Magnesita Refratários S.A.

May, 2013

Disclaimer

The material that follows is a confidential presentation of general background information about Magnesita Refratários S.A. and its consolidated subsidiaries (“Magnesita" or

the "Company") as of the date of the presentation. It is information in summary form and does not purport to be complete and is not intended to be relied upon as advice to

potential investors.

No representations or warranties, express or implied, are made as to, and no reliance should be placed on, the accuracy, fairness or completeness of the information

presented or contained in this presentation. Neither the Company nor any of its affiliates, advisers or representatives, accepts any responsibility whatsoever for any loss or

damage arising from any information presented or contained in this presentation. The information presented or contained in this presentation is current as of the date hereof

and is subject to change without notice and its accuracy is not guaranteed. Neither the Company nor any of its affiliates, advisers or representatives make any undertaking to

update any such information subsequent to the date hereof. This presentation should not be construed as legal, tax, investment or other advice.

[Data in this presentation was obtained from various external data sources, and the Company has not verified such data with independent sources. Accordingly, the Company

makes no representations as to the accuracy or completeness of such data, and such data involves risks and uncertainties and is subject to change based on various factors].

This presentation contains forward-looking statements. Such statements are not statements of historical facts, and reflect the beliefs and expectations of Magnesita’s

management. The words "anticipates", "wishes", "expects", "estimates", "intends", "forecasts", "plans", "predicts", "projects", "targets" and similar words are intended to

identify these statements. Although the Company believes that expectations and assumptions reflected in the forward-looking statements are reasonable based on

information currently available to the Company's management, the Company cannot guarantee future results or events. You are cautioned not to rely on forward-looking

statements as actual results could differ materially from those expressed or implied in the forward-looking statements.

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 therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever.

2

Summary

Industry overview

Company overview

Financial Highlights

3

Refractory industry overview

Refractories are continuously consumed during steel production…

Electric Arc Fumace Steel Refining

Facility

Continuos Casting

Basic Oxygen

Furnace

Recycled Steel

Direct Reduction

Coal Injection

Iron Ore

Coal

Coke Oven

Limestone

Blast Furnace

Natural Gas

ELECTRIC ARC FURNACE

Volume: 120 tonnes

Life Expectancy: 1 month

BLAST FURNACE

Refractory Volume:

900 tonnes

Life Expectancy: 15 years

TORPEDO CAR

Volume: 200 tonnes

Life Expectancy: 2 years

CONVERTER

Volume: 800 tonnes

Life Expectancy: 6 months

CONTINUOUS CASTING

Volume: 25 tonnes

Life Expectancy: 10 hours

STEEL LADLES

Volume: 70 tonnes

Life Expectancy: 1 month

Source: Company

…and cement production

Preheater Tower

CLINKER COOLER

Volume: 500 tonnes

Life Expectancy: 1 - 3 years

PREHEATER TOWER

Volume: 1,000 tonnes

Life Expectancy: 5 - 10 years

ROTARY KILN

Volume: 250 tonnes

Life Expectancy: 10 months

Industry overview

What are refractories: Fireproof materials

consumed within various production processes,

providing heat, chemical and mechanical

resistance in industrial furnaces

Raw material: Minerals with high melting point,

including magnesite, dolomite and alumina. Raw

material quality and assured supply are essential

Represents ~3% of COGS in steel manufacturing

and less than 1% in cement

Bricks

Pre castables, valves and slide gates

Monolithic

1 ton of steel = ~10 kg of refractories

1 ton of cement = ~0.6 Kg of refractories

Types of refractories Consumption (average)

Refractories are crucial consumables for manufacturing processes with high temperatures

4

Refractory: USD25 billion global industry

Source: Freedonia.estimates 2011 Source: Company estimates .

