Eramet Sa · EURONEXT:ERA
Eramet Sa — Investor Presentation (May 2024)
62 slides from Eramet Sa's investor presentation, May 2024
Slide 1: Group presentation May 2024
Group presentation May 2024 ~ A eramMer,r
Slide 2: Disclaimer
Disclaimer Certain information contained in this presentation including any information on plans or future financial or operating performance and any other statements that express expectations or estimates of future performance, constitute forward-looking statements. Such statements are based on a n
Slide 3: Eramet at a glance
Eramet at a glance 01
Slide 4: A global pure-play Metals & Mining Company
A global pure-play Metals & Mining Company Refocused on four activities in M&M FY 2023 performance Manganese Nickel 52% 41% Adjusted of sales 2023 Group of sales EBITDA1 Adj. sales FCF 7% of sales 3.8bn generation2 772m In construction Mineral sands Lithium 78m 2023 adjusted sales by geography Lever
Slide 5: Operating in manganese, nickel, mineral sands & developing battery-grade lithium
Operating in manganese, nickel, mineral sands & developing battery-grade lithium MANGANESE NICKEL MINERAL SANDS LITHIUM In operation In operation In operation Starting summer 2024 ASSETS ASSETS ASSETS ASSETS Ore Moanda (Gabon) Weda Bay (Indonesia) GCO (Senegal) Centenario (Argentina) largest mangane
Slide 6: Diversified portfolio of world-class deposits and downstream processing
Diversified portfolio of world-class deposits and downstream processing MINING SITE PROCESSING R&D CENTER FRANCE 25 NORWAY 25 Dunkirk Mn UNITED 25 Mn Mn Kvinesdal, STATES Eramet Ideas Trappes Porsgrunn, Sauda Marietta Headquarters ASIA 28 Ni INDONESIA WEDA BAY AFRICA ARGENTINA GABON 3 Li 25 28 SALAR
Slide 7: Large resource, long-life, high-grade, scalable deposits
Large resource, long-life, high-grade, scalable deposits Mining assets positioned on the 1st quartile of their respective industry cost curves Moanda GABON Weda Bay INDONESIA GCO SENEGAL Centenario ARGENTINA 457 2,800 3,056 >15 Mwmt Mwmt Mt Mt RESOURCES1,2 44 % RESOURCES1,3 1.2 % RESOURCES1,4 1.1 %
Slide 8: Very robust and well positioned assets: profitable at low commodity prices
Very robust and well positioned assets: profitable at low commodity prices Current manganese ore industry cost curve CIF1 Forecast lithium industry cost curve1 (Simplified) Cash cost2, (2028) High-grade (>40%) Medium-grade (30-40%) Low-grade (<30%) $/kg LCE 30 25 Spot price Cash cost, $/dmtu 20 Cons
Slide 9: Governance supported by stable shareholding
Governance supported by stable shareholding Board of Directors Long-term reference shareholding Others float SORAME + CEIR 18 50% 44% 32% At 2023 37% (Duval Number of shares issued Family) Members Nationalities Independency1 Parity1 year-end 4% 28,755,047 STCPI2 Christel François 27% BORIES CORBIN A
Slide 10: A CSR commitment and performance recognized by leading ESG rating agencies
A CSR commitment and performance recognized by leading ESG rating agencies B C CLIMATE WATER B- Prime A CHANGE SECURITY Among the best 2nd decile in the Among the best in in the industry M&M sector the industry 28.41 69/100 1st decile in the Above global diversified M&M average (54/100) sector 10 Er
Slide 11: A successful turnaround story; a strategy tailored to the new era of metals
A successful turnaround story 02 A strategy tailored to the new era of metals
Slide 12: A major refocus by divesting non-core & non-performing assets
A major refocus by divesting non-core & non-performing assets, achieved in 2023 Divest / Close Cash burn 2018-2023 ( Least performing assets ✓ Aubert & Duval ✓ Erasteel ✓ Sandouville ✓ Electromanganese activity (Gabon) c.- 1bn Total cash outflows 12 Eramet Group presentation May 2024
