EarningsEarnings CallCall 3Q133Q13

November 8November 8thth, 2013, 2013

New Strategic Vision

Vision:Be the best provider of refractoriessolutions and industrial minerals,

leveraging and developing our minerals base

Expand industrial Ensure leadership Maintain a global low Grow selectively and

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Expand industrial minerals base

Ensure leadership in our core markets

Maintain a global low cost production base

Grow selectively andaggressively

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 and Method

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

▪Customer▪People

Our values

2

Talc Business Expansion

Phase I expansion:

- Increase capacity from 44kton to 60kton in 2015

- Up to R$ 20 million capex

Moving forward with our commitment to double

the Talc Business in 3 to 5 years

3

South America

Refractory Solutions Sales - Steel

Crude Steel Production¹ (million tons) - Main markets

North America EU-27

+4%

+3% 35,3 34,8

-1%

30,0 29,0 30,2

+1%

+4% 92,7

-4%

88,9

42,9

-7%

39,9

-1%

40,5

129,7 123,8

-5%

Volume (000’ tons)

Sales to Steel Segment

Revenues (R$ million)

-9%

-3%-3%

+2%

+10% +5%

3Q12 2Q13

12,111,7

3Q13

11,6

9M139M12

30,0

3Q12 2Q13

29,0

3Q13

30,2

9M139M12 2Q13

42,9

3Q133Q12

39,940,5

9M139M12

9M139M12

13%14%

4

Source: ¹WSA

-9%

3Q13

210,2

2Q13

230,6

3Q12

217,5

9M13

656,4

9M12

679,0+2%

3Q13

481,8

2Q13

473,1

3Q12

438,5

9M13

1.392,1

9M12

1.320,639%

25%

23%22%

23%

41%

North America Others

South America Europe

Sales to Industrial Segment

Refractory Solutions Sales – Industrial Segment

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

-12%

+8%

3Q13

35,5

2Q13

40,2

3Q12

33,0

+6%

9M13

124,9

9M12

118,0-10%

+16%

3Q13

89,1

2Q13

98,9

3Q12

76,7

9M13

306,3

9M12

276,0

+11%

5

9M139M12

53%

17%

10%

20%11%

17%

11%

61%

North America Others

South America Europe

90,7%

Refractory Solutions Sales and Margin - Consolidated

Volumes (000’ tons)

-9%

-2%

245,7270,9250,5

-2%

781,3797,0

9M12

20%

22%

14%

44%

Revenues (R$ million)

3Q132Q133Q12 9M139M12

3Q13

-0%

+11%

570,9

2Q13

572,1

3Q12

515,2

+6%

1.596,6

9M139M12

1.698,4

9M13

42%

23%

21%

14%

22%

6

Gross profit and margin (R$ million; %)

3Q13

180,2

31,6%

2Q13

191,1

33,4%

3Q12

162,0

31,4%

9M12

562,2

509,2

9M13

31,9% 33,1%

North America Others

South America Europe

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

Minerals

Minerals and Services Performance

-11%

+9%41,6%

49,0%45,1%+13%

114,3101,3 49,0

42,9%

42,6

42,1%

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

ServicesServices

42,4

3Q12

34,6

3Q13

37,6

2Q13 3Q13

15,6

2Q13

20,8

3Q12

15,6

9M139M12

101,3

9M13

49,0

9M12

42,6

7

+5%

-40%

3Q13

29,7

2Q13

28,3

3Q12

49,9

6,6

13,2%

3Q13

4,2

14,0%

2Q13

4,7

16,6%

3Q12

-34%

9M13

86,1

9M12

131,0 9,8%

9M13

12,5

14,5%

9M12

12,8

Consolidated Sales (R$ million)

Quarter YTD

-1%

+6%

638,2642,7599,7

+4%

1.898,91.828,9

Per Segment

3Q13

638,2

2Q13

642,7

3Q12

599,7

9M139M12

5,5% 6,0%

9M12 9M13

8

7,2%5,5%

87,3%

4,5%6,0%

89,5%

ServicesMineralsRefractories

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

Gross profit

200,0

31,3%

216,5

33,7%

184,1

30,7%623,7

32,8%

564,7

30,9%

EBITDA and ADJUSTED EBITDA (excluding real estate sale)

ADJUSTED ADJUSTED

3Q132Q133Q12

3Q13

76,5

12,0%

2Q13

123,2

19,2%

3Q12

84,2

14,0%

9M139M12

9M13

315,9

16,6%

9M12

277,0

15,1%15,0%12,0%

2Q13

89,9

15,7%

101,076,5

3Q133Q12

293,6

9M139M12

15,5%

282,8

15,5%

9

Net Income

3Q132Q133Q12

3Q13

-21,7

-3,4%

2Q13

23,6

3,7%

3Q12

10,7

1,8%

9M139M12

9M13

28,2

1,5%

9M12

75,8

4,1%

2Q13 3Q133Q12 9M139M12

CAPEX, Operational cash flow and working capital (R$ million)

CAPEX OCF

61,7 61,6115,4

244,6

121,1

179,8 79,471,4

Working capital

61,7

3Q13

61,6

2Q13

36,0

3Q12 9M13

115,4

9M12

34,8%38,2%

36,3%35,5%33,2%

9M139M12 3Q13

18,8

2Q133Q12

10

3Q12

835

3Q13

976

2Q13

934

1Q13

877

4Q12

811

Working Capital

% of sales

Debt and Leverage

Total Excluding Perpetual Bond

1.369

3.58x

1.205

3.04x

1.059

2.64x

1.058

2.84x

1.031

2.88x

Net debt / EbitdaEbitdaNet Debt

1.61x1.36x1.44x1.45x

803

2.10x

Net debt / EbitdaEbitdaNet Debt

*EBITDA excluding nonrecurring

Amortization Schedule (R$ million) Net Debt per currency

*EBITDA excluding nonrecurring

BRL21%

-14% Sep-13

Dec-12

3Q13

382

2Q13

397

1Q13

401

4Q12

373

3Q12

358

2Q13

397

639

1Q13

401545

4Q12

373536

3Q12 3Q13

520382

803

358

Cash positionAmortizationPerpetual bond

11

Others0%

-3%

EUR20%

13%

USD58%

104%

BRL21%

Sep-13

2018+

1.493

927

566

2017

76

2016

78

2015

129

2014

32

2013

16

Sep-13

456

Investor Relations contacts

Octavio Pereira Lopes CEO

Eduardo Gotilla Global Finance & IR Director

Daniel Domiciano SilvaInvestor Relations

12

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

www.magnesita.com