Slide 1: A New ERA – Eramet Group presentation May 2023
A New ERA Eramet Group presentation – May 2023
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 stat
Slide 3: Eramet at a glance
1 Eramet at a glance
Slide 4: A global pure player in Mining & Metals
A global pure player in Mining & Metals Refocused on 4 activities1 Record financial results in 2022 Manganese Nickel 63% 28% of sales of sales Adjusted €5.0bn EBITDA1 Group sales Mineral sands 2022 Lithium €1.9bn 9% In development FCF of sales generation Breakdown of sales by geography €824m 46% Lev
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 In construction Assets Assets Assets Asset Ore – Moanda (Gabon) Weda Bay (Indonesia) GCO (Senegal) Centenario (Argentina) World’s largest manga
Slide 6: Eramet biggest strength: its first-class deposit portfolio
Eramet biggest strength: its first-class deposit portfolio Long-life world-class deposits positioned on the first quartile of the mining industry cost curve Moanda – Gabon Weda Bay – Indonesia Centenario – Argentina Cameroon 25 28 Bolivia 3 Weda Bay Libreville Gabon Indonesia Moanda 116 Mt resources
Slide 7: An increased diversification by country strengthening the business profile
An increased diversification by country strengthening the business profile 2018 EBITDA geographic breakdown1 2022 adj. EBITDA2 geographic breakdown1 30% 38% €1.9bn 5% 9% 3 18% Gabon Senegal New Caledonia OECD Gabon Senegal OECD Indonesia New Caledonia 1 Excluding discontinued activities, for illustr
Slide 8: A committed, contributive and recognized corporate citizen
A committed, contributive and recognized corporate citizen 1 2 3 OUR PURPOSE, OUR Committed to Committed to economic Committed to the REASON FOR ACTING people responsibility planet “ Become a reference for the responsible transformation of the Earth’s mineral Ensuring the Health & Contributing to en
Slide 9: A 2018-2023 CSR roadmap combining operational performance and corporate commitment
A 2018-2023 CSR roadmap combining operational performance and corporate commitment… …answering our ESG issues and the UN Sustainable development goals Commitment to economic Commitment to people responsibility For each of the 13 goals: Ensure the Health and Safety of Be an energy transition leader i
Slide 10: A CSR commitment and performance recognized by rating agencies
A CSR commitment and performance recognized by rating agencies A- Climate change B- 73/100 B- Prime Water security Gold medal Among the best in Among the best in Top 3% in the M&M sector the industry the industry 26.11 66/100 Advanced 2nd decile 9/144 3/44 in the M&M sector in the M&M sector in the
Slide 11: Aligning with the highest standard in responsible mining
Aligning with the highest standard in responsible mining Planning for Business integrity positive legacies 100% of our mining sites engaged in an independent audit Social Environmental process by 2027 responsibility responsibility A standard encompassing Promoted by our 2021-22: 4 sites completed se
Slide 12: Governance supported by stable shareholding
Governance supported by stable shareholding Board of Directors Long-term reference shareholding Others float SORAME 32% + CEIR Number of 37% (Duval 18 50% 44% At 2022 Family) shares issued year-end Members Nationalities Independency1 Parity1 4% 28,755,047 STCPI3 27% Christel François APE (French sta
Slide 13: Strategic positioning
2 Strategic positioning
Slide 14: Successful strategic repositioning: focused on the upstream of the metals value chain
Successful strategic repositioning: Eramet becomes a player focused on the upstream of the metals value chain 1 2 3 FIX / REPOSITION GROW EXPAND our portfolio in metals for energy our least performing assets in our attractive businesses transition Ore production organic A&D divested Lithium growth •
Slide 15: Our purpose, our reason for acting
Our purpose, our reason for acting “ Become a reference for the responsible SUSTAINABLE VALUE CREATOR transformation of the Earth’s mineral resources for ‘living well’ together ” BUSINESS PARTNER ENTREPRENEUR OF CHOICE Develop a selective portfolio of value- Strategic transformation 1 accretive mini
Slide 16: The world will need new metals and more metals
The world will need new metals and more metals 1200 BC 1700 1800 1900 2000 C Cu Fe C Cu Fe C Ca Co Al C Ca Ce Co Cr Al Ag C Ca Cd Ce Cu Fe Mn Cu Fe Mg Mn Mo Ni Co Cr Cu Fe Ga Ge Pb Sn W Pb Pt Si Sn Th Ti In K Li Mg Mn Mo C W Zr Nb Ni P Pb Pt Re ree Rh Ru Si Sn Ta Th Ti U V W Zr A pivotal mission for
