Eramet Sa · EURONEXT:ERA
Eramet Sa — Investor Presentation (September 2019)
104 slides from Eramet Sa's investor presentation, September 2019
Slide 1: Investor presentation
Investor presentation September 2019
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 Eramet presentation 1– H1 2019 Financial results 2– H1 2019 Operational performance 3– Strategic development projects 4– 2018-2023 CSR roadmap Conclusion and outlook 3 Eramet – Investor presentation, September 2019
Slide 4: Eramet at a glance
Eramet at a glance eramMer,t
Slide 5: A global leader and a diversified mining and metallurgical Group
A global leader and a diversified mining and metallurgical Group 2 divisions with global leading positions €3,825m €3,652m sales High Performance Erasteel Mining and Metals Alloys Division 6% Division 22% 27% 73% 24% EBITDA margin Aubert & Duval 21% €581m €608 m current operating €3,825m income (COI
Slide 6: Industrial set-up
A Mining and Metals Division with world-class deposits and significant resources for several decades Manganese BU Nickel BU Mineral Sands BU #2 global producer of high-grade manganese ore #1 high grade Ferronickel producer #4 global producer of zircon worldwide Market share #2 global producer of man
Slide 7: Resources
Steel (carbon and stainless) accounting for more than 60% of Eramet’s end-markets Manganese BU Nickel BU Mineral Sands BU Carbon steel Others TiO2 pigment 90% Main Market 15% Others Batteries 29% 6% 90% Nickel base 10% Zircon 51% CP Slag 10% Chemistry alloys 69% 4% Stainless 20% and other 6% applica
Slide 8: A High Performance Alloys Division with unique know-hows dedicated to high end-markets
A High Performance Alloys Division with unique know-hows dedicated to high end-markets #2 high-power closed-die forged parts A European leader in gas-atomized powders producer worldwide for additive manufacturing A European leader in forgings for defense and A worldwide leader of powder metallurgy n
Slide 9: H1 2019 Key Performance Indicators
H1 2019 Key Performance Indicators
Slide 10: H1 2019 results negatively impacted by price environment and A&D delays
H1 2019 results negatively impacted by price environment and Aubert & Duval (A&D) delays in invoicing High Performance Mining and Metals Alloys Division Erasteel Division Sales €1,809m 23% 6% 77% vs H1 2018 Aubert & Duval 17% €1,809m Mineral Sands BU Manganese BU 8% 50% Nickel BU EBITDA €307m 19%
Slide 11: H1 2019 unfavourable price environment despite higher $
H1 2019 unfavourable price environment despite higher $ -13% decline in average manganese ore1 prices, still high at above USD 6/dmtu in H1 -€45m Impact on 2019 H1 2019 COI -11% decline in average nickel LME prices -€59m Impact on H1 2019 COI Squeeze impact on manganese alloys’ margins -€40m Impact
Slide 12: Operational records for the Mining and Metals division in H1 2019
Operational records for the Mining and Metals division in H1 2019 H1 record production in H1 record2 nickel ore H1 record production both manganese ore and production from SLN from TiZir: alloys: in New Caledonia, despite 3 operational mining 2.1 Mt of ore produced at centers only (vs 4 in 2018): 37
Slide 13: A strategy that is beginning to show success and should deliver results in H2 2019
A strategy that is beginning to show success and should deliver results in H2 2019 Production targets confirmed for 2019 4.5 Mt in manganese ore 1.5 Mt in nickel ore exports 720 kt in mineral sands concentrate, despite lower grade mined from 2019 onwards (vs previous years) SLN recovery plan decisiv
Slide 14: Decline in accident frequency rate in H1 2019, but still too many severe accidents
Decline in accident frequency rate in H1 2019, but still too many severe accidents Eramet accident frequency rate (TF21,2) Fatal accidents in May 2019 at Setrag: 21 3 fatalities following collision of 2 trains 20 20.0 19 18 17 17.3 16.8 Increasing safety awareness of all 16 employees and managers, p
Slide 15: H1 2019 Financial results
H1 2019 Financial results 1
Slide 16: Key financial figures
Key financial figures €m H1 2019 H1 2018 * Sales 1,809 1,813 EBITDA 307 432 % Sales 17% 24% Current operating income 169 294 % Sales 9% 16% Earnings before tax 90 242 Net income – Group share (37) 94 Net debt (Net cash), excl. IFRS 16 non cash impact 930 449 Gearing (Net debt-to-equity ratio), excl.