Main consumers worldwide Fragmented industry – Global market share (in USD)

RHI ~ 9%

Steel Non-ferrous

(aluminum, copper, nickel, silver, zinc)

Nonmetallic (cement, glass, lime)

Other

Global players

Segment players

Regional players

Vesuvius-~10%

Magnesita ~ 5%

~10%

Shinagawa Krosaki ANH Qinghua Magnezit

~13%

Chinese players

~37%

~60%

~15%

~15%

~10%

Refratechnik Saint Gobain Calderys Minteq

Small local players

Magnesita is a global player with a unique business model in the industry

Fully Integrated

Manufacturing Only

CPP-Integrated

Higher margins; difficulty to replicate + -

Integrated Manufacturing

Integrated Services

Mining Refractory manufacturing Services

Full (performance -based)

Different business model across the value chain… …lead to different margins levels Source: Bloomberg

25,7%

Vesuvius

30,4%

21,6%

RHI Shinagawa

17,7%

Magnesita

17,4%

Krosaki

~16%

5

Gross Margin (2012)

Summary

Industry overview

Company overview

Financial Highlights

6

Company overview

70 years expertise in refractories and industrial minerals

3rd largest player in the refractory sector worldwide, present in the main steel markets

1st in the steel and cement industries in Brazil and South America

1st in the stainless steel industries in North America and Europe

Highest vertical integration level in the industry (~80%), fully self-sufficient in high-grade magnesite

Best, largest and lowest-cost magnesite mine in the world outside China.

Significant number of unexplored mineral rights in Brazil

Solid financial fundamentals

Magnesita is a global leader in refractories solutions and industrial minerals

Magnesita in numbers

Revenues of R$ 2.46 billion in 2012

Production in 4 continents, supplying globally to more than 850 clients worldwide

6,500 employees

29 industrial facilities with a nominal capacity of 1.6 million tons/year of refractories

7

Business highlights

Net revenues (2012)

R$ 148 million

(6% of the total revenues)

R$ 130 million

(5% of the total revenues)

Gross margin (2012)

11% 43%

Details/ description

Current: Talc, caustic magnesia and magnesia sinter

Development: Graphite and talc expansion

Enginering, assembly and

installation of refractories

Value-added services, including

spot contracts

Refractory Solutions Services

Applications

Talc: Plastic, cosmetics, pharmaceuticals, food, ceramics, pulp and paper, etc Caustic magnesia: Fertilizers, abrasives, animal nutrition, etc Sinter: refractories

Industrial Minerals

Magnesita leverages its competitive advantages throughout the whole value chain

Refractories with tailor made

formulations and shapes as

well as strong technical service

Two commercial models (CPP

and conventional)

R$ 2.186 million

(89% of the total revenues)

31%

Steel

Industrial (cement, non-

ferrous, non-metallic)

Steel

Industrial (cement, non-

ferrous, non-metallic)

Mining

UPSTREAM DOWNSTREAM

8

Experienced management team

Octavio Pereira Lopes - CEO

Otto Levy Reis - VP Commercial

Peter Estermann - COO Global

Vinícius Silva - VP Minerals

Martin Bartmann - Global Supply Chain

Eduardo Moretti - COO China

José Roberto Beraldo - CFO

Felipe Sommer- VP People and MGMT

Luis Rodolfo Bittencourt - VP R&D

Functional Team

Operational Team

Successful as CEO of Equatorial and as a

Managing Director at GP Investments

Solid financial background

Senior roles and extensive

experience in global companies

Over 70 years of combined

experience in the industry

Close relationships with

key players and clients in the

industry

Industry Experience: +11 years Joined Magnesita in 2008

Industry Experience: +27 years 27 years in Magnesita

Industry Experience: +5 years Joined Magnesita in 2008

Industry Experience: +17 years Joined Magnesita in 2011

Industry Experience: +18 years Joined Magnesita in 2009

Industry Experience: +3 years Joined Magnesita in 2010

Previous experience

Joined Magnesita in 2007 as board member and became CEO in 2012

Joined Magnesita in 2012

Joined Magnesita in 2012

Industry experience

Over 70 years of combined experience in the industry

9

Sales Office Refractory production Mines

Global scale, with local presence in key markets, with an integrated supply chain

