China has imposed export quotas on magnesite sinter and refractory materials due to energy policy changes, causing unstable global supply and higher prices. This situation provides business opportunities for vertically integrated companies like Magnesita. Magnesita plans investments over 3 years to increase magnesite sinter production capacity by 120,000 metric tons per year in order to meet future demand and keep pace with the Brazilian market. Higher raw material prices have impacted Magnesita's costs despite its vertical integration.

1. 2Q10 Results Conference Call
August 16, 2010

2. Magnesite Sinter
2
China accounts for nearly half of the world s MgO sinter exports (estimated at 2.3 million
metric tons).
The Chinese government has altered
its energy policy and imposed sinter and
refractory exports quotas.
As a result, there is an unsteady sinter
supply worldwide, causing prices to
ramp up.
Source: Industrial Minerals www.indmin.com - For non-commercial purposes only. No parts may
be reproduced, sold or quoted for any purposes, pursuant to the terms and conditions of
Euromoney Institutional Investor PLC and Institutional Investor Inc.
This situation is expected to bring forth business opportunities for Magnesita, which is
highly vertically integrated in magnesite sinter, unlike its main competitors.
150
250
350
450
550
650
750
Jan-08
Feb-08
Mar-08
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
USD/t
MgO Sinter Prices
MgO Sinter 97.5% MgO Sinter 92%

3. Capital Expenditures
3
Investments of R$ 220 million are planned to increase capacity in the Brumado mines
over the next 3 years, aimed at securing the Company's future demand for magnesite
sinter.
Our current M30 sinter production capacity is 180,000 metric tons per year.
This investment will allow the Company to grow along with the Brazilian market,
while keeping high service levels.
This project is part of a multi-annual
investment plan designed to increase the
magnesite sinter (M30) production capacity
in two phases of 60,000 metric tons/year,
totaling 120,000 metric tons/year in 3
years.

4. Market Environment - Steel Industry
4
World s crude steel production of 364
million metric tons: new record of
quarterly production volume;
Steel distributors inventories on the rise;
The vehicles production remains heated
despite the discontinuation of tax
incentives.
Source: World Steel Association
Source: ANFAVEASource: Barclays
201.4 188.1 208.5 206.0 220.1 229.3
55.9
31.4
35.0 40.5 42.5 47.2
25.5
12.5
16.4 17.5
19.6 21.4
8.8
.5.6
7.9 8.1
8.0
8.4
356.8
284.6
319.2 326.9 344.0 364.0
2Q08 2Q09 3Q09 4Q09 1Q10 2Q10
World Crude Steel Production
million metric tons
Asia EU-27 USA Brazil World
807,835
851,341
861,620
833,979
919,222
2Q09 3Q09 4Q09 1Q10 2Q10
Production of Vehicles in Brazil
0
1
2
3
4
5
6
7
8
9
10
No.months
Brazilian distributors' inventories of
main steel products
Heavy plates HRC - Hot Rolled Coil Slabs

5. Market Environment - Cement Production
5
Brazil s cement production remains
close to its historical record highs, with
good prospects of investments in
capacity expansion by 2011.
Alumina products accounted for 23.6% of
refractory revenues and the cement
segment for 7.2% of total revenues.
Cement production capacity increase
projection - 2009-2011
Source: Magnesita
Group
MM tonnes
per year
Votorantim 8.0
Cimpor 5.0
Camargo Corrêa 3.5
Holcim 3.0
CSN 3.0
Others 4.5
Total 27.0
11,754
12,580
14,132
13,418
11,709
12,328
13,697 13,746
13,308
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10
Cement Production in Brazil
million metric tons
Source: SNIC

6. CPP contracts since 2008
6
CPP Cost per Performance Business Model
331.8
370.6
416.4 425.5 423.1
A 16% rise in 2Q10 revenues from the
steel industry under CPP contracts
quarter-over-quarter, and +73.4% year-
over-year.
New contracts in 2Q10:
1. ELG Haniel Metals, UK
2. ThyssenKrupp Beeckerwerth, Germany
3. Client under confidentiality, Germany
4. TISCO, China
5. Jiaxing Eastern Special Steel, China
USA/Canada
Ecuador
China
1
2
1
UK
2
Germany
2
Brazil
Chile
Peru
1
4
1
4
Mexico
23 new CPP contracts have been originated
until jun/10 under the current Management.
In 3Q10, the Company was chosen by four
North American steel mills as a refractory
supplier under the CPP model. 6
26% 25% 27% 31% 36%
74% 75%
73% 69% 64%
2Q09 3Q09 4Q09 1Q10 2Q10
Revenues from Refractories to the Steel
Industry - R$ millions
CPP Volume

7. Financial Performance
7
144.2
169.7
183.6
196.2 199.2
31.8
35.1
34.1 34.7
36.1
30
32
34
36
38
40
42
44
0
50
100
150
200
250
2Q09 3Q09 4Q09 1Q10 2Q10
Gross Profit and Gross Margin
Gross Profit - R$ million Gross Margin - %
110.5
108.4
19.5
19.7
19,2
19,7
20,2
90
95
100
105
110
115
1Q10 2Q10
Adjusted EBITDA and Adjusted
EBITDA Margin
Adjusted EBITDA R$ million EBITDA Margin %
71.6
110.1
138.8
123.1 119.5
15.8
22.8
25.8
21.8 21.7
10
15
20
25
30
35
40
0
20
40
60
80
100
120
140
160
2Q09 3Q09 4Q09 1Q10 2Q10
EBTIDA and EBITDA Margin
Ebitda - R$ million Ebitda margin
39.7% 45.8% 41.3% 45.9% 47.6%
60.3%
54.2% 58.7%
54.1% 52.4%
2Q09 3Q09 4Q09 1Q10 2Q10
Revenues R$ million
Domestic Market Export Market
454.2 483.6
537.7 565.9 551.7

