Slide 1: 2021 results
2021 results Christel BORIES Chair and CEO 24 February 2022
Slide 2: Disclaimer
Disclaimer Certain information contained in this presentation including any information on Eramet’s plans or future financial or operating performance and any other statements that express management’s expectations or estimates of future performance, constitute forward-looking statements. Such state
Slide 3: Contents
Contents Introduction 1– Financial performance 2– Operational performance 3– Strategic transformation Conclusion and outlook 3 Eramet – 2021 results
Slide 4: Introduction
Introduction
Slide 5: Delivering on our promises
Delivering on our promises Strategic Sustainability Financials Acceleration of repositioning Significant progress for c. €450m of intrinsic in Mining & Metals people and planet improvement in 2 years > Ongoing growth in ESG performance mining production €401m FCF in 2021 recognised by leading > Rest
Slide 6: 2018 strategic transformation roadmap
2018 strategic transformation roadmap 1 2 3 EXPAND our portfolio FIX / REPOSITION our GROW in our attractive in metals for energy least performing assets businesses transition SLN Manganese ore Lithium A&D Nickel ore (Indonesia) Nickel and cobalt salts Sandouville Mineral Sands Li-ion battery recycl
Slide 7: 2021: accelerating our repositioning on Mining & Metals
2021: accelerating our repositioning on Mining & Metals 1 2 3 EXPAND our portfolio FIX / REPOSITION our GROW in our attractive in metals for energy least performing assets businesses transition Divestment of A&D Restart of Acceleration of MoU signed February 2022, Lithium project closing expected by
Slide 8: Positioning ourselves as a reference in our industry for sustainability
Positioning ourselves as a reference in our industry for sustainability Continued high CSR performance in 2021 > Index 104 (target 100) confirming the positive trend of our CSR Roadmap 2018-2023 Safety Climate -46% reduction in number of accidents vs 2020 (TRIR at 2.2 in 2021) -39% in CO2 intensity1
Slide 9: ESG performance recognised by leading agencies
ESG performance recognised by leading agencies 2021 CDP Climate 2021 Vigeo change Score 66/100: Advanced Score B (B in 2020) level (vs 66/100 in 2019) Among leading Sector rank: 3/44 companies in the sector 2021 Sustainalytics Risk rating score improvement 26.2 (vs 38.8 in 2020) CSR performance moni
Slide 10: Strong operational and financial results in 2021
Strong operational and financial results in 2021 Nickel ore1 19.4 Mwmt Mining production1 (+10.6 Mwmt vs 2020) > +75% vs. 2020 Manganese ore 7 Mt (+1.2 Mt vs. 2020) 2 2021 EBITDA 3 Leverage > €1bn < 1x 2021 FCF Dividend of €401m o/w €526m,3 €2.5 / share excl. discontinued operations Economic Fundame
Slide 11: Financial performance
Financial performance Unless otherwise specified, financial figures are presented in accordance with IFRS 5 - Non-currents Assets Held for Sale and Discontinued Operations -, in line with Eramet’s new scope focused on the Mining & Metals division
Slide 12: Outstanding results of the continuing operations
Outstanding results of the continuing operations €m 20211 20201 Sales 3,668 2,792 EBITDA 1,051 516 % Sales 29% 18% Current operating income 784 257 % Sales 21% 9% Net income – Continuing operations 791 (160) Net income – Discontinued operations (426) (516) Net income – Group share 298 (675) €m 31/12
Slide 13: 2021 EBITDA over +€1bn, driven by manganese alloys and intrinsic performance
2021 EBITDA over +€1bn, driven by manganese alloys and intrinsic performance 67 -192 (€m) 55 172 +€164m 3 -86 -84 1,051 1,031 Intrinsic operating performance 4 -4 -20 394 2 59 23 15 +€437m 116 External factors 118 516 111 -44 1 -66 398 SLN incl. one-off external disruptions 2020 Disc. op. 2020 Mn or
