•

•
•

•
•

•
•

•
•
•
•
•
•
•
Condensed Consolidated Interim Financial Statements as at
30.06.2024

26 R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4
Condensed Consolidated Statement of Profit or Loss
for the six months ended 30 June 2024

in € million for the six months ended 30 June Note 2024 2023

Revenue (3) 1,728.2 1,734.1

Cost of sales (1,312.2) (1,320.0)
Gross profit 416.0 414.1
Selling and marketing expenses (64.7) (72.9)
General and administrative expenses (180.1) (162.5)
Restructuring 1.2 (11.2)
Other income 18.1 6.5
Other expenses (35.7) (11.3)
EBIT 154.8 162.7
Interest income 13.6 9.2
Interest expenses on borrowings (32.3) (27.0)
Net income/(expense) on foreign exchange effects (4) 14.2 (14.9)
Other net financial expenses (5) (7.7) (18.6)
Net finance costs (12.2) (51.3)
Profit before income tax 142.6 111.4
Income tax (6) (31.8) (28.3)
Profit after income tax 110.9 83.1
RHI Magnesita N.V. shareholders 101.6 80.6
Non-controlling interests 9.3 2.5

in €
Earnings per share - basic 2.15 1.71
Earnings per share - diluted 2.10 1.68

R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4 27
Condensed Consolidated Statement of Comprehensive Income
for the six months ended 30 June 2024

in € million for the six months ended 30 June Note 2024 2023
Profit after income tax 110.9 83.1

Currency translation differences

Unrealised results from currency translation (11.0) 10.0
Unrealised results from foreign operations (26.0) 8.4
Deferred taxes thereon 9.7 (5.8)
Current taxes thereon 0.0 2.6
Reclassification to profit or loss (8.6) 0.0
Cash flow hedges
Unrealised fair value changes 24.4 (5.3)
Reclassification to profit or loss (9.5) 0.0
Deferred taxes thereon (4.0) 1.0
Costs of hedging
Time value changes (0.1) 0.0
Remeasurement of investments in debt instruments
Unrealised fair value changes (5.7) 0.0
Reclassification to profit or loss 5.7 0.0
Items that may be reclassified to profit or loss in later periods (25.1) 10.9

Remeasurement of defined benefit plans

Remeasurement of defined benefit plans 15.8 0.6
Deferred taxes thereon (3.7) 0.2
Items that are not reclassified to profit or loss in later periods 12.1 0.8

Other comprehensive (loss)/income after income tax (13.0) 11.7

Total comprehensive income 97.9 94.8

RHI Magnesita N.V. shareholders 82.6 101.0
Non-controlling interests 15.3 (6.2)

28 R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4
Condensed Consolidated Statement of Financial Position
as at 30 June 2024

in € million Note 30.06.2024 31.12.2023

ASSETS
Non-current assets
Goodwill 347.8 339.2
Other intangible assets 442.6 469.8
Property, plant and equipment (8) 1,321.6 1,360.1
Investments in joint ventures and associates 6.4 6.2
Other non-current financial assets 61.5 43.4
Other non-current assets 66.5 36.7
Deferred tax assets 148.0 152.0
2,394.4 2,407.4
Current assets
Inventories (9) 996.7 1,001.0
Trade and other current receivables (10) 610.9 680.6
Income tax receivables 39.0 43.5
Other current financial assets 6.6 13.6
Cash and cash equivalents 604.8 703.5
2,258.0 2,442.2
4,652.4 4,849.6

EQUITY AND LIABILITIES

Equity
Share capital 49.5 49.5
Group reserves 1,178.4 1,152.2
Equity attributable to shareholders of RHI Magnesita N.V. 1,227.9 1,201.7
Non-controlling interests 173.7 161.8
1,401.6 1,363.5
Non-current liabilities
Borrowings (11) 1,523.3 1,799.5
Other non-current financial liabilities 117.4 133.4
Deferred tax liabilities 61.2 62.5
Provisions for pensions (12) 217.0 241.5
Other personnel provisions 57.3 55.2
Other non-current provisions 82.7 91.6
Other non-current liabilities 8.6 7.3
2,067.5 2,391.0
Current liabilities
Borrowings (11) 289.1 149.3
Other current financial liabilities 31.4 40.9
Trade payables and other current liabilities (14) 788.4 820.2
Income tax liabilities 44.5 50.8
Current provisions (13) 29.9 33.9
1,183.3 1,095.1
4,652.4 4,849.6

R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4 29
Condensed Consolidated Statement of Cash Flows
for the six months ended 30 June 2024

in € million for the six months ended 30 June 2024 2023

Cash generated from operations (15) 284.7 276.7
Income tax paid less refunds (35.6) (24.3)
Net cash flow from operating activities 249.1 252.4
Investments in property, plant and equipment and intangible assets (67.8) (62.8)
Investments in subsidiaries net of cash acquired (7.8) (172.8)
Cash inflows from the sale of property, plant and equipment 8.4 2.5
(Cash outflows) from investments in financial assets (21.8) (4.6)
Cash inflows from the sale of financial assets 26.2 0.0
Dividends received from non-consolidated entities, joint ventures and associates 0.5 0.0
Investment subsidies received 2.1 0.2
Prepayments related to intended business combinations (33.3) 0.0
Interest received 13.0 9.2
Net cash used in investing activities (80.5) (228.3)
Payment for share issue costs in subsidiary 0.0 (2.4)
Proceeds from share issue in subsidiary 0.0 100.0
Acquisition of non-controlling interests (2.8) 0.0
Dividends paid to RHI Magnesita N.V. shareholders (59.0) 0.0
Dividend paid to non-controlling interests (0.7) 0.0
Proceeds from long-term financing 13.4 205.0
Repayments of long-term financing (108.5) (7.4)
Changes in current borrowings and financial liabilities to joint ventures and associates (42.1) (36.8)
Interest payments (47.5) (30.9)
Repayment of lease obligations (9.9) (10.5)
Interest payments from lease obligations (1.3) (1.0)
Cash flows from derivatives (12.9) 2.6
Net cash used in financing activities (271.3) 218.7
Total cash flow (102.7) 242.8
Change in cash and cash equivalents (102.7) 242.8
Cash and cash equivalents at beginning of period 703.5 520.7
Foreign exchange impact 4.0 (3.8)
Cash and cash equivalents at end of period 604.8 759.7

