Eramet Sa · EURONEXT:ERA
Eramet Sa — Shareholder Meeting (May 2022)
31 slides from Eramet Sa's shareholder meeting presentation, May 31, 2022
Slide 1: Ordinary Shareholders' General Meeting
Ordinary Shareholders’ General Meeting 31 May 2022
Slide 2: Presentation of the Group situation in 2021, its outlook and its new strategic roadmap
Presentation of the Group situation in 2021, its outlook and its new strategic roadmap Christel BORIES Chair and CEO May 31, 2022
Slide 3: 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 4: Our purpose, our reason for acting
Our purpose, our reason for acting « Become a reference for the responsible transformation of the Earth’s mineral resources, for living well together» 4 Ordinary Shareholders’ General Meeting – 31 May 2022
Slide 5: Our purpose sets a course and fuels the Group's strategy
Our purpose sets a course and fuels the Group’s strategy to create value in a sustainable manner 1 2 3 Interacting with all Operating responsibly Producing metals that the stakeholders world needs Making the safety of our Extracting resources in respect Meeting the needs of global employees our prio
Slide 6: Contents
Contents 1– 2021 Retrospective 2– Situation update – Q1 2022 3– New strategic roadmap Conclusion et perspectives 6 Ordinary Shareholders’ General Meeting – 31 May 2022
Slide 7: 2021 Retrospective
2021 Retrospective 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 8: Delivering on our promises
Delivering on our promises Strategic Sustainability Financials Acceleration of repositioning Significant progress for c. €450m2 of intrinsic in Mining & Metals people and planet gains in 2 years > Ongoing growth in ESG performance mining production €401m2 FCF in 2021 recognised by leading > Restart
Slide 9: 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 10: …to become a pure player in Mining & Metals
…to become a pure player in Mining & Metals 2 3 GROW in our attractive EXPAND our portfolio in businesses metals for energy transition Nickel ore (New Manganese ore Lithium Caledonia) > > + 60 % production since > Plant construction engaged > Target: > 4 Mwmt 2018 exports in 2022 > Nominal capacity:
Slide 11: 2021, another year of solid CSR performance
2021, another year of solid CSR performance Favourable evolution of our 2018-2023 CSR Roadmap Index 104 (target: 100) Safety Climate -46% reduction in number of accidents vs 2020 (TRIR at 2.2 in 2021) -39% in CO2 intensity1 Validation of the Group's CO2 emissions Diversity reduction target “well bel
Slide 12: 2021, strong operational results and record mining production
2021, strong operational results and record mining production Manganese BU Nickel BU Mineral Sands BU SLN Weda Bay Strong operational Continued ramp-up of Fast growth and Record production performance mines, despite strong operational significant disruptions performance at Weda throughout the year B
Slide 13: 2021, strong financial results
2021, strong financial results C. €450m of intrinsic gains in two years, of which €200m in 2021 1 Favourable price environment, however an increase in input costs 2 3 2021 EBITDA Leverage > €1bn < 1x Dividend of 2021 FCF €401m o/w €526m, €2.5 / share excl. discontinued operations submitted to the vo
Slide 14: 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 15: 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 16: 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 17: 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 18: Situation update - Q1 2022
Situation update - Q1 2022 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 19: Positive market momentum in all the Group businesses
Positive market momentum in all the Group businesses Manganese BU Nickel BU Mineral Sands BU Global carbon steel Global stainless steel Zircon and titanium-based production down production down products production up, without being able to meet Supply shock on Alloys Increased demand for the demand
Slide 20: Very strong price environment amid supply tensions from the war in Ukraine
Very strong price environment, given the tensions on supply that have been accentuated by the war in Ukraine Ni LME price up significantly in Q1 2022 (+49%) against Mn Ore (CIF China 44%) price strongly up in Q1 2022 the backdrop of robust demand for electric vehicle (+17% vs Q1 2021), increasin
Slide 21: Significantly higher input costs in Q1 2022
Significantly higher input costs in Q1 2022 1 2 High freight cost should keep weighing on Energy and reductants prices should keep manganese and nickel ore margins weighing on the Group’s performance in 2022, notably: Freight costs include chartering costs (based on > European Mn alloys plants and T
Slide 22: Very good operating performance of mining activities in Q1 2022
Very good operating performance of mining activities in Q1 2022 Strong production growth momentum in Q1 2022 vs Q1 2021 Manganese ore Nickel ore Mineral Sands production SLN WB1 WB Mining production1 1.8 Mt 1.2 Mwmt 4.6 Mwmt 198 kt > +44% (+17%) (+10%) (+74%) (+16%) vs. Q1 2021 Sales volume up in Q1
Slide 23: Q1 2022 Group turnover up 79%
Q1 2022 Group turnover up 79%, driven by strong growth in all activities Mineral Sands BU 8% Nickel BU €1,165m3 30% Manganese BU 62% +6% +64% +10% Volume Price Currency impact impact impact Increase in metal prices has largely offset the increase in input costs in Q1 2022 1 Data rounded to the neare
Slide 24: Good start to the year in a very favorable price environment
Good start to the year in a very favorable price environment Continued organic growth confirmed in 2022 > 7.5 Mt of manganese ore production in Gabon > more than 4 Mwmt of nickel ore exports in New Caledonia > approximately 15 Mwmt1 of nickel ore production at Weda Bay c.€550m cash capex2 o/w c. €25
Slide 25: New strategic roadmap
Str ategic roadmap— PTS x
Slide 26: Right timing to become a leading player in the new age of metals
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 MANGANESE ORE & ALLOYS LI
Slide 27: A portfolio contributing to the battle for climate change
…with a portfolio contributing to the battle for climate change Well positioned product offering Reference in CSR Very high-grade ore offering lower Committed for the planet and for the carbon contents climate ; CO2 reduction targets SBTi certified Consumed energy1 (excluding reductants) decarbonate
Slide 28: Focus on Eramet's projects for the energy transition
Focus on Eramet’s projects for the energy transition Major projects ideally positioned to strengthen Eramet’s leading role at the service of the global energy transition Production of battery Lithium - Centenario Battery recycling quality Ni/Co Critical for Li-ion rechargeable batteries production E
Slide 29: Conclusion & outlook
Conclusion & outlook
Slide 30: 2022: a new journey has started for Eramet
2022: a new journey has started for Eramet Become a reference for the responsible transformation of the Earth’s mineral resources, for living well together 30 Ordinary Shareholders’ General Meeting – 31 May 2022
Slide 31: Nursery, GCO, Senegal
Nursery, GCO, Senegal