Slide 14: Net income – Group share of €298m
Net income – Group share of €298m €m 2021 2020 Sales 3,668 2,792 Current operating income 784 257 Other operating income and expenses 1 95 (233) Financial result (111) (152) Share in income from associated companies 2 121 79 Pre-tax result 889 (49) Income tax 3 (98) (111) Net income – Continuing ope
Slide 15: Strict capex monitoring over 2020-2021: limited investments with a rapid pay-back
Strict capex monitoring over 2020-2021: limited investments with a rapid pay-back 1 Industrial cash capex1 (€m) 100% organic growth with limited risk: 320 313 312 €115m Manganese ore 7 2 300 280 54 €36m Transgabonese Renovation programme 260 2 240 1 Total Strategic greenfield projects: 220 166 €173m
Slide 16: Improved WCR ratios in days of sales
Improved WCR ratios in days of sales Mining & Metals division operating1 WCR (€m) -3 days 39 5541 days c.-€161m 3811 1 577 40 M&M division -8 days days of cash consumption at 443 Group level operating WCR 21/20: in 2021 c.-3 days of -3 days 26 sales (-8%) 375 days 269 Reflecting (i) price and act
Slide 17: Strong Free Cash-flow, significant contribution from Weda Bay
Strong Free Cash-flow, significant contribution from Weda Bay (€m) Manganese BU 490 Nickel BU 1 111 €146m €692m1,2 Weda Bay M&M division FCF Mineral Sands BU 2 115 Lithium BU -24 Expenses supported by the Group and Holding & other 3 -109 -57 reinvoiced to discontinued operations Group FCF Group 2021
Slide 18: Robust and deleveraged balance sheet
Robust and deleveraged balance sheet (€m) FCF +€526m -102 1 -936 -991 -1,378 -1,346 -312 22 130 -113 1,051 -32 -116 2 3 -125 8 32 4 -54 Net debt 2020 EBITDA Change Cash Other inc. Weda Bay Other Net Tax paid Disc. Other 2021 Net debt 2021 2020 disc. Op. 4 Net Debt in WCR capex & exp. dividends inv.
Slide 19: Strong liquidity at 31 December 2021
Strong liquidity at 31 December 2021 Group financial liquidity (€m) 2,200 RCF 2,0122 2,0122 2,000 > €981m RCF maturing 2024, drawn 1,8111 down in March 2020 as a precaution 1,800 following health crisis 1,600 901 > Repayments: 981 1,400 • €500m in July 2021 1,200 • €401m in December 2021 1,000 • €80
Slide 20: No major debt maturity until 2024
No major debt maturity until 2024 Pro forma Group gross debt incl. IFRS16 equal to €1,967m at 31 December 2021 Group’s average debt maturity of 2.6 years About 80% of debt at a fixed rate 862 Pro forma debt maturity at 31 December 2021 (€m) 172 Commercial papers, banks and operating debts Eramet bon
Slide 21: Cash well allocated, disciplined investment
Cash well allocated, disciplined investment 2021 > Significant deleveraging achieved in 2021 > Target leverage1 of < 1x on average through the cycle > Maintain strong balance sheet to secure financial €388m2 Net debt reduction sustainability through the cycle and maintain flexibility to seize attrac
Slide 22: Operational performance
Operational performance
Slide 23: A year of success: record mining production
A year of success: record mining production Manganese BU Nickel BU Mineral Sands BU SLN Weda Bay Strong operational Continued ramp-up of Fast growth and Record production in a performance in a very mines, despite strong operational favourable price favourable manganese significant disruptions perfor
Slide 24: Significantly higher input costs
Significantly higher input costs 1 2 Higher freight cost weighing on manganese and nickel ore margin Higher energy costs, with limited impact on Freight costs include chartering costs (based on Group’s activities in 2021 Routes time charter rate1) and transportation fuel > SLN exposed to brent marke
