Earnings Call 4Q13 and 2013

March 21st, 2014

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

2

South America

3

Source: ¹WSA

Refractory Solutions Sales - Steel

Crude Steel Production¹ (million tons) - Main markets

Volume (000’ tons)

North America EU-27

Sales to Steel Segment

Revenues (R$ million)

+9%

2013

1.939

2012

1.775

-2%

-5%

4Q13

12

3Q13

12

4Q12

12

-1%

2013

48

2012

48 -1%

+3%

4Q13

30

3Q13

30

4Q12

29

-2%

2013

118

2012

121

40 40

4Q12 3Q13

+6%

4Q13

42

+6% 166

2013

-2%

2012

169

2013 2012

41% 22%

13%

24%

41%

22%

22%

14%

Others North America

South America Europe

218210211

+3%

+4%

4Q12 4Q13 3Q13

-2%

2013

874

2012

890

+24%

+14%

4Q13

440 547

3Q13

482

4Q12

Sales per region (R$)

4

Sales to Industrial Segment

Refractory Solutions Sales – Industrial Segment

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

43

3635

+21%

+23%

4Q13 3Q13 4Q12

168155

+8%

2013 2012

124

8984

4Q13 4Q12

+47%

+39%

3Q13

430369

+17%

2013 2012

2013 2012

21%

18%

52% 9%

13%

11%

16% 60%

North America

South America

Others

Europe

Sales per region (R$)

Refractory Solutions Sales and Margin - Consolidated

5

Volumes (000’ tons)

Revenues (R$ million)

Gross profit and margin (R$ million; %)

261246246

4Q13 3Q13 4Q12

+6%

+6%

220180159

+22%

+39%

4Q13

32.8%

3Q13

31.6%

4Q12

30.3%

0%

2013

1,042

2012

1,043

671571524

4Q13 3Q13 4Q12

+28%

+18%

+11%

2,143

2012

2,370

2013

782687

2013

+14%

33.0%

2012

32.0%

2013

2012

23%

14%

43% 20%

44%

14%

20%

21%

Others

Europe South America

North America

Sales per region (R$)

6

Revenues (R$ million) Gross profit and margin (R$ million; %)

Revenues (R$ million) Gross profit and margin (R$ million; %)

Minerals

Services

Minerals and Services

Services

54

3842

+43%

+29%

4Q13 3Q13 4Q12

323038

+8%

-15%

4Q13 3Q13 4Q12

171617

+4%

+10%

4Q13

32.0%

3Q13

41.6%

4Q12

39.8%

344

10.3% 14.0%

4Q12

-25%

4Q13

9.1%

3Q13

-30%

168140

2013

+20%

2012

6663

39.4%

2012

45.0%

+5%

2013

2012

-31%

171

2013

118

1511

13.0%

6.3%

2012 2013

+42%

7

Consolidated Sales (R$ million)

Per Segment

Quarter YoY

757638603

+19%

+25%

4Q13 3Q13 4Q12

2,656

2012

+8%

2013

2,454

6.3% 4.5%

89.2%

6.9%

87.2%

5.9%

Refractories Services Minerals

2012 2013

8

Gross profit, EBITDA and Net Income (R$ million)

Gross profit

EBITDA and ADJUSTED EBITDA (excluding other revenues/expenses)

Net Income

ADJUSTED ADJUSTED

240200179

+20%

+34%

4Q13

31.7%

3Q13

31.3%

4Q12

29.7%

1237782

+60%

+49%

4Q13

16.2%

3Q13

12.0%

4Q12

13.7%

30

-22

0

4Q13

4.0%

3Q13

-3.4%

4Q12

0.0%

864761

+14%

2013

32.5%

2012

31.0%

439355

+24%

2013

16.5%

2012

14.4%

5964

-9%

2013

2.2%

2012

2.6%

988188

4Q12

14.6%

+35%

+15%

12.9%

3Q13 4Q13

12.7%

395380

+4%

2013 2012

15.5% 14.9%

9

CAPEX and working capital (R$ million)

Working capital

CAPEX

83

62

78

+35%

+8%

4Q13 3Q13 4Q12

4Q13

952

31.4%

3Q13

976

38.2%

2Q13

934

36.3%

1Q13

877

35.5%

4Q12

801

33.2%

Working Capital

% of sales

205

257

-21%

2013 2012

10

*EBITDA excluding other revenues/expenses

Debt and Leverage

Total

Amortization Schedule (R$ million) Net Debt per currency

Excluding Perpetual Bond

Others 0%

-3%

EUR 17%

13%

USD 59%

104%

BRL 24%

-14%

875819658

551541439398406388359

4Q13

2.2x

2.0x

3Q13

2.1x

2.1x

2Q13

1.7x

1.6x

1Q13

1.4x

1.4x

4Q12

1.4x

1.5x

Net debt / EBITDA w/o ORE*

Net debt / Ebitda

Ebitda

Net Debt

961

9208277

80188

16

590

2020+

1,636

1,046

2019 2018 2017 2016 2015 2014 Dec-13

Cash position Amortization Perpetual bond

4Q13

4Q12

439398406388359

4Q12

1,051

2.8x

2.9x

3.7x

1,453

4Q13

3.3x

3Q13

1,369

3.5x

3.4x

2Q13

1,205

3.1x

3.0x

1Q13

1,059

2.6x

2.7x

Net debt / EBITDA

Ebitda Net debt / EBITDA w/o ORE*

Net Debt

*EBITDA excluding other revenues/expenses

11

Octavio Pereira Lopes CEO

Eduardo Gotilla

Global Finance & IR Director

Daniel Domiciano Silva Investor Relations

Phone: 55 11 3152-3202/3237/3241

ri@magnesita.com www.magnesita.com

Investor Relations contacts