1. 1
Earnings call – 4Q11 and 2011
March 08,2012

2. 2
Highlights
Growth in refractory solutions
• Refractory volume grew by 6.8% YTD and 3.4% compared to the previous quarter
• Strong sales growth in the US, Europe and Asia operations, above the industry, with market share gains
• Strong sales growth to the industrial sector in 4Q11 (+44% vs 3Q11 and 25.6% vs 4T10)
• 6 new CPP contracts in 2011 (3 in 4Q11); 3 outside South America
Record high operating cash flow generation
•Record of R$ 565.4 million YTD operating cash flow
•R$ 91.4 million working capital reduction vs. 4Q10 (26-day shorter cash conversion cycle). Compared to
the previous quarter, reduction of R$ 46.5 million (11-day shorter cash conversion cycle).
Revenues growth
• Net revenues of R$ 2.3 billion in 2011, up 1.9% from 2010, driven by growth sales of refractory
solutions
• Net revenues of R$ 599.1 million in 4Q11, increasing by 6.7% vs 3Q11 and 1.9% vs 4Q10, driven by
sales in US and Europe, sales of minerals (+72.5% vs 3Q11), sales to the industrial sector, besides the
impact of exchange depreciation
Vertical integration projects
• Brumado expansion - start-up in April/2012
• Graphite – focus on environmental license

3. 3
Revenues and volumes by segment
%
4Q11 (a) 3Q11 (b) 4Q10 (c) (a/b) (a/c) 2011 (d) 2010 (e) (d/e)
Refractory Solutions
Volume (t) 271,791 262,891 263,957 3.4% 3.0% 1,106,915 1,036,845 6.8%
Revenues (R$ '000) 516,381 496,708 476,892 4.0% 8.3% 2,035,282 1,959,285 3.9%
Minerals
Volume (t) 226,004 172,235 160,743 31.2% 40.6% 674,350 881,755 -23.5%
Revenues (R$ '000) 48,576 28,157 68,764 72.5% -29.4% 131,052 157,970 -17.0%
Services
Revenues (R$ '000) 34,167 36,604 42,536 -6.7% -19.7% 152,569 159,129 -4.1%
TOTAL
Revenues (R$ '000) 599,125 561,469 588,192 6.7% 1.9% 2,318,902 2,276,384 1.9%
Product Line
Quarter % Year

4. 4
Refractory solutions by sector
Net revenue by sector
R$ million
+5.2%
4Q11
426.6
3Q11
434.3
4Q10
405.4
89.8
3Q11
62.4
4Q10
71.5
4Q11
+25.6%
1,671.2
+4.1%
2011
1,739.0
2010
288.1
+2.8%
2011
296.3
2010
Steel
Industrial

5. 5
Region 2011 Total
North America 1 14
Europe 1 8
Asia 1 4
South America 3 36
TOTAL 6 62
New CPP contracts
Number of contracts
Refractory solutions - CPP
32.9% of revenues to the steel sector in 2011
33.5% of revenues to the steel sector in 4Q11
24 26 27
31
36 40 42
47
52 56 59 59 59 62
Before2008
2008
1Q09
2Q09
3Q09
4Q09
1Q10
2Q10
3Q10
4Q10
1Q11
2Q11
3Q11
4Q11
24
2
14
16
3
0 0
3 62
Before2008
2008
2009
2010
1T11
2T11
3T11
4T11
Total
New CPP contracts
Number of contracts

6. 6
Gross margin by segment
Gross margin
%
Quarter YTD
4Q11 3Q11 4Q10 2011 2010
Refractory solutions 30.6 32.2 31.0 32.1 35.0
Minerals 44.9 50.6 44.6 45.8 42.1
Services 9.7 10.4 19.1 11.3 16.2
TOTAL 30.5 31.7 31.8 31.5 34.2

7. 7
Cash generation and net income (R$ million)
Net income EBITDA and EBITDA Margin (%) Cash flow from Operations
34.4
4Q10
20.5
4Q11
11.6
3Q11 4Q11
104.8
3Q11
188.4
4Q10
220.5
4Q11
111.8
18.7
3Q11
118.7
21.1
4Q10
110.5
18.8
98.6
2010
92.3
+7%
2011
-8%
2011
427.4
18.4
2010
463.3
20.4
1.5 x
2011
565.4
2010
365.2

8. 8
Working capital and cash conversion cycle
Cash conversion
Days
Working capital
R$ million
741.2
10.8%
4T113T11
787.7
2T11
790.6
1T11
805.2
4T10
831.0
26 days shorter cash conversion cycle vs.4Q10
11 days shorter cash conversion cycle vs.3Q10
R$ 91 million reduction vs 4Q10
R$ 46 million reduction vs 3Q11
161
153
145 146
135
48
56
66
76 79
129 129 129
144 138
4T10 1T11 2T11 3T11 4T11
Cash conversion cycle Suppliers Inventories