4Q08 ResultsMarch 31, 2009

2

Agenda

• The Company

• The Nonwovens Sector

• Highlights

• 4Q08 Results

• Outlook

Shareholders’ Composition

AIG Group

19.0%

G&GEspírito Santo

Group

19.0% 10.2% 27.4%

Asas Fund

18.3%

Treasury and

others

6.1%

Total: 82.5 million

Shares

Block of Control

Since October 1st, 2008, Providência operates its nonwovens division only, with

approximately 700 employees; our Pipes and Fittings Division was sold in October

2008.

The Company focused in the nonwovens business, that present better margins and

lower operational costs.

Overview

#1 manufacturer of nonwovens in Latin

America

51% market share in

Brazil*

34% market share in Latin America, except Brazil*

*Hygiene Products

NonwovensMajor

End-uses

Diapers

Feminine hygiene

Furniture & bedding

Medical disposables

Key Customers

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Our Nonwovens Focus:

Consumer Goods Industry

Product Mix (% of Nonwovens Net Revenues)

Providência is focused on high value-added nonwoven products with high growth potential

(hygiene and medical disposables)

Market Segmentation Outlook

Value-added

products

Medical

Disposables*

Hygiene /

Consumer

Goods*

Durables

Operating

margin

Expected

growth

Double

digit

Double

digit

Single

digit

Market

size

High

Medium

Low

Small

Large

Medium

Medical

3%

Durable

23%

Hygiene

74%

* Also exported to the USA and to

Latin America

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Agenda

• The Company

• The Nonwovens Sector

• Highlights

• 4Q08 Results

• Outlook

Providencia35.340 51%

Fitesa15.420 22%

Polystar4.800 7% PGI (

importação)6.840 10%

Outros7.200 10%

Market Share & Diapers Market

Market Share Brazil(2008 in tons)

Market Share South America except Brazil(2008 in tons)

Evolution of Baby Diaper Penetration in Brazil

15%

20%

35%

1995 2000 2005 2008*

38%

*Estimated

PGI;

28.200

42,2%

Softbond;

7.500

11,2%

Fitesa;

7.500

11,2%

Providencia;

23.700

35,4%

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Agenda

• The Company

• The Nonwovens Sector

• Highlights

• 4Q08 Results

• Outlook

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Highlights

Sale of the Pipes and Fittings Division - Provinil:

Focus in nonwovens: Company core business, with higher margins compared to the

Pipes Division;

Sold to an Alixis subsidiary in October/08;

R$82 million, equivalent to 7.5x the Ebitda generated by this Division in the past 12

months.

Debentures issued in Dec/07:

Annual rating review;

Rating maintained at a brA level, despite the world crisis;

Síntese Analítica released by Standard & Poor’s on October 28,2008.

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Highlights

SAP system stable since 4Q08.

2nd Share Buyback Program started on November 26, 2008:

Totaling 2.4 million shares that represented, in November 2008, 10% of the Company

free float;

Until the beginning of our quiet period, in March 12, 2009, we had acquired 85% of

the Program.

Stability of tax credits in the acquisition of raw material for exported products:

Government benefit stop the tax credits growth.

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Agenda

• The Company

• The Nonwovens Sector

• Highlights

• 4Q08 Results

• Outlook

12

The Nonwovens sales increased

by 11.9% in 4Q08 compared with

4Q07 mainly due to the start up of

KAMI9, in April/2008, that reached

its full capacity of 15,000 tons/year

in the second half 2008;

Compared to the 3Q08 our sales

volume was stable.

Sales Volume

In thousand tons

4Q07 3Q08 4Q08

15.5

5.6

1.1

17.3

1.6

17.7

5.9

0.8

Nonwovens Pipes and Fittings Others

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Net Revenues

– Nonwovens Division

In millions of Reais

Net revenues of the Nonwovens

totaled R$ 124.4 million in 4Q08, an

increase of 34.1% y-o-y mainly due

to the increase of 11.9% in volumes,

and to the better exchange rates that

helped our exports, that accounted

for 50.5% of our gross revenues in

the 4Q08.