Slide 13: Agreement with the French State to neutralize SLN's debt
Agreement with the French State to neutralize SLN's debt and strengthen Eramet's balance sheet Signature of an agreement between the Proforma Net debt, Adjusted leverage2 & French State and Eramet in April 2024 to gearing as of 31 December 2023 strengthen the Group's balance sheet Conversion of the
Slide 14: A unique time in history: the world will need more metals
A unique time in history ENERGY The world TRANSITION HIGHER ESG will need STANDARDS MORE METALS ECONOMIC DEVELOPMENT 1200 BC 1700 1800 1900 2020 2040 14 Eramet Group presentation May 2024
Slide 15: A strategy tailored to the new era of metals
A strategy tailored to the new era of metals Two strategic axes aligned with global macro-trends, supported by an ambitious CSR roadmap GROW IN METALS supporting SUSTAINABLY DEVELOP CRITICAL global economic development METALS for the energy transition RESILIENT Manganese ore FAST-GROWING Lithium MAR
Slide 16: Sustainable accelerators to drive further growth & capture value
Sustainable accelerators to drive further growth & capture value Innovation Digital transformation Eramet Ideas, an open innovation center • Supporting delivery of the CSR roadmap Mine 4.0 Plant 4.0 Operational • Unlocking value in our mineral deposits Improvements • Improving the competitiveness of
Slide 17: Ambitious mid-term to long-term production targets
Ambitious mid-term to long-term production targets > 10 Mt Up to 800kt 60 Mwmt Mn ore Mn alloys Ni ore at Weda Bay (production capacity can flex (Targets assessed based on (Indonesia) depending on market situation) market demand & margins) 1.0Mt >75kt-LCE Energy transition Projects in Preparation HM
Slide 18: Responsible mining is part of the solutions to support the energy transition
Responsible mining is part of the solutions to support the energy transition 3 AREAS Care for people Trusted partner Transform our FOR ACTION TRANSLATED for nature value chain INTO 10 AMBITIONS 1 Take care of health 4 Control & optimize 7 Reduce the CO2 FOR 2026 and safety of people water consumptio
Slide 19: Biodiversity, a priority
Biodiversity, a priority OUR OUR STRATEGY OUR ACTIONS COMMITMENTS Setting an ecological example in Dedicated teams at every mine 1 ore extraction Mitigation hierarchy at the heart of the action before, during and after operation, integrating a territory approach Strengthening our action plans to ali
Slide 20: IRMA independent assessment of mining sites by 2026
A standard encompassing international best practices 101 100% EQUAL multi- ASSESSMENT stakeholders BEST-IN-CLASS TRANSPARENCY of mining sites engaged process governance comprehensive through in an independent of mining sites standard public report Including NGOs and local communities by third party
Slide 21: Eramet capital allocation policy
Eramet capital allocation policy 01 02 03 Balance sheet Capex Dividend Maintain adjusted leverage Disciplined investment policy Reward shareholders for their below 1x on average through long-term commitment the cycle Deliver organic growth with very quick payback and Return value created by attracti
Slide 22: Grow in metals supporting global economic development
03 Grow in metals supporting global economic development
Slide 23: Pricing features of businesses
Pricing features of businesses Manganese Nickel Mineral sands 25 28 22 40 Mn Ni Ti Zr No future market: Nickel ore indexes OTC1 negotiation Weda Bay: HPM nickel 1.8%/35%2,3 OTC1 negotiation CRU index: bi-weekly SLN: Ni ore CIF China 1.8% Mn ore: CRU CIF China 44% (CNFEOL) Eramet’s prices published a
Slide 24: Manganese
25 Mn Manganese
Slide 25: Carbon steel, the main end-market of Manganese
