2. Industry environment − Steel Production
Quarterly Crude Steel Production EvolutionCrude Steel Production
million tonnes
2Q09 3Q09 4Q09 1Q10 L12M
Asia 8.9% 10.9% -0.9% 5.8% 26.6%
EU-27 2.2% 11.4% 15.0% 4.5% 36.9%
35.0 40.3
42.1
12.5
16.4 17.6
19.4
5.0
5.6
7.9 8.1
8.0
265.5
284.6
319.2 327.5
342.0
2
EU-27 2.2% 11.4% 15.0% 4.5% 36.9%
US 4.1% 31.2% 7.3% 10.2% 61.5%
Brazil 11.3% 41.8% 2.1% (1.2%) 60.5%
World 7.2% 12.2% 2.6% 4.4% 28.8%
World Stainless Steel Production
million tonnes
• The world crude steel production
increased 4.4% in the
1Q10, accumulating an increase of
L12M = Last 12 months
172.7 188.1
208.5 206.7 218.6
30.8
31.4
35.0 40.3
12.0
12.55.0
1Q09 2Q09 3Q09 4Q09 1Q10
Asia EU-27 USA Brazil RoW
Source: World Steel Association and International Stainless Steel
1Q10, accumulating an increase of
28.8% in the last 12 months;
• Highlight for the recovery of the
U.S. market with a high of 10.2% in
1Q10.
2
3. Industry environment − Cement Production
Cement Production – Brazil
million tonnes
11.709 12.328
13.697 13.746
Cement Production – World
million tonnes
2,923 2,971 3,021
1,563 1,571 1,551
Cement production remains strong in Brazil;Cement production remains strong in Brazil;
4.248
1Q09 2Q09 3Q09 4Q09 Jan-10
1,360 1,400 1,470
2007 2008 2009E
China RoW
Source: SNIC – Sindicato Nacional da Indústria do Cimento
Cement production remains strong in Brazil;
Increase in capacity is expected;
China accounted for about 50% of the world production.
Cement production remains strong in Brazil;
Increase in capacity is expected;
China accounted for about 50% of the world production.
3
4. Cost per Performance
Excellent
opportunity for
growth
% of the net revenues from steel industry
2009 1Q10
Contracts by volumeCPP Contracts
Successful actions
12 new contracts:
4 – Brazil
6 – US
1 – Chile
1 – UK
2009
2 new contracts:
1 – Ecuador
1 – US
1Q10
Successful actions
to reply the CPP
model worldwide
4
5. Sales Volume and Revenues
Revenue by Product – 1Q10
(%)
Refractories Sales Volume
(thousand tonnes)
Basic
Magnesia
31.8%
Non Basic
23.6%
Others
11.3%
127.9 133.2 150.1 161.1 178.1
52.9 57.8 69.8 77.6 80.1180.8 191.0
219.9 238.7 258.2
Revenue by Operating Location x
Costumer Location – 1Q10 (%)
Refractory Revenue by Industry - 1Q10
(%)
Basic
Dolomitic
33.4%
23.6%
53.5 52.1
127.9 133.2 150.1 161.1 178.1
1Q09 2Q09 3Q09 4Q09 1Q10
OverseasMarket Domestic Market
5
Steel
84.0%
Cement
and Lime
11.7%
Others
4.3%
17.9
24.2
4.4
16.0
19.8
10.0
2.1
South
America
North
America
Europa Asia Others
Operating Location Customer Location
7. 691,7
Debt
Funding: US$ 400.0 million (Reg. 144 A/S)
Rate: 7.875% p.a.
Funding: US$ 400.0 million (Reg. 144 A/S)
Rate: 7.875% p.a.
Bonds Issue Amortization Schedule *
41,4 3,6 15,1
322,1 315,2 318,1
2010 2011 2012 2013 2014 2015 2020
Bradesco: R$ 133.5 millionBradesco: R$ 133.5 million
Renegotiation
Maturity date: 2020 (callable in 2015)
Use: US$ 300.0 million to pay the debt
with JP Morgan (senior export notes) in its
entirety
Maturity date: 2020 (callable in 2015)
Use: US$ 300.0 million to pay the debt
with JP Morgan (senior export notes) in its
entirety * Pro-forma amortizations calculated after the debt renegotiation with Itau in April 2010
and not including the debts from advances for foreign exchange contracts
Net Debt (R$ million)
Bradesco: R$ 133.5 million
Itaú-Unibanco: R$ 800.0 million
Costs: from CDI + 4% to CDI + 2.75%
Amortization: 2013, 2014 and 2015 + grace period
extension for two more years
Bradesco: R$ 133.5 million
Itaú-Unibanco: R$ 800.0 million
Costs: from CDI + 4% to CDI + 2.75%
Amortization: 2013, 2014 and 2015 + grace period
extension for two more years
Average debt cost: 10% p.a.
7
8. Joint Venture with Krosaki - Profile
• One of the world leaders in refractory
production for flow control (continuous
casting).
A Japanese company founded in
1918 whose core business is
producing and marketing
refractory products
• Gross Revenue = US$ 548.9 million
• EBITDA = US$ 41.7 million
• Net Income = US$ 15 million
• Market Cap. = US$ 438 million (05/11/2010)
Listed on the Tokyo Stock
Exchange, and its shareholders’
equity amounts to US$ 325.6
million
KEY FIGURES IN 2009:
• No relevant investment will be required. The
Company will be able to expand the CPP model
in North America.
The joint venture will make use
of a Magnesita unit in
Pennsylvania (USA)
8
9. Capital Markets
Share Performance
(From 3/31/2009 to 3/31/2010)
200,000
250,000
250.00
300.00
350.00
AverageTradingVolume(R$thousand)
SharePriceEvolution(basis100)
-
50,000
100,000
150,000
0.00
50.00
100.00
150.00
200.00
AverageTradingVolume(R$thousand)
SharePriceEvolution(basis100)
1.4% depreciation in 1Q10. IBOVESPA Index: +2.6%; in the L12M increase of 188.5% x 72.0% of Ibovespa
Average daily volume of R$ 10.6 million;
Coverage of major banks: Itaú, Credit Suisse, BTG Pactual, Merrill Lynch, Santander and Barclays.
1.4% depreciation in 1Q10. IBOVESPA Index: +2.6%; in the L12M increase of 188.5% x 72.0% of Ibovespa
Average daily volume of R$ 10.6 million;
Coverage of major banks: Itaú, Credit Suisse, BTG Pactual, Merrill Lynch, Santander and Barclays.
9
Volume MAGG3 Ibovespa
10. Flávio Rezende Barbosa
Chief Financial and Investor Relations Officer
Adriana Fernandes Lana
Investor Relations Manager
Phone: (+55 31) 3368-1069
Lucas Lima Ferreira
Investor Relations Analyst
Phone: (+55 31) 3368-1068Phone: (+55 31) 3368-1068
ri@magnesita.com.br www.magnesita.com.br
10