Slide 17: A strategic roadmap based on 2 pillars supported by strong CSR commitments
A strategic roadmap based on 2 pillars supported by strong CSR commitments Grow in metals supporting Sustainably develop critical global economic development metals for the energy transition Resilient markets Fast-growing markets MANGANESE ORE & ALLOYS LITHIUM NICKEL NICKEL/COBALT FOR BATTERIES MINE
Slide 18: Eramet positioned to be a key player of the battery value chain
Eramet positioned to be a key player of the battery value chain Eramet offers a unique solution to sustainably secure the metal supply for the battery industry Upstream Downstream 1 HPAL: High Pressure Acid Leaching 18 Eramet – Group presentation, May 2023 2 CAM: Cathode Active Material
Slide 19: Eramet is accelerating in the energy transition
Eramet is accelerating in the energy transition Solid fundamentals to speed up the Group’s ambitious, promising projects in metals for the energy transition Plant construction Centenario in progress Sonic Bay Good progress (Argentina) 24kt/yr LCE (Indonesia) with BASF phase 1 Battery-grade Lithium X
Slide 20: Clear capital allocation policy: sustainable financial structure
Clear capital allocation policy: sustainable financial structure to support the Group’s long-term strategy 1 2 3 Deleveraging Growth capex Dividends Significant deleveraging Disciplined investment Rewarding our shareholders achieved in 2021 and 2022 policy for their long-term Primary focus on organi
Slide 21: Credit rating awarded in April by two leading agencies
Credit rating awarded in April by two leading agencies, enhances the Group in securing and diversifying its financing plan Rating agencies’ highlights Moody’s “Strong market positions” “Best in class cost position in all mining Ba2 BB+ activities and large reserve base” Outlook stable Outlook stable
Slide 22: Grow in metals supporting global economic development
Grow in metals supporting global economic development
Slide 23: Manganese main growth drivers: Carbon steel and China
Manganese main growth drivers: 25 Carbon steel (90% of global production) and China Key Features 1 2 3 No future market: OTC negotiation Manganese ore Manganese alloys Carbon steel > CRU index: bi-weekly > Fastmarkets Metal Average content of 0.4t Mn per tonne of ore 1.8t Average content of Mn ore p
Slide 24: Eramet's industrial set-up in Manganese business
Eramet’s industrial set-up in 25 Manganese business Manganese ore activity World’s leading manganese ore mine Gabon Operated by Comilog (63.7% Eramet) for Moanda mine 50 years 7.5 Mt Highly competitive cash cost 2022 Mn ore (1st quartile of the industry) production >20 years Ore transportation to Li
Slide 25: Manganese BU market environment
Manganese BU 25 market environment Market Share 1st global producer of high-grade Mn ore 1st global producer of refined Mn alloys Main market for Mn Alloys: Europe and North America Key Players Key Consumers Moanda, Gabon Kvinesdal, Norway Mn ore Mn alloys 25 Eramet – Group presentation, May 2023
Slide 26: Nickel main growth drivers: stainless steel and batteries booming demand
Nickel main growth drivers: 28 stainless steel and batteries booming demand Key Features 1 2 3 Nickel prices Primary nickel Stainless steel & Ore index: Nickel ore • SLN: Ni ore CIF China 1.8% production1 batteries • Weda Bay: HPM nickel 1.8%/35% Nickel base alloys Class I: traded on the LME Sulfide
Slide 27: Eramet's industrial set-up in Nickel business
Eramet’s industrial set-up in 28 Nickel business Weda Bay Nickel1 – Indonesia World class deposit, operated since 2019 21.1 Mwmt2 2022 Ni ore sales World’s largest nickel mine 37 kt-Ni2 Partnership with Tsingshan, the world’s 2022 Ni ferroalloys largest stainless-steel producer production Pyrometall
Slide 28: Nickel BU market environment
Nickel BU 28 market environment Market Share 2nd ferronickel producer worldwide 1st source of high-grade seaborne ore (exports from New-Caledonia) Key Players Key Consumers SLN, New Caledonia Weda Bay, Indonesia 28 Eramet – Group presentation, May 2023
Slide 29: Mineral sands main growth drivers: ceramics and pigments market
Mineral sands main growth drivers: 22 40 ceramics and pigments market Titanium key features Zircon key features Dredge mining Dredge mining 1 Upstream followed by mineral separation 1 followed by mineral separation Upstream Titanium minerals 2 (rutile, ilmenite, Separation leucoxene) 2 Micronisation