Slide 25: Manganese BU
Manganese BU eramMerT
Slide 26: Strong operational performance in a very favourable manganese alloys price environment
Strong operational performance in a very favourable manganese alloys price environment Manganese BU financial performance Eramet invoiced refined alloys prices €m X2 (based on MC FeMn CRU index in Europe) 910 +72% 442 490 +38% in 2021 vs. 2020 1 285 +39% in Q4 2021 vs. Q3 2021 2 2020 2021 2020 2021
Slide 27: Global carbon steel production up, strong price environment
Global carbon steel production up, strong price environment 2 1 Global ore production up +1.3% resulting in lower Global carbon steel production up together inventories with manganese ore and alloys demand, despite Strong price environment: alloys reaching record H2 restrictions in China highs, ore
Slide 28: Moanda: the world's leading high-grade manganese ore mine
Moanda: the world’s leading high-grade manganese ore mine with a very competitive cash cost Ore production volumes (Mt) Transported volumes (Mt) 7.5 +9% +63% 7.01 5.8 6.5 4.8 4.3 +1.2 6.0 +1.0 +0.5 2018 2019 2020 2021 B2022 2020 2021 Strong operational performance thanks to Significant progress than
Slide 29: Nickel BU
Nickel BU~ DP eframMe4r
Slide 30: Strong Free Cash-flow contribution from Weda Bay
Strong Free Cash-flow contribution from Weda Bay Nickel BU financial performance1 €m Nickel prices c. x3 > x2 111 113 +34% Ni LME 52 39 +32% Ni ore 2 2020 2021 2020 2021 FCF (incl. EBITDA Weda Bay) Weda Bay nickel ore SLN nickel ore Weda Bay FCF production production €146m 14 Mwmt 5,4 o/w €130m divi
Slide 31: Strong recovery in stainless steel production; strong momentum for nickel prices
Strong recovery in stainless steel production; strong momentum for nickel prices 1 2 Record highs for nickel LME prices at $18,478/t Global stainless steel production up + 15 % at 57.7 Mt o/w: China +7% and ROW +26% Ferronickel prices up +41%, discounts narrowed down in H2 (8% on average in 2021 vs.
Slide 32: Excellent growth performance at Weda Bay
Excellent growth performance at Weda Bay Weda Bay1 nickel ore mining production Weda Bay1 ferroalloys production (kt-Ni) (Mwmt) +66% X4 39.0 c. 40.0 c. 15.03 14.0 4.02 23.5 3.4 10.0 0.5 2019 2020 2021 B2022 2020 2021 B2022 1 On a 100% production basis. Eramet holds a 43% stake in Strand Minerals Pte
Slide 33: SLN's FCF breakeven at local level despite highly disrupted 2021 production
SLN’s FCF breakeven at local level despite highly disrupted 2021 production SLN ore production SLN ore export SLN ferronickel production (kt-Ni) (Mwmt) (Mwmt) -18% 47.8 > 45.0 5.4 5.4 6.0 +17% 39.0 > 4.0 2.5 2.9 2020 2021 2022 2020 2021 2020 2021 2022e ~2025 2021 sales : 39.2 Kt-Ni Major milestone:
Slide 34: Mineral Sands BU
Mineral Sands BU
Slide 35: Strong operational performance in a favourable price environment
Strong operational performance in a favourable price environment, partly offset by higher energy costs and FX Mineral sands BU financial performance €m +51% c. x2.5 Zircon prices 137 in Europe 108 91 43 +12% 2020 2021 2020 2021 EBITDA FCF HMC production Zircon production TiO2 Slag production 804 Kt
Slide 36: Strong global demand for zircon and TiO2 pigments
Strong global demand for zircon and TiO2 pigments Favourable price environment, resulting from undersupplied markets, driven by strong demand linked to global economic recovery (+18% for zircon, +11% for TiO2 feedstocks yoy), while operating and logistics difficulties and energy limitations in China
Slide 37: Record production for mineral sands and titanium slag
