1. 1
Earnings call – 1Q12
May 11, 2012

2. 2
Highlights
Growth in refractory solutions
• Revenues of R$547.4 million, up 6.0% vs 4Q11 and 10.4% vs 1Q11, with the highlights coming from:
• 9.9% growth in sales to the steel industry in the Americas
• 8.3% growth in sales to the industrial sector in all regions
• Higher average refractory value/ton, impacted by mix, exchange rate and price increases
Leverage and rating
• Leverage of 2.3 times in the end of the quarter
• Issue of perpetual bonds totaling US$250 million, giving the Company more flexibility and improving
its debt profile
• Rating upgrade: Fitch and Standard & Poor’s ratings agencies upgraded the Company’s rating from
“BB-“to “BB”
Net income increased by 29.9% vs 1Q11 and 145.0% vs 4Q11
• This result reflects operational and financial improvements
Vertical integration projects
• Brumado expansion - Went into operation the new production unit with capacity of 60,000 tpa of
high-grade magnesite, which will bring important reduction in raw material costs
• Graphite – The Company keeps its expectation of obtain the environmental license in 2012

3. 3
Refractory solutions - Revenues
(R$ million)
84.8% 82.6% 82.2%
15.2% 17.4% 17.8%
1Q11 4Q11 1Q12
Steel Industrial
495.8
516.4
547.4
+10.4%
+6.0%
Steel Industrial
420,4 426,6 450,2
1Q11 4Q11 1Q12
75,4
89,8 97,2
1Q11 4Q11 1Q12
+7.1%
+5.5%
+29.0%
+8.3%

4. 4
Gross profit and gross margin - by segment
Minerals
Gross profit (R$ million) 11.9 21.8 13.7 -45.3% -12.7%
Gross margin (%) 42.4% 44.9% 39.7% -256 bp 273 bp
Service
Gross profit (R$ million) 1.7 3.3 6.0 -48.0% -71.5%
Gross margin (%) 5.5% 9.7% 13.4% -418 bp -789 bp
TOTAL
Gross profit (R$ million) 181.7 183.0 185.7 -0.7% -2.2%
Gross margin (%) 29.9% 30.5% 32.3% -61 bp -234 bp
Refractory solution 1Q12 (a) 4Q11 (b) 1Q11 (c) (a/b) (a/c)
Gross profit (R$ million) 168.0 157.9 166.0 6.4% 1.2%
Gross margin (%) 30.7% 30.6% 33.5% 12 bp -279 bp

5. 5
Cash generation and net income (R$ million)
Net income
R$ million
EBITDA and EBITDA Margin
R$ million and %
Operational cash flow and CAPEX
R$ million
21.8
11.6
28.3
1Q11 4Q11 1Q12
93.8
111.8
87.6
16.3%
18.7%
14.4%
1Q11 4Q11 1Q12
EBITDA EBITDA margin
186.4
104.8
63.7
21.6
84.1
55.7
1Q11 4Q11 1Q12
Operational cash flow CAPEX

6. 6
Working capital and indebtness
Cash conversion cycle
(days)
Net debt, working capital and leverage
R$ milhões
153 146 146
135 143
56
65
76 79
67
129 129
144 138 131
1Q11 2Q11 3Q11 4Q11 1Q12
Cash conversion cycle Suppliers Inventories
908,5 957,3 968,0
805,2
741,2 791,8
2,1x
2,2x 2,3x
1Q11 4Q11 1Q12
Net debt Working capital Net debt/EBITDA