30 R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4
31

Condensed Consolidated Statement of Changes in Equity

R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4

for the six months ended 30 June 2024

Group reserves

Accumulated other comprehensive income

Equity
attributable
to
Additional Cash flow Defined shareholders Non-
Share Treasury paid-in Mandatory Retained hedges and benefit Currency of RHI controlling Total
in € million capital shares capital reserve earnings costs of hedging plans translation Magnesita N.V. interests equity

Note
31.12.2023 49.5 (110.7) 361.3 288.7 871.4 6.0 (101.9) (162.6) 1,201.7 161.8 1,363.5
Profit after income tax - - - - 101.6 - - - 101.6 9.3 110.9
Currency translation differences - - - - - - - (42.0) (42.0) 6.1 (35.9)
Cash flow hedges - - - - - 10.9 - - 10.9 - 10.9
Costs of hedging - - - - - (0.1) - - (0.1) - (0.1)
Defined benefit plans - - - - - - 12.2 - 12.2 (0.1) 12.1
Other comprehensive income after
income tax - - - - - 10.8 12.2 (42.0) (19.0) 6.0 (13.0)
Total comprehensive income - - - - 101.6 10.8 12.2 (42.0) 82.6 15.3 97.9
Dividends - - - - (59.0) - - - (59.0) (0.6) (59.6)
Share transfer/vested LTIP - 2.7 - - (2.7) - - - - - -
Other changes1) - - - - (1.4) - - - (1.4) (2.8) (4.2)
Share-based payment expenses - - - - 4.8 - - - 4.8 - 4.8
Hedging gains and losses included in
the initial cost of inventory purchased
in the reporting period - - - - - (0.8) - - (0.8) - (0.8)
- 2.7 - - (58.3) (0.8) - - (56.4) (3.4) (59.8)
30.06.2024 49.5 (108.0) 361.3 288.7 914.7 16.0 (89.7) (204.6) 1,227.9 173.7 1,401.6

1) This mainly comprises the effects of the acquisition of non-controlling interests of Seven Refractories’ Group as well as the final adjustments from the purchase price allocation of Seven Refractories’ Group and the update of the purchase price allocation of P-D Refractories,
both completed in 2023.
32
R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4

Group reserves

Accumulated other comprehensive income

Equity
attributable
Additional Defined to shareholders Non-
Share Treasury paid-in Mandatory Retained Cash flow benefit Currency of RHI controlling Total
in € million capital shares capital reserve earnings hedges plans translation Magnesita N.V. interests equity

Note
31.12.2022 49.5 (116.1) 361.3 288.7 620.2 31.8 (85.6) (148.6) 1,001.2 47.4 1,048.6
Profit after income tax - - - - 80.6 - - - 80.6 2.5 83.1
Currency translation differences - - - - - - - 23.9 23.9 (8.7) 15.2
Cash flow hedges - - - - - (4.3) - - (4.3) - (4.3)
Defined benefit plans - - - - - - 0.8 - 0.8 - 0.8
Other comprehensive income after
income tax - - - - - (4.3) 0.8 23.9 20.4 (8.7) 11.7
Total comprehensive income - - - - 80.6 (4.3) 0.8 23.9 101.0 (6.2) 94.8
Dividends - - - - (51.7) - - - (51.7) - (51.7)
Share transfer/vested LTIP - 4.7 - - (4.7) - - - - - -
Additions to consolidated companies and
change of non-controlling interests
without a change of control1) - - - - 149.3 - - - 149.3 128.2 277.5
Change of non-controlling interests
without a change of control1) - - - - 36.2 - - - 36.2 63.8 100.0
Change of non-controlling interests
without a change of control1) - - - - 3.2 - - - 3.2 (3.2) -
Other changes - - - - (22.0) - - - (22.0) 1.0 (21.0)
Share-based payment expenses - - - - 3.6 - - - 3.6 - 3.6
Hedging gains and losses included in the
initial cost of inventory purchased in the
reporting period - - - - - 1.2 - - 1.2 - 1.2
- 4.7 - - 113.9 1.2 - - 119.8 189.8 309.6
30.06.2023 49.5 (111.4) 361.3 288.7 814.7 28.7 (84.8) (124.7) 1,222.0 231.0 1,453.0

1) Refer to Note (2) for further information.

 Notes
to the Condensed Consolidated Interim Financial Statements as at 30.06.2024

Basis of preparation
1. General
RHI Magnesita N.V. (the “Company”), is a public limited company incorporated under the laws of the Netherlands (naamloze vennootschap), having its official
seat (statutaire zetel) in Arnhem, the Netherlands, and its office at Kranichberggasse 6, 1120 Vienna, Austria, registered with the Dutch Trade Register under
number 68991665 and listed on the London Stock Exchange, with a secondary listing on the Vienna Stock Exchange (Wiener Börse).

The Condensed Consolidated Interim Financial Statements (“Interim Financial Statements”) of RHI Magnesita N.V. (“the Company”) and its subsidiaries
(collectively referred to as “RHI Magnesita or the Group”) for the half-year reporting period ended 30 June 2024 have been prepared in accordance with IAS 34
Interim Financial Reporting as issued by the International Accounting Standards Board (“IASB”) and as adopted by the European Union, applying the same
accounting principles as those used in the Company’s Annual Financial Statements for the year ended 31 December 2023.

The Interim Financial Statements do not include all information and disclosures required in the Annual Financial Statements and should therefore be read in
conjunction with RHI Magnesita’s Consolidated Financial Statements as of 31 December 2023. The Interim Financial Statements are presented in Euros and all
values are rounded to the nearest € million with one decimal, except where otherwise indicated.

The Interim Financial Statements as of 30 June 2024 were not audited but reviewed by PricewaterhouseCoopers Accountants N.V.

