Eramet Sa · EURONEXT:ERA
Eramet Sa — Debt Investor Presentation (March 2024)
51 slides from Eramet Sa's debt investor presentation, March 2024
Slide 1: Credit update - March 2024
a a EfAMeT Credit update - March 2024 Sandrine NOURRY-DABI, Hea Philippe BERNEUR, Gro
Slide 2: Disclaimer
Disclaimer Certain information contained inthis 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 statem
Slide 3: Contents
Contents Introduction: Eramet at a glance 1- A successful turnaround story 2- FY 2023 financial performance 3- Avalue-creation strategy, supported by a controlled capex plan 4- Astrong credit profile Conclusion: Outlook & Credit Highlights SM 3 Eramet-Credit update March 2024 eramMert
Slide 4: Eramet at a glance
Slide 5: A global pure-play Metals & Mining Company
A global pure-play Metals & Mining Company Refocused on four activities in M&M Manganese 59% 2023 Group Adj. turnover €3.8bn In construction Mineral sands Lithium Adjusted sales by geography 66% Asia (incl. 26% China & 15% indonesia) 17% Europe (incl. 16 France) 1% North America 5% others 5 Eramet-—
Slide 6: Global leader operating in manganese, nickel, mineral sands & developing battery-grade lithium
Global leader operating in manganese, nickel, mineral sands & developing battery-grade lithium MANGANESE In operation NICKEL In operation MINERAL SANDS LITHIUM In operation Starting summer 2024 ASSETS ASSETS ASSETS ASSETS ZO, Ore - Moanda (Gabon) Weda Bay (Indonesia) GCO (Senegal) Centenario (Argent
Slide 7: A world-class mining portfolio
A world-class mining portfolio Large resource, long-life, high-grade, scalable deposits with 1st quartile cost curves positioning Moanda GABON Weda Bay INDONESIA GCO SENEGAL Centenario ARGENTINA Mwmt Mwmt Mt Mt 454 4 4 2,800 1.3” 3,030 1.1 4 Sr. 3 50° AVG. HM GRADE LICONTENT >20' AVG.GRADE >22” AVG.
Slide 8: A strategy tailored to energy transition
A strategy tailored to energy transition Two strategic axes aligned with global macro-trends, supported by an ambitious CSR roadmap GROW IN METALS supporting global economic development RESILIENT MARKETS Manganese ore & Alloys Wil, ricke ON fen Mineral Sands 8 Eramet-— Credit update March 2024 gp SU
Slide 9: Well positioned in the battery value-chain to sustainably create value
Well positioned in the battery value-chain to sustainably create value leveraging on our core expertise PRIMARY UPSTREAM Lt Mining and first transformation Refining & CAM production Battery life cycle High-return business leveraging on 1% quartile assets 9 Eramet- Credit update March 2024 SECONDARY
Slide 10: A CSR commitment and performance recognized by leading rating agencies
A CSR commitment and performance recognized by leading rating agencies A 2"4 decile in the M&M sector Eramet- Credit update March 2024 B- Prime ISS ESGD> BiAateenars best in the industry SUSTAINALYTICS ‘Lower is better —— r SfamMeT . ‘
Slide 11: Launch of our new ambitious CSR roadmap
Launch of our new ambitious CSR roadmap Responsible mining is part of the solutions to support the energy transition 3 AREAS FOR ACTION TRANSLATED iNtO10 AMBITIONS FOR 2026 & ae “sf & Actfor | & % ositive mining 3 AMBITIOUS 2035 TARGETS Eoin Care for people 1 Take care of health and safety of people
Slide 12: Aligning with the highest standard in responsible mining through CSR roadmap
Aligning with the highest standard in responsible mining through CSR roadmap 10! A standard encompassing international best practices 100” EQUAL multi- oe + stakeholders | | BEST-IN-CLASS se eececn TRANSPARENCY of mining sites engaged governance comprenensive of mining sites through in an independen
Slide 13: A Successful turnaround story
A Successful turnaround story — ~ = é -— 25 ee Je. PF i = Ses aE
Slide 14: A major refocus by divesting non-core & non-performing assets