Sales per region 2012

York unit production (USA)

Contagem units production (BRA)

Coronel Fabriciano unit production (BRA)

San Nicolás unit production (ARG)

Valenciennes and Flaumont units production (FRA)

Hagen-Halden, Oberhausen and Kruft units production (DEU)

Chizhou unit production (CHN)

Taiyuan JV’s unit production (CHN)

York Dolomite Mine (USA)

Qingyang dolomite mine (CHN)

Sinterco Dolomite JV (BEL)

Magnesite mine (Brumado - BRA)

Chromite mine (BRA)

Talc mine (BRA)

Europe

Asia

NAM

22%

8%

18% 49% SAM

Others

2%

Taiwan JV’s unit production (CHN)

Unique global footprint

DMR unit production (CHN)

10

On

e g

lob

al o

rgan

izat

ion

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 and Method

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

▪Customer ▪People

Our values

11

New strategic vision

I – Ensure leadership in our core markets

12

South America

Dolomitics in North America

Dolomitics in Western Europe

Long standing relationship with blue-chip customers

Our differentiated competitive position and leadership in core markets support our growth as they recover

~50% in stainless steel ~20% in mini-mills

Magnesita’s share* in core markets

Vertically integrated low-cost producer

Continuous investments in R&D and technology

Specialized technical assistance

Logistic advantages due to privileged locations

Captive CPP contracts with long-term alignment of

interests

Brand recognition and historical leadership

Magnesita’s competitive advantages in its core markets

~60% in stainless steel ~15% in mini-mills

~65% in steel ~60% in cement

*Company estimates

Pursue long term growth opportunities in select markets where we can deliver superior value

Access to high quality and low cost raw materials

Exposure to emerging markets

Global scale with an integrated supply chain

Best-in-class technical and R&D capabilities

Increasing reach of our sales force

Historically low exposure in several important markets

Source: ¹CRU and ²Company estimates

Crude Steel Production¹ (mln ton) and Magnesita’s share² (%)

Opportunities for diversification into non steel industries

Magnesita refractory sales (2012)

Refractories consumption - Global Market

Opportunities for geographic diversification in steel Opportunities for geographic diversification in cement

13812211880

2017(f) 2013(f) 2012(e)

2009

16%

228204202

162

2017(f)

2013(f)

2012(e)

2009

13111511298

2017(f) 2013(f) 2012(e)

2009

9.6%

0.3%

60514738

2017(f) 2013(f) 2012(e)

2009

56434034

2017(f)

2013(f)

2012(e)

2009

363305293

226

2013(f) 2012(e)

2009 2017(f)

Industrial

40%

Steel 60%

Industrial 16%

Steel

84%

65% 2.1%

1%

North America Europe

CIS

140130123115

2014(f)

2013(f)

2012(e)

2011

345328317327

2014(f)

2013(f)

2012(e)

2011

Central & South America

MEA

Asia ex-China

2014(f)

3.093

2013(f)

2.947

2012(e)

2.781

2011

2.618

Cement Production¹ (mln ton) and Magnesita’s share² (%)

133124116108

2014(f)

2013(f)

2012(e)

2011

338315295270

2014(f)

2013(f)

2012(e)

2011

25% <5% <1%

60% <1%

North America Europe Asia

Central & South America

Others

Source: ¹CW Group and ²Company estimates

II – Grow selectively and aggressively

13

Unlocking our internal expertise and the industrial minerals opportunity in Brazil

→ Initial portfolio of attractive mineral rights

→ 70 years of mining experience in Brazil (DBM, CCM, talc, etc)

→ Expertise in geology, research and environmental requirements

→ Knowledge of local stakeholders management

→ Dedicated team to prospect, analyze and develop business

→ Brazil is fertile; very favorable geography

→ It has been historically unexplored

→ Viewed as a reliable source (vs China)