Slide 17: Profit & loss statement
Profit & loss statement €m H1 2019 H1 2018 1 Sales 1,809 1,813 Current operating income 169 294 Other operating income and expenses (25) (1) o/w: Project development - Lithium (11) (9) Project development - Other (5) (5) Accrual of asset impairment tests – A&D 0 (200) Reversal of asset impairment te
Slide 18: Activities' performances impacted by lower metal prices, except for Mineral Sands
Activities’ performances impacted by lower metal prices, except for Mineral Sands Continued strong contribution from Manganese BU In €m H1 2019 H1 2018 Mining and Metals division Manganese BU 271 321 Nickel BU (70) (22) Mineral Sands BU1 30 10 High Performance Alloys division (27) 10 Group 169 294 I
Slide 19: Decrease in H1 2019 COI linked to external factors and one-off items
Decrease in H1 2019 COI linked to external factors and one-off items Unfavorable price environment for metals and raw materials Decrease in manganese ore and nickel LME prices (-€104m) Negative squeeze impact on manganese alloys’ margin (-€40m) Negative squeeze impact on high-speed steels margin (-€
Slide 20: Net debt impacted by one-off items linked to A&D in H1 2019
Net debt impacted by one-off items linked to A&D in H1 2019 Higher WCR resulting mainly higher manganese ore and alloys’ inventories (€70m) CAPEX: €157m, o/w renewal (€98m) and growth investments (€40m) Taxes paid in H1 2019 related to 2018 profits mainly in Gabon (€96m) and Norway (€18m) A&D qualit
Slide 21: Liquidity remains high at €2.2bn to support the Group's strategic projects
Liquidity remains high at €2.2bn to support the Group’s strategic projects Group financial liquidity (€m) Revolving credit facility ("RCF"): €981m RCF with a 5-year maturity (term in 2,482 2,468 2,500 2024) 2,244 Undrawn line to date 2,000 1,501 1,367 European Investment Bank ("EIB") 1,143 financing
Slide 22: No major debt maturity in 2019
No major debt maturity in 2019 Group gross debt at €2,165m at 30 June, 2019 Average maturity of Group's 2.5-year debt More than 90% at a fixed rate Debt maturity at 30 June, 2019 (€m) 689 10 620 118 500 304 262 492 53 169 284 30 201 170 76 131 19 14 2 5 5 73 16 10 6 -2 -17 2019 2020 2021 2022 2023 2
Slide 23: H1 2019 Operational performance
2 H1 2019 Operational performance
Slide 24: Mining and Metals division
ZZN Mining and Metals division eramMerT
Slide 25: Manganese BU
Manganese BU
Slide 26: New historical H1 record for global steel carbon production
New historical H1 record for global steel carbon production Global carbon steel production up 5.2%, almost exclusively driven by China (+9.9%); rest of world increase (+0.3%) mainly driven by North America (+4.2%), whereas EU production down (-2.6%) Production still at full capacity of all global ma
Slide 27: Manganese ore prices still high, although down vs H1 2018
Manganese ore prices still high, although down vs H1 2018 Average manganese ore prices still at a high level, USD 6.40/dmtu in H1 2019 (-13% vs H1 2018), but trending down to USD 5.95/dmtu in June Decline in manganese alloys’ prices in Europe (-5% for refined ferromanganese), resulting in a continue
Slide 28: H1 manganese ore production at Comilog >2 Mt for the first time
H1 manganese ore production at Comilog >2 Mt for the first time, target of 4.5 Mt in 2019 confirmed Ore volumes transported at 2 Mt (+9% vs H1 2018), despite logistical incidents; external sales at 1.6 Mt (+9% vs H1 2018) Half-year record in manganese alloys’ production at 376 kt; refined ferromanga
Slide 29: Nickel BU
Nickel BU
Slide 30: Global stainless steel production stable, at a high level
Global stainless steel production stable, at a high level Global stainless steel production stable (+0.2%) in H1 2019, driven by growth in China (+3.3%) Global primary nickel demand up 2.9%, notably supported by battery development (+25%) Increase in global primary nickel production (+10.8%), driven
Slide 31: Nickel prices remained at a lower level vs H1 2018
Nickel prices remained at a lower level vs H1 2018, despite a further decrease in stocks Supply/demand balance still in deficit (estimated at -40 kt in H1 2019) Continued and significant decline in nickel metal stocks at LME and SHFE (-40 kt to 182 kt at 30 June, 2019, i.e. -18% ), representing c. 9
Slide 32: H1 still negatively impacted by disrupted mining operations at East coast centers
H1 still negatively impacted by disrupted mining operations at East coast centers affecting SLN FeNi production… New working hours agreement led to higher Ferronickel production down 12% in H1 nickel ore production of 1.9 Mth (+7%) 2019, due to lower-grade ore loaded into Volumes of exported ore up
Slide 33: …resulting in a higher average cash-cost than in H1 2018
…resulting in a higher average cash-cost than in H1 2018 Cash-cost at real economic conditions: USD 6.05/lb on average in H1 2019 Favourable euro/dollar exchange rate Cash-cost improved to USD 5.82/lb in June SLN’s cash-cost (USD/lb) Intrinsic factors External factors USD +0.4/lb USD -0.3/lb 6.81 5.