A major refocus by divesting non-core & non-performing assets Divest / Close Cash burn 2018-H1 2023 (€m) Least performing assets Sandouville Electromanganese activity b (Gabon) o-€1 n | Total cash outflows > a 14 Eramet-Credit update March 2024 eramMerT
Slide 15: Conversion of SLN's debt to strengthen Eramet's balance sheet
Conversion of SLN’s debt to strengthen Eramet's balance sheet
Slide 16: Cost curve positioning: profitable at low commodity prices
Cost curve positioning: profitable at low commodity prices Manganese ore industry cost curve CIF! Lithium industry cost curve! (Simplified) Cash cost, (2028) HB High-grade (>40%) [| Medium-grade (30-40%) Low-grade (<30%) $/kg LCE SL 30 eramMeT eramet 25 2 2 | Consenss2044 3 oy 29 1 currentliong-term
Slide 17: Strategic repositioning to significantly free up cash resources
Strategic repositioning to significantly free up cash resources Bridge from 2018 net debt to 2023 net debt (€m) 957] -376 Net FCF of Lithium FCF FCF of Dividends = M&A® Other® Net = Conversion Proforma Current project? of SLN]._——Divested of French debt ‘asset portfolio’ debt catesioon Net debt 2018
Slide 18: FY 2023 financial performance
FY 2023 financial penarmianye Unless otherwise aoe financial figures are \ ay J Qi * " i presented in accordance with IFRS 5 -)Non- current Assets Held for Sale and Discontinued Operations - in line with Eramet’s new scope “ se nour,3 ai jess tits b Me al eramMerT
Slide 19: Robust performance in 2023
Robust performance in 2023 Adjusted sales! 3,824 5,385 Sales 3,251 5,014 Adjusted EBITDA’ 772 1,897 EBITDA 347 1,553 Current operating income 127 1,280 Net income - Continuing operations 12 930 Net income - Discontinued operations 6 (156) Net income - Group share 109 740 €m 31/12/2023 | 31/12/2022 N
Slide 20: Capitalizing on a consistent operational performance to face a cyclically low price environment
Capitalizing on a consistent operational performance to face a cyclically low price environment 2023 performance demonstrating outstanding resilience of our reshaped business portfolio 2023 Adjusted EBITDA €772m' Intrinsic performance +€153m vs. 2022 o/w +€230M over H2 ( Incl. Weda Bay contribution
Slide 21: Cyclically low price environment in 2023: continued in H2 vs. H1
Cyclically low price environment in 2023: continued in H2 vs. H1 Manganese ore (CIF China 44%) & —————__]|— — SLN nickel ore (CIF China 1.8%) — WB Nickel ore (HPM 18%/35%) 2022 2023 2024 2022 2023 2024 Manganese alloys (European CRU index) & Ferronickel & NPI & — Silicomanganese — Medium-carbdn ferr
Slide 22: Stable manganese ore production in 2023, while Weda Bay mine output almost doubled
Stable manganese ore production in 2023, while Weda Bay mine output almost doubled MANGANESE Production External ore sales 7.4Mt é -2% vs. 2022 +85% vs. 2022 a: Transportation NPI sales! HMC dueti : production 6.6mt -8% vs. 2022 -9% vs. 2022 15% vs. 2022 -15% vs. II menite sales? Production Ore expo
Slide 23: Another record year for Weda Bay in Indonesia
Another record year for Weda Bay in Indonesia . a . NPI production down 9%, due to maintenance & Exceptional ramp-up continuing (#72% YoY) with energy supply difficulties in H1 record sales, including first sales of limonites achieved Lé NPI volumes sold by Eramet (off-take agreement) also end-2023
Slide 24: eramMerT
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Slide 25: Ambitious mid-term production targets
Ambitious mid-term production targets 25 >10Mt Mn ore (production capacity can flex depending on market situation) ine BOOK Mn alloys (Targets assessed based on market demand & margins) 6QMwmt WB Ni ore 1.0Mt HMC >'75Kt-LCE Li battery grade LCE Eramet- Credit update March 2024 Energy transition Proj
Slide 26: Progressing on our energy transition roadmap: lithium project in Argentina
