2. 3Q09 Highlights
CPP Model:
Expanding the business model to the
international operations
Market Recovery:
South America, Europe and North
America
Gross Profit:
R$ 169.7 MM, an increase of
17.6% over 2Q09
Gross Margin:
35.1%, 3.3 p.p. higher than in
2Q09
2
Capital Increase:
Strategic Partner - BNDES
Recovery in Profitability:
Higher refractory sales, lower COGS
and stricter cost control
EBITDA:
R$ 110.1 MM, an increase of
53.7% over 2Q09
EBITDA Margin:
22.8%, 7.0 p.p. higher than in
2Q09
3. Steel Production
Steel Production in Brazil x Refractories Sales
(10³ tonnes)
80
90
100
8,000
9,000
10,000
3Source: IBS (Brazilian Steel Institute)
40
50
60
70
4,000
5,000
6,000
7,000
1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09
SteelProduction in Brazil Refractories - SA Units
4. Evolution – Domestic Market
(R$ million and tonnes thousand)
Evolution – Exports Market
(R$ million and tonnes thousand)
Total Net Revenues – 3Q09
R$ 174.9 R$ 180.2
R$ 221.4 R$ 276.1 R$ 274.1
R$ 262.2
4
52.9
57.8
69.7
1Q09 2Q09 3Q09
Total Net Revenues - R$ million
Volume of Refractories - tonnes thousand
127.9
133.2
150.1
1Q09 2Q09 3Q09
Total Net Revenues - R$ million
Volume of Refractories - tonnes thousand
5. Revenue by
Operating Location
Revenue by
Costumer Location
Revenue by
Product
Net Revenues – 3Q09
Sinter
2.4%
Other
Minerals
3.7%
Services
5.2%
South
America
Europe
18.9%
Asia
10.4%
RoW
2.1%
South
America
Europe
23.7%
Asia
5.5%
5
R$ 483.6 million
Refractories
88.7%
America
52.0%
North
America
16.6%
18.9%America
54.5%
North
America
16.3%
6. Refractory Revenue
by Segment
Refractory Revenue to the
Steel Industry
by Business Model
New Contracts
of the CPP Model
Refractories Sales – 3Q09
In Brazil:
• Usiminas in Ipatinga
• Votorantim in Resende and
Barra Mansa
Steel
Others
4%
ByPerformance
24.9%
5
R$ 428.8 million R$ 370.6 million
In USA:
• ArcelorMittal in Georgetown
• Gerdau in Jackson, Knoxville,
Jacksonville and Midlothian
Unique Expertise
Steel
87%Cement and
Lime
9%
4%
ByMetric Tons
75.1%
7. Refractories Revenue
by Material
Refractories Revenue
by Shape
Refractory Sales – 3Q09
Basic
Magnesia
31%NonBasic
21%
Others
11%
Bricks
Others
13%
7
•1 metric ton of magnesite products -> nearly 634 kg of MgO sinter
• 1 metric ton of alumina products -> nearly 535 kg of alumina
• 1 metric ton of dolomite products -> nearly 601 kg of doloma
R$ 428.8 million
Basic
Dolomitic
37%
21% Bricks
62%
Masses
25%
8. Consolidated EBITDA
(R$ million and %)
Net Debt
(R$ million)
EBITDA and Debt – 3Q09
110.1 2,103.8
1,918.6
8
44.4
71.6
9.9
15.8
22.8
1Q09 2Q09 3Q09
EBITDA - R$ million EBITDA Margin - %
1,434.4
03/31/2009 06/30/2009 09/30/2009
