- Magnesita is moving forward with vertical integration of raw materials through expansion of M-30 sinter production and exploitation of graphite deposits. This will increase competitiveness by reducing reliance on imported materials facing price pressures. - The company continued its global expansion of the CPP refractory solutions model, adding new contracts in various regions. This positions Magnesita as the sole provider of CPP services worldwide. - Despite challenges in 3Q2010 like currency impacts, revenues and profitability remained stable due to the company's balanced portfolio and high vertical integration.

1. 3Q10 Results Conference Call
November 16, 2010

2. Agenda
1. Vertical integration in raw materials
2. Global expansion of CPP model
3. Macroeconomic Scenario
4. Steel and Cement Market
5. Raw Materials
6. Revenues and Sales Volume
2
7. Operating Profitability
8. Financial Results
9. Share Performance

3. Magnesita moves forward in vertical integration in raw
materials.
I – Expansion of M-30 sinter production
• R$ 220 million project to build two furnaces that will produce 120,000 tonnes/year of M-30 sinter starting
in 2013;
• Expansion of magnesite sinter production capacity gives the Company a competitive edge versus
competitors which purchase sinter from the market. Prices for this raw material have been rising due to
exports barriers introduced by the Chinese government;
• In November, Chinese government reduced the quotas and import tariffs for M-30 sinter by 7.5%. This
measure increased the expectations of additional highs in prices.measure increased the expectations of additional highs in prices.
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. 11
150
250
350
450
550
650
750
US$/t
MgO Sinter Prices
MgO Sinter 97.5% MgO Sinter 92%
3

4. II – Exploitation of graphite deposits in Almenara (Minas Gerais State)
• Graphite is a strategic raw material for the refractory industry. China is responsible for 80% of graphite world
supply, and is increasing limits on exports, creating a shortage of the material due to substantial increases in
its prices;
• Graphite prices have risen about 14% p.a. on average in the last 6 years and have risen 30% just in the last
three months;
• Demand for graphite is expected to double
in the next 5 years due to new uses, e.g., in
Magnesita moves forward in vertical integration of raw
materials.
280
Graphite Price Evolution
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. 11
in the next 5 years due to new uses, e.g., in
lithium-ion batteries.
• Graphite accounts for about 6.5% of
Company´s COGS. Own production of
graphite will increase the Company
competitive edge and lead to higher
profitability.
• Magnesita will invest US$ 45 million in the
exploitation and production of 40,000 metric
tons of graphite as of 2012.
80
130
180
230
2004 2005 2006 2007 Jan-08 feb-08 Mar-08 Jul-08 2009 Jun-10
FBI(2004=100)
Large Flake, 94% - 97% carbon Large Flake, 90% carbon
Medium Flake, 94% - 97% carbon Medium Flake, 90% carbon
Medium Flake, 85% - 87% carbon Fine Flake, 94% - 97% carbon
Fine Flake, 90% carbon Natural Graphite > 99,5% Carbon
4

5. The global expansion of CPP model continues to expand
beyond Brazil
CPP contracts since 2008
7
USA
China
2
1
UK
3
Germany
2
4
Mexico
2
Canada
Romania
1
Sole company in the whole industry able to provide refractory
solutions under the CPP model in all major steel producing areas
worldwide: South America, North America, Europe and Asia
Total: 28 contracts since 2008
% of revenue: 33.3%
Ecuador
1
Brazil
Chile
Peru
1
4
1
4
5

6. Macroeconomic indicators showed more modest
improvements in 3Q10, and the exchange rate variation
had a greater impact on results.
5%
0%
10%
1%
8%
3%
0%
9%
7%
-1%
8%
3%
11%
2%
9%
5%
GDP by Region
100
101
102
103
104
105
106
107
108
Industrial Production Index
(FBI Dec/09=100)
USD/BRL EUR/BRL
Average rate -2.4% -0.6%
Rate at 3Q10-close -6.0 +4.8%
FOREX in 3Q10:
Source: International Monetary Fund and Brazilian Central Bank
-3%
-4%
Brazil USA China EU Asia World
2008 2009 Oct/2010 - anualized
99
100
Brazil EU-27 * USA
6