Going concern
In considering the appropriateness of adopting the going concern basis in preparing the Interim Financial Statements, the Directors have assessed the potential
cash generation of the Group and considered a reverse stress scenario that models a breach of the Group covenants under a very severe but possible economic
downturn. This assessment considers the period up to the subsequent financial year end, 31 December 2025, for any indicators for which the going concern
basis of preparation is not appropriate.

The reverse stress test determines how much volumes could reduce before breaching the Group’s debt covenants and adjusts for price deflation. Further
examples of mitigating actions within management control would be taken under this scenario, including fixed cost mitigation, working capital management,
SG&A reduction and deferring capital expenditure, but these were not incorporated in the downside modelling.

The Directors have also considered the Group’s current liquidity and available facilities. As of 30 June 2024, the Condensed Consolidated Statement of Financial
Position reflects cash and cash equivalents of €604.8 million (31.12.2023: €703.5 million). In addition, the Group has access to a €600.0 million (31.12.2023:
€600.0 million) Revolving Credit Facility (RCF) and a €200.0 million syndicated term loan (31.12.2023: nil) to be utilised for the intended acquisition of the
Resco Group, which are currently undrawn and not relied upon for the purpose of the going concern assessment. The Group has complied with the debt
covenants.

On the basis of the assessment performed, the Directors consider it is appropriate to continue to use the going concern basis in preparing the Interim Financial
Statements for the period ended 30 June 2024.

2. Significant Accounting Policies, Judgements, Estimates and Errors

Principles of accounting and measurement
There were no changes regarding principles of accounting and measurement compared to the Consolidated Financial Statements as of 31 December 2023. We
performed an impact analysis related to the amendments on the existing and new standards effective in 2024 and concluded that no material impacts are
expected from these except for the following amendment.

The amendments to IAS 7 & IFRS 7 mandate new disclosure requirements for the Group’s existing liabilities related to supply finance arrangements and their
effects on the Group’s liabilities, cash flows and exposure to liquidity risk. We have completed the identification of all supply finance arrangements subject to
these disclosure requirements and will disclose the required information in the Consolidated Financial Statements as of 31.12.2024 for the first time. The new
disclosures are not required to be provided in the 2024 Interim Financial Statements.

Significant accounting judgements and estimates

The Interim Financial Statements require the use of estimates and assumptions that affect the reported amounts in the Interim Financial Statements. The key
assumptions and estimation uncertainties are unchanged from those described in last year’s Consolidated Financial Statements. Actual results may differ from
these estimates.

Impairment of property, plant and equipment, goodwill and other intangible assets
No triggers for an impairment review as of 30 June 2024 were identified.

Significant judgement: Presentation of cash flows related to investments in and divestments of special national government bonds
The Group maintains business operations in Argentina. In 2019, the Argentinian Central Bank imposed several foreign exchange restrictions on import payments,
essentially preventing the Argentinian subsidiary’s ability to honor its payment obligations to suppliers outside Argentina in the usual manner. Given a change in
legislation in December 2023, Argentinian companies are now allowed to settle their previously restricted import payment obligations by purchasing U.S. dollar-
denominated securities issued by the Central Bank of Argentina, also called BOPREAL bonds, which can be held to maturity, transferred or sold in the secondary
market. In 2024 the Group has invested €19.1 million in these BOPREAL bonds all of which have been sold or transferred before the reporting date. The cash
proceeds realised from the sales, amounting to €13.9 million, were used to settle intercompany and third-party trade liabilities. The cash flows arising from the
investment in and divestment of the BOPREAL bonds are presented within the investing category in the Condensed Consolidated Statement of Cash Flows.
Judgement is applied in determining that this presentation is appropriate.

33 R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4
Notes continued

Significant estimation uncertainty: prepayments related to intended business combinations

Within other non-current assets €33.3 million of prepayments are recogised in relation to the intended acquisition of the Resco Group. Management assumes
that the acquisition will be closed and as such the full amount of prepayments is recognised as an asset. In the event that the acquisition will not be closed, these
prepayments are non-refundable and will be expensed through the Consolidated Statement of Profit or Loss.

Error correction
In 2023, several transactions with the shareholdings of RHI Magnesita India Ltd. took place in relation to the acquisition of Dalmia OCL Ltd. (‘DOCL’), Dalmia Seven
Refractories Ltd (‘DSR’), and other subsequent share issues.

Management identified that the Initial allocation between non-controlling interests and equity attributable to shareholders of RHI Magnesita N.V. as of 30 June
2023 was incorrect. The allocation was restated through comparative figures in the Condensed Consolidated Statement of Changes in Equity as of 30 June
2023.

This resulted in an increase of non-controlling interests by €105.5 million and a corresponding decrease of equity attributable to shareholders of RHI Magnesita
N.V. as of 30 June 2023 where the dilution gain related to the mentioned transactions was reflected.

Neither total equity, nor the Condensed Consolidated Statement of Profit or Loss (including the earnings per share) / Statement of Comprehensive Income nor
the Condensed Consolidated Statement of Cash Flows as of 30 June 2023 were affected by this correction.

3. Segmental analysis
Segment reporting by operating company division
Each reporting period the appropriateness and decision usefulness of the Group’s segment reporting structure is reassessed. This reassessment has resulted in a
change of the Group’s segment reporting structure aiming to provide a more detailed insight into the financial performance of certain operating segments which
had formed part of the former reportable segment Industrial until the previous reporting period. According to this change, the key performance measures revenue
and gross profit, are disclosed for the newly designated reportable segments, Industrial Cement & Lime, Industrial Non-Ferrous Metals and a residual category
titled, ‘all other segments’, comprising the operating segments Industrial Glass and Industrial Applications and the business activities subsumed into the business
unit, Minerals. The comparative figures have been restated in accordance with IFRS 8 to reflect the new segment reporting structure.