Slide 34: SLN rescue plan: decisive breakthroughs for two levers since mid-May
SLN rescue plan: decisive breakthroughs for two levers since mid-May, leading the way to cash cost reduction in H2 ENABLERS New business model for SLN (mining and metallurgy) • 4 Mt / year export license granted by NC government ✔ 4 Mt of ore Ore to supply Export exported by 2021 Doniambo production
Slide 35: Sandouville plant: significant progress towards break-even in EBITDA
Sandouville plant: significant progress towards break-even in EBITDA Improved operating rate thanks to support of experts’ task force since the start of the year… High purity nickel production more than tripled to 4kt in H1 2019, above FY 2018 production; high purity nickel sales volume up to 4kt (v
Slide 36: Mineral sands BU
Mineral sands BU
Slide 37: Favourable markets for titanium products with continued price increase
Favourable markets for titanium products with continued price increase Growth of Pigment market (90% of titanium-based end-products1) Robust global demand in TiO2 feedstocks from Pigments producers in H1 2019 for high-end TiO2 intermediates Hence global demand for CP grade titanium dioxide slag (“CP
Slide 38: Zircon product markets: stable prices at a high level despite a slowdown in demand
Zircon product markets: stable prices at a high level despite a slowdown in demand in H1 2019 Ceramics and Chemicals markets (~50% and 20% respectively of zircon's end-uses) Slowdown in global demand for zircon in all segments in H1 2019, particularly in China for Ceramics Supply/demand balance for
Slide 39: TiZir: high level of production in Senegal and Norway
TiZir: high level of production in Senegal and Norway HMC1 production (titanium ore and zircon): +1% Titanium dioxide slag H1 record to 378 kt, thanks to record-high operational production: +19% to 101 kt with Norwegian performance, despite lower grade mined from plant functioning close to nominal c
Slide 40: High Performance Alloys division
High Performance Alloys division
Slide 41: A stable aerospace market for the High Performance Alloys division
A stable aerospace market for the High Performance Alloys division Stable global aerospace market Airbus delivered 389 aircraft in H1 2019 (+28% vs H1 2018) offsetting Boeing’s decline (239 delivered only, -37%) Civil aircraft market adversely impacted by Boeing’s 737 Max crisis: production of 737 M
Slide 42: Ongoing delays in invoicing, due to implementation of upgraded quality processes at A&D
Ongoing delays in invoicing, due to implementation of upgraded quality processes at A & D -24% A&D sales vs H1 2018 Sales by segment decrease in aerospace sales due to delays impacting -18.7% sales in a stable market environment -6.2% 1,087 several major agreements signed with aerospace 1,020 top-ti
Slide 43: High Performance Alloys' results impacted by sales decline at A&D and margin squeeze at Erasteel
High Performance Alloys’ results impacted by sales decline at A & D and margin squeeze at Erasteel €23m loss incurred at Aubert & Duval in H1 2019 Significant slowdown in shipments as expected, linked to delivery delays resulting from quality processes’ conformity review (-€27m COI impact) 40 kt pre
Slide 44: Strategic development projects
3 Strategic development projects
Slide 45: Vision
Vision Our ambition Develop a selective portfolio of value-accretive mining and metallurgical activities Be among the best in each of our businesses, in terms of performance, profitability and innovation Be admired for our strategic model, our management system and our societal commitment OUR STRATE
Slide 46: Group strategic transformation: increasing cash generation & portfolio diversification
Group strategic transformation: increasing cash generation & portfolio diversification Increase cash-flow generation… thanks to higher profitability of existing assets 1 by growing the most profitable businesses 2 …and diversify activities 3 by strengthening our portfolio thanks to new recurring cas
Slide 47: Moanda: A highly cash generative brownfield expansion in manganese ore in Gabon
Moanda A highly cash generative brownfield expansion in manganese ore in Gabon
Slide 48: Moanda: a world-class and highly competitive manganese mine located in Gabon
