1. 1
Earnings Call – 3Q12
November 9th, 2012

2. 2
Index
3Q12 Highlights
New strategic view

3. 3
Consolidated Revenues
(R$ million)
Quarter YTD
561.5
637.6 608.1
3Q11 2Q12 3Q12
1,719.8
1,852.6
9M11 9M12
-4.6%
+8.3% +7.7%
50.2%
18.1%
22.6%
9.0%
2Q12
50.9%
16.9%
22.4%
9.4%
0.4%
3Q11
49.1%
21.6%
20.0%
9.3%
3Q12
South America
North America
Europe
Asia
RoW

4. 4
87.0% 84.0% 86.3%
13,0%
16,0% 13,7%
3Q11 3Q11 3Q12
Steel Industrial
496.7 566.9 535.2
-5.6%
+7.7%
86.0% 84.0%
14,0%
16,0%
9M11 9M12
Steel Industrial
1,517.8
1,652.4
+8,9%
Revenues – Refractories Solutions
(R$ million)
Steel Industrial
Quarter Acumulated
432.0
476.3 462.0
3Q11 3Q11 3Q12
6.9%
-3.0%
1,305,4
1,388.9
9M11 9M12
6.4%
64.7
90.6
73.1
3Q11 3Q11 3Q12
13.1%
-19.2%
212.4
263.6
9M11 9M12
24.1%

5. 5
Gross profit and gross margin by segment
Segment (R$ million) Quarter Var. % YTD Var. %
Refractory Solution 3Q12 (a) 2Q12 (b) 3Q11 (c) (a/b) (a/c) 9M12 (d)9M11 (e) (d/e)
Gross Profit (R$ million) 165.9 183.6 160.1 -9.6% 3.7% 519.1 494.4 5.0%
Gross Margin (%) 31.0% 32.4% 32.2% -139 bp -122 bp 31.4% 32.6% -116 bp
Minerals
Gross Profit (R$ million) 13.6 14.8 14.2 -8.1% -4.2% 38.9 38.7 0.6%
Gross Margin (%) 45.0% 43.7% 50.6% 128 bp -559 bp 43.5% 46.2% -275 bp
Services
Gross Profit (R$ million) 5.9 3.2 3.8 87.7% 56.3% 10.8 14.0 -22.5%
Gross Margin (%) 13.9% 8.6% 10.4% 533 bp 354 bp 9.8% 11.8% -202 bp
TOTAL
Gross Profit (R$ million) 185.5 201.6 178.1 -8.0% 4.2% 568.9 547.1 4.0%
Gross Margin (%) 30.5% 31.6% 31.7% -112 bp -122 bp 30.7% 31.8% -111 bp

6. 6
EBITDA and Net profit
EBITDA and EBITDA margin
R$ million and %
Net profit and net margin
R$ million and %
118.7
105.2
84.3
21.1%
16.5%
13.9%
3Q11 (c) 2Q12 (b) 3Q12 (a)
EBITDA EBITDA Margin (%)
315.7
277.0
18.4%
15.0%
9M11 9M12
EBITDA Margem EBITDA (%)
34.4 36.7
10.7
6.1% 5.8%
1.8%
3Q11 (c) 2Q12 (b) 3Q12 (a)
Net Profit Net Margin (%)
87.0
75.8
5.1%
4.1%
9M11 9M12
Net Profit Net Margin (%)

7. 7
188.4
63.7
96.9
39.4
55.7 62.4
3Q11 1Q12 2Q12
OCF CAPEX
460.6
250.6
86.8
179.9
9M11 9M12
OCF CAPEX
Operational cash flow, CAPEX and Cash cycle
Cash flow and CAPEX
R$ million
Cash conversion cycle
Days
146
138 143 143 145
76 79
67 69 68
144
138
131 131 136
78 80 79 82 78
3Q11 4Q11 1Q12 2Q12 3Q12
Cash conversion cycle (days)¹
Cash conversion cycle Suppliers Inventories Clients

8. 8
Debt and leverage
Net debt and leverage
R$ million
Debt profile
900.2
957.3 968.0
1,060.0 1,074.4
787.7 761.2 791.8 819.1 834.7
2.11x
2.24x 2.30x
2.51x
2.76x
3Q11 4Q11 1Q12 2Q12 3Q12
Net Debt Workingcapital Net Debt/EBITDA
6.8%
93.2%
Short term Long term
16.9%
83.1%
Local currency (BRL) Foreign currencies

9. 9
3Q12 Highlights
• Net revenue of R$ 608.1 million, up 8.3% over 3Q11, but down 4.6% over 2Q12
• EBITDA of R$84.3 million, margin 13.9%, compared to R$118.7 million (margin 21.1%) in 3Q11 and
R$105.2 million (margin 16.5%) in 2Q12.
• Services: Revenue of R$42.7 million with gross margin at 13.9%, compared to R$36.6 million (margin at
10.4%) in 3Q11 and R$36.8 million (margin 8.6%) in 2Q12
• Brumado Expansion: Went into operation the new furnace in Brumado (Brazil), increasing the
production capacity of high-grade magnesite sinter to 240,000 tons per year
• Graphite Project: Obtainment of the Preliminary Environmental License

10. 10
Index
3Q12 Highlights
New strategic view

11. 11
The new vision and the 4 strategy pillars
Vision:
Be the best provider of refractories
solutions and industrial minerals,
leveraging and developing our minerals base
 Continue to develop
high quality, low
cost raw material
sources to support
our current busi-
nesses as well as
new businesses
where we can have
a sustainable com-
petitive advantage
 Strive to keep
offering high quality
and innovative
products, unrivaled
services and cost
performance
 Optimize production
globally to improve
efficiency and
support growth
 Develop global
supply chain
management
 Pursue long term
growth opportunities
in selected markets
where we can
deliver superior
value to our
customers and
shareholders
Expand industrial
minerals base
Ensure leadership in
our core markets
Maintain a global low
cost production base
Grow selectively and
aggressively
▪ Meritocracy
▪ Ethics
▪ Profit
▪ Management and Method
▪ Customer
▪ People
▪ Agility and Transparency
▪ Respect for Safety, Environment and Communities
Our values
Oneglobalorganization

12. 12
Magnesita 2017
Industrial
Minerals
New
refractories
markets
Core refractories
markets
Integrated product
offer:
•Raw materials
•Refractory Solutions
•Services
• Largest magnesite
mine ex-China
• Low-cost/high
quality source for
relevant refractories
raw materials
• Portfolio of
industrials minerals
in Brazil
•Leadership in South
America and dolomite
products
• Sustainable
position in
selected markets
with focus in
growth and
industrial
applications

13. 13
Our mineral strategy
Initial portfolio of attractive mineral rights
Very favorable
geography for
industrial
minerals in
Brazil
Possibility to occupy a
“white space” in the market
and become the most
important player in it in
Brazil
0 1
2
3
Magnesita’s
strategic
positioning
Long term
experience and
expertise in
mining:
▪ Geological and
research skills
▪ knowledge of
regulatory
environment
▪ Knowledge of
local stake-
holder
management

14. 14
Investor Relations contacts:
Octavio Pereira Lopes
CEO and IRO
Daniel Domiciano Silva
Investor Relations
Phone: 55 11 3152-3202/3241
ri@magnesita.com
www.magnesita.com