9 81.2

YTD Sales Volume

Sales Volume Sales Volume (in millions of tons)(in millions of tons)

During the quarter, the Company posted a year-on-year reduction in total sales volume of 7.1%. Sales volume of nonwovens posted a fall of 7.3% compared with 3Q13.

2.2 2.1

31.4

22.6

29.2

Sales Volume / Quarter

YTD13 YTD14

81.5 76.0

7.4 5.2

Others Nonwovens

3Q13 2Q14 3Q14

29.2 21.3

27.1

2.2

1.3 2.1

22.6

Nonwovens Others

In relation to the 2Q14 the nonwovens volume increased 5.8 thousand tons– 27.1% - a result of the sales recover after the machines shutdown duringthe 2Q14.

577.2

Net Revenue YTDNet Revenue / Quarter

R$ 6.35

R$ 7.11

R$ 6.72

R$ 7.21

R$ 6.94

Net Net RevenueRevenue (in (in millionsmillions ofof Reais)Reais)

The Company reported total net revenue of R$ 202.6 million in 3Q14, a decrease of 4.0% whencompared with 3Q13 reflecting the impact of lower output from manufacturing operations.

YTD13 YTD14

564.8

Net Revenue

3Q13 2Q14 3Q14

211.1

162.9

202.6

Net Revenue Unitary Net RevenueUnitary Net Revenue

� Increased export sales volume in 3Q14 caused a reduction in unitarysales net revenue by 3.7% against 2Q14;

� Unitary net revenues are up by 12% YTD 14 x 13.

COGS YTD

R$ 4.66 R$ 5.62

COGS / Quarter

R$ 4.99

R$ 5.97

R$ 5.53

COGS COGS -- CostCost ofof GoodsGoods SoldSold (in (in millionsmillions ofof Reais)Reais)

� Cost of Goods Sold (COGS) amounted to R$ 161.3 million in 3Q14, 2.8% higher whencompared to the R$ 156.9 million reported in 3Q13;

� Unitary COGS are 7.4% lower than 2Q14, as consequence of an increased sales volume of 5.8thousand tons.

YTD13 YTD14

413.9

456.8

COGS Unitary COGS (R$)

3Q13 2Q14 3Q14

156.9

135.0

161.3

COGS Unitary COGS (R$)

98.0

EBITDA YTD

40.1

EBITDA / Quarter

16.9%

5.5%

EBITDA EBITDA (in million of (in million of ReaisReais) and) and EBITDA MarginEBITDA Margin(%) (%)

EBITDA in 3Q14 amounted to R$ 15.8 million, a reduction of 60.6% when compared to the R$40.1 million registered in 3Q13. For the same item in 2Q14 there was an increase of R$ 8.6million.

.19.0%

4.4%7.8%

YTD13 YTD14

51.9

EBITDA

3Q13 2Q14 3Q14

7.2 15.8

EBITDA Ebitda Margin (%)EBITDA Margin (%)

3Q14 EBITDA was still impacted by production inefficiencies post-NR12 andby certain costs recognized during the quarter that are not expected tocontinue.

10.0

Net Income (Loss) / Quarter

4.7%

-27.9%

-3.9%

Net Loss Net Loss ((in millions of Reaisin millions of Reais) ) and and Net Margin Net Margin (%)(%)

The Company reported a net loss of R$ 7.9 million, principally due to the lower comparativeoutput and sales volumes, combined with the higher costs.

3Q13 2Q14 3Q14

10.0

(45.4)

(7.9)

Net income Net Margin (%)

Net Net DebtDebt (in million of (in million of ReaisReais))

� Total Debt increased 6.2% in 3Q14 when compared with 3Q13 mainly due to the valuation of USDollar against Real, of 9.9% in the period.

In R$ (MM) 3Q13 2Q14 3Q14 Ch. 3Q14 / 3Q13

Short Term 51,4 114,6 141,6 175,2%

Long Term 523,6 449,2 469,0 -10,4%

Total 575,0 563,8 610,5 6,2%

Cash and liquid hedge instruments 80,7 41,1 29,5 -63,5%

Net Debt 494,3 522,7 581,1 17,6%

Shareholders' Equity 662,1 619,2 610,2 -7,8%

Net Debt / Adjusted EBITDA 3,86 4,72 5,95 54,1%

Consolidated Net Debt

Dollar against Real, of 9.9% in the period.

� Net Debt increased by 17.6% compared with 3Q13, largely due to a reduction in cash and cashequivalents during the last two quarters. The increase was caused by lower operating performanceand incremental CAPEX mainly in 2Q14.