Moanda: a world-class and highly competitive manganese mine located in Gabon A manganese mine in Gabon (Moanda), operated by Comilog for 50 years > High-grade oxide commercial ore 46% > 269 Mt resources, representing several decades Enhanced operation at Bangombé plateau with dry processing of part
Slide 49: Brownfield project: development of the Okouma plateau in parallel with enhanced production at Bangombé
Brownfield project: development of the Okouma plateau in parallel with enhanced production at Bangombé 7 Mt manganese ore production capacity in 2023: + 50% vs 2018 Development of Okouma plateau: Double ore railway dry processing, transportation followed by capacity by 2023 beneficiation process Mar
Slide 50: Sharp increase in high grade manganese ore production capacity with improved capex profile
Sharp increase in high grade manganese ore production capacity with improved capex profile Manganese ore capacity (in Mt) CAPEX estimated cash-out (in €m) 7 200 > 6.5 180 >6 +2.5 150 >5 4.5 70 40 10 2019e 2020e 2021e 2022e 2023e 2018 2019e 2020e 2021e 2022e 2023e 50 Eramet – Investor presentation, S
Slide 51: Attractive return profile, sustainable and robust cash-flow generation
Attractive return profile, sustainable and robust cash-flow generation Project IRR1 Payback > 35% < 5 years2 Best in class cash cost CAPEX - €640m3 over 5 years 20% decrease in (o/w c. €70m for 2019 early Cash-cost in 2023 works) 1 Internal Rate of Return 2 From 1st year of production (2020) 51 Eram
Slide 52: Social and environmental performance: building our social licence to operate
Social and environmental performance: building our social licence to operate Strong contribution through local employment > Eramet 2nd private employer of Gabon Mine expansion project managed in compliance with IFC standards > High value biodiversity areas preserved > Robust run-off water and dust m
Slide 53: Manganese expansion development schedule
Manganese expansion development schedule Manganese ore production capacity 4.5 Mt > 5 Mt > 6 Mt > 6.5 Mt 7.0 Mt Spring 2019 July 2019 End of 2019 2020 2021 2022 2023 End of DFS1 First earth at the July: start of Start of new End of work on July: start of IPV (Internal works earliest extraction benef
Slide 54: Centenario: A world class lithium project in Argentina
Centenario A world class lithium project in Argentina
Slide 55: Diversification in metals for energy transition through development of a lithium deposit in Argentina
Diversification in metals for energy transition through development of a lithium deposit in Argentina: DFS completed Eramet project area Battery grade lithium carbonate production (24 kt LCE1), greenfield project including all necessary infrastructure Vast long life brine deposit: > c.10 Mt LCE1 dra
Slide 56: Low cost direct proprietary extraction process, hence a competitive cash-cost position
Low cost direct proprietary extraction process, hence a competitive cash-cost position Centenario salar: c. 400mg/l lithium with low impurity content, in line with Argentinean deposits Direct extraction process Much better lithium recovery rate (c.90% vs c.50% on conventional process) Much quicker l
Slide 57: Key differentiating factors: a 50-year mine life and a high lithium yield project
Key differentiating factors: a 50-year mine life and a high lithium yield project Lithium demand forecast +14% CAGR Production capacity: 24 kt LCE / year Li Yield c. 90% (Battery grade) thanks to direct - extraction process Production to start: end-2021 Post ramp-up Cash Cost Easy access to $3.5k/t
Slide 58: A robust ramp-up, supported by an experienced project and operations team
A robust ramp-up, supported by an experienced project and operations team Lithium production (in kt LCE) CAPEX estimated cash-out (in $m) 24 310 > 22 >15 205 80 3.0 2021e 2022e 2023e 2024e 2019e 2020e 2021e Scalability opportunities, supported by deposit’s size 58 Eramet – Investor presentation, Sep
Slide 59: A highly value-accretive project with potential for further profitable development