Progressing on our energy transition roadmap: executing the development of our lithium project in Argentina Progressing on our lithium Focusing on unlocking the full potential | new business of Weda Bay mine Centenario project in Argentina 60 Mwmt c.15% Phase 1 NI ORE (2026 TARGET) MARKET SHARE in N
Slide 27: Lithium demand forecast & lithium carbonate historical price
Lithium demand forecast & lithium carbonate historical price 3 (5-years) Li Lithium demand 10-year forecasts! Lithium carbonate price (CIF Asia) Kt-LCE? $/Kt-LCE? 5000 90 4 > 80 + 4.000 70 4 =-45% 60 + 3000 50 4 40 4 2.000 Centenario Phase 1 30 4 start of productio! 1.000 20 + Consensug long-term (f
Slide 28: Deploying capital to grow our world-class asset base
Deploying capital to grow our world-class asset base Capex plan! for the next 3 years (€m) €] 9 b Cc. I. n c7007so | 2024-2026f CAPEX net of partners’ share and excl. any Sonic Bay/Recycling investments c.400 ©5009 c.400 100 * >€lbn to be invested in growth projects over the next three years reflect
Slide 29: A strong credit profile
A strong credit pro vi y ae
Slide 30: Number of shares issued
• • Number of shares issued 28,755,047 • • 30
Slide 31: A stronger operational profile to navigate challenging environments & low cycle periods
A stronger operational profile to navigate challenging environments & low cycle periods Recurring intrinsic performance c.€700m i 1 ' i 1 1 | 1 | : ¢.-€770m S45 772 ‘Intrinsic | 1 External performance | impact? 2018 2023 EBITDA Adjusted EBITDA! 1 IFRSS and including Eramet's share in PT Weda Bay Nic
Slide 32: Capitalizing on continuous intrinsic gains to generate higher recurring earnings
Capitalizing on continuous intrinsic gains to generate higher recurring earnings Past and expected development of adjusted ebitda For illustrative purpose (in €m) 32 EBITDA 2015 (excl. divested portfolio!) Eramet- Credit update March 2024 EBITDA Adjusted Adjusted 2018 EBITDA EBITDA (excl. divested 2
Slide 33: Disciplined capital management & commitment to strong balance sheet
Disciplined capital management & commitment to strong balance sheet Proforma Debt! maturity profile —- End-2023 (€m) Group financial liquidity (€m) 2,989 c.3 years 563 Av. maturity 2,596 4s) 5 2,012 361 2 249 184 1s “9 15 31.12.2021 31.12.2022 31.12.2023 2024 2025 2026 2027 2028 22029 BM Undrawn lin
Slide 34: Eramet capital allocation policy
Eramet capital allocation policy O1 Balance sheet © Maintain adjusted leverage below 1x on average through the cycle 02 Capex © Disciplined investment policy © Deliver organic growth with very quick payback and attractive returns ®@ Unlock strategic greenfield projects and de-risk via partnership mo
Slide 35: Financial leverage expected to remain at well manageable levels throughout growth phase
Financial leverage expected to remain at well manageable levels throughout growth phase Adjusted leverage! - For illustrative purpose (Net debt? / LTM rolling Adjusted EBITDA?) * Reinvestment of cash generated in Gabon, Weda Bay & Senegal Max * Optimization of the funding structure for ort, Centenar
Slide 36: Outlook & Conclusion
Slide 37: Growth in mining operations compensating a still uncertain 2024 outlook
Growth in mining operations compensating a still uncertain 2024 outlook, while delivering our strategic plan ; 40-50 Mwmt' ; Illustrative 2024 Growth noe Siete Lithium carbonate Adjusted EBITDA * \ 1 in volume transported TOG produced range of €650m-€800m Based on volume targets and 2024 price conse
Slide 38: Key credit highlights
Key credit highlights Pure-play Mining & Metal strategic positions with strong Be Support from long-term | major shareholders = withaseasoned -{Frénch-State) coupled. rs management team é Well or ctive markets off e energy transition, «World-class ime vasset base:highly =... sy competitive oe - os Q
Slide 39: Become a reference for the responsible transformation of the Earth's mineral resources
