Earnings Call 3Q14

November 14th, 2014

The consolidated financial statements presented here are consistent with the criteria of international accounting standards - IFRS issued by the

International Accounting Standards Board – IASB, based on audited financial information. Non-financial information contained herein, as well

as other operational information, were not audited by independent auditors and may include forward-looking statements and reflects the

current views and perspectives of the management on the evolution of macro-economic environment, conditions of the mining and

refractories industries, company performance and financial results. Any statements, projections, expectations, estimates and plans contained

in this document that do not describe historical facts, and the factors or trends affecting financial condition, liquidity or results of operations,

are forward-looking statements and involve several risks and uncertainties.

This presentation should not be construed as legal, tax, investment or other advice. This presentation does not constitute an offer, or invitation,

or solicitation of an offer, to subscribe for or purchase any securities, and neither any part of this presentation nor any information or

statement contained herein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. Under no

circumstances, neither the Company nor its subsidiaries, directors, officers, agents or employees be liable to third parties (including investors)

for any investment decision based on information and statements in this presentation, or for any damages resulting therefrom, corresponding

or specific.

The information presented or contained in this presentation is current as of the date hereof and is subject to change without notice. Magnesita

has no obligation to update it or revise it in light of new information and / or in face of future events, safeguard the current regulations which

we are submitted to. This presentation and its contents are proprietary information of the Company and may not be reproduced or circulated,

partially or completely, without the prior written consent of the Company.

Changes in historical numbers For comparison purposes, 2013 figures have been adjusted to reflect accounting changes implemented by the Company in late 2013.

Disclosure

A g

lob

al o

rgan

izat

ion

New Strategic Vision

Vision: Be the best provider of refractories solutions and industrial minerals,

leveraging and developing our minerals base

Expand industrial minerals base

Ensure leadership in our core markets

Maintain a global low cost production base

Grow selectively and aggressively

Continue to develop high quality, low cost raw material sources to support our current

businesses as well as new businesses where

we can have a sustainable competitive

advantage

Strive to keep offering high quality and

innovative products, unrivaled services and

cost performance

Optimize production globally to improve

efficiency and support growth

Develop global supply chain management

Pursue long term growth opportunities in selected

markets where we can deliver superior value to

our customers and shareholders

▪Meritocracy ▪Ethics

▪Profit ▪Management & Method

▪Agility and Transparency ▪Respect for Safety, Environment and Communities

▪Customer ▪People

Our values

3

South America

4

Source: ¹WSA

Crude Steel Production¹ (million tons) - Core Markets

Volume (‘000 tons)

North America EU-28

Sales to Steel Segment

Revenues (R$ million)

238

3Q13

210

-6%

+6%

3Q14

223

2Q14

-6%

+7%

3Q14

524

2Q14

557

3Q13

489

Refractory Solutions Sales - Steel

+3%

-3%

3Q14

12

2Q14

11

3Q13

12

+3%

+2%

3Q14

31

2Q14

30

3Q13

30

-8%

+1%

3Q14

40

2Q14

44

3Q13

40

13% 13%

23% 23% 25%

24%

39% 40%

Sales by region (in R$)

South America

North America

Europe Others

9M13

9M14

-3%

34 35

9M14 9M13

+2%

9M14

90

9M13

88

+3%

9M14

128

9M13

124

+7%

9M14

674

9M13

632

+16%

9M13

1,598

9M14

1,374

5

Sales to Industrial Segment

Refractory Solutions Sales – Industrial Segment

Volume (‘000 tons) Revenues (R$ million)

413336

+24%

+15%

3Q14 2Q14 3Q13 3Q13

89

+25%

+23%

3Q14

110

2Q14

88

Sales by region (R$)

-6%

9M14

118

9M13

126 323309

+5%

9M14 9M13

20% 16%

12% 10%

20% 18%

52% 52%

9M13

9M14

South America

North America Europe Others

Refractory Solutions Sales and Margin - Consolidated

6

Volume (‘000 tons)

Revenues (R$ million)

Gross Profit and Margin (R$ million;%)

245 264271

-3%

+7%

3Q14 2Q14 3Q13

205201186

+2%

+10%

3Q14

32.2%

2Q14

31.2%

3Q13

32.2%

634645578

-2%

+10%

3Q14 2Q14 3Q13

Sales by region (R$) 43%

13% 14%

21% 20% 25%

23%

41%

South America

North America Europe Others

9M13

9M14

17% 18%

83% 82%

Steel Industrial

9M13

9M14

Sales by segment (R$)

758 792

+5%

9M14 9M13

+14%

9M14

1,921

9M13

1,683

619576

+7%

9M14

32.2%

9M13

34.2%

7

Revenues (R$ million) Gross Profit and Margin (R$ million;%)