A highly value-accretive project with potential for further profitable development IRR1 Payback2 17% to 25% 3 to 5 years depending on lithium prices assumption Post ramp-up Cash Cost CAPEX $3.5k/t c. €525m3 over 2019-2021 st 1 quartile (o/w c. €70m for 2019 early works) 1 Internal Rate of Return 2 F
Slide 60: Social and environmental performance: building our social licence to operate
Social and environmental performance: building our social licence to operate Open and constructive relationships with local stakeholders > Overall positive feedback (2018 survey) Increasing local sourcing and employment > Multi-stakeholder committee set up to maximize local content Robust environmen
Slide 61: FID end of 2019 at the earliest, subject to satisfactory financing conditions
FID end of 2019 at the earliest, subject to satisfactory financing conditions and regulatory frame 2012 Spring 2019 End-2021 Discovery of 2017 End of DFS4 / IPV Commissioning Centenario- PFS3 (Internal Project and start of Ratones salar2 launch Validation) lithium production 2010 2014 2018 End of 20
Slide 62: Weda Bay Nickel: A highly competitive NPI project in Indonesia
Weda Bay Nickel A highly competitive NPI project in Indonesia
Slide 63: Bringing value to the Weda Bay Nickel deposit
Bringing value to the Weda Bay Nickel deposit On e of the largest nickel oxidized deposits in the world on Halmahera island, Indonesia 9 Mt nickel ressources In May 2018, implementation of a partnership with Tsingshan, No. 1 global stainless steel producer Shareholder structure: Eramet 43% / Tsingsh
Slide 64: Highly competitive NPI production in Indonesia
Highly competitive NPI production in Indonesia Production target of 30 kt / year in nickel content, of which a 13 kt / a year off-take for Eramet First production expected in H2 2020 with a swift ramp-up to reach nominal capacity in 2021 Highly competitive NPI production in Indonesia No CAPEX suppor
Slide 65: 2018-2023 CSR roadmap
2018-2023 CSR roadmap 4
Slide 66: A committed & contributive corporate citizen: a must for Eramet
A committed & contributive corporate citizen: a must for Eramet Align societal commitment with strategic vision A 2018-2023 CS R roadmap to structure and set the pace for our action plans, which is compliant with the United Nations’ Sustainable Development Goals (SDGs) Contribute to the communities
Slide 67: Eramet CSR roadmap for 2018-2023
Eramet CSR roadmap for 2018-2023 Committed A responsible Committed to women economic player to our planet and men 67 Eramet – Investor presentation, September 2019
Slide 68: Committed to women and men – 2023 targets
Committed to women and men – 2023 targets 1 Ensure the Health and Safety of employees and subcontractors > Zero fatalities > Halve accident frequency rate : TF2 < 4 2 Develop skills and promote talent and career development > 100% of employees participate in at least one training course per year 3 S
Slide 69: A responsible economic player – 2023 targets
A responsible economic player – 2023 targets Be an energy transition leader in the metals’ industry 6 > Committed diversification business portfolio in relation to the supply chain for electric mobility batteries 7 Actively contribute to the development of the circular economy through innovative act
Slide 70: Committed to our planet – 2023 targets
Committed to our planet – 2023 targets 11 Reduce our air dust emissions > -80% in 2023 vs 2018 12 Protect water resources and accelerate the restoration of our mining sites by fostering biodiversity > Ratio of restored areas to cleared areas ≥ 1 over the 2019-2023* period 13 Reduce our energy and cl
Slide 71: Conclusion and outlook
usion and outlook ae eramMerT
Slide 72: Continued deployment of the strategic roadmap towards improved intrinsic performance forecast in H2 2019
Continued deployment of the strategic roadmap towards improved intrinsic performance forecast in H2 2019 H1 2019 strongly penalised by external factors Despite several operational records, H1 2019 intrinsic performance impacted by one–off items: > A&D quality review > disruptions in the East Coast m
Slide 73: Appendices
[ = . ee Se Appendices
Slide 74: Eramet detailed presentation
Eramet detailed presentation
Slide 75: Key partnerships with host countries and territories