The Brazilian opportunity

Magnesita is very well positioned to occupy the “white space” in Brazil

Magnesita’s strategic positioning

→ Attractive due to global unbalance of supply and demand

→ Minerals out of big players’ radar

→ Logistic is not predominant

→ Commercial development is necessary

→ US$2bi – US$10bi global markets

Focused 0pportunity set

III – Expand industrial minerals base

14

Our goal is to have at least one project moving to the next phase every 12 – 18 months

Projects in development phase

Graphite project

Become self sufficient supplying our refractory business

Surplus to supply third parties, focusing on high end users

Positive outlook and growing demand from new applications

Restrictions from Chinese exports (~80% of global production)

Environmental license granted in March 2013

Talc expansion

Leader in Brazil, producing ~40kton/y

~50% gross margin

Low environmental license and geological risk

Commercial development underway

Project should double capacityover next 2 years

1.Preliminary 5 to 10 analysis

per year

2.Development Graphite

Talc expansion

3.Installation 4.Operational DBM, Talc, CCM

• Preliminary geological work • Market analyses • Low capex; high risk

• Complete geological work and reserve certification •Environmental license • Industrial project •Commercial development • Medium capex; medium risk

• Investment in the industrial plant •High capex; low risk

•Cash flow generation • Maintenance capex

III – Expand industrial minerals base

15

Sinterco Dolomite JV (Belgium)

31 million tonnes of reserves

Expected life: 30 years

Brumado (Bahia-Brazil)

830 million estimated tonnes

of reserves (549 million measured)

Only mine to allow the economical production of 98.3%-grade DBM

Expected life: ~200 years

The mine is connected to the port

of Aratu by the FCA railway

York Dolomite Mine (PA-USA)

25 million tonnes of reserves

Expected life: 45 years

Qingyang Dolomite Mine (China)

18 million tonnes of reserves

Expected life: 50 years

IV - Maintain a global low cost production base Opportunities for further industrial and supply chain optimization

North American facility (PA-USA)

European facilities (3 in Germany and 2 in France)

South American facilities (MG-Brazil and Argentina)

Asian facility (Chizhou-China)

Raw material flow

Finished product flow

Brumado has the highest quality of raw material in the world with more than 200 years of reserves

DMR facility (Dalian-China)

16

17

DMR (manufacturing unit in China)

Low cost production base: The plant is located in the city of Dalian, northeast China, region which owns around 20% of world’s reserves of magnesite, making it a highly strategic location for refractory production

New markets: This new plant will allow us to better serve geographies and segments where Magnesita has a marginal presence today and where we want to expand sales in a selective way

Location: Dalian is an important export hub in China with excellent logistics

Capacity: 50.000 tons/year

Closing: Expected to occur in ~60 days, after approval of the Economic and Trade Bureau of Dalian Development Area, in the People´s Republic of China.

Recent aquisitions

DMR external view China

CHINA

Maintain a global low

cost production

base

Grow selectively

and aggressively

18

Refractory assembly in rotary kiln

Reframec (51% of equity)

Ensure leadership in our core markets: The Reframec acquisition reinforces Magnesita's leadership in its core industrial markets in South America, as it expands its services beyond the steel industry

Reframec: Leader in engineering, installation and repair services for refractories used in cement production in Brazil

Closing: ~60 days. Post-close, Reframec will continue to operate independently

Recent aquisitions Ensure

leadership in our core

markets

Summary

Industry overview

Company overview

Financial Highlights

19

Revenues EBITDA and EBITDA margin (excl. non-recurring)