8%

92%

Local currency Foreign currency

Net Debt %

Market Market ValueValue RatiosRatios

The book value of the Company shares increased9.2% compared to 2T14 and 3.5% over the sameperiod last year.

3Q13 2Q14 3Q14

0.96 0.97

1.06

Share Price / Book Value per share

PRVI3 Book Value / Quarter

3.5%

3.4%

PRVI3

IBOVESPA

Change 3Q14 / 3Q13

Share Price / Book Value per share3.4%IBOVESPA

R$ 7.92 R$ 7.89R$ 8.05

R$ 7.51

R$ 8.20

R$ 7

R$ 8

R$ 9

Sep-13 Dec-13 Mar-14 Jun-14 Sep-14

Share Value - IBOVESPA

Market Cap Peers Market Cap Peers –– Nonwovens in 10/01/2014 Nonwovens in 10/01/2014 (in US$)(in US$)

267.717.932

260.080.861

279.065.493

250

300

350

400

Mill

ion

260.080.861

200

250

Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14

Providência Avgol Pégas

Environmental responsibilityEnvironmental responsibility

Providência holds 19 000 m2, including thepermanent preservation, with somespecies of native vegetation;

The Company has 4 extruders typemachines for recycling part of thenonwoven chips generated during themanufacturing process;

Waste, recovered materials and leftovers arereferred for treatment only in companiesduly licensed by the responsibleenvironmental agency.

Preservation of green areas and Preservation of green areas and protection of riversprotection of rivers

Internal recycling program of materialsInternal recycling program of materials Waste management programWaste management program

Woods – Unit São José dos Pinhais/PR

Environmental responsibilityEnvironmental responsibility

Providência monitors the power consumption and actsto reduce it. Employees are instructed on the importanceof avoiding waste;

All water used for heating and cooling equipment is againstored in tanks, and then reused for the same purpose.

Commission to analysis the energy consumptionCommission to analysis the energy consumption Water Water -- Monitoring consumer and closed circuitMonitoring consumer and closed circuit

Awards and acknowledgementsAwards and acknowledgements

We were one of the highlights of the 2013 Brazilian Transnationality Rankingdeveloped by Fundação Dom Cabral. We are among the 10+ in the revenues

76th position in the ranking prepared by Revista Amanhã, which defines the bestcompanies in southern Brazil in 2014, climbed seven places from the previous year.Also 32nd position among the best companies of Paraná, which was 37th in 2013. Westand out among the 50 largest net Equity and Gross Revenue, occupying the 27th

and 43rd positions respectively;

Cia Providência is the 89th among the top Brazilian 250companies, and among the 10 companies highlighted inSouthern Brazil, according to Época Negócios 360º ranking.

developed by Fundação Dom Cabral. We are among the 10+ in the revenuesbellow R$ 1 billion category, at the 8th position. In the overall ranking, we are in23rd place with an index of 0.143 points of transnationality;

Agenda

The Company

Sector

Highlights

3Q14 Results

Sale of the Company’s control

Status Status –– Sale of the Company’s control to PGISale of the Company’s control to PGI

� On July 14, 2014 there was an Extraordinary General Meeting where the followingresolutions were taken:

� The exit of the Company from Novo Mercado of BM&FBOVESPA was approved bymajority of the present shareholders;

� Also approved by majority of eligible voting shareholders representing theoutstanding shares, the selection of BANCO J. SAFRA S.A., as the financial institutionoutstanding shares, the selection of BANCO J. SAFRA S.A., as the financial institutionresponsible for the drafting of the appraisal report on the economic valuation of theCompany’s stock, for the purposes of the Delisting Tender Offer and the Tender Offerfor the Exit of the Company from Novo Mercado;

� On November 7, 2014 the draft of the Tender Offer Notice and the adjusted

appraisal report were published at Itaú BBA and Company website.

CEO/CFO: Hermínio Vicente Smania de Freitas

IR : Gabriela Las CasasDanielle Cabrini

Tel: +55 (41) 3381-8673Fax: +55 (41) 3381-7656São José dos Pinhais – PR

ContactsContacts

São José dos Pinhais – PRwww.providencia.com.br/riwww.twitter.com/providencia_ri

The words “believe”, “anticipate”, “expect”, “estimate”, “will”, “plan”, “may”, “intend”, “foresee”, “project” and other similarexpressions 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 andcompetition. In addition, forward-looking statements refer only to the date on which they were made and should not be taken as aguarantee of future performance. Providência is under no obligation to update this presentation with new information and/orfuture events.

Apimec South of Brazil Meeting