Key partnerships with host countries and territories Eramet associates the main countries and French Nippon Steel State* territories where it operates: France 10% New-Caledonia > STCPI holds 34% of SLN’s share capital. > STCPI holds around 4% of Eramet’s STCPI1 34% 56% Eramet share capital Gabon > A
Slide 76: A long term player
A long term player 100% of TiZir owned by Eramet (OPA on MDL) Incorporation of Le Nickel (operation of nickel mines in New Caledonia) Inauguration of EcoTitanium Divestiture of Erachem and Bear Metallurgical Corporation Divestiture of Eurotungstene Transfer of the participation of 26% from the Frenc
Slide 77: Steels represent more than 60% of Eramet sales
Steels represent more than 60% of Eramet sales Other (Chemical Recycling and Foundry) High-speed steels, Toolings & Specialities Stainless Steel 6% 0% 4% Others 2% Oil, Nuclear, Defense (PND) 3% Land Turbines 1% 2% Steels: 61% Aérospace 15% 6% 21% 6% 21% 48% 49% 6% 6% 19% Other Mineral Sands 1% 42%
Slide 78: A global geographic footprint
A global geographic footprint 2018 Group turnover (by sales destination) Others France 9% 5% 35% Asia USA 16% 34% Europe 78 Eramet – Investor presentation, September 2019
Slide 79: Mining and Metals Division Key Features
Mining and Metals Division Key Features
Slide 80: Manganese main growth drivers: carbon steel and China
Manganese main growth drivers: carbon steel (90% of global production) and China Manganese key features 3 types of manganese ore 1 > “Low-grade local” ore: < 30% of manganese content Manganese Ore > “Medium-grade” ore: > 30% but < 43% Average 0.4 t of Mn content > “Rich” / “High-grade” ore: > 43% pe
Slide 81: Manganese BU: a first class competitiveness thanks to excellent mining operation
Manganese BU: a first class competitiveness thanks to excellent mining operation Manganese BU key features Ore cash cost 2018* A highly competitive manganese mine in Gabon (Moanda), operated by Comilog 4th 1st > High-grade oxyde ore 44% quartile quartile Two units of local transformation in Gabon, C
Slide 82: Nickel main growth drivers: stainless steel and batteries
Nickel main growth drivers: stainless steel and batteries 1 Nickel key features Extraction of ore in Two main types of nickel ore order to… > Sulfide-type ore (nickel combined with several other valuable metals) as in Canada, Russia to be transformed in Nickel concentrate 2 > Laterite-type ore as in
Slide 83: Nickel BU: a key transformation underway
Nickel BU: a key transformation underway Nickel BU key features Nickel cash cost 2018* Implementation of new business model in 4th 1st New Caledonia: quartile quartile > 4 main operated mines and one pyrometallurgical plant New > High-grade ferronickel (23% Ni) and nickel Caledonia ore exported (1.7
Slide 84: Mineral Sands growth drivers: ceramics and pigments market
Mineral Sands growth drivers: ceramics and pigments market Zircon key features Titanium dioxide slag key features Long Term pricing agreement1 (spot prices in China only) Dredge or Dredge 1 open pit mining mining followed followed by by mineral 1 mineral separation Titanium separation minerals (ruti
Slide 85: Mineral Sands BU: operations integrated from the mine in Senegal to the conversion plant in Norway
Mineral Sands BU: operations integrated from the mine in Senegal to the conversion plant in Norway Mineral Sands BU key features TiZir Senegal: > Extraction of heavy mineral (mineral raw materials which contain heavy minerals concentrated). > Production of ilmenite (titanium-iron oxide), leucoxene,
Slide 86: High Performance Alloys Division Key Features
High Performance Alloys Division Key Features
Slide 87: A comprehensive industrial set up with unique tools
A comprehensive industrial set up with unique tools Located in: Europe (France, Sweden, Spain) Main competitors Asia (India, China) US Main customers 14 industrial sites in France 87 Eramet – Investor presentation, September 2019
Slide 88: Lithium project
Lithium project SM eramMertr
Slide 89: Lithium main growth drivers: energy storage, including Li-on EV battery
Lithium main growth drivers: energy storage, including Li-on EV battery; +14% pa growth 1 Extraction from Energy storage market: mainly salar brines or from driven by environmental regulations, lithiniferous minerals EV sales and mobility development (spodumene) in order to… Lithium carbonate and li