Slide 30: Eramet's industrial set-up in Mineral sands business
Eramet’s industrial set-up in 22 40 Mineral sands business Grande Côte Opérations (GCO) 742 kt Operated since 2014 2022 HMC1 prod. 57 kt World’s largest single dredge mineral sands operation 2022 zircon prod. >24 years Ore rail transportation from mine to Dakar Life of mine port operated by GCO Diog
Slide 31: Mineral Sands BU market environment
Mineral Sands BU 22 40 market environment Market Share 4th global producer of zircon 4th global producer of titanium feedstock Key Players Diogo, Senegal Tyssedal, Norway 31 Eramet – Group presentation, May 2023
Slide 32: Develop critical metals for the energy transition with strong sustainability standards
Develop critical metals for the energy transition with strong sustainability standards
Slide 33: Lithium, cobalt and nickel are the critical metals used in batteries for e-mobility
Lithium, cobalt and nickel are the critical metals used in batteries for e-mobility Half of the cars sold globally in 2030 should Energy Transition metals be fully or partially electric1… demand booming 3 70% 50% 8% 2020 2025 2030 2035 2040 27 Electric Cars Internal Combustion Engine …with batteries
Slide 34: Lithium main growth drivers: energy storage, including Li-ion EV battery
Lithium main growth drivers: 3 energy storage, including Li-ion EV battery Key Features 1 2 3 Energy storage market Extraction Transformation Energy storage Mainly driven by environmental regulations, EV sales and mobility development From brines Lithium carbonate Li-ion batteries’ cathodes Salar br
Slide 35: Centenario: a world-class asset poised to enter the market at the right time
Centenario: a world-class asset poised to enter the market 3 at the right time Forecasted lithium market demand3 (in kt LCE2) Plant construction in progress 3,000 Lithium demand – Update February 2023 Lithium demand – Previous update 2,500 1 Eramet project commissioning By mid-2025 Full ramp-up at 2
Slide 36: Eramet's Direct Lithium Extraction technology combines strong competitiveness
Developed in-house, Eramet’s Direct Lithium Extraction 3 technology combines strong competitiveness… Direct lithium Extraction (DLE) 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 li
Slide 37: … as well as high sustainability standards
3 … as well as high sustainability standards Water recycling 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 selec
Slide 38: Key metrics of a Tier 1 project
Key metrics of a Tier 1 project Key financial metrics – Phase 1 Key operational metrics – Phase 2 At full ramp-up1 Feasibility study c.$300m Ongoing for Phase 2 FID expected by 2023 year-end EBITDA Based on a $17,800/t LCE In 2 development for next stage at 100% LT consensus CIF price stages Initial
Slide 39: Sonic Bay: partnering with BASF to consolidate our position on the battery value chain
Sonic Bay: partnering with BASF to consolidate 28 27 our position on the battery value chain FID pending 2026 Project bound on a large c.60 kt/year2 c.6 kt/year2 limonitic deposit in Halmahera Expected in Expected start Battery-grade Battery-grade island (Indonesia) H2 2023 of production1 nickel pro
Slide 40: Lithium project in Alsace: partnering with Électricité de Strasbourg
Lithium project in Alsace: partnering with Électricité de 3 Strasbourg to sustainably develop lithium in Alsace Equivalent to PFS End-of-decade c.10kt/year 15-20%2 starting Expected start of LCE1 production of French needs in 3 production Li Two geothermal power plants Partnership with Électricité d
Slide 41: ReLieVe: partnering with SUEZ in battery recycling
ReLieVe: partnering with SUEZ to become a player in the battery recycling value chain in Europe Ongoing c.€80m Up to 50k/year Subsidies awarded to of battery modules PFS Eramet1 recycled Innovative closed-loop process fully piloted in 2020-2021 within Eramet Research & Innovation Centre Partnership
Slide 42: Eramet is highly committed for decarbonation through projects & innovations
3 Eramet is highly committed for decarbonation through projects & innovations
Slide 43: The Group has significantly reduced the carbon intensity of its products since 2018
The Group has significantly reduced the carbon intensity of its products since 2018 Carbon intensity1 of Eramet's products (tCO2/t outgoing product) 0.5 CSR roadmap 2018-2023 Target -26% SLB2 financing 0.4 vs. 2018 framework Achieved -40% vs. 2018 Target -35% Target -40% 0.3 vs. 2019 vs. 2019 0.2 0.