The following tables show the key financial information for the operating segments for the first half of 2024 and the first half of 2023:

Industrial Cement Industrial Non-

in € million for the six months ended 30 June 2024 Steel & Lime Ferrous Metals All Other segments Group
Revenue 1,185.0 188.4 126.7 228.1 1,728.2

Gross profit 268.2 44.2 52.4 51.2 416.0

EBIT 154.8
Net finance costs (12.2)
Profit before income tax 142.6

Industrial Cement Industrial Non-

in € million for the six months ended 30 June 2023 Steel & Lime Ferrous Metals All Other segments Group
Revenue 1,203.0 213.7 138.6 178.8 1,734.1

Gross profit 259.9 60.0 57.5 36.7 414.1

EBIT 162.7
Net finance costs (51.3)
Profit before income tax 111.4

34 R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4
Revenue in the first half of 2024 and in the first half of 2023 is classified by product groups as follows:

Industrial Cement Industrial Non-

in € million for the six months ended 30 June 2024 Steel & Lime Ferrous Metals All Other segments Group

Shaped products 518.2 154.1 104.1 147.2 923.6

Unshaped products 255.7 27.2 12.9 63.5 359.3
Management refractory services 369.1 0.5 0.0 0.3 369.9
Other 42.0 6.6 9.7 17.1 75.4
Revenue 1,185.00 188.4 126.7 228.1 1,728.2

Industrial Cement Industrial Non-

in € million for the six months ended 30 June 2023 Steel & Lime Ferrous Metals All Other segments Group

Shaped products 551.3 175.2 116.4 98.7 941.6

Unshaped products 253.1 25.9 15.2 64.0 358.2
Management refractory services 362.8 0.7 0.0 0.2 363.7
Other 35.8 11.9 7.0 15.9 70.6
Revenue 1,203.0 213.7 138.6 178.8 1,734.1

Segment reporting by country

Revenue in the first half of 2024 and in the first half of 2023 is classified by customer sites as follows:

in € million for the six months ended 30 June 2024 2023

The Netherlands 5.8 5.2

USA 295.2 323.9
India 221.9 240.6
Brazil 191.0 191.4
PR China 115.6 108.8
Other countries 898.7 864.2
Revenue 1,728.2 1,734.1

4. Net income/(expense) on foreign exchange effects

The net income comprises the foreign exchange effects from translating foreign currency balances into the functional currency, the results from derivative
financial instruments, such as forward exchange contracts and derivatives in open orders, as well as the gain on the net monetary position related to hyperinflation
accounting (IAS 29) can be detailed as follows:

in € million for the six months ended 30 June 2024 2023

Foreign exchange gains/(losses) 20.7 (22.7)

(Losses)/gains on forward exchange contracts and derivatives in open orders (9.2) 7.8
Gain on net monetary position 2.7 0.0
Net income/(expense) on foreign exchange effects 14.2 (14.9)

The foreign exchange gains in the current reporting period mainly result from the depreciation of the functional currencies of subsidiaries with a net asset foreign
currency exposure against USD and the appreciation of the functional currencies of subsidiaries with a net liability foreign currency exposure against USD.

5. Other net financial expenses

Other net financial expenses consist of the following items:

in € million for the six months ended 30 June 2024 2023

Net interest expense relating to personnel provisions (4.3) (5.3)

Unwinding of discount of provisions and payables (3.8) (3.7)
Interest expense on non-controlling interest liabilities (3.3) (3.3)
Interest expense on lease liabilities (1.3) (1.0)
Income from the revaluation of NCI put options 10.9 0.6
Other interest and similar income and expenses1) (5.9) (5.9)
Other net financial expenses (7.7) (18.6)

1) Includes mainly costs associated with the trade receivables factoring programme of €5.4 million (30.06.2023 €4.8 million).

R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4 35
Notes continued

6. Income tax
The tax charge for the period has been calculated by applying the effective corporate tax rate (ETR) which is expected to apply to the Group for the year ending
31 December 2024, using rates substantively enacted by 30 June 2024. The ETR is 22.3% (30.06.2023: 25.4%).

Total tax charge for the first half of 2024 in the Condensed Consolidated Statement of Profit or Loss amounted to €31.8 million (30.06.2023: €28.3 million),
which includes tax income for prior years of €2.5 million (30.06.2023: tax expense for prior years of €1.2 million).

The OECD and the G20 agreed on a minimum ETR per country of 15% that is applicable to Multinational Enterprises (“MNEs”) with annual revenues exceeding
€750m, the so-called Pillar 2 rules. The Pillar 2 rules use a standardised base and definition of taxes to identify countries in which the MNE’s ETR is below 15%.
In such cases, a so-called top-up tax is imposed in a coordinated manner to reach the minimum 15% ETR in that country. The Group is within the scope of the
OECD Pillar Two rules. In 2023 Pillar Two legislation was enacted in Austria, where the Ultimate Parent Entity of the Group is managed and tax resident and is
coming into effect for financial years starting after 31 December 2023. The temporary exception issued by the IASB in May 2023 from the accounting
requirements for deferred taxes in IAS 12 was applied and accordingly there were no deferred tax assets and liabilities recognised or disclosed.

The Group has performed a preliminary calculation of the “Transitional CbCR Safe Harbours” for Pillar Two purposes based on financial data for 2023.
“Transitional CbCR Safe Harbour” is a mechanism that relies on certain information contained in the Country-by-Country Report (“CbCR”), and that is designed
to mitigate the need for complex calculations and compliance burden for MNE’s during the initial years of implementation of the Pillar 2 rules. The safe harbour
applies if the MNE in a country meets one out of three formula-based tests. If the MNE qualifies for one of these tests, the MNE is exempt from further compliance
and is deemed not to be subject to the top up tax in that country. If none of these tests are met, the safe harbour does not apply, and further calculations and
compliance are required to determine whether top up tax is due. For those jurisdictions that do not qualify for “Transitional CbCR Safe Harbours” either (a) specific
adjustments are performed to determine the applicability of the “Transitional CbCR Safe Harbours” (e.g., if the low ETR is derived from an extraordinary/one-off
factor being specifically applicable for 2023), or (b) a simplified calculation of the effective tax rate and potential top-up tax is based on data of the first half of
2024. The country for which a potential exposure to top-up tax may exist is the United Arab Emirates. As the Group does not have significant operations there, no
significant impact of potential top-up tax is expected.

