Earnings Call – 2015 Results

March 10th, 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.

Disclaimer

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Crude Steel Production¹ (million tons) - Established Markets

Volume (‘000 tons)*

Sales to Steel Segment

Revenues (R$ million)

4Q15

203

3Q15

206

4Q14

216

-2%

-6% -2%

+20%

4Q15

653

3Q15

666

4Q14

542

Refractory Solutions Sales - Steel

Sales by region (in R$)

-6%

2015

825

2014

879 2.126

+17%

2015

2.481

2014

9%

20%

30%

37% 4%

2015

26%

39%

10%

22% 3%

2014

North America

South America

Asia + Oceania

Europe MEA + CIS

South America

Source: ¹WSA

USA & Canada Western Europe

-3%

-6%

4Q15

10,7

3Q15

11,0

4Q14

11,3

-14%

4Q15

21

3Q15

24

4Q14

25

-10% -1%

-6%

4Q15

34

3Q15

34

4Q14

36

45

-3%

2015

44

2014

101

-9%

2015

92

2014

148

-3%

2015

144

2014

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Sales to Industrial Segment

Refractory Solutions Sales – Industrial Segment

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

4Q14

34

+6%

-11%

4Q15

30

3Q15

28

+11%

+22%

4Q15

119

3Q15

107

4Q14

97 ‘

-12%

2015

133

2014

150 465

2014

422

+10%

2015

10%

24%

44%

16%

5% 13% 5%

12%

19%

51%

MEA + CIS

Asia + Oceania

Europe

North America

South America

2015 2014

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

Revenues (R$ million)

Gross Profit and Margin (R$ million; %)

-1%

-7%

4Q15

233

3Q15

234

4Q14

249

183 208250

4Q15

27.0%

3Q15

32.3%

4Q14

28.7%

-17%

+14%

639773 771

+0%

+21%

4Q15 3Q15 4Q14

-7%

2015

958

2014

1.029

+16%

2015

2.946

2014

2.547

799918

+15%

2015

31.2%

2014

31.4%

5

6% 8%

19%

29%

38% 5% 9%

21%

25%

41%

MEA + CIS

Asia + Oceania

Europe

North America

South America

2015 2014

16%

84%

17%

83%

2015 2014

Industrial Steel

Sales by region (in R$)

Sales by segment (in R$)

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

Revenues (R$ million)

Minerals and Services Sales and Margin

36

6364

-2%

+75%

4Q15 3Q15 4Q14

+31%

+49%

4Q15

64

3Q15

49

4Q14

43

112328

43.5%

4Q14

31.5%

-17%

+105%

4Q15

36.9%

3Q15

12.4%

4Q14

7

15.5%

+64%

+49%

4Q15

10

15.5%

3Q15

6

Minerals

Services

2015

224

2014

159

+40%

51

85

+65%

2015

37.9%

2014

32.2%

+27%

2015

211

2014

165

33

19.7%

+12%

2015

37

17.3%

2014

Gross Profit and Margin (R$ million; %)

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Consolidated Sales and Gross Profit

Por Segmento

+1%

+25%

4Q15

898

3Q15

886

4Q14

718

Gross Profit

Consolidated Revenue (R$ million)

+18%

2015

3.381

2014

2.872

-15%

+20%

4Q15

242

26.9%

3Q15

284

32.1%

4Q14

201

28.0%

883

30.7%

2014

30.7%

+18%

2015

1,039

6,2% 6,6%

87,2%

5,8% 5,5%

88,7%

2015 2014

Services Minerals Refractories

Gross Profit (R$ million)

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SG&A

Selling Expenses (R$ million)

G&A

-0%

+20%

4Q15

73

8.1%

3Q15

73

8.3%

4Q14

61

8.5%

+4%

+19%

4Q15

121

13.5%

3Q15

117

13.2%

4Q14

102

14.2%

Selling Expenses

% of sales

3Q15

47

5.3%

4Q14

44

6.2%

+14%

+20%

4Q15

53

5.9%

Consolidated Freight

G&A

% of sales

-3%

+17%

4Q15

68

7.6%

3Q15

70

7.9%

4Q14

58

8.0%

+18%

2015

277

8.2%

2014

235

8.2%

+12%

2015

456

13.5%

2014

409

14.2%

+4%

2015

189

5.6%

2014

181

6.3%

+18%

2015

267

7.9%

2014

227

7.9%

Others

G&A (R$ million)

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EBITDA

-31%

+21%

4Q15

98

10.9%

3Q15

141

15.9%

4Q14

81

11.3% +25%

2015

485

14.3%

2014

387

13.5%

¹Excluding other income and expenses

G&A EBITDA adjusted¹ (R$ million)

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CAPEX and Working Capital

Working Capital

CAPEX (R$ million)

+10%

+4%

4Q15

77

3Q15

70

4Q14

73

+31%

2015

232

2014

177

Working Capital (R$ million)

30,6%

28,5%

2013

952

32,3%

28,5%

2015

880

24,5%

22,2%

2014

878

Adjusted working capital as % of sales ² Working Capital as % of sales ¹ Working Capital

¹ 4th Quarter sales multiplied by 4 ² WK adjusted by same FX as sales

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*EBITDA excluding other revenues / expenses

Capital Structure

Leverage (R$ million)

Net Debt per Currency

Leverage Excl. Perpetual (R$ million)

1.0791.120917887931

485468432425387

4Q14

2.0x

2.2x

3Q14

2.1x

2.4x

2Q14

2.1x

2.1x

1Q14

2.0x

2.1x

4Q13

2.4x

2.4x

Net Debt / EBITDA* adj by FX

Net Debt / EBITDA*

EBITDA*

Net Debt

2.0592.1351.7091.7061.596

485468432425387

4Q15

3.7x

4.2x

3Q15

3.7x

4.6x

2Q15

3.7x

4.0x

1Q15

3.5x

4.0x

4Q14

3.9x

4.1x

Net Debt / EBITDA* adj by fx

Net Debt / EBITDA*

EBITDA*

Net Debt

*EBITDA excluding other revenues / expenses

EUR

32%

58%

USD

BRL

11%

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