Earnings Call – 4Q14 and 2014

March 17th, 2015

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

2

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

Brazil

4

Source: ¹WSA

Crude Steel Production¹ (million tons) - Established Markets

Volume (‘000 tons)*

USA + Canada EU-28

Sales to Steel Segment

Revenues (R$ million)

-2%

-1%

4Q14

218

3Q14

220

4Q13

217

+4%

+3%

4Q14

545

3Q14

524

4Q13

530

Refractory Solutions Sales - Steel

-5%

0%

4Q14

8

3Q14

9

4Q13

8

-5%

0%

4Q14

25

3Q14

26

4Q13

25

+3%

-1%

4Q14

41

3Q14

40

4Q13

42

Sales by region (in R$)

-1%

2014

34

2013

34

+1%

2014

101

2013

99

+2%

2014

169

2013

166

883

+5%

839

2013 2014

1.918

2014 2013

2.139

+12%

*Excluding scraps volume

5

Sales to Industrial Segment

Refractory Solutions Sales – Industrial Segment

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

344242

-17%

-18%

4Q14 3Q14 4Q13

98111120

-12%

-18%

4Q14 3Q14 4Q13

154 151

-2%

2014 2013

423415

+2%

2014 2013

Refractory Solutions Sales and Margin - Consolidated

Volume (‘000 tons)

Revenues (R$ million)

Gross Profit and Margin (R$ million; %)

251262260

-4%

-4%

4Q14 3Q14 4Q13

184206203

-11%

-10%

4Q14

28.5%

3Q14

32.4%

4Q13

31.2%

643635650

+1%

-1%

4Q14 3Q14 4Q13

Sales by region (in R$)

Sales by segment (in R$)

993

+4%

2014

1.034

2013

2014

2.562

2013

2.334

+10%

801777

2014

+3%

31.3%

2013

33.3%

6

7

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

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

Minerals and Services Sales and Margin

3239

54 -17%

-40%

4Q14 3Q14 4Q13

434132

+5%

+34%

4Q14 3Q14 4Q13

1114

18

-20%

-41%

4Q14

33.4%

3Q14

34.8%

4Q13

34.0%

710

5

-33%

+42%

4Q14

16.4%

3Q14

25.6%

4Q13

15.6%

Minerals

Services

-9%

2014

145

2013

159

4964

2014

33.5%

2013

40.1%

-24%

+37%

2014

165

2013

121 33

17

2014

+94%

20.0%

2013

14.1%

8

Consolidated Sales and Gross Profit (R$ million)

Por Segmento

718715736

4Q13

0%

-2%

4Q14 3Q14

Lucro Bruto

Vendas Consolidadas

+10%

2014

2.872

2013

2.613

201230226

-13%

-11%

4Q14

28.0%

3Q14

32.2%

4Q13

30.7%

883858

+3%

2014

30.7%

2013

32.8%

9

SG&A

Selling Expenses

G&A

+1%

-6%

4Q14

61

8.5%

3Q14

60

8.4%

4Q13

65

8.8%

+1%

+3%

4Q14

102

14.2%

3Q14

101

14.1%

4Q13

99

13.4%

Selling Expenses

% of sales

45 4462

0%

-29%

4Q14

6.2%

3Q14

6.2%

4Q13

8.4%

Consolidated Freight

G&A

% of sales

Others

+3%

+56%

4Q14

58

8.0%

3Q14

56

7.8%

4Q13

37

5.0%

0%

2014

235

8.2%

2013

235

8.9%

360

13.6%

+14%

2014

409

14.2%

2013

143

5.4%

+27%

2014

181

6.3%

2013

217

8.2%

+5%

2014

227

7.9%

2013

10

EBITDA e Net Income (R$ million)

Net Income

-76

-10.6%

3Q14

-18

-2.6%

4Q13

31

4.1%

4Q14

-23%

4Q14

81

11.3%

3Q14

105

14.7%

4Q13

98

13.3%

-18% -2%

2014

387

13.5%

2013

395

14.9%

-97

2014

-3.4%

2013

58

2.2%

EBITDA ex-others

11

CAPEX and Working Capital

Working Capital

CAPEX

+47%

-12%

4Q14

73

3Q14

39

4Q13

83

878

30.6%

3Q14

1,002

35.1%

2Q14

979

34.0%

1Q14

1,017

35.4%

4Q13

952

32.3%

4Q14

Working Capital

% of sales

-14%

2014

177

2013

205

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 15% 17%

USD 42%

59%

BRL 43%

24%

929911922914855

387403379385395

4Q14

2.4x

3Q14

2.3x

2Q14

2.4x

1Q14

2.4x

4Q13

2.2x

Net Debt / EBITDA ex-ore*

EBITDA ex-ore*

Net Debt

1.614

950

664

2019

16

2018

219

2017

286

2016

88

2015

192

4Q14

917

2020+

Cash Position Amortization Perpetual Bond

4Q14

4Q13

387379385395 403

4Q14

1,592

4.1x

3Q14

1,537

3.8x

2Q14

1,484

3.9x

1Q14

1,494

3.9x

4Q13

1,453

3.7x

Net Debt / EBITDA ex-ore*

EBITDA ex-ore*

Net Debt

*EBITDA excluding other revenues / expenses

Octavio Pereira Lopes CEO

Eduardo Gotilla CFO e IRO

Daniel Domiciano Silva IR Manager

Lucas Veiga IR Analyst

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

www.magnesita.com/ri

13

Investor Relations