Slide 90: A booming lithium market over the next years
A booming lithium market over the next years Forecast lithium demand1 (in kt LCE) 603 22% 30% Others 230 Others Batteries 49% EV Batteries 102 48% 57% 34% 43% 17% 2010 2018 2025e 20181 20251 Consumer Glass Consumer & electronics & electronics 11% 11% Glass Greases Mass energy 22% 25% 3% storage 8% O
Slide 91: Lithium Extraction process
Lithium Extraction process 91 Eramet – Investor presentation, September 2019
Slide 92: H1 2019 detailed figures
H1 2019 detailed figures
Slide 93: Manganese BU – Key figures
Manganese BU – Key figures In €m H1 2019 H1 2018 Sales 904 869 EBITDA 316 372 COI 271 321 Capex 78 40 93 Eramet – Investor presentation, September 2019
Slide 94: Nickel BU – Key figures
Nickel BU – Key figures In €m H1 2019 H1 2018 Sales 346 365 EBITDA (25) 22 COI (70) (22) Capex 10 32 94 Eramet – Investor presentation, September 2019
Slide 95: Mineral sands BU – Key figures
Mineral sands BU – Key figures H1 2019 H1 2018 In €m1 (100%) (50%) Sales 139 71 EBITDA 52 18 COI 30 10 Capex 3 3 1 Full consolidation of Mineral Sands activity as of 1st July 2018, following the acquisition of shares in Mineral Deposits Limited, an Australian company that held a 95 Eramet – Investor
Slide 96: High Performance Alloys Division - Key figures
High Performance Alloys Division - Key figures A&D and Erasteel In €m H1 2019 H1 2018 Sales 423 520 EBITDA (5) 43 COI (27) 10 Capex 26 31 96 Eramet – Investor presentation, September 2019
Slide 97: CRU price trends in manganese alloys (refined and standard) in Europe
CRU price trends in manganese alloys (refined and standard) in Europe CRU price for manganese alloys in Europe between January 2014 and January 2019 €/t 2,000 1,500 1,000 500 0 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jul-19 Medium-carbon ferromanganese High-carbon ferromanganese Sillicomanganese 9
Slide 98: Reconciliation Group reporting and published accounts
Reconciliation Group reporting and published accounts Half Year Half year Half Year Half year Joint-venture Joint-venture €m 2019 contribution 2019 2018 contribution 2018 Published1 Reporting Published1 Reporting2 Sales 1,809 - 1,809 1,735 78 1,813 EBITDA 307 - 307 415 17 432 Current operating incom
Slide 99: Group income statement
Group income statement €m H1 2019 H1 2018 Sales 1,809 1,813 EBITDA 307 432 % Sales 17% 24% Current operating income 169 294 % Sales 9% 15% Other operating income and expense (25) (1) Operating income 144 293 Financial result (54) (51) Pre-tax income 90 242 Share of income of equity affiliates (4) (0
Slide 100: Cash-flow table
Cash-flow table €m H1 2019 H1 2018 FY 2018 Operating activities EBITDA 307 432 843 Cash impact on items under EBITDA (142) (160) (345) Cash from operating activities 165 272 498 Change in WCR (172) (99) (49) Net cash generated by operating activities (1) (7) 173 449 Investment activities CAPEX (131)
Slide 101: Group Balance Sheet at 30 June, 2019
Group Balance Sheet at 30 June, 2019 3,956 3,956 3,646 3,646 1,547 1,605 3,106 289 3,030 303 1,081 995 17 26 850 1,022 616 717 31/12/2018 30/06/2019 31/12/2018 30/06/2019 Fixed assets Equity-Group share Provisions and net deferred tax Net debt WCR Minority interests Financial instruments 101 Eramet
Slide 102: Bond maturities
Bond maturities Balance at Maturity Currency Initial amount 30/06/2019 Interest rate date (in m) November 2013 bond issuance € 525 460 4.5% 2020 2016 ODIRNAN bond issuance € 100 100 perpetual 4% July 2017 TiZir bond renewal USD 300 300 July 2022 9.50% February September 2017 bond issuance € 500 500
Slide 103: Shareholding on 30 June 2019
Shareholding on 30 June 2019 Other float SORAME + CEIR 32.1% (Duval Family) 36.9% Number of shares issued 26,635,884 1.3% BRGM** 4.0% STCPI* 25.6% APE * STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the New Caledonian provinces ** BRGM (Bureau de Recherches
Slide 104: Contacts – Investor Relations
CONTACTS Executive VP Strategy & Innovation – Investor Relations Philippe GUNDERMANN philippe.gundermann@eramet.com Investor Relations Manager Sandrine NOURRY-DABI sandrine.nourrydabi@eramet.com