25 Carbon steel, the main end-market of Manganese Mn 01 Manganese ore 02 Manganese alloys 03 Carbon steel 0.35t 2.0t 10kg Average Average content of Average use of Mn ore content of Mn Mn per tonne of ore per tonne of alloy alloy per tonne of steel (7 kg of Mn content per <30% Mn content Standard 50
Slide 26: China driving demand for Manganese ore, with India emerging
25 China driving demand for Manganese ore, with India emerging Mn 2023 manganese ore global 2023 manganese alloys 2023 carbon steel global production (Mn content) global production production Other Other Other 9% South Africa 14% 9% 39% Malaysia CIS1, 5% Brazil, 4% China China Norway 2% 64% N. Ameri
Slide 27: Manganese activities in Gabon: an integrated value chain from mine to customer
Manganese activities in Gabon: an integrated value chain from 25 mine to the customer Mn Extraction, Moanda (Bangombé Okouma) Owendo Port, Libreville Railway Station Dry mining Stacking units Mn ore >44% grade Fine by-products c.38% grade Shipment Railway Station (Moanda) 50-200kt Stationary Mn allo
Slide 28: High-grade manganese mine positioned on the first quartile of its cost curve
-grade manganese mine 25 positioned on the first quartile of its cost curve Mn Moanda 2023 key figures Key players in high-grade Mn ore Other, 12% plateaux operated by 2 Comilog (63.7% Eramet) Bangombé & Okouma Buritirama, 2% 30% 457Mwmt resources1 TMI, 4% 1st global producer of NGM, 6% 9.6Mt 75-yea
Slide 29: A leading Mn alloys producer positioned in North America & Europe
A leading Mn alloys producer perfectly positioned to deliver 25 the most attractive markets, North America & Europe Mn Alloys business 2023 figures Key players in Mn alloys 6 pyrometallurgical plants Kvinesdal, Marietta Dunkirk Moanda 1st global producer Porsgrunn, Sauda of refined Mn alloys Value o
Slide 30: Nickel
28 Ni Nickel
Slide 31: Stainless steel and EV batteries: end-markets for Nickel
-market for Nickel, 28 with EV batteries booming Ni 01 02 03 Primary Stainless Nickel nickel steel & ore production1 batteries Sulfide-type ore Nickel Class I2 Other Canada, Russia (project) 10% Class I production: Ni-based Stainless 26% of global production alloys steel Nickel salt and Nickel metal
Slide 32: Indonesia emerging as the largest player in Nickel
Indonesia emerging as the largest player in Nickel, 28 in a context of growing demand Ni 2023 nickel ore global 2023 primary nickel2 global 2023-2026e nickel global production (Ni content) production (Ni content) demand Continued growth in stainless steel Other Other Significant long-term boom drive
Slide 33: PT Weda Bay: extensive industrial park of NPI & HPAL plants
Weda 28 extensive industrial park (IWIP) of NPI & HPAL plants Ni PT Weda Bay 2023 figures Key players in Nickel Partnership with Tsingshan (38.7% Eramet) World-class deposit operated since October 2019 2,800Mwmt resources1 Ore grade: 1.2-1.9% saprolite 1.0-1.4% limonite 30-year contract of work (COW
Slide 34: Mineral sands
Mineral sands 4 Se eramMer,T
Slide 35: Ceramics & pigments, the main end-markets for Mineral sands
Ceramics & pigments, the main end-markets 22 40 for Mineral sands Ti Zr 01 Upstream & separation 02 Midstream 03 Downstream Main applications (Optional) 2023 titanium 22 Dredge mining Titanium slag / 9% feedstocks production1 4% 8,513k TiO2 units Ti Separation of titanium synthetic rutile Pigments m
Slide 36: GCO 2023 figures
22 40 Ti Zr GCO 2023 figures Key players in Mineral sands 3,056Mt resources1 25-year mining concession 5th largest producer of both titanium feedstock & zircon Major consumers of Mineral sands 2nd largest non-integrated chloride ilmenite producer Titanium Zircon Train transportation from the install
Slide 37: Sustainably develop critical metals for the energy transition