7. World steel production slows down after a 5-quarter rise.
124 138
127
108
127 137
154 147 158 165 151
304
357
337
267 266
285
319
327
344 364
339
World Crude Steel Production (million tonnes)
World exWorld ex--ChinaChina
ChinaChina
7
Source: World Steel Association (WSA), International Stainless Steel and Brazilian National Steel Distributors’ Institute (INDA)
1Q08 2Q08 3Q08 2Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
8.6 8.8
9.4
6.9
5.0
5.6
7.9 8.1 8.0 8.4 8.4
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10
Brazilian Crude Steel Production
(million tonnes)
0
5
10
15
20
25
Numberofmonths
Brazilian distributors’s inventories of main steel
products
Heavy Plates Hot Rolled Coil Slabs

8. Brazilian cement production is still on the rise, impacted
by higher sales of aluminum refractories.
11.8
12.6
14.1
13.4
11.7
12.3
13.7 13.7
13.3
14.4
16.1
Cement Production in Brazil
(million tonnes)
8Source: SNIC
1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 -E
89.3
104.9
119.3
107.8
122.6
3Q09 4Q09 1Q10 2Q10 3Q10
Revenues from Alumina Refractories
(R$ million)

9. Refractory production costs are still under strong raw material
price pressure.
130
150
170
190
210
jun/09=100
Raw Material Prices Evolution
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
110
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 Jul-10 Aug-10 Sep-10
Brown Alumina White Alumina Zirconia Graphite Electrofused Magnesia
9
The company is highly vertically integrated in raw materials, which represent
approximately 70% of the volume consumed. The remaining 30% of purchased raw
materials represents between 35 and 40% of production costs. The strategy is to
achieve 90% vertical integration by 2013.

10. Highlights in 3Q10
86,586
tonnes
78,393
tonnes
69,749
tonnes
• Record high refractory sales by South American
units
3Q10 2Q10 3Q09
R$ 112.9
MM
R$ 125.1
MM
R$ 96.4
MM• 9.7% lower selling and administrative expenses
10
19.0% 19.7% 21.1%• Stable adjusted EBITDA margin (*)
R$ 31.6
MM
R$ 24.6
MM
R$ 24.4
MM• 28.6% rise in net income
Good performance despite the seasonally weaker period in the Northern
Hemisphere, raw-materials cost pressure, and an unfavorable exchange rate.
(*) excluding extraordinary/non-recurring items

11. Balanced product portfolio and geographic distribution of
sales, coupled with high vertical integration, help safeguard
the Company from external impacts.
69.8 77.6 80.1 78.4 86.6
150.1
161.1 178.1 180.4 169.3
3Q09 4Q09 1Q10 2Q10 3Q10
Refractories sales volume
(thousand tonnes)
219.9
238.7
258.2 258.8 255.9
221.4 251.0 260.0 262.7 284.8
262.2
286.8 305.9 289.1 285.7
3Q09 4Q09 1Q10 2Q10 3Q10
Net Revenues - R$ million
483.6
537.7 565.9 551.7 570.5
11
Domestic Market Overseas Market Domestic Market Oversea Market
57.6%
20.5%
17.3%
4.6%
56.0%
17.5% 15.4%
9.3%
1.8%
South America Europe North America Asia RoW
Net Revenues by Location - 3Q10
Production Destination
Overseas Market

12. Balanced product portfolio and geographic distribution of
sales, coupled with high vertical integration, help safeguard
the Company from external impacts.
Integrated
Mills
41.3%
Specialty
Steels
27.8%
Eletric Mills
28.2%
Others
2.7%
Revenues by Segment – 3Q10
Steel
84.5%
Cement
8.3%
Others
7.2%
Refractories
86.6%
Services
7.1%
Other Minerals
3.8%
Sínter
1.7%
Other Products
0.8%
Net Revenues by Products - 3Q10
12
Magnesian
34.6%
Dolomitic
30.1%
Aluminous
24.8%
Others
10.5%
Net Revenues by Chemical Composition-
3Q10
84.5%86.6%