7. Dividend payments and proposed dividend

Based on a resolution adopted by the Annual General Meeting of RHI Magnesita N.V. in May 2024 the final dividend for 2023 amounted to €1.25 per share for
the shareholders of RHI Magnesita N.V. The dividend was paid out in June 2024, amounting to €59.0 million.

In line with the Group’s dividend policy the Board declared an interim dividend of €0.60 per share for the first half of 2024 to be paid out in September 2024.

8. Property, plant and equipment

In the first half of 2024 additions to property, plant and equipment amount to €61.6 million (30.06.2023: €54.0 million) and mainly refer to the expansion and
production optimisation of the plants in Brazil, as well as to production optimisation and digitalisation projects.

9. Inventories
Inventories as presented in the Condensed Consolidated Statement of Financial Position consist of the following items:

in € million 30.06.2024 31.12.2023

Raw materials and supplies 265.9 274.0

Work in progress 205.8 220.5
Finished products and goods 505.0 488.6
Prepayments made 15.0 12.8
Emission rights1) 5.0 5.1
Inventories 996.7 1,001.0

1) With effect from 1 January 2024 "Other current receivables" excludes "Emission rights" which are now presented in "Inventories". Prior period comparatives have been revised
to conform with current year presentation.

Net write-down expenses on inventories amount to €3.6 million in the first half of 2024 (30.06.2023: €10.2 million).

10. Trade and other current receivables

Trade and other current receivables as presented in the Condensed Consolidated Statement of Financial Position are classified as follows:

36 R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4
in € million 30.06.2024 31.12.2023

Trade receivables 475.2 537.6

Contract assets 2.2 3.5
Other tax receivables 86.7 95.4
Prepaid expenses 10.9 8.4
Other current receivables1) 35.9 35.7
Trade and other current receivables 610.9 680.6
thereof financial assets 477.6 541.4
thereof non-financial assets 133.3 139.2

1) With effect from 1 January 2024 "Other current receivables" excludes "Emission rights" which are now presented in "Inventories". Prior period comparatives have been revised
to conform with current year presentation.

The Group enters into factoring agreements and sells trade receivables to financial institutions. Trade receivables sold as of 30 June 2024 was €244.4 million
(31.12.2023: €259.4 million). These have been derecognised from the balance sheet as substantially all risks and rewards, as well as control, have been
transferred. Payments received from customers following the sale are recognised in current borrowings until repaid to the factorer.

Other tax receivables mainly include VAT receivables.

Other current receivables mainly relate to prepayments for insurance, IT services, and, custom and import-related services and costs.

11. Borrowings
Borrowings include all interest-bearing liabilities due to financial institutions and other lenders.

In March 2024, the Group successfully raised a €200.0 million syndicated term loan with a tenor of five years. Loan proceeds will be used for the intended
acquisition of the Resco Group. The term loan remains fully undrawn per 30 June 2024.

In April 2024, the Group prepaid €100.0 million from a €150.0 million bilateral term loan, which matures in April 2026, to optimise the Group’s capital structure
and maturity profile and reduce excess cash.

Resulting from the Group’s strong EcoVadis ESG rating upgrade in June 2024, with an improvement by four points and an achieved score of 76, the margin
payable on the Group’s ESG-linked financings amounting to €2,003 million (including the fully undrawn €600.0 million RCF) was reduced by 3bps, leading
to €0.5 million savings in interest cost on an annual basis, ceteris paribus.

Net debt excluding lease liabilities/Adjusted EBITDA is the key financial covenant of the loan agreements. Compliance with the covenants is measured on a
semi-annual basis. In line with the covenant requirements, net debt excluding lease liabilities/ Adjusted EBITDA cannot exceed 3.5x. Breach of covenants leads
to an anticipated maturity of loans. During the first half of 2024, the Group met all covenant requirements.

The calculation of the key financial covenant is presented in the following table:

in € million 30.06.2024 30.06.2023

EBIT 326.1 341.8

Amortisation 40.6 37.7
Restructuring and write-down expenses 7.2 4.1
Other operating income and expenses 24.6 12.7
Adjusted EBITA 398.5 396.3
Depreciation 137.4 122.8
Adjusted EBITDA 535.9 519.1

Total debt 1,812.4 1,814.1

Lease liabilities 65.8 69.6
Less: Cash and cash equivalents 604.8 759.7
Net debt 1,273.4 1,124.0

Net debt excluding IFRS 16 lease liabilities 1,207.6 1,054.4

Net debt to Adjusted EBITDA 2.38x 2.17x

Net debt to Adjusted EBITDA excluding IFRS 16 lease liabilities 2.25x 2.03x

R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4 37
Notes continued

The disclosures in this section include certain Alternative Performance Measures (APMs). The key performance indicator for net debt in the RHI Magnesita Group
is the Group leverage, which reflects the ratio of net debt to Adjusted EBITDA, including lease liabilities. The Adjusted EBITDA is calculated on a trailing twelve-
month basis, considering the last six months of 2023 and the first six months of 2024.

Alternative Performance Measures (APMs) are non-IFRS measures which enable investors and other readers to review alternative measurements of financial
performance, but they should not be used in isolation from the main financial statements. Adjusted EBITA and adjusted EBITDA are key non-IFRS measures that
the Executive Management Team and Directors use internally to assess the underlying performance of the Group. Adjusted EBITDA is defined as EBIT, as
presented in the Condensed Consolidated Statement of Profit or Loss, before amortisation, depreciation, and excluded Items. Adjusted EBITA is determined
consistently with Adjusted EBITDA, but includes depreciation expense of property, plant and equipment to reflect the wear and tear cost and future replacement
of productive assets on the Group. Excluded items are other income, other expenses and restructuring expenses as reflected on the Statement of Consolidated
Profit or Loss, as well as gains and losses within interest income, interest expenses and other net financial expenses that are non-recurring in nature and not
reflective of the underlying operational performance of the business. Excluded items include restructuring related provisions and other non-recurring costs.

12. Provisions for pensions

For interim reports, provisions for pensions are determined based on a forecast for the entire year prepared by an actuary. If there are significant changes in the
actuarial assumptions during the year, a remeasurement of the net liabilities from employee related defined benefit obligations is recognised.

