Results for the year ended 31 December 2017

RHI Magnesita N.V.

(“RHI Magnesita” or the “Company” or “Group”)

Annual Financial Report 2017

RHI Magnesita has today published its Annual Financial Report for the financial year ended 31 December 2017 (the “Annual Report 2017”).

In compliance with Listing Rule 9.6.1 a copy of the Annual Report 2017 will be submitted to the National Storage Mechanism and will shortly be available for inspection at www.morningstar.co.uk/uk/NSM. The Annual Report 2017 is also available to view and download here.

This announcement also contains as appendices additional information for the purposes of compliance with DTR 6.3.5 (1) of the UK Disclosure and Transparency Rules. The information below is extracted, in full unedited text, from the Annual Report 2017. Page numbers and cross references in the extracted information refer to page numbers and cross-references in the Annual Report. This announcement should be read in conjunction with and is not a substitute for reading the full Annual Report 2017.

Enquiries:

RHI Magnesita N.V.

Eduardo Gotilla, Head of Corporate Finance and Investor Relations
Tel +44 (0) 20 3823 3661
E-mail: eduardo.gotilla@rhimagnesita.com

Stefan Rathausky, Head of Corporate Communications
Tel +43 50213-6059
E-mail: stefan.rathausky@rhimagnesita.com

RESULTS FOR THE YEAR ENDED 31 DECEMBER 2017

Transformational year and strong financial performance

21 March 2018, London. RHI Magnesita N.V. (LSE: RHIM), a global leading supplier of refractory products, systems and services, announces its audited results for the year ended 31 December 2017.

Highlights

• Successful completion of the merger of RHI and Magnesita and the subsequent admission of RHI Magnesita N.V. to the Premium Segment of the London Stock Exchange
• Integration progressing well, with senior management in place. “One face to the customer” deployed in sales and fully integrated production and supply chains
• Adjusted pro-forma revenue of €2,677.2 million, up 11%, driven by sales growth in both steel and industrial divisions, supported by a more favourable market environment
• Adjusted pro-forma EBITA of €304.1 million, up 39%
• Adjusted pro-forma EBITA margin of 11.4%, up 230bps from the previous year, driven by higher sales and the Company’s initiatives to improve operational efficiencies
• Net Debt/Adjusted pro-forma EBITDA of 1.9x, after the acquisition of the control of Magnesita in October 2017
• Faster realization of synergies by one year: €40 million in 2018 and the balance of €70 million in 2019
• The Board of Directors will propose a dividend of €0.75 per share, to be paid on 2 July 2018. The proposed dividend is subject to the approval by the Annual General Meeting of Shareholders, to be held on 7 June 2018

Commenting on the results, Chief Executive Officer, Stefan Borgas and Chairman, Herbert Cordt, said:

“2017 was a truly transformational year for the business, which will go down in the company history as the year when we successfully implemented and completed the merger of RHI and Magnesita. The listing on the Premium Segment of the London Stock Exchange at the end of October was a resounding success for RHI Magnesita. The merger reshapes the landscape of the sector as RHI Magnesita is now the global market leader and the driving force of the industry.

In addition to the cross-border merger, RHI Magnesita recorded a strong operating performance in the financial year which is attributable to the company’s efficient operations, improving macroeconomic environment and the engagement of all employees worldwide. Global steel production outside China increased by 4%. The combined adjusted pro-forma revenue is up by 11% while adjusted pro-forma EBITA grew by 39%. The continued shortage of raw materials from China resulted in higher material input costs, which are being gradually passed-on in higher prices. Supplying our customers reliably throughout this period continues to be our primary focus. We would like to thank our customers for their continued support and trust.

2018 will be another important year, which has started well for RHI Magnesita and the Board is looking forward to the coming year with confidence.”

For further enquiries, please contact:

RHI Magnesita N.V.:

Stefan Borgas, CEO
Octavio Lopes, CFO
Eduardo Gotilla, Head of Corporate Finance and Investor Relations
Stefan Rathausky, Head of Corporate Communications

+44 (0) 20 3823 3661
+43 50213-6059

Conference call

The Company will host a teleconference at 9:00am (GMT) this morning to discuss the results. For conference call details, please visit the RHI Magnesitas’ website https://ir.rhimagnesita.com/conference-call/.

About RHI Magnesita

RHI Magnesita is the result of the combination of RHI and Magnesita to form the global leading supplier of high-grade refractory products, systems and services which are indispensable for industrial high-temperature processes exceeding 1,200°C in a wide range of industries, including steel, cement, non-ferrous metals, and glass, among others. With a vertically integrated value chain, from raw materials to refractory products and full performance-based solutions, RHI Magnesita serves more than 10,000 customers in nearly all countries around the world.

The Company has unmatched geographic diversification with more than 14,000 employees in 35 main production sites and more than 70 sales offices. RHI Magnesita intends to use its global leadership position in terms of revenue, greater scale, complementary product portfolio and diversified geographic presence around the world to target opportunistically those countries and regions benefitting from more dynamic economic growth prospects.

For more information please visit: www.rhimagnesita.com

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[1]Adjusted pro-forma results were prepared as if the combined Group had already existed since January 1, 2016 and before the impact of Items such as: divestments, restructuring expenses, merger-related adjustments and other non-merger related other income and expenses, which are generally non-recurring. More details on page 8.