Slide 44: Eramet has a strong commitment to fight climate change
Eramet has a strong commitment to fight climate change Validation of the Group's CO2 absolute emissions reduction target “well below 2°C” 2023-2035 decarbonation capex by SBTi 0.4Mt -13% 0.3Mt -40% €500m Eramet’s direct investments Contribute to carbon 3.7Mt neutrality 3.3Mt Additional substantial i
Slide 45: Decarbonation projects on pyrometallurgical operations
Decarbonation projects on pyrometallurgical operations c.90% of Eramet’s energy consumption & GHG emissions1 Sourcing of Energy efficiency Replacement of CCS2 CO2 free power improvement carbon reductants development ✓ Dunkirk (France) CO2 free power sourced ✓ SLN (New Caledonia) Temporary Offshore M
Slide 46: Decarbonation of mining operations
Decarbonation of mining operations Eramet’s energy consumption & c.10% of GHG emissions1 Solar farm project Electrification at GCO (Senegal) of mining trucks Off-grid solar plant to be With solutions already commissioned in 2024 available on the market CO2 emissions reduction Energy recovery during
Slide 47: Engaging with value chain is key to decarbonize our activities
Engaging with value chain is key to decarbonize our activities Eramet’s 2022 global CO2 footprint Engaging with our value chain on Scope 3 14.97 MtCO2 Eramet’s commitment 3.55 MtCO2 3.54 MtCO2 of its suppliers and customers by 67% emissions to have decarbonation targets consistent with the well-belo
Slide 48: Appendices
Appendices cs -erameT™ >.
Slide 49: A longtime player
A longtime player 1880 1985 1991 1994 Nickel Nickel Alloys Société Le Nickel (SLN) Eramet-SLN Erasteel acquired Initial public offering was incorporated to created (diversification into of the Eramet Group operate nickel mines in highspeed steel New Caledonia production) 1997 1999 2009 2011 Manganes
Slide 50: Group's repositioning over the past 5 years
Group’s repositioning over the past 5 years Aug. Oct. Dec. 2018 2018 2018 2019 2019 Moanda Weda Bay TiZir Weda Bay Centenario Sale of poorly Feasability study to Relaunch of the Acquisition of MDL1 Start of mining Start of on-site Training performing develop the Okouma Weda Bay nickel 50% share in t
Slide 51: Eramet industrial footprint
Eramet industrial footprint Europe France Norway mining & Dunkirk Paris Kvinesdal, Porsgrunn, Sauda 17 industrial sites Tyssedal Eramet Ideas Trappes Project Mining site Asia Indonesia Processing Weda Bay Headquarters Americas R&D center USA Africa Marietta Gabon Manganese Moanda Nickel Argentina Sa
Slide 52: Positioning of each Eramet entity in the value chain
Positioning of each Eramet entity in the value chain Primary End markets / Mining transformation applications ✓ ✓ 25 Comilog CMM Carbon steelmakers ✓ Other Mn Porsgrunn, Sauda, Kvinesdal, Marietta Carbon steelmakers alloys plants and Dunkirk ✓ ✓ 28 SLN Doniambo Stainless steelmakers ✓ ✓ 28 NPI lines
Slide 53: 2022 Group turnover by end market
2022 Group turnover1 by end market Other Mineral Sands Other 2 Pigment 3% 4% Stainless Steel Ceramics 5% 2% 2% 9% Stainless Steel 28% 28% 63% 56% Carbon Steel 1 Application of IFRS 5 i.e. excl. Discontinued operations at 31 December 2022 53 Eramet – Group presentation, May 2023 (Aubert & Duval, Eras
Slide 54: An experienced Executive Committee
An experienced 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, f
Slide 55: Eramet associates the main countries and territories where it operates
Eramet associates the main countries and territories where it operates Significant contribution to Gabon New-Caledonia the local economies French Others Nippon Steel France State2 #1st private employer in 7,4% 10% Gabon Gabonese State 28,9% #1st private employer in STCPI1 34% 56% Eramet New Caledoni
Slide 56: Growth enablers: Exploration, Innovation and Digital transformation
Growth enablers: Exploration, Innovation and Digital transformation Digital Exploration Innovation transformation Exploration unit: Eramet Ideas: > 1,500 people trained in digital and data issues Created in 2019 R&I center located in Trappes, France 8 awards for the Group’s digital 70 employees tran
Slide 57: Director of Investor Relations
Director of Investor Relations Sandrine NOURRY-DABI sandrine.nourrydabi@eramet.com