“ Become a reference for the responsible transformation of the Earth’s mineral resources, for living well together ”
Slide 40: Appendix
Slide 41: Diversified portfolio of world-class deposits and downstream processing
Diversified portfolio of world-class deposits and downstream processing FRANCE * Dunkirk life Mn | Erametideas yay Trappes 1G — UNITED STATES Marietta jie ‘ Kvinesdal, Porsgrunn, lifes Sauda ASIA sa | INDONESIA WEDA BAY lites AFRICA aon ARGENTINA Li SALARDE zx CENTENARIO jit -RATONES GABON rs wf won
Slide 42: Manganese ore & alloys (refined & standards in Europe)
Manganese ore & alloys (refined & standards in Europe) CRU index price trends Mn $/dmtu Mwmt 9 an 1 o Monthly change in manganese ore prices! () 2019 2020 2021 2022 2023 Manganese ore price (44%) — — Mnore 44% average price Ore inventories in Chinese ports €lt 4000 4 3500 4 3000 4 2500 +4 2000 + 150
Slide 43: LME & nickel ore historical price (5-years)
LME & nickel ore historical price (5-years) Ni Monthly change in nickel LME prices Monthly change in nickel ore prices? kg$/t kt $Avmt 160 140 120 100 80 60 40 20 ie} 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 —— LME MU LME Stocks! —— Minerai de Nickel SLN 1M) Ore inventories in China — — Nic
Slide 44: €500m+ capex to support the Group's strategic projects and foster future organic growth
€500m+ capex to support the Group’s strategic projects and foster future organic growth Cash capex (€m) - IFRS 5 a . . . Increase in current capex to sustain operations Strict capex management 12 | Capex to sustain organic growth, o/w: 588 €133M Manganese ore porno- 1 1523 | Total €51M Transgabonese
Slide 45: Group Adjusted EBITDA sensitivity to market prices
Group Adjusted EBITDA sensitivity to market prices Annual impact Sensit Clneamgre on Adjusted EBITDA Manganese ore prices (CIF China 44%) +$V/dmtu c.€255m! Manganese alloy prices +$100/t c.€65m! Ferronickel selling prices — SLN +$1/Ib c.€95m! Nickel ore prices (CIF China 1.8%) SLN exports +$10Awmt c
Slide 46: Bond maturities
Bond maturities Amount as at Currency Initial amount 3/12/2023 (in m) Initial Maturity date Coupon November 2019 bond issue € 300 300 May 2025 5.88% May 2023 bond issue € 500 500 May 2028 7.00% 46 Eramet-— Credit update March 2024 SI eramMerT
Slide 47: Nickel class in Indonesia
28 27 Nickel class 1 in Indonesia Ni_ ||Co Scope to create a significant source of competitive Western-controlled nickel A Oe BASE Ore sourced from the world-class CLAMET — wecreate chemistry PT Weda Bay Nickel orebody Leveraging our access to proven SM Chinese HPAL technology eraMerT Limonite ore H
Slide 48: Geothermal lithium in France
Geothermal lithium in France Li Assessing the feasibility of a very low-carbon intensity project Located in the emerging Rhine era%er Valley geothermal lithium field Bringing Leveraging on lithium Close to 0 our Direct exploration an Lithium permits and Target CO, emissions Extraction Lithium extrac
Slide 49: Acquisition of exploration and mining concessions in Chile
Acquisition of exploration and mining concessions in Chile Li c.120,000Ha Located in the Atacama region of exploration & mining concessions Concessions covering a cluster of some of the most promising undeveloped lithium salars in Chile 100% Development of a future project subject to future partners
Slide 50: EV Battery recycling
EV Battery recycling 0G Favoring an integrated approach and partnership model Integrated Upstream KR Downstream battery recyclin Recovering blackmass' by Cc . a business aye der dismantling and shredding [Cf Extracting battery-grade Li, Ni and Li-ion batteries and scrap Co from blackmass 7 * DFS und
Slide 51: Contacts
CONTACTS Director of Investor Relations Sandrine NOURRY-DABI sandrine.nourrydabi@eramet.com Financing & Treasury Director Philippe BERNEUR philippe.berneur@eramet.com > eraMer;r