Record production for mineral sands and titanium slag GCO (Senegal) TTI (Norway) HMC production1 OEE2 Titanium dioxide production in kt in kt 1 200 in t/hr +4% 300 +6% +5% 5 000 4 643 4 816 762 804 209 800 > 750 199 4 000 200 3 000 400 2 000 100 1 000 0 0 0 2020 2021 2022e 2020 2021 2020 2021 1 HMC:
Slide 38: Lithium BU
Li Lithium BU
Slide 39: Unlocking Eramet's expansion into Lithium
Unlocking Eramet’s expansion into Lithium, a key metal for the energy transition Strong growth momentum …reflected in current prices for lithium demand … Forecasted lithium market demand1 (in kt LCE) LiCO3 CIF Asia (in US$/kg LCE2) 64 60 18 February 2022: 56 > 60,000 $/t 2,600 1 Eramet project commi
Slide 40: Centenario: Tier 1 lithium project in Argentina
Centenario: Tier 1 lithium project in Argentina CLEAR PATH TO START-UP Yearly LCE1 Cash cost (ex-works) production2 3,500 US$ per 24,000 tonnes tonne (after ramp-up) (after ramp-up) Potential for further development Internal Rate of H2 2025 EBITDA at full ramp- Full ramp-up at 24ktpa Return2,3,5 up2
Slide 41: Strategic transformation
Strategic i ¢ transformation ; Lia] > 6romer:
Slide 42: 2018 roadmap: repositioning Eramet's asset portfolio
2018 roadmap: repositioning Eramet’s asset portfolio… 1 2 3 EXPAND our portfolio in FIX / REPOSITION our least GROW in our attractive metals for energy transition performing assets businesses SLN > 6 Mwmt nickel ore export authorisation > Discussions ongoing to access competitive energy A&D > MOU si
Slide 43: …to become a pure player in Mining & Metals
…to become a pure player in Mining & Metals… 2 3 EXPAND our portfolio GROW in our attractive in metals for energy businesses transition Nickel ore (New Manganese ore Lithium Caledonia) > > + 60 % production since > Plant construction engaged > Target: > 4 Mwmt 2018 exports in 2022 > Nominal capacity
Slide 44: New strategic roadmap: right timing to become a leading player in the new age of metals
New strategic roadmap: right timing to become a leading player in the new age of metals Pure player in Mining and Metals contributing to a sustainable future Grow in metals supporting Develop critical metals for global economic development energy transition Resilient markets Fast-growing markets MAN
Slide 45: …with a portfolio contributing to the battle for climate change
…with a portfolio contributing to the battle for climate change Greener product offering Reference in CSR World class assets, providing the Committed for the planet and for the highest metal contents at lower carbon climate contents Committed for the communities’ well- CO2 reduction targets SBTi cer
Slide 46: Conclusion & outlook
Conclusion & outlook
Slide 47: Good momentum at the start of 2022
Good momentum at the start of 2022 Market well-oriented at the beginning of year, albeit with some uncertainty regarding China’s demand and current geopolitical context in Europe; prices remaining at high levels Continued organic growth in 2022 > 7,5 Mt manganese ore in Gabon > More than 4 Mwmt nick
Slide 48: 2022: a new journey is starting
2022: a new journey is starting Become a reference for the responsible transformation of the Earth’s mineral resources, for living well together 48 Eramet – 2021 results
Slide 49: Q&A
Slide 50: Appendices
Appendices
Slide 51: Group EBITDA sensitivity to market prices
Group EBITDA sensitivity to market prices SENSITIVITIES Change Annual impact on EBITDA Manganese ore prices (CIF China 44%) +$1/dmtu c.€230m1 Manganese alloy prices +$100/t c.€65m1 Nickel prices (LME) +$1/lb c.€95m1 Nickel ore prices (CIF China 1.8%) +$10/wmt c.€35m1 Exchange rates -$/€0.1 c.€195m O
Slide 52: Safety
