Earnings Call 3Q13

November 8th, 2013

On

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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 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

4

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%

-3%

3Q13

210,2

2Q13

230,6

3Q12

217,5

-3%

9M13

656,4

9M12

679,0 +2%

+10%

3Q13

481,8

2Q13

473,1

3Q12

438,5

+5%

9M13

1.392,1

9M12

1.320,6

3Q12 2Q13

+4%

12,1

+3%

11,7

3Q13

11,6

35,3

9M13

34,8

-1%

9M12

30,0

3Q12 2Q13

29,0

3Q13

30,2

+1%

+4%

9M13

92,7

-4%

88,9

9M12 2Q13

42,9

3Q13

-7%

3Q12

39,9

-1%

40,5

129,7

9M13

123,8

9M12

-5%

9M13 9M12

39%

24%

23%

13%

22%

23%

15%

41%

North America Others

South America Europe

5

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%

9M13 9M12

53%

17%

10%

20% 11%

17%

12%

61%

North America Others

South America Europe

90,7%

Refractory Solutions Sales and Margin - Consolidated

6

Volumes (000’ tons)

Revenues (R$ million)

Gross profit and margin (R$ million; %)

-9%

-2%

3Q13

245,7

2Q13

270,9

3Q12

250,5

3Q13

180,2

31,6%

2Q13

191,1

33,4%

3Q12

162,0

31,4%

-2%

9M13

781,3

9M12

797,0

3Q13

-0%

+11%

570,9

2Q13

572,1

3Q12

515,2

+6%

1.596,6

9M13 9M12

1.698,4

9M12

562,2

509,2

9M13

31,9% 33,1%

9M13

9M12

42%

23%

21%

14%

20%

22%

14%

44%

North America Others

South America Europe

7

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

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

Minerals

Services

Minerals and Services Performance

Services

42,4

3Q12

34,6

-11%

+9%

3Q13

37,6

2Q13

+5%

-40%

3Q13

29,7

2Q13

28,3

3Q12

49,9

3Q13

15,6

41,6%

2Q13

20,8

49,0%

3Q12

15,6

45,1%

6,6

13,2%

3Q13

4,2

14,0%

2Q13

4,7

16,6%

3Q12

+13%

9M13

114,3

9M12

101,3

9M13

49,0

42,9%

9M12

42,6

42,1%

-34%

9M13

86,1

9M12

131,0 9,8%

9M13

12,5

14,5%

9M12

12,8

8

Consolidated Sales (R$ million)

Per Segment

Quarter YTD

-1%

+6%

3Q13

638,2

2Q13

642,7

3Q12

599,7

+4%

9M13

1.898,9

9M12

1.828,9

7,2% 5,5%

87,3%

4,5% 6,0%

89,5%

Services Minerals Refractories

9M12 9M13

9

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

Gross profit

EBITDA and ADJUSTED EBITDA (excluding real estate sale)

Net Income

ADJUSTED ADJUSTED

3Q13

200,0

31,3%

2Q13

216,5

33,7%

3Q12

184,1

30,7%

3Q13

76,5

12,0%

2Q13

123,2

19,2%

3Q12

84,2

14,0%

3Q13

-21,7

-3,4%

2Q13

23,6

3,7%

3Q12

10,7

1,8%

9M13

623,7

32,8%

9M12

564,7

30,9%

9M13

315,9

16,6%

9M12

277,0

15,1%

9M13

28,2

1,5%

9M12

75,8

4,1%

15,0% 12,0%

2Q13

89,9

15,7%

101,0 76,5

3Q13 3Q12

293,6

9M13 9M12

15,5%

282,8

15,5%

10

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

Working capital

CAPEX OCF

61,7

3Q13

61,6

2Q13

36,0

3Q12 9M13

115,4

9M12

244,6

3Q12

34,8%

835

3Q13

976

38,2%

2Q13

934

36,3%

1Q13

877

35,5%

4Q12

811

33,2%

Working Capital

% of sales

9M13

121,1

9M12

179,8

3Q13

18,8

2Q13

79,4

3Q12

71,4

11

*EBITDA excluding nonrecurring

Debt and Leverage

Total

Amortization Schedule (R$ million) Net Debt per currency

Excluding Perpetual Bond

*EBITDA excluding nonrecurring

Others 0%

-3%

EUR 20%

13%

USD 58%

104%

BRL 21%

-14% Sep-13

Dec-12

3Q13

382

1.369

3.58x

2Q13

397

1.205

3.04x

1Q13

401

1.059

2.64x

4Q12

373

1.058

2.84x

3Q12

358

1.031

2.88x

Net debt / Ebitda Ebitda Net Debt

2Q13

397

639

1.61x

1Q13

401 545

1.36x

4Q12

373 536

1.44x

3Q12 3Q13

520

1.45x

382

803

2.10x

358

Net debt / Ebitda Ebitda Net Debt

2018+

1.493

927

566

2017

76

2016

78

2015

129

2014

32

2013

16

Sep-13

456

Cash position Amortization Perpetual bond

12

Octavio Pereira Lopes CEO

Eduardo Gotilla

Global Finance & IR Director

Daniel Domiciano Silva Investor Relations

Phone: 55 11 3152-3202/3241

ri@magnesita.com www.magnesita.com

Investor Relations contacts