04 Sustainably develop critical metals for the energy transition
Slide 38: Well positioned in the battery value-chain
Well positioned in the battery value-chain to sustainably create value leveraging on our core expertise PRIMARY SECONDARY UPSTREAM UPSTREAM 3 28 27 25 3 28 27 Li Ni Co Mn Li Ni Co Mining and first Refining & CAM Battery Battery life cycle transformation production recycling High-return business Posi
Slide 39: Energy storage, the main end-market for lithium
3 Energy storage, the main end-market for lithium Li 01 Extraction 02 Transformation 03 Energy storage Greases Other, 7% From brines Lithium carbonate 2% Salar brines Glass & ceramics Li2CO3 5% Main Centenario project in applications construction, Argentina 65% of 2023 global production for lithium
Slide 40: Centenario: a sustainable & competitive battery-grade DLE technology project
Centenario: a sustainable & competitive battery-grade DLE 3 technology project coming on-stream shortly Li Phase 1 in operation shortly Phase 2 (1st tranche) H1 April 2024 Summer +12 conditionally Board 2022 2024 months approved Start of construction c.95% Start of production Full ramp-up Production
Slide 41: Building a portfolio of projects in energy transition metals
Building a portfolio of projects in energy transition metals Projects still in study phases Acquisition of exploration & mining Nickel class 1 in Indonesia concessions in Chile HPAL technology to produce Ni-Co Located in the Atacama region Partnership mixed hydroxide product (MHP) c.120kHa Concessio
Slide 42: Highly committed for decarbonization through projects & innovations
05 Highly committed for decarbonization through projects & innovations
Slide 43: Carbon footprint: 84% related to Scope 3
carbon footprint: 84% related to Scope 3 (MtCO2) 68% Of which • Transformation Customers by customers 58% • PT Weda Bay Nickel1 6% Of which • Purchases 8% • Transports 6% 12.0Mt 19% 16% Suppliers 3.4Mt 3.0Mt Scope 3 Scope 3 Upstream Downstream Scopes 1+2 43 Eramet Group presentation May 2024 1 90%+
Slide 44: Scopes 1 & 2 GHG emissions reduction & targets
Scopes 1 & 2 GHG emissions emissions breakdown1 (MtCO2) reduction & targets1 (MtCO2) 0.3Mt -12% -18% Pyrometallurgy 0.2Mt -40% 90% 0.2Mt 3.0 Mt Scopes 1 +2 Mining 8% -90% Transport & 3.3Mt loading 3.0Mt 2.8Mt 2% 500m Additional substantial 2019 2022 2023 2035 2050 2019-2035 direct investments decarb
Slide 45: Decarbonization levers tailored to challenges
Decarbonization levers tailored to challenges Pyrometallurgy (c.90% of energy consumption & GHG emissions) Realized Implementation / industrialization ongoing Mining (c.10% of energy consumption & GHG emissions) Project or under consideration -15% -40% Scopes 1&2 -9% Decarbonization of our processes
Slide 46: Significant decrease in the carbon intensity
Significant decrease in the carbon intensity Carbon intensity1 of Eramet's products (Scopes 1 & 2) 2023 target surpassed (tCO2/t outgoing product) 0.5 -40% achieved vs. -26% initial target CSR roadmap 2018-2023 0.4 Initial target Increase of mining activities, less -26% vs. 2018 New CSR roadmap emis
Slide 47: Supporting value chain in reducing its emissions
Supporting value chain in reducing its emissions Engaging with our value chain on Scope 3 breakdown (MtCO2) 67% Transport 7% 46 31% 33% Energy 5% 15.4Mt Purchases Scope3 10% 2019 2022 2023 2025 target Joint-ventures 8% Sales 67% of its suppliers and customers by 70% emissions to have decarbonization
Slide 48: A new ERA
eramMertrT
Slide 49: Eramet perfectly positioned to further unlock value in a new era of metals