Safety Eramet accident frequency rate (FR21,2) 16 15 Divided by ~6 14 13 13.4 since 2016 Divided by 2 12 11 vs. 2020 10 10.9 9 8.3 8 7 6 5.4 5 4.1 o/w 1.5 for M&M 4 division 3 2.2 2 (-59% vs 2020) 1 0 2016 2017 2018 2019 2020 2021 FR2 1 FR2 = number of lost-time and recordable injury accidents for 1
Slide 53: Manganese BU – Key figures
Manganese BU – Key figures In €m 2021 2020 Sales 2 267 1 699 EBITDA 910 442 Current Operating Income 769 339 Cash Capex (243) (188) Operating cash flow1 592 349 FCF 490 285 53 Eramet – 2021 results 1 Sum of EBITDA, Cash capex, Change in Op. WCR and Change in other WCR
Slide 54: Nickel BU – Key figures (IFRS 5)
Nickel BU – Key figures (IFRS 5) In €m 20211 20201 Sales 1 046 802 EBITDA 113 52 Current Operating Income 37 (46) Cash Capex (34) (40) Operating cash flow2 24 47 FCF 111 39 1 Application of IFRS 5 i.e. excluding Sandouville 54 Eramet – 2021 results 2 Sum of EBITDA, Cash capex, Change in Op. WCR and
Slide 55: Mineral Sands BU – Key figures
Mineral Sands BU – Key figures In €m 2021 2020 Sales 349 276 EBITDA 137 91 Current Operating Income 94 44 Cash Capex (21) (16) Operating cash flow1 122 106 FCF 108 43 55 Eramet – 2021 results 1 Sum of EBITDA, Cash capex, Change in Op. WCR and Change in other WCR
Slide 56: Lithium BU – Key figures
Lithium BU – Key figures In €m 2021 2020 Sales - - EBITDA (5) (5) Current Operating Income (5) (5) Cash Capex (6) (54) Operating cash flow1 (19) (57) FCF (24) (109) 56 Eramet – 2021 results 1 Sum of EBITDA, Cash capex, Change in Op. WCR and Change in other WCR
Slide 57: High-Performance Alloys division - Key figures (IFRS 5)
High-Performance Alloys division - Key figures (IFRS 5) A&D and Erasteel In €m 20211 20201 Sales 677 658 EBITDA (32) (124) Current Operating Income (45) (155) Cash Capex (45) (42) Operating cash flow2 (98) (89) FCF (134) (179) 1 Application of IFRS 5 i.e. excluding EHA and Brown Europe 57 Eramet – 2
Slide 58: MoU signed for the divestment of Aubert & Duval
MoU signed on 22 February 2022 for the divestment of Aubert & Duval Divestment of 100% of Aubert & Duval shares Transaction scope Scope including all Aubert & Duval sites in France, Interforge, activities in Spain and India, and titanium alloys activities Acquiring Consortium comprising of Airbus, S
Slide 59: A&D 2021 KPIs (IFRS 5)
A&D 2021 KPIs (IFRS 5) A&D1 Sales by segment Global air traffic scenarios Pre-Covid -6% 140 Range of forecast 523 uncertainty 493 120 indexed 2019 = 100 100 Revised 58% Traffic (RPKs), 70% 80 forecast 60 40 30% 20% 20 10% 12% 2020 2021 0 2019 2020 2021 2022 2023 2024 2025 2026 Aerospace Energy & Def
Slide 60: Erasteel 2021 KPIs (IFRS 5)
Erasteel 2021 KPIs (IFRS 5) Yearly light vehicles sales1 (in million units) Erasteel sales by segment +35% 184 +2% 136 89.6 77.9 79.1 164 124 11 20 2020 2021 2019 2020 2021e High-speed steels, Recycling Tooling & Specialties Strong sales improvement driven by growth in sold Erasteel EBITDA volumes a
Slide 61: 2020-2021 Global carbon steel and manganese ore production
2020-2021 Global carbon steel and manganese ore production Global carbon steel production Global manganese ore production (manganese content) +4% +1% Mt Mt 2,100 1,935 22 20.3 20.6 1,868 20 1,800 18 5.1 5.1 1,500 -9% 53% 16 57% 14 3.3 3.1 1,200 1,013 922 12 10.3 10.3 10 3.3 3.7 900 2.5 2.5 8 1.2 0.7
Slide 62: Manganese ore historical CRU index price trends
Manganese ore historical CRU index price trends $/dmtu Monthly change in manganese ore1 Mwmt 9 8 FY = +15% 7 6 5 4 3 2 1 2015 2016 2017 2018 2019 2020 2021 Manganese ore average yearly price FY 2021 vs 2020 price change Manganese ore Ore inventories in China 62 Eramet – 2021 results 1 Manganese ore
Slide 63: Manganese alloys CRU index price trends