4Q07 3Q08 4Q08

92.7

124.4

104.9

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Variable Costs – Nonwovens Division

The unit variable cost increased 23.8% in

4Q08 in relation to the 4Q07, mainly due to the

increase of 25.7% in the exports volume, that

presents higher logistic costs and to the

stronger US dollar against the Real .

In relation to the 3Q08 the increase was

12.5%.

4Q07 3Q08 4Q08

3.70

4.58

4.07

Unit Variable Costs

(R$ - raw material, comissions and shipping)

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Costs – Cia Providência

The cost of goods sold reached R$ 84.5

million in the 4Q08, an increase of 0.3%

compared to the R$ 84.3 million in the 4Q07.

The unit COGS increased 17.1% due to the

costs of the Pipes and Fittings Division in the

4Q07, that was lower than the unitary COGS

of the Nonwovens Division. Because of this

the unitary COGS of both divisions were

smaller in 4Q07 and 3Q08.

3.92 3.87 3.66

Unitary COGS

4Q07 3Q08 4Q08

84.3 84.590.4

Cost of Goods Sold(R$ million)

3.81 3.704.46

Unitary COGS

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Fixed Costs – Nonwovens Division

In addition to the collective wage agreement in

4Q08, increases are directly related to the sale

of the Pipes and Fittings Division. On a unit

basis there was an increase in certain fixed

costs, previously also prorated to the PVC

Division but fully absorbed by the Nonwovens

Division alone in 4Q08, examples being wages

and corporate departmental overheads.

4Q07 3Q08 4Q08

9.8

11.6

9.0

0.63 0.510.67

Unitary Fixed Costs

4Q07 3Q08 4Q08

25.6

Fixed Costs(R$ million)

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EBITDA (R$ million)

and EBITDA Margin (%) – Nonwovens Division

Ebitda of the Nonwovens Division

reached R$ 33.3 million, with a 26.8%

margin, na increase of 30.0% in

relation to the 4Q07.

In relation to 3Q08 there was a

38.7% increase.

4Q07 3Q08 4Q08

25.6

33.3

24.0

27.6% 22.9% 26.8%

EBITDA Margin%

Ebitda (R$ million) and

Ebitda Margin (%)

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Net Earnings (R$ million)

And Net Margin (%)

Net earnings in 4Q08

reached R$ 19.0 million

(positive 15.0% margin)

against R$ 7.2 million in 4Q07.

4Q07 3Q08 4Q08

7.2

19.0

(2.2)

-1.7%

6.2%

15.0%

Net Margin

Consolidated Net Debt

Debt

18.0

441.6

459.6

170.6

289.0

38.4

454.3

492.7

235.4

257.3

Total Debt

Short term loans

Long term loans

Total

Cash and equivalents

Net debt

(R$ Million) 09/30/08 12/31/08

Debt

In 4Q08 we had a huge cash increase mainly due to the sale of the Pipes and Fittings

Division among others;

The increase in net debt between 4Q07 and 4Q08 amounted to R$ 81.2 million, R$ 71.5

million (US$ 30.0 million) reflects additional funding of US$ for the US plant, restatement of

the debt (FX variation and interest) of about R$ 75.1 million and payment of interest on debt

and principal of R$ 65.5 million;

Financial expenses reached R$ 64.2 million in 4Q08 without cash disbursements in the

short term;

On December 31, 2008 we had two interest swap agreements, due to loans and financing,

being one CDI vs. US$ totalling US$11.3 million maturing in December 2012 and another

fixed rate Libor vs. Libor totalling US$50 million maturing in June 2013, as well as US$ 15

million in currency hedge operations.

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Agenda

• The Company

• The Nonwovens Sector

• Highlights

• 4Q08 Results

• Outlook

Outlook

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Expansion in production of specialty disposable hygiene

articles, to be concluded in 1Q09, output to reach 1,200

tons/month from 2Q09 when the investment program is

complete;

Expansion in output of high performance disposable

medical products with greater value added, the Company’s

goal being that this line should reach 10% of our total

volume in the long term;

Focus on operations with the stabilization of the SAP

software.

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CFO: Eduardo Feldmann CostaIR Manager: Gabriela Las CasasPhone: +55 (41) 3381-7600 Fax: +55 (41) 3283-5909São José dos Pinhais – PR - Brazilwww.providencia.com.br/ir

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 .