Eramet perfectly positioned to further unlock value in a new era of metals Pure-play Highest CSR Mining & Metals standards Well World-class Robust positioned asset base financials on attractive with proven enabling markets track record growth 49 Eramet Eramet Group Group presentation presentation Ma
Slide 50: Appendices
EfAMeT Appendices
Slide 51: A Mining & Metals longtime player
A Mining & Metals longtime player 1880 1985 1991 1994 1997 Nickel Nickel Alloys Group Manganese Société Le Nickel (SLN) was Eramet-SLN Erasteel acquired Initial public offering 61% of Comilog acquired incorporated to operate created (diversification into of the Eramet Group (diversification into nic
Slide 52: Positioning of Eramet in the M&M value chain
Positioning of Eramet in the M&M value chain Primary End markets / Mining transformation applications Comilog CMM Carbon steelmakers 25 Mn Porsgrunn, Sauda, Kvinesdal, Carbon steelmakers Marietta & Dunkirk NPI lines in Weda Bay JV with Stainless steelmakers Tsingshan 28 HPAL plant Ni EV batteries pr
Slide 53: Eramet associates the main countries & territories where it operates
Eramet associates the main countries & territories where it operates Gabon Indonesia1 Senegal Argentina Others, 7.4% Senegalese Gabonese PT Antam, 10% State State 10% Tsingshan Eramet 28.9% Eramet 49.9% 50.1% Eramet 90% 38.7% Tsingshan Eramet 51.3% 63.7% Comilog PT Weda Bay Nickel Grande Côte Opérat
Slide 54: A seasoned Executive Committee
An seasoned Executive Committee After graduating from the École des Hautes Études Commerciales (HEC), Christel Bories began her career in 1986 as a strategy consultant at Booz-Allen & Hamilton, and then at Corporate Value Associates. She then held various positions of responsibility at Umicore, foll
Slide 55: Developed in-house Direct Lithium Extraction (DLE)
Developed in- 3 Li Much higher performances than Direct lithium Extraction (DLE) conventional process Proven industrial process over the past 20-years (aluminum-based lithium sorbent) Proprietary lithium sorbent working at native temperature of the brine (20°C) 90%1 lithium recovery yield of the DLE
Slide 56: 60% process water recycling rate; 1 week lead time
3 Li Water recycling create sustainable value Regeneration of the lithium sorbent only by water (DLE based on titanium or manganese sorbents use acid) and at 20°C Water recycling by reverse osmosis & forced evaporation 60% process water recycling rate Efficient purification High selectivity of the D
Slide 57: Closed-loop lithium-ion battery recycling process
Closed-loop lithium-ion battery recycling process 57 Eramet Group presentation May 2024
Slide 58: Act for positive mining
Act for positive mining
Slide 59: Care for people: 2026 ambitions
Care for people: 2026 ambitions 1 Take care of health 2 Provide an inclusive 3 Accelerate the local and safety of people environment where & sustainable on our sites everyone can grow development for communities FR2 < 1.0 30% of women managers 6,000 jobs voluntarily supported (excluding core busines
Slide 60: Trusted partner for nature: 2026 ambitions
Trusted partner for nature: 2026 ambitions 4 Control & optimize 5 Biodiversity 6 Mitigate risk of water consumption preservation pollution / Reduce environmental impact 60% at GCO 100% of sites have a diffuse 80% at Centenario Rehabilitation ratio > 1.0 dust source map and a reduction action plan fo
Slide 61: Transform our value chain: 2026 ambitions
Transform our value chain: 2026 ambitions 7 Reduce the CO2 8 Optimize mineral 9 Develop responsible footprint of our value resources consumption value chain that chain & contribute to a respects our Human Reduce emissions per ton circular economy rights & CSR produced on scopes 1 & 2 to requirements
Slide 62: Contacts
CONTACTS Director of Investor Relations Sandrine NOURRY-DABI sandrine.nourrydabi@eramet.com