As of 30 June 2024, a net defined plan liability of €217.0 million was recognised compared to €241.5 million at 31 December 2023. The remeasurement
comprises primarily actuarial gains which were reported in other comprehensive income, and which are mainly driven by changes in the actuarial interest rates,
which are as follows: 11.0 % (31.12.2023: 10.1 %) in Brazil, 10.2% (31.12.2023: 9.2 %) in Mexico, 5.3 % (31.12.2023: 4.8 %) in the US, and 3.6 % (31.12.2023: 3.3 %)
in the Euro zone.

13. Current provisions

Provisions for restructuring costs amounting to €7.1 million as of 30 June 2024 (31.12.2023: €8.7 million) primarily consist of benefit obligations to employees,
due to termination of employment, and dismantling costs. €4.5 million (31.12.2023: €6.2 million) relate to the closure of plants, Trieben, Mainzlar and Kruft.

Provisions for contract obligations of €12.3 million as of 30 June 2024 (31.12.2023: €15.1 million) include mainly the current portion of the Oberhausen contract
obligation amounting to €10.0 million as of 30 June 2024 (31.12.2023: €10.6 million).

Other provisions consist mainly of obligations related to warranty claims and other similar obligations from the sale of refractory products.

14. Trade payables and other current liabilities

Trade payables and other current liabilities included in the Condensed Consolidated Statement of Financial Position consist of the following items:

in € million 30.06.2024 31.12.2023

Trade payables 524.6 497.9

Contract liabilities 55.4 64.6
Liabilities to employees 108.6 136.4
Capital expenditure payable 19.8 33.0
Taxes other than income tax 35.1 32.6
Payables from commissions 9.1 9.4
Other current liabilities 35.8 46.3
Trade payables and other current liabilities 788.4 820.2
thereof financial liabilities 568.3 561.2
thereof non-financial liabilities 220.1 259.0

Trade payables include an amount of €102.9 million (31.12.2023: €84.1 million) for raw material purchases subject to supply chain finance arrangements.

Other current liabilities include liabilities from accrued interest in the amount of €13.6 million (31.12.2023: 15.3 million) as well as a deferred income amount of
€7.2 million (31.12.2023: €8.6 million).

38 R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4
15. Cash generated from/(used in) operations
in € million for the six months ended 30 June 2024 2023

Profit after income tax 110.9 83.1

Adjustments for
income tax 31.8 28.3
depreciation 67.6 64.1
amortisation 18.8 21.8
write down of property, plant and equipment and intangible assets 0.3 (0.3)
income from the reversal of investment subsidies (0.3) (0.3)
(write ups)/impairment losses/loss from sale on securities 3.3 (0.1)
Loss from the disposal of property, plant and equipment 4.6 0.3
gains from the disposal of operations in subsidiaries (8.6) 0.0
net interest expense and valuation call/put options 22.3 31.8
result from disposal and share in profit of joint ventures and associates (0.1) (2.5)
other non-cash changes (3.9) 12.2
Changes in working capital
inventories 1.5 64.2
trade receivables 61.0 58.1
contract assets 1.3 (0.7)
trade payables 30.9 (93.1)
contract liabilities (9.0) 12.3
Changes in other assets and liabilities
other receivables and assets (0.6) 3.6
provisions (20.6) (16.1)
other liabilities (26.5) 10.0
Cash generated from operations 284.7 276.7
Income tax paid less refunds (35.6) (24.3)
Net cashflow from operating activities 249.1 252.4

16. Additional disclosures on financial instruments

The following tables show the carrying amounts and fair values of financial assets and liabilities by measurement category and level and the allocation to the
measurement category. In addition, carrying amounts are shown aggregated according to measurement category.

R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4 39
Notes continued

30.06.2024 31.12.2023

Measurement
category Carrying Carrying
in € million IFRS 91) Level amount Fair value amount Fair value

Non-current financial assets

Marketable securities FVPL 1 12.0 12.0 11.8 11.8
Shares FVPL 3 0.5 0.5 0.5 0.5
Shares FVOCI 3 7.1 7.1 4.6 4.6
Interest rate derivatives and Commodity swaps designated as
cash flow hedges - 2 27.1 27.1 20.5 20.5
Investments in non-consolidated subsidiaries FVPL - 7.0 7.0 2.4 2.4
Other non-current financial assets AC - 7.8 3.6
Trade and other current receivables AC - 430.2 510.4
Trade and other current receivables FVOCI - 47.5 47.5 31.0 31.0
Current financial assets
Marketable securities FVPL 1 0.0 0.0 11.3 11.3
Interest rate derivatives and Commodity swaps designated
as cash flow hedges - 2 3.0 3.0 0.4 0.4
Derivatives in open orders and Forward exchange contracts FVPL 2 1.3 1.3 0.4 0.4
Other current financial receivables AC - 2.3 1.6
Cash and cash equivalents AC - 604.8 703.5
Financial assets 1,150.6 1,302.0
Non-current and current borrowings
Liabilities to financial institutions AC 2 1,799.9 1,785.4 1,932.0 1,919.8
Other financial liabilities AC - 12.6 16.8
Non-current and current other financial liabilities
Lease liabilities - - 65.8 69.9
Interest rate derivatives and Commodity swaps designated as
cash flow hedges - 2 9.0 9.0 13.4 13.4
Derivatives in open orders and Forward exchange contracts FVPL 2 1.1 1.1 3.8 3.8
Liabilities to fixed-term or puttable non-controlling interests AC 2/3 28.6 28.6 33.5 33.5
Liabilities to fixed-term or puttable non-controlling interests FVPL 3 44.4 44.4 53.7 53.7
Trade payables and other current liabilities AC - 568.3 561.2
Financial liabilities 2,529.7 2,684.3
Aggregated according to measurement category
Financial assets measured at AC 1,045.1 1,219.1
Financial assets measured at FVOCI 54.6 35.6
Financial assets measured at FVPL 20.8 26.4
Financial liabilities measured at AC 2,409.4 2,543.5
Financial liabilities measured at FVPL 45.5 57.5

1) FVPL: Financial assets/financial liabilities measured at fair value through profit or loss
FVOCI: Financial assets measured at fair value through other comprehensive income
AC: Financial assets/financial liabilities measured at amortised cost

In the Group, marketable securities, derivative financial instruments and shares are measured at fair value. Interests in subsidiaries not consolidated are recognised
at cost, which due to materiality reasons, is considered a reasonable approximation of fair value. Fair value is defined as the amount for which an asset could be
exchanged, or a liability settled, between market participants in an arm's length transaction on the day of measurement. When the fair value is determined it is
assumed that the transaction in which the asset is sold or the liability is transferred takes place either in the main market for the asset or liability, or in the most
favorable market if there is no main market. RHI Magnesita considers the characteristics of the asset or liability to be measured which a market participant would
consider in pricing. It is assumed that market participants act in their best economic interest.

