Earnings Call 2Q14

August 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)

+11%

+8%

2Q14

238

1Q14

214

2Q13

219

+8%

+21%

2Q14

557

1Q14

517

2Q13

461

Refractory Solutions Sales - Steel

+1%

-5%

2Q14

11

1Q14

11

2Q13

12

+2%

0%

2Q14

30

1Q14

30

2Q13

29

+2%

-1%

2Q14

43

1Q14

44

2Q13

43

14% 15%

23% 22% 25%

23%

38% 40%

Sales by region (in R$)

South America

North America

Europe Others

1H13

1H14

-3%

1H14

22

1H13

23

+2%

1H14

60

1H13

59

1H14

87

+4%

1H13

84

452

1H13

+7%

422

1H14

885

1H13

+21%

1H14

1,074

5

Sales to Industrial Segment

Refractory Solutions Sales – Industrial Segment

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

33

4144

-24%

-18%

2Q14 1Q14 2Q13

88

125

100

-30%

-13%

2Q14 1Q14 2Q13

Sales by region (R$)

77

90

-15%

1H14 1H13

213220

-3%

1H14 1H13

17% 18% 12%

9%

24% 18%

47%

55%

1H13

1H14

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;%)

271258260

+5%

+4%

2Q14 1Q14 2Q13

201213198

-5%

+2%

2Q14

31.2%

1Q14

33.1%

2Q13

35.2%

645642561

0%

+15%

2Q14 1Q14 2Q13

Sales by region (R$) 43%

14% 15%

21% 20% 25%

22%

40%

South America

North America Europe Others

1H13

1H14

17% 20%

83% 80%

Steel Industrial

1H13

1H14

Sales by segment (R$)

528512

+3%

1H14 1H13

+16%

1H14

1,287

1H13

1,105

414390

1H14

+6%

32.2%

1H13

35.3%

7

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

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

Minerals and Services

353840

-9%

-12%

2Q14 1Q14 2Q13

4039

29

+5%

+39%

2Q14 1Q14 2Q13

121215

2Q13

38.6%

+4%

-20%

2Q14

35.1%

1Q14

30.6%

764

+4%

+63%

2Q14

16.6%

1Q14

16.6%

2Q13

14.1%

Minerals

Services

+7%

1H14

73

1H13

68

2427

32.7%

1H13

39.9%

-12%

1H14

79

58

+37%

1H14 1H13

13

7

12.8%

1H14

16.6%

1H13

+78%

8

Consolidated Sales and Gross Profit (R$ million)

Por Segmento

720719630

0%

+14%

2Q14 1Q14 2Q13

5.5% 5.1%

89.4%

4.7% 5.6%

89.7%

Services Minerals Refractories

1H13 1H14

Gross Profit

Consolidated Sales

+13%

1H14

1,440

1H13

1,273

220231217

-5%

+1%

2Q14

30.6%

1Q14

32.1%

2Q13

34.5%

451425

+6%

1H14

31.3%

1H13

34.5%

9

SG&A

Selling Expenses

G&A

+3%

+1%

2Q14

58

8.0%

1Q14

56

7.8%

2Q13

58

8.8%

-6%

+10%

2Q14

100

13.8%

1Q14

106

14.8%

2Q13

91

13.9%

Selling expenses

% on sales

-7%

+23%

2Q14

43

6.0%

1Q14

46

6.5%

2Q13

35

5.4%

Consolidated Freight

G&A

% on sales

Others

-6%

+2%

2Q14

56

7.8%

1Q14

60

8.3%

2Q13

55

8.5%

+6%

1H14

114

7.9%

1H13

108

8.5%

+25%

1H14

206

14.3%

1H13

165

13.0%

+40%

1H14

90

6,2%

1H13

64

5,0%

+15%

1H14

116

8.1%

1H13

101

7.9%

10

EBITDA and Net Income (R$ million)

EBITDA and Adjusted EBITDA (excluding other revenues / expenses)

Net Income

ADJUSTED

-3%

-23%

2Q14

95

13.2%

1Q14

98

13.7%

2Q13

123

18.9%

2Q14

14

2.0%

1Q14

-17

-2.3%

2Q13

24

3.6%

14.4%

2Q13

103

15.8%

-7%

2Q14

-6%

97

1Q14

13.4%

104

1H14

194

13.5%

1H13

18.8%

239

200

13.9%

1H13

217

17.0%

-7%

1H14

1H14

-2

-0.2%

1H13

50

3.9%

11

CAPEX and Working Capital (R$ million)

Working Capital

CAPEX

+38%

+3%

2Q14

37

1Q14

27

2Q13

36

2Q14

979

34.0%

1Q14

1,017

35.4%

4Q13

952

32.3%

3Q13

976

37.7%

2Q13

934

35.9%

Working Capital

% on sales

+7%

1H14

64

1H13

60

12

*EBITDA excluding other revenues / expenses

Leverage and Indebtedness

Total

Amortization Schedule (R$ million) Net Debt per Currency

Excluding Perpetual Bond

Others 1%

0%

EUR 18%

17%

USD 36%

59%

BRL 45%

24%

904914875819658

394421439398406

4Q13

2.4x

2.2x 2.3x

1Q14 2Q14

2.4x 2.2x

2.0x

3Q13

2.1x

2.1x

2Q13

1.7x

1.7x

Net Debt / EBITDA w/o ore

Net Debt / EBITDA

EBITDA

Net Debt

2015

178

2014

8

2Q14

804

2016

84 213

2017

281

2020+

1,512

949

563

2019

12

2018

Cash Position Amortization Perpetual Bond

2Q14

4Q13

394421438384386

3.9x

3.8x

1Q14

1,494

3.9x

3.5x

4Q13 2Q14

1,484 1,453

3.7x

3.3x

3Q13

1,369

3.7x

3.6x

2Q13

1,205

3.2x

3.1x

Net Debt / EBITDA w/o ore

Net Debt / EBITDA

EBITDA

Net Debt

*EBITDA excluding other revenues / expenses

Octavio Pereira Lopes CEO

Eduardo Gotilla Global Finance and IRO

Daniel Domiciano Silva Investor Relations

Lucas Veiga Investor Relations Analyst

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

www.magnesita.com/ri

13

Investor Relations Contacts