Earnings Call – 1Q16 Results

May 16th, 2016

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.

Magnesita’s commercial transactions are in compliance with international trading sanctions rules

Disclaimer

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Magnesita diversified substantially since 2013

Several geographies and segments developed over the past 3 years

Products being sold in more than 100 countries

Sales outside Established markets already account for ~25% of total sales (~10% in 2012)

Sales in BRL account for ~less than 20% of total sales

Pursuing long term growth opportunities in markets with adequate and sustainable margins

Countries where Magnesita has developed sustainable business with steel and cement industries

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4

Crude Steel Production¹ (million tons) - Established Markets

Volume (‘000 tons)

Sales to Steel Segment

Revenues (US$ million)

4Q15 1Q16

189 199

1Q15

209

-9%

-5%

-15%

4Q15

166

1%

198 168

1Q15 1Q16

Refractory Solutions Sales - Steel

Sales by region (in US$)

-9%

LTM 1Q15 LTM 1Q16

802 878

-19%

LTM 1Q16

713

LTM 1Q15

885

32%

5% 23%

9% 31%

1Q16

29%

3% 39%

9%

21%

1Q15

Asia Pacific North America

MEA - CIS South America Europe

South America

Source: ¹WSA

USA & Canada Western Europe

9,5

-14%

1Q16 4Q15

10,7

1Q15

11,0

-11%

4Q15

21

1Q15

0%

1Q16

23 23

+8%

34 36

1Q15 1Q16 4Q15

-7%

38

+6%

LTM 1Q16

42

LTM 1Q15

-6%

45

99

LTM 1Q15

-8%

LTM 1Q16

91

LTM 1Q15

148 141

-4%

LTM 1Q16

MEA = Middle East and Africa CIS = Commonwealth of Independent States

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Sales to Industrial Segment

Refractory Solutions Sales – Industrial Segment

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

-6%

1Q16

30

45 43

4Q15 1Q15

+42%

-16%

1Q16

41

4Q15

30

49

1Q15

+37%

LTM 1Q16

130

LTM 1Q15

152

-15%

132

175

-25%

LTM 1Q16 LTM 1Q15

31%

6% 35% 17%

11% 46%

28%

9%

11% 5%

South America

North America Asia Pacific

Europe MEA - CIS

1Q16 1Q15

Refractory Solutions Sales and Margin - Consolidated Volume (‘000 tons)

Revenues (US$ million)

Gross Profit and Margin (US$ million; %)

1Q16

+1%

229

-9%

4Q15

232

1Q15

254

84 7251

34.6% 26.2%

1Q15

34.1%

-14%

4Q15

+41%

1Q16

+7%

247

1Q16 4Q15 1Q15

-15%

196 209

-9%

LTM 1Q15 LTM 1Q16

932 1.030

-20%

845

LTM 1Q16 LTM 1Q15

1.060

LTM 1Q15

264 334

31.5%

-21%

31.2%

LTM 1Q16

6

32%

32%

7% 9%

21% 19%

4% 8%

29%

40%

Asia Pacific

MEA - CIS Europe South America

North America

1Q16 1Q15

19,7%

80,3%

19,9%

80,1%

1Q16 1Q15

Steel Industrial

Sales by region (in US$)

Sales by segment (in US$)

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

Revenues (US$ million)

Minerals and Services Sales and Margin

-33%

11

4Q15

16

1Q15 1Q16

-32%

16

-19%

4Q15

18

-16%

14

1Q15 1Q16

17

5,1

33,4% 37,3%

1Q16

4,1

1Q15

-21%

-24%

4Q15

5,4

31,4%

-50%

-24%

1Q15

4,2

4Q15

2,1

14,7% 23,7%

1Q16

2,7

16,3%

Minerals

Services

LTM 1Q16

-7%

61

LTM 1Q15

66 +10%

LTM 1Q16

39.0%

LTM 1Q15

33.0%

22 24

LTM 1Q15

60

-16%

LTM 1Q16

71

15,2

LTM 1Q15

21,3%

-41%

LTM 1Q16

15,0%

9,0

Gross Profit and Margin (US$ million; %)

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Consolidated Sales and Gross Profit

Por Segmento

229

1Q15

281

1Q16

+2%

-17%

234

4Q15

Gross Profit

Consolidated Revenue (US$ million)

966

1.196

LTM 1Q15

-19%

LTM 1Q16

+32%

4Q15

60 94

33.6%

-16%

1Q16

79

26.0%

1Q15

33.3%

371

296

-20%

30.7%

LTM 1Q15

31.0%

LTM 1Q16

4,7% 6,1%

89,3%

6,2% 5,8%

87,9%

1Q16 1Q15

Minerals Refractories Services

Gross Profit (US$ million)

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SG&A expenses

Freight expenses (US$ million)

G&A

373643

-3%

-14%

1Q16

15.7% 15.6%

4Q15 1Q15

15.2%

Fixed SG&A

% of sales

157190

LTM 1Q16

15.9%

LTM 1Q15

-18%

16.3%

Fixed SG&A (US$ million)

131416

-4%

1Q15

-16%

1Q16

5.7% 6.0%

4Q15

5.6%

% of sales

Freight expenses 54

73

5.6% 6.1%

LTM 1Q15 LTM 1Q16

-25%

10

EBITDA

+70%

1Q15 4Q15

10.0%

1Q16

49

16.7%

23

17.6%

-21%

39

-19%

168

135

14.0% 14.0%

LTM 1Q15 LTM 1Q16

¹Excluding other income and expenses

G&A Adjusted EBITDA¹ (US$ million)

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CAPEX and Working Capital

Working Capital

CAPEX (US$ million)

9

1Q15 4Q15

19

1Q16

-18%

11

-51%

-19%

63

LTM1Q15

78

LTM1Q16

Working Capital (US$ million)

289

29,3%

2Q15

314

30,6%

1Q15

300

26,7%

1Q16

255

27,2%

4Q15

225

24,6%

3Q15

Working capital WC/annualized quarterly sales

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Capital Structure (US$ million)

Leverage (US$ million)

Net Debt per Currency

Leverage Excl. Perpetual (US$ million)

EUR

BRL

30%

57%

14%

USD

*EBITDA excluding other revenues/expenses

Total Excluding Perpetual Bond

*EBITDA excluding other revenues/expenses

Leverage ratio Leverage ratio ex-perpetual

4,1x

3,6x3,5x3,5x3,2x

135

548

1Q16 4Q15

168

3Q15

527

1Q15 2Q15

152 158

537 551

145

532

EBITDA Net Debt Net Debt / EBITDA¹

1,9x

1,7x

2,2x

277 152

298 168

3Q15

1,9x

145

4Q15

158

1Q15

135

1Q16

1,9x

287

2Q15

301 282

Net Debt / EBITDA¹ EBITDA Net Debt

Amortization Schedule

115 101 98

210

2019 2020

118

Perp.

250

58

2018 2017 2016 mar-16

Amortization Perpetual Bond Cash position

Amortization Schedule

118

2017 2016

210

Perp.

115 101

250

2019

58

98

2018 2020 mar-16

Amortization Cash position Perpetual Bond

Octavio Pereira Lopes CEO

Eduardo Gotilla CFO e IRO

Daniel Domiciano Silva IR Manager

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

www.magnesita.com/ri

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Investor Relations