The Group takes into account the availability of observable market prices in an active market and uses the following hierarchy to determine fair value:

Level 1: Prices quoted in active markets for identical financial instruments.

Level 2: Measurement techniques in which all important data used are based on observable market data.
Level 3: Measurement techniques in which at least one significant parameter is based on non-observable market data.

40 R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4
The fair value of securities and shares is based on price quotations at the reporting date (Level 1), where such quotations exist. In other cases, a valuation model
(Level 3) would be used for such instruments with an exception if such instruments are immaterial to the Group, in which case cost serves as an approximation of
fair value.

The fair value of interest derivatives in a hedging relationship (interest rate swaps) is determined by calculating the present value of future cash flows based on
current yield curves, taking into account the corresponding terms (Level 2).

The fair value of foreign currency derivative contracts corresponds to the market value of the forward exchange contracts and the embedded derivatives in open
orders denominated in a currency other than the functional currency. These derivatives are measured using quoted forward rates that are currently observable
(Level 2). The fair value of commodity swaps for natural gas reflects the difference between the fixed contract price and the closing quotation of the natural gas
price (EEX Base) as of the respective due date of the transaction. The closing price on the stock exchange is used as the input (Level 2).

Liabilities to financial institutions and other financial liabilities are carried at amortised cost in the Condensed Consolidated Statement of Financial Position.
Liabilities related to fixed-term or puttable non-controlling interests based on a fixed consideration are recognised at amortised cost whereas those liabilities
based on a variable consideration are recognised at fair value. The fair values of the liabilities to financial institutions are only disclosed in the Notes and calculated
at the present value of the discounted future cash flows using yield curves that are currently observable (Level 2). The carrying amount of other financial liabilities
approximate their fair value at the reporting date.

The carrying amounts of other financial assets approximately correspond to their fair value. Due to the low amounts recognised no material deviation between
the fair value and the carrying amount is assumed and the credit default risk is accounted for by forming valuation allowances.

Trade and other current receivables and liabilities as well as cash and cash equivalents are predominantly short-term. Therefore, the carrying amounts of these
items approximate fair value at the reporting date.

No contractual netting agreement of financial assets and liabilities were in place as at 30 June 2024 and 31 December 2023.

17. Contingent liabilities

As of 30 June 2024, warranties, performance guarantees and other guarantees amount to €73.9 million (31.12.2023: €70.9 million). Contingent liabilities have
a remaining term of between two months and three years. Based on past experience the probability that contingent liabilities will transform into a firm payment
obligation is considered low.

Individual administrative proceedings and lawsuits which result from ordinary activities are pending as of 30 June 2024 or can potentially be exercised against
RHI Magnesita in the future. The related risks were analysed with a view to their probability of occurrence.

Taxation contingencies
The calculation of income taxes is based on the tax laws applicable in the individual countries in which the Group operates. Due to their complexity, the tax items
presented in the Consolidated Financial Statements may be subject to different interpretations by local finance authorities. In this context it should be noted that
a tax provision is generally recognised when the Group has a present obligation as a result of a past event, and when it is considered probable that there will be a
future outflow of funds.

The Group is continually adapting its global presence to improve customer service and maintain its competitive advantage, accordingly, it leads open discussions
with tax authorities about, e.g., transfer of functions and related profit between related parties and exit taxation. In this regard, disputes may arise, where the Group’s
management understanding differs from the positions of the local authorities. In such cases, when an appeal is available, management’s judgements are based
on a likely outcome approach, taking into consideration advice from professional firms and previous experiences when assessing the risks.

The Group is party to several tax proceedings in Brazil which involve estimated contingent liabilities amounting to €215.4 million (31.12.2023: €271.8 million).
These tax proceedings are as follows:

Income Tax relating to historical corporate transactions

There are three proceedings in which Brazilian Federal Tax Authorities issued tax assessments which rejected the deduction of goodwill generated in two
corporate transactions that were undertaken 2007 and 2008, for Corporate Income Taxes. The tax authorities issued assessments arguing that such transactions
cannot generate deductions as they do not fulfil the requirements provided by law.

In the first half of 2024, two of the three proceedings have reached the final outcome under Brazilian Federal Administrative Courts. As a result, the contingent
liability is reduced by €112.1 million. The first proceeding has been formally notified, whilst the second proceeding has been published but is yet to be formally
notified. The third proceeding is expected to conclude within one to three years.

The exposure in cash as of 30 June 2024 is €54.4 million (31.12.2023: €177.2 million).

Royalties
The Group is party to 38 proceedings where the Brazilian Mining Authorities (“ANM”) challenged the criteria used for calculating and paying the Financial
Compensation for Exploration of Mineral Resources (“CFEM”), which are mining royalties payable by every mining company. The authorities have mainly disputed
the basis of production costs estimates used in the determination of the royalties that are payable. The claims relate to fiscal years up to 2017, following which the
legislation for royalties was changed. The Group, together with its technical and legal advisors continues to challenge ANM assessments. Most of the procedures
are ongoing within the ANM administrative courts. Final decisions of the first cases are expected within four to five years. As of 30 June 2024, the potential risk
amounts to €29.6 million, including interest and penalties (31.12.2023: €31.5 million).

