- Net revenues increased 14.5% quarter-over-quarter and 10.3% year-over-year due to higher refractory sales in the domestic market to the steel industry. - Gross and EBITDA margins improved due to management's focus on cost control. - Tax benefits resulted from mergers in 2008 and the sale of non-core assets led to non-operating revenue of R$54.2 million.

1. Earnings Conference Call
2Q08

2. Not considering
goodwill
amortization
Better mix led to a rise in net revenues
by 14.5% quarter-on-quarter and 10.3%
year-on-year - due to higher refractory
sales in the domestic market and to
the steel industry.
Better mix led to a rise in net revenues
by 14.5% quarter-on-quarter and 10.3%
year-on-year - due to higher refractory
sales in the domestic market and to
the steel industry.
Recovery of the gross margin and
EBITDA margin reflect management´s
continuous focus on cost and expense
control.
Recovery of the gross margin and
EBITDA margin reflect management´s
continuous focus on cost and expense
control.
Tax benefit resulting from
mergers in 2008:
Magnesita Refratários S.A.: 1Q08 partial
and 2Q08 fully appropriated;
Subsidiaries: partial, starting
May 1, 2008.
Tax benefit resulting from
mergers in 2008:
Magnesita Refratários S.A.: 1Q08 partial
and 2Q08 fully appropriated;
Subsidiaries: partial, starting
May 1, 2008.
Non-operating revenue of R$ 54.2
million from the sale of non-core assets
Non-operating revenue of R$ 54.2
million from the sale of non-core assets
Quarterly Net Income R$ million

3. Sales Volume Breakdown
1H07
Sales Volume Breakdown
1H07
Sales Volume Breakdown
1H08
Sales Volume Breakdown
1H08
(*) not including the non-recurring sale of 210,000 metric tons of magnesium silicate
194 kt
96 kt
39 kt 205 kt
82 kt
32 kt
Other minerals
1H08 vs. 1H07 = -14.4%
Total
1H08 vs. 1H07 = -3.0%
Refractories
1H08 vs. 1H07 = + 5.7%
329 kt 320 kt

4. 229
254 247 261 276
49
58 59
62 42
2Q082Q07 3Q07 4Q07 1Q08
Exports
Domestic
318306 323
278
312
Net Revenues
Net Revenues - R$ millionNet Revenues - R$ million Net Revenues by Product – %Net Revenues by Product – %
Higher demand from steel industry
in Brazil led to a rise in sales.
78% 79%
3%
5%
13%
4%
4%
14%
R$ 580 MM R$ 638 MM
Services
Refractory
Sinter
Other minerals
Obs.: excludes non-recurring income from sale of 210 kt of magnesium silicate amounting to R$2.5 MM.
DM
2Q07 -> 2Q08
+R$47MM (21%)

5. Breakdown of Refractory
Revenues – 1H08
Breakdown of Refractory
Revenues – 1H08
Breakdown of Refractory Revenues
to the Steel Industry – 1H08
Breakdown of Refractory Revenues
to the Steel Industry – 1H08
(R$387 MM)
(R$35 MM)
(R$81 MM)

6. 217.7
EBITDA – R$ millionEBITDA – R$ million EBITDA Margin – %EBITDA Margin – %
6
1Q
2Q
3Q
4Q
+71%
188.5
EBITDA / EBITDA Margin

7. Raw Materials
32%
Labor
28%Fuel
12%
Depreciation
6%
Industrial
Maintenance
4%
Energy
5%
Others
accounts
13%
COGS – 1H08COGS – 1H08 Operating ExpensesOperating Expenses
2Q082Q07 3Q07 4Q07 1Q08
Administrative
Sales
66
64
75
52
60
Costs
2008 administrative expenses increased because of non-recurring
costs of mergers and restructuring of the Group’s companies.
Year to date, costs have amounted to R$12.6 million.

8. Net Debt/EBITDA – R$ millionNet Debt/EBITDA – R$ million
Obs.: 06.30.08 – annualized EBITDA was considered
Debt
The Company’s debt, which is
composed by approximately 90%
long-term, excluding cash and cash
equivalent of R$ 542 million is
equivalent to 1.4 time
annualized EBITDA.
The Company’s debt, which is
composed by approximately 90%
long-term, excluding cash and cash
equivalent of R$ 542 million is
equivalent to 1.4 time
annualized EBITDA.

9. Stock Performance
MAGG3 + 93.7%
Ibovespa + 2.6%
Average daily trading volume: R$ 11.9 million

10. Outlook
Steel
Strong signals for sustained growth, with confirmation of several expansion projects. Brazil
has been consolidating as investment target and Magnesita is capable to respond to the
needs of refractory products in this market.
Steel
Strong signals for sustained growth, with confirmation of several expansion projects. Brazil
has been consolidating as investment target and Magnesita is capable to respond to the
needs of refractory products in this market.
Commodities
• Booming demand mainly due to growing global economy, level of urbanization and
industrialization in emerging markets.
• Prices pressured by: energy, devaluation of the US currency, labor and inputs supply
shortages, environmental concerns and export-barriers.
• Production capacity is not sufficient (obsolete equipment, interruptions due to
debottlenecking, longer lead times to build new production capacity.
Consequence: Unbalanced supply and demand
Commodities
• Booming demand mainly due to growing global economy, level of urbanization and
industrialization in emerging markets.
• Prices pressured by: energy, devaluation of the US currency, labor and inputs supply
shortages, environmental concerns and export-barriers.
• Production capacity is not sufficient (obsolete equipment, interruptions due to
debottlenecking, longer lead times to build new production capacity.
Consequence: Unbalanced supply and demand
Brumado Plant
• Natural shield against pressures of magnesite sinter prices. Studies underway for expansion
to supply both domestic and exports markets.
Brumado Plant
• Natural shield against pressures of magnesite sinter prices. Studies underway for expansion
to supply both domestic and exports markets.
Cement
Market will remain heated due to higher credit availability.
Cement
Market will remain heated due to higher credit availability.