8. Refractories Sales
8
191.0
219.9
238.7
258.2 258.8
57.8 69.8 77.6 80.1 78.4
133.2
150.1
161.1 178.1 180.4
2Q09 3Q09 4Q09 1Q10 2Q10
Refractories sales volume
thousand metric tons
Domestic market Overseas Market
54.3%
17.5%
22.9%
5.3%
53.8%
16.5% 18.0%
10.1%
1.6%
South
America
North
America
Europe Asia Others
Refractories Revenues by Region 2Q10
Production Destination
Magnesian
31.8%
Dolomitic
33.4%
Alumina
23.6%
Others
11.2%
Refractories Revenues by Chemical
Composition 2Q10
Steel
87.9%
Cement
7.2%
Others
4,9%
Integrated Steel
Mills
36.8%
Specialty Steels
30.7%
Others
2,5%
Mini mills
30.0%
Refractories Revenues by Industry - 2Q10

9. COGS Breakdown
9
Note: As of 2010, labor expenses, both the employed and outsourced labor force, related to the
production cost and service centers in the South American units have been recorded as variable
expenses.
21%
100%
60%
79%
40%
South America Other Units Total
COGS by Currency 1H10
Foreign Currency Local Currency
20% 24% 22%
80% 76% 78%
South America Other Units Total
COGS by Type 1H10
Fixed Variable
Raw
Material
40.2%
Labor
18.7%
Fuel
10.5%
Depreciation
6.7%
Maintenance
4.9%
Electricity
3.5%
Others
15.5%
Cost breakdown - 1H10

10. INDUSTRIAL MINERALS: China is imposing restrictions to exports of raw materials high in energy
consumption, due to a possible energy shortage in the medium term. This affects several raw
materials in the refractory industry, since the demand is growing (following the steel production
recovery) and the offer is limited. The verticalized refractory manufacturers (which have their own
raw material sources) suffer less because of the Chinese quotas.
Costs Raw material
10
Though we are a vertically integrated company, higher raw material prices impact our
costs.
Source: Industrial Minerals - www.indmin.com - For non-commercial purposes only. No parts may be reproduced, sold or quoted for any purposes, pursuant to the terms and
conditions of Euromoney Institutional Investor PLC and Institutional Investor Inc.
90
100
110
120
130
140
150
160
170
180
190
200
210
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
FBIJun/09=100
Average Raw Material Prices
Brown Alumina White Alumina Graphite Zirconia

11. Costs Freight and Inputs
Road freight prices have increased by 30%
in Brazil and by 3% in the USA on average
since January 2010.
In 2010, there have been considerable
price hikes in the main shipping freight
destinations.
Source: Magnesita and Bureau Labor of Statistics
Source: www.inflationdata.com and China Coal Resource
Oil and coal prices affect the prices of
several of Magnesita s production inputs,
such as 1A oil, natural gas, phenol and
methanol. Phenol and methanol, for
example, increased by 35% and 78% in
prices in L12M, respectively.
11
90
100
110
120
130
140
150
160
FBIJun/09=100
Average Freight Prices
By road - USA By road - Brazil
By ship - Baltimore - Germany By ship - Baltimore - China
90
100
110
120
130
140
FBIJun/09=100
Average Prices of Power Sources
Crude Oil - USA Coal China

12. ST 15.3% ST 11.8%
LT 84.7%
LT 88.5%
1,491.0
459.8
Gross Debt
06-30-2009
Gross Debt
06-30-2010
Cash Net Debt
Debt Profile R$ million
Indebtedness
* EBITDA in the last 12 months 12
1,919
1,434 1,415 1,413
1,491
6/30/2009 9/30/2009 12/31/2009 3/31/2010 06/30/10
Net debt - R$ million
223.8
20.9 29.2
331.0 323.1 321.5
701.3
2010 2011 2012 2013 2014 2015 2020
Debt Amortization Schedule
R$ million 5.6 5.5
3.9
3.2 3.0
4.3
2.6
1.8
1.4
1.8
2Q09 3Q09 4Q09 1Q10 2Q10
Financial Indicators
Net debt/EBITDA
EBITDA/Finacial expenses + Monetary/Exchange
Variations/Forex Liabilities
2,174.5
1,950.8

13. Share Performance
13
Coverage of major banks: Itaú, Credit Suisse, BTG Pactual, Merrill Lynch, Santander,
Barclays, Deutsche Bank and Safra
Average daily volume of R$ 5.7 million in 2Q10
31%
18%
Source: BM&FBOVESPA
95
115
135
155
175
195
Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Mar-10 Apr-10 May-10 Jun-10
FBI06/30/09=100
Stock Performance
(06/30/2009 thru 06/30/2010)
MAGG3 IBOVESPA

14. Flávio Rezende Barbosa
CFO and Investor Relations Officer
Adriana Fernandes Lana
Investor Relations Manager
Phone: +55 31 3368-1069
Lucas Lima Ferreira
Investor Relations Analyst
Phone: +55 31 3368-1068
ri@magnesita.com.br www.magnesita.com/ri
14