Revenues (R$ million) Gross Profit and Margin (R$ million;%)

Minerals and Services

3935

39

+12%

+1%

3Q14 2Q14 3Q13

4140

31

+2%

+34%

3Q14 2Q14 3Q13

141216

+13%

-13%

3Q14

35.5%

2Q14

35.1%

3Q13

41.2%

1275

+73%

+154%

3Q14

28.2%

2Q14

16.6%

3Q13

14.9%

Minerals

Services

112

9M13

107

+5%

9M14

3843

-13%

9M14

33.7%

9M13

40.4%

89

+36%

9M14

121

9M13

2512

+107%

9M13 9M14

20.6% 13.5%

8

Consolidated Sales and Gross Profit (R$ million)

Por Segmento

715720647

3Q14 2Q14 3Q13

-1%

+10%

5.6% 5.2%

89.2%

5.7%

89.6%

4.7%

Services Minerals Refractories

9M13 9M14

Gross Profit

Consolidated Sales

+15%

9M14

2,154

9M13

1,879

230220207

30.6%

3Q13

31.9%

+5%

+11%

3Q14

32.2%

2Q14

681631

9M13

33.6%

9M14

+8%

31.6%

9

SG&A

Selling Expenses

G&A

2Q14

58

8.0%

3Q13

63

9.7%

+4%

-4%

3Q14

60

8.4%

+1%

+5%

3Q14

101

14.1%

2Q14

100

13.8%

3Q13

96

14.8%

Selling expenses

% on sales

0%

+17%

3Q14 3Q13

37

5.7%

43

6.1%

2Q14

43

6.0%

Consolidated Freight

G&A

% on sales

Others

56

7.8%

3Q13

59

9.1%

+2%

-3%

3Q14

57

8.0%

2Q14

8.1%

9M13

171

8.9%

+2%

9M14

174

+18%

9M14

306

14.2%

9M13

261

13.6%

133

6.2%

9M13

101

5.3%

+32%

9M14

8.0%

+9%

9M14

173

9M13

160

8.3%

10

EBITDA and Net Income (R$ million)

EBITDA

Net Income

11.8%

3Q13

77

+5%

+31%

3Q14

100

14.1%

2Q14

95

13.2%

-22

-3.4%

3Q14

-18

-2.6%

2Q14

14

2.0%

3Q13

+9%

+30%

3Q14

105

14.7%

2Q14

97

13.5%

3Q13

81

12.5%

9M13

297

15.5%

+3%

9M14

306

14.2%

9M14 9M13

-21

-1.0%

28

1.5%

-7%

316

16.5%

9M13

294

9M14

13.7%

EBITDA ex-other

11

CAPEX and Working Capital (R$ million)

Working Capital

CAPEX

+3%

-38%

3Q14

38

2Q14

37

3Q13

62

34.0%

1Q14

1,017

35.4%

4Q13

952

32.3%

3Q13

976

37.7%

3Q14

979

2Q14

1,002

35.1%

Working Capital

% on sales

-16%

9M14

102

9M13

121

12

*EBITDA excluding other revenues / expenses

Leverage and Indebtedness

Total

Amortization Schedule (R$ million) Net Debt per Currency

Excluding Perpetual Bond

Others 0% 0%

EUR 17% 17%

USD 47%

59%

BRL 37%

24%

911922914855819

417394421439398

2,2x2,3x

2,2x1,9x

2,1x

2,3x

3Q14 2Q14

2.4x

1Q14

2.4x

4Q13

2.2x

3Q13

2.1x

Net Debt / EBITDA w/o ore*

Net Debt / EBITDA

EBITDA

Net Debt

2020+

1,635

1,022

613

2019

12

2018

213

2017

281

2016

84

2015

189

2014

8

3Q14

885

Cash Position Amortization Perpetual Bond

3Q14

4Q13

417394421439389

3,7x3,8x3,5x

3,3x3,5x

3,8x

3Q14

1,537

2Q14

1,484

3.9x

1Q14

1,494

3.9x

4Q13

1,453

3.7x

3Q13

1,369

3.7x

Net Debt / EBITDA w/o ore*

Net Debt / EBITDA

EBITDA

Net Debt

*EBITDA excluding other revenues / expenses

Octavio Pereira Lopes CEO

Eduardo Gotilla CFO and IRO

Daniel Domiciano Silva Investor Relations Manager

Lucas Veiga Investor Relations Analyst

Phone: +55 11 3152-3237/3241/3202 ri@magnesita.com

www.magnesita.com/ri

13

Investor Relations Contacts