Manganese alloys (refined and standard in Europe) CRU index price trends €/t 4,000 FY = +79% H = +59% 3,500 FY = +55% H = +38% 3,000 FY = +54% H = +35% 2,500 2,000 1,500 1,000 500 0 2015 2016 2017 2018 2019 2020 2021 Medium-carbon ferromanganese High-carbon ferromanganese Silicomanganese H H H H2 20
Slide 64: Eramet manganese alloys production
Eramet manganese alloys production kt +7% 800 747 698 47% 54% +4% 400 367 380 55% 53% 41% 37% 34% 39% 12% 9% 0 10% 8% 2020 H1 2021 H2 2021 2021 High-carbon Silicomanganese (incl. SiMn C2M) Refined alloys Ferromanganese 64 Eramet – 2021 results
Slide 65: 2020-2021 Global stainless steel and primary nickel production
2020-2021 Global stainless steel and primary nickel production Global stainless steel production1 Global primary nickel production1 (excl. recycling) +15% +10% Kt Kt 60,000 57,696 2,800 2,666 50,313 2,600 2,434 2,400 50,000 2,200 907 2,000 902 40,000 57% -3% 1,800 +7% 61% 1,600 29,278 1,377 430 30,0
Slide 66: Nickel LME historical price
Nickel LME historical price LME Nickel price 1 Nickel Inventories LME Stocks1 SHFE Stocks1 Ni price Average yearly price 2 USD / lb USD/ton (ktons) 10,9 24 000 500 FY = +34% 10,0 22 000 450 9,1 20 000 400 8,2 18 000 350 7,3 300 16 000 250 6,4 14 000 200 5,4 12 000 H = +11% 150 4,5 10 000 100 3,6 8 0
Slide 67: Nickel ore historical price
Nickel ore historical price Ore price1 ($/t) and usable ore inventories in Chinese ports (Mwmt) Mwmt Stocks at ports Ore price (1.8% CIF China) Average yearly prices $/t 18 140 15 120 100 12 80 9 FY = +32% 60 6 H = +21% 40 3 20 0 0 Dec. 19 Dec. 20 Dec. 21 May May May Feb. Mar. Feb. Mar. Feb. Mar. Ju
Slide 68: Zircon historical price
Zircon historical price Monthly premium zircon price1 $/t FY = +12% 1,800 1,700 1,600 1,500 1,400 1,300 1,200 1,100 H = +24% 1,000 500 2016 2017 2018 2019 2020 2021 H H2 2021 vs H1 2021 price change FY FY 2021 vs FY 2020 price change 68 Eramet – 2021 results 1 Source Zircon premium: FerroAlloyNet.co
Slide 69: CP slag historical price
CP slag historical price Monthly change in CP grade titanium dioxide slag price1 $/t 900 FY = -1% 800 700 H = +8% 600 500 2016 2017 2018 2019 2020 2021 H H2 2021 vs H1 2021 price change FY FY 2021 vs FY 2020 price change 69 Eramet – 2021 results 1 Source CP slag: Market consulting, Eramet analysis
Slide 70: Cash-flow table (IFRS 5)
Cash-flow table (IFRS 5) €m 20211 20201 Operating activities EBITDA 1,051 516 Cash impact of items in EBITDA (258) (322) Cash-flow from operations 793 194 Change in WCR (80) 204 Net cash generated by operating activities (1) 713 398 Investing activities Industrial investments (312) (299) Other inves
Slide 71: Group Balance Sheet at 31 December 2021
Group Balance Sheet at 31 December 2021 4,050 4,050 3,485 3,485 1,012 725 323 233 3,083 1,083 3,003 1,149 11 936 3163 1,378 475 651 685 7 31/12/20201 31/12/20212 31/12/20201 31/12/20212 Fixed assets Derivatives Equity-Group share WCR Assets held for sale Minority interest Provisions and net deferred
Slide 72: Bond maturities
Bond maturities Amount at Initial €m Currency Initial amount 31/12/21 Maturity date Coupon (in m) February September 2017 bond issue € 500 500 4.20% 2024 May November 2019 bond issue € 300 300 5.88% 2025 72 Eramet – 2021 results
Slide 73: Shareholding at 31 December 2021
Shareholding at 31 December 2021 Other float 31.8% SORAME + CEIR (Duval Family) 37.1% Number of shares issued1 28,755,047 4.0% STCPI* 27.1% APE *STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the New Caledonian provinces 73 Eramet – 2021 results 1 Capital an
Slide 74: Contacts
CONTACTS Director of Investor Relations Sandrine NOURRY-DABI sandrine.nourrydabi@eramet.com