R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4 41
Notes continued

Corporate income and other taxes

There are several tax assessments in Brazil mainly relating to: offsetting federal tax payables and receivables, social security contributions, offsetting certain federal
tax debts with corporate income tax credits. The potential risks of these tax assessments amount to €51.1 million (31.12.2023: €63.1 million).

Civil litigation contingencies

Magnesita Refratários S.A., Contagem, Brazil is party to a public civil action for damages allegedly caused by overloaded trucks in contravention of Brazilian traffic
legislation. In 2017, a decision was rendered in favour of Magnesita in the trial court. The decision is being appealed by the Public Ministry of Minas Gerais. The
final decision is expected in nine years. The potential loss from this procedure amounts to €18.2 million as of 30 June 2024 (31.12.2023: €18.3 million).

Other minor proceedings and lawsuits in which subsidiaries are involved have no significant impact on the financial position and performance of the Group.

18. Other financial commitments

As of 30 June 2024, the RHI Magnesita Group has commitments for the purchase of property, plant and equipment in the amount of €36.7 million (31.12.2023:
€9.3 million).

19. Business combinations and acquisition of non-controlling interests

Acquisitions completed in 2023
In July 2023 the Group completed the acquisition of Seven Refractories Group. The purchase price allocation was finalised in 2024. Compared to the preliminary
amounts recognised for the acquired assets and liabilities in the last year’s Consolidated Financial Statements, the intangible asset related to identified customer
relationships decreased by €2.8 million accompanied by a reduction in deferred tax liabilities of €0.6 million. These adjustments were reflected against goodwill
and non-controlling interests, in line with IFRS 3, and mainly result from the reassessment of valuation parameters used in the measurement of the intangible
asset.

In October 2023 the Group completed the acquisition of P-D Refractories. The purchase price allocation is still preliminary and does not materially differ from
the purchase price allocation disclosed in the last year’s Consolidated Financial Statements.

Acquisitions completed in 2024

In June 2024 the Group, through its non-wholly owned subsidiary Horn & Co. RHIM Minerals Recovery GmbH, completed the acquisition of 100% of the equity
shares of Refrattari Trezzi S.r.l., a company engaged in the refractory recycling business. The acquisition means that a strategic production facility has been added
to the Group’s existing plant network. The strengthened presence in Italy will enable an increased supply of high-value secondary raw materials and customised
services to extend the Group’s full-line services portfolio for the customers. The consideration paid in cash amounts to €4.5 million.

Acquisition of non-controlling interests

In April 2024 the Group acquired non-controlling interests of Seven Refractories' Group for a cash consideration of €2.7 million with the difference between the
carrying amount of the non-controlling interests’ portion of equity acquired and the consideration paid recorded in retained earnings within equity.

20. Disclosures on related parties

The nature of related party transactions as of 30 June 2024 are in line with the transactions disclosed in Note (43) of the 2023 Group Financial Statements. All
transactions with related parties are conducted on an arm’s length basis and in accordance with normal business terms.

Related companies
No material transactions took place between the Group and related companies and persons.

Related persons
There is a non-remunerated consultancy agreement in place between RHI Magnesita and a close relative of a Non-Executive Director to advise the Group in
respect of political and/or strategic analysis in countries outside the European Union and Brazil.

21. Material events after the reporting date 30.06.2024

After the reporting date on 30 June 2024, there were no other events of significance which may have a material impact on the financial position and performance
of the RHI Magnesita Group.

42 R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4
Statement of the Board of Directors

Statement pursuant to Article 5:25d, paragraph 2, subsection c. of the Dutch Financial Markets Supervision Act (“Wet op het financieel toezicht”).

The Interim Financial Statements for the six-month period ended 30 June 2024, have been prepared in accordance with IAS 34 'Interim Financial Reporting' as
issued by the IASB and interpretations issued by the IFRIC, and as endorsed by the European Union (EU).

To our knowledge,

- The Interim Financial Statements referred to above, give a true and fair view of the assets, liabilities, financial position, and profit of RHI Magnesita N.V.
and the undertakings included in the consolidation as a whole; and

- The Interim Report for the six-month period ended 30 June 2024 as presented in the report on unaudited half year results includes a fair view of the
information required pursuant to article 5:25d paragraphs 8 and 9 of the Dutch Financial Markets Supervision Act (“Wet op het financieel toezicht”).

Vienna, 23 July 2024

Executive Directors

Stefan Borgas Ian Botha

Non-Executive Directors

Herbert Cordt John Ramsay

Janet Ashdown David Schlaff

Stanislaus Prinz zu Sayn-Wittgenstein Berleburg Janice “Jann” Brown

Karl Sevelda Marie-Hélène Ametsreiter

Wolfgang Ruttenstorfer Katarina Lindström

Employee Representative Directors

Karin Garcia Martin Kowatsch

Michael Schwarz

R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4 43
Independent auditor’s review report

To: the board of directors of RHI Magnesita N.V.

Introduction
We have reviewed the accompanying condensed consolidated interim financial information for the six-month period ended 30 June 2024 (the 'interim financial
information’) of RHI Magnesita N.V., Arnhem, which comprises the condensed consolidated statement of financial position as at 30 June 2024, the condensed
consolidated statement of profit or loss, the condensed consolidated statement of comprehensive income, the condensed consolidated statement of changes
in equity, the condensed consolidated statement of cash flows for the period then ended and the selected explanatory notes. The board of directors is responsible
for the preparation and presentation of this interim financial information in accordance with IAS 34, ‘Interim Financial Reporting’ as adopted by the European
Union. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope
We conducted our review in accordance with Dutch law including standard 2410, Review of Interim Financial Information Performed by the Independent Auditor
of the entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with auditing standards and
consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.

Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information
for the six-month period ended 30 June 2024 is not prepared, in all material respects, in accordance with IAS 34, ‘Interim Financial Reporting’ as adopted by the
European Union.

Rotterdam, 23 July 2024

PricewaterhouseCoopers Accountants N.V.

Original has been signed by A. F. Westerman RA

44 R H I M AG N E S I TA H A L F - Y E A R R E P O R T 2 0 2 4