2.464

2011

2.319

2010

2.276

2009

1.927

+6,2% +8,5%

2012

Steady organic growth

Proven resilience in adverse market conditions

CAPEX funded comfortably with operational cash flow

373337425

340

2011

14,5%

2010

18,7%

2009

17,7%

+10,7%

2012

15,1%

2008 2009 2010 2011 2012

30,4%

22,6%

12,5%

-3,0%

30,0%

32,5%

14,4%

0,7%

34,2%

44,6%

17,6%

14,2%

32,5%

35,5%

16,7%

11,5%

37,5%

48,7%

26,0%

34,2%

Magnesita¹ CSN Gerdau Usiminas

Operational Cash Flow and Capex

Source: Companies report (only parent company for Usiminas and CSN) ¹Magnesita in 2011 was adjusted due to accounting reallocation

257

165

92

2012

342

171

120

51

2011

552

78

2010

365

37

2009

131

OCF CAPEX Brumado expansion

Financial highlights (BRL mln)

20

Gross margin Magnesita vs clients

1Q13 Results

21

Steel production in Magnesita’s core markets (mln tonnes)

-8%

-5%

1Q13

11,0

4Q12

11,6

1Q12

11,9

South America -9%

3%

4Q13

21,2

4Q12

20,7

1Q12

23,2

United States

4%

-6%

41,4

1Q13 4Q12

39,7

1Q12

43,9

EU-27

+2%

+1%

1Q13

617,9

4Q12

611,1

1Q12

606,9 116

8388

1Q13

18,8%

4Q12

13,5%

1Q12

14,4%

Revenues (BRL mln)

Despite the challenging scenario, results have improved in 1Q13

401373358352337

4Q12

14,6%

1Q12

14,3%

1Q13 4Q12

16,2% 15,1%

1Q13

14,6%

Ebitda margin Ebitda LTM EBITDA EBITDA margin

*EB

ITD

A e

xclu

din

g n

on

rec

urr

ing

EBITDA (BRL mln) EBITDA LTM (BRL mln)

Debt and Leverage

Amortization Schedule (R$ million) Net Debt per currency

Total Excluding Perpetual Bond

1.0591.0581.0311.002907

401373357350334

2,6x2,8x2,9x2,9x2,7x

1Q13 4Q12 3Q12 2Q12 1Q12

Net debt / Ebitda EBITDA* LTM Net Debt

22

*EBITDA excluding non recurring *EBITDA excluding non recurring

678

7880621530

964

508

1.472

2018+ 2017 2014 2015 2016 2013 Mar-13

Perpetual Bond

Cash

Amortization 2%

80%

-14% BRL

USD 104%

13%

19%

Others

EUR

-3%

-2%

Dec-12

Mar-13

566536513486

907

401373357350334

1,4x1,4x1,4x

2,7x

1,4x

1Q12 1Q13 2Q12 4Q12 3Q12

Net debt / Ebitda EBITDA* LTM Net Debt

Solid balance with no refinancing risk

Key messages

Strong management team and corporate governance practices

Global vertical integrated player with unique geographic position

Opportunities for growth and diversification into selected markets and industries

Unique solution-based model (CPP) and performance-based applied R&D

Focused on delivering superior returns to shareholders

Significant value of mineral reserves with opportunities to expand industrial minerals base

Solid financial fundamentals

23

24

Annex

Strong support from shareholders

Only common shares

2 independent board members

Free float 58.8% (minimum required is 25%)

Tag-along rights to all shareholders

Quarterly results in English in accordance with

International Financing Report Standards (IFRS)

Shares included in the IGC (Index of Differentiated

Corporate Governance) and ITAG (Index of Tag Along)

Listed in the Novo Mercado segment, which correspond to the best practices of corporate governance

Ownership structure Corporate Governance

Latin America and worldwide leadership in Private Equity

Active management

Culture of promotion by merit

Proven track record in the Brazilian and global capital markets,

with various success cases

58,8%

34,0%

7,2%

Free Float

Rhône

GP

Controlling Group

25

26

Investor Relations contacts:

Octavio Pereira Lopes CEO and IRO

Eduardo Gotilla

Global Finance & IR Director

Daniel Domiciano Silva Investor Relations

Phone: 55 11 3152-3203/3241

ri@magnesita.com www.magnesita.com