1Q10 Results Conference Call

Industry environment − Steel Production

Quarterly Crude Steel Production EvolutionCrude Steel Productionmillion tonnes

2Q09 3Q09 4Q09 1Q10 L12M

Asia 8.9% 10.9% -0.9% 5.8% 26.6%

EU-27 2.2% 11.4% 15.0% 4.5% 36.9%35.0 40.3

42.1 12.5

16.4 17.6 19.4

5.0 5.6

7.9 8.1 8.0

265.5 284.6

319.2 327.5

342.0

2

EU-27 2.2% 11.4% 15.0% 4.5% 36.9%

US 4.1% 31.2% 7.3% 10.2% 61.5%

Brazil 11.3% 41.8% 2.1% (1.2%) 60.5%

World 7.2% 12.2% 2.6% 4.4% 28.8%

World Stainless Steel Productionmillion tonnes

• The world crude steel production increased 4.4% in the 1Q10, accumulating an increase of

L12M = Last 12 months

172.7 188.1 208.5 206.7 218.6

30.8 31.4

35.0 40.3 12.0

12.5 5.0

1Q09 2Q09 3Q09 4Q09 1Q10Asia EU-27 USA Brazil RoW

Source: World Steel Association and International Stainless Steel

1Q10, accumulating an increase of 28.8% in the last 12 months;

• Highlight for the recovery of the U.S. market with a high of 10.2% in 1Q10.

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Industry environment − Cement Production

Cement Production – Brazilmillion tonnes

11.709 12.328 13.697 13.746

Cement Production – Worldmillion tonnes

2,923 2,971 3,021

1,563 1,571 1,551

� Cement production remains strong in Brazil;� Cement production remains strong in Brazil;

4.248

1Q09 2Q09 3Q09 4Q09 Jan-10

1,360 1,400 1,470

2007 2008 2009E

China RoW

Source: SNIC – Sindicato Nacional da Indústria do Cimento

� Cement production remains strong in Brazil;

� Increase in capacity is expected;

� China accounted for about 50% of the world production.

� Cement production remains strong in Brazil;

� Increase in capacity is expected;

� China accounted for about 50% of the world production.

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Cost per Performance

Excellent opportunity for

growth

% of the net revenues from steel industry

2009 1Q10

Contracts by volumeCPP Contracts

Successful actions 12 new contracts:4 – Brazil6 – US1 – Chile1 – UK

2009

2 new contracts:1 – Ecuador1 – US

1Q10Successful actions to reply the CPP model worldwide

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Sales Volume and Revenues

Revenue by Product – 1Q10(%)

Refractories Sales Volume(thousand tonnes)

Basic Magnesia31.8%

Non Basic23.6%

Others11.3%

127.9 133.2 150.1 161.1 178.1

52.9 57.869.8 77.6

80.1 180.8 191.0219.9 238.7 258.2

Revenue by Operating Location x Costumer Location – 1Q10 (%)

Refractory Revenue by Industry - 1Q10(%)

Basic Dolomitic33.4%

23.6%

53.5 52.1

127.9 133.2 150.1 161.1 178.1

1Q09 2Q09 3Q09 4Q09 1Q10

Overseas Market Domestic Market

5

Steel84.0%

Cement and Lime11.7%

Others4.3%

17.9 24.2

4.4

16.0 19.8

10.0

2.1

South

America

North

America

Europa Asia Others

Operating Location Customer Location

Financial Performance – 1Q10

Gross ProfitNet Revenue(R$ million)

EBITDA Adjusted EBITDA

6

691,7

Debt

Funding: US$ 400.0 million (Reg. 144 A/S)

Rate: 7.875% p.a.

Funding: US$ 400.0 million (Reg. 144 A/S)

Rate: 7.875% p.a.

Bonds Issue Amortization Schedule *

41,4 3,6 15,1

322,1 315,2 318,1

2010 2011 2012 2013 2014 2015 2020

Bradesco: R$ 133.5 millionBradesco: R$ 133.5 million

Renegotiation

Maturity date: 2020 (callable in 2015)

Use: US$ 300.0 million to pay the debt with JP Morgan (senior export notes) in its entirety

Maturity date: 2020 (callable in 2015)

Use: US$ 300.0 million to pay the debt with JP Morgan (senior export notes) in its entirety * Pro-forma amortizations calculated after the debt renegotiation with Itau in April 2010

and not including the debts from advances for foreign exchange contracts

Net Debt (R$ million)

Bradesco: R$ 133.5 million

Itaú-Unibanco: R$ 800.0 million

Costs: from CDI + 4% to CDI + 2.75%

Amortization: 2013, 2014 and 2015 + grace period extension for two more years

Bradesco: R$ 133.5 million

Itaú-Unibanco: R$ 800.0 million

Costs: from CDI + 4% to CDI + 2.75%

Amortization: 2013, 2014 and 2015 + grace period extension for two more years

Average debt cost: 10% p.a.7

Joint Venture with Krosaki - Profile

• One of the world leaders in refractory production for flow control (continuous casting).

A Japanese company founded in 1918 whose core business is producing and marketing

refractory products

• Gross Revenue = US$ 548.9 million• EBITDA = US$ 41.7 million • Net Income = US$ 15 million• Market Cap. = US$ 438 million (05/11/2010)

Listed on the Tokyo Stock Exchange, and its shareholders’ equity amounts to US$ 325.6

million

KEY FIGURES IN 2009:

• No relevant investment will be required. The Company will be able to expand the CPP model in North America.

The joint venture will make use of a Magnesita unit in Pennsylvania (USA)

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Capital Markets

Share Performance (From 3/31/2009 to 3/31/2010)

200,000

250,000

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350.00

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150,000

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50.00

100.00

150.00

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� 1.4% depreciation in 1Q10. IBOVESPA Index: +2.6%; in the L12M increase of 188.5% x 72.0% of Ibovespa

� Average daily volume of R$ 10.6 million;

� Coverage of major banks: Itaú, Credit Suisse, BTG Pactual, Merrill Lynch, Santander and Barclays.

� 1.4% depreciation in 1Q10. IBOVESPA Index: +2.6%; in the L12M increase of 188.5% x 72.0% of Ibovespa

� Average daily volume of R$ 10.6 million;

� Coverage of major banks: Itaú, Credit Suisse, BTG Pactual, Merrill Lynch, Santander and Barclays.

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Volume MAGG3 Ibovespa

Flávio Rezende BarbosaChief Financial and Investor Relations Officer

Adriana Fernandes LanaInvestor Relations Manager Phone: (+55 31) 3368-1069

Lucas Lima FerreiraInvestor Relations Analyst Phone: (+55 31) 3368-1068Phone: (+55 31) 3368-1068

ri@magnesita.com.br www.magnesita.com.br

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