13. Despite the hurdles in 3Q10, Magnesita’s operating
profitability remained stable and ranks first in the industry.
169.7
183.6
196.2
199.2
194.935.1% 34.1%
34.7%
36.1%
34.2%
10
15
20
25
30
35
40
150
155
160
165
170
175
180
185
190
195
200
205
3Q09 4Q09 1Q10 2Q10 3Q10
Gross Profit and Gross Margin -
Consolidated
Raw
Material*
38.4%
Labor
Depreciation
6.6%
Maintenance
5.0%
Electricity
3.6%
Others
17.2%
COGS Breakdown- 9M10
13
106.0
123.1
119.1 118.2
125.3
40.2 39.5 39.3 39.5 38.1
2 0
2 5
3 0
3 5
4 0
4 5
5 0
5 5
6 0
9 5
1 0 0
1 0 5
1 1 0
1 1 5
1 2 0
1 2 5
1 3 0
3Q09 4Q09 1Q10 2Q10 3Q10
Gross Profit and Gross Margin - SouthAmerica
Gross Profit - R$ million Gross Margin - %
63.7 60.5
77.0
81.0
69.6
28.9
26.8
29.3
32.1
28.8
1 0
1 5
2 0
2 5
3 0
3 5
4 0
4 5
5 0
5 5
6 0
0
1 0
2 0
3 0
4 0
5 0
6 0
7 0
8 0
9 0
3Q09 4Q09 1Q10 2Q10 3Q10
Gross Profit and Gross Margin - Other Units
Gross Profit - R$ million Gross Margin - %
3Q09 4Q09 1Q10 2Q10 3Q10
Gross Profit - R$ million Gross Margin
Labor
18.8%
Fuel
10.4%
* Acquired from third parties

14. Despite the hurdles in 3Q10, Magnesita’s operating
profitability remained stable and ranks first in the industry.
110.1
138.8
123.1 119.5
108.6
22.8
25.8
21.8 21.7
19.0
0
1 0
2 0
3 0
4 0
5 0
6 0
0
2 0
4 0
6 0
8 0
1 0 0
1 2 0
1 4 0
1 6 0
3Q09 4Q09 1Q10 2Q10 3Q10
EBTIDA and EBITDA Margin
14
South America
Consolidated
Other Units
3Q09 4Q09 1Q10 2Q10 3Q10
EBITDA - R$ million EBITDA Margin - %
26.4
29.3
23.4
22.6 22.6
14.8 14.1
15.1
16.1
14.2
21.1
22.9
19.5 19.7 19.0
3Q09 4Q09 1Q10 2Q10 3Q10
AjustedEBITDA and Margin
65.5
91.3
70.8 67.7 74.3
32.6
31.7
39.8 40.7 34.3
3Q09 4Q09 1Q10 2Q10 3Q10
Ajusted EBITDA (R$ million)
South America Other Units
102.1
123.0
110.6 108.4 108.6
Adjusted EBITDA Margin

15. A balanced debt amortization schedule allows focusing on
operations and improving financial indicators.
1,434.4
1,414.8 1,413.6
1,491.0
1,444.1
5.5
3.9
3.2 3.0 2.9
0,5
1,5
2,5
3,5
4,5
5,5
6,5
1.350,0
1.370,0
1.390,0
1.410,0
1.430,0
1.450,0
1.470,0
1.490,0
1.510,0
1.530,0
1.550,0
3Q09 4Q09 1Q10 2Q10 3Q10
Net Debit - R$ million Net Debt/EBITDA
Net Debt
63.4
57.3
64.7
42.8 44.7
3Q09 4Q09 1Q10 2Q10 3Q10
Net Financial Expenses
(R$ million)
15
Net Debit - R$ million Net Debt/EBITDA
34%
20% 25%
11% 5%
66%
80% 75% 89% 95%
09-30-09 12-31-09 03-31-10 06-30-10 09-30-10
Total Debt Profile (R$ million)
Long-term
Short-term
98.4
16.6 26.6
292.4
401.3 400.9
657.9
2010 2011 2012 2013 2014 2015 2020
Amortization Schedule
(R$ million) 2,184.3
1,782.4 1,861.7
1,950.8 1,894.1
Obs.: considering Ebitda L12M

16. MAGG3 share performance
110
120
130
140
150
09/30/09=100
Stock Performance (09/30/09 to 09/30/10)
12.9%
16
• Banks covering the Company's shares: Barclays, Itaú, Santander, Credit Suisse, BTG Pactual,
Merrill Lynch, Safra, Deutsche Bank and Morgan Stanley.
80
90
100
Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10
09/30/09=100
MAGG3 IBOVESPA
0%

17. Flávio Rezende Barbosa
CFO and Investor Relations Officer
Adriana Fernandes Lana
17
Adriana Fernandes Lana
Investor Relations Manager
Phone number: +55 31 3368-1069
Lucas Lima Ferreira
Investor Relations Analyst
Phone number: +55 31 3368-1068
ri@magnesita.com www.magnesita.com/ri