Eramet Sa · EURONEXT:ERA
Eramet Sa — Investor Day (November 2023)
116 slides from Eramet Sa's investor day presentation, Nov 13, 2023
Slide 1: A New Era - Eramet Capital Markets Day 2023
A NEW ERA ERAMET CAPITAL MARKETS DAY 2023
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: Agenda
AGENDA 13.30 - 14.00 Welcome Coffee Vision & Group Transformation - CHRISTEL BORIES GEOFF STREETON / VIRGINIE DE CHASSEY Grow in metals supporting global economic development GEOFF STREETON / KLEBER SILVA 15.40 16.05 Coffee Break Sustainably develop critical metals for energy transition GEOFF STREET
Slide 4: Vision & Group Transformation
01 VISION & GROUP TRANSFORMATION CHRISTEL BORIES Chair & Chief Executive Officer ERAMET'S CAPITAL MARKETS DAY 2023
Slide 5: A new Eramet: successful and ambitious transformation
A new Eramet Successful and ambitious transformation YESTERDAY TODAY Mining & Metals 60% people in downstream1 PURE player Cash portfolio of on a single asset Diversified world-class assets dependent French centric International organization & agile Slow moving frequency rate 1.1 (FR2)2 10.9 frequen
Slide 6: Safety first
Major strategic and managerial transformation Safety FIRST ERAMET'S CAPITAL MARKETS DAY 2023 |6
Slide 7: CSR at the core of the strategic vision
CSR at the core of the strategic vision COMMITTED SUSTAINABLE BUSINESS & CONTRIBUTIVE HOME FOR VALUE PARTNER CORPORATE BEST TALENTS ENTREPRENEUR CREATOR OF CHOICE CITIZEN ERAMET'S CAPITAL MARKETS DAY 2023 |7
Slide 8: Driven by our corporate purpose
Driven by our corporate purpose Become A REFERENCE for the responsible transformation for living well together ERAMET'S CAPITAL MARKETS DAY 2023 |8
Slide 9: Divesting non-core and non-performing assets
A major repositioning by divesting non-core and non-performing assets CASH BURN 2018-H1 2023 ( m) 1 ✓ Aubert & Duval DIVEST ✓ Erasteel / CLOSE LEAST PERFORMING ✓ Sandouville ASSETS Electromanganese ✓ activity (Gabon) c.- 1bn TOTAL CASH OUTFLOWS ERAMET'S CAPITAL MARKETS DAY 2023 |9
Slide 10: Growing in value accretive and cash generating mining activities
Growing in value accretive and cash generating mining activities MANGANESE NICKEL 2 ✓ ORE ✓ ORE OPENING OF OPENING OF OKOUMA PLATEAU WEDA BAY GROW 2018 2022 2019 2023e 1,2 c.+80 0 to 30 IN ATTRACTIVE % Mwmt MINING BUSINESSES LARGEST LARGEST MANGANESE MINE NICKEL MINE in the world in the world 1 Incl
Slide 11: Expanding in activities critical for the energy transition
Expanding in highly attractive activities critical for the energy transition Argentina 3 ✓ Lithium Start of production in Q2 2024 EXPAND PORTFOLIO ✓ Nickel-Cobalt (MHP) Indonesia FID pending IN METALS FOR ENERGY TRANSITION France ✓ EV Battery recycling Ongoing DFS ERAMET'S CAPITAL MARKETS DAY 2023 |
Slide 12: Make: major transformation
major transformation MORE AGILE MORE DIVERSE Simplified & leaner 72 nationalities structure Faster People 1,200 MAKE decision-making new hires 4 partnerships 26 female % on new projects the difference managers ERAMET'S CAPITAL MARKETS DAY 2023 | 12
Slide 13: World-class mining portfolio, a key differentiator
World-class mining portfolio, a key differentiator Large resource, long-life, high-grade, scalable deposits positioned in the 1st quartile of their commodity sector cost curves Moanda GABON Weda Bay INDONESIA GCO SENEGAL Centenario ARGENTINA 454 2,800 3,030 15 Mwmt Mwmt Mt Mt 44 1.3 1.14 350 % % % m
Slide 14: An organization with a strong safety culture
An organization with a strong safety culture Mining & Metals benchmark 1.1 From BEL OW AVE RAG E to t he FREQUENCY DIVIDED BE ST RATE (FR2)1 c.7 BY in 5 ye ar TOP 3 s INDUSTRY Peers benchmark 2022 FR2 results PERFORMER2 ERAMET ERAMET 2017 2022 1 Number of lost time and recordable injury accidents fo
Slide 15: A stronger profile to navigate challenging environments
A stronger profile to navigate challenging environments and low cycle periods Recurring intrinsic performance ( c.- 843 c.800 Intrinsic External performance impact2 2018 2023e EBITDA ADJUSTED EBITDA1 1 IFRS5 and including share in PT Weda Bay Nickel EBITDA ERAMET'S CAPITAL MARKETS DAY 2023 2 Includi
Slide 16: Reinforced and diversified geographic profile
Reinforced and diversified geographic profile 2018 EBITDA GEOGRAPHIC BREAKDOWN 2022 ADJUSTED EBITDA1 GEOGRAPHIC BREAKDOWN GABON 4% 39% NEW CALEDONIA GABON 9% NEW CALEDONIA SENEGAL 1.9bn SENEGAL OECD 18% 30% INDONESIA OECD ERAMET'S CAPITAL MARKETS DAY 2023 1 IFRS5 and including share in PT Weda Bay N
Slide 17: CSR commitment recognized by rating agencies
A CSR commitment and performance recognized by leading rating agencies A- CLIMATE CHANGE B- Prime B- SECURITY WATER Among the Among the best in the best in the industry industry A 27.1 2nd decile 1st decile in the M&M in the M&M sector sector ERAMET'S CAPITAL MARKETS DAY 2023 | 17
Slide 18: A unique time in history
A unique time in history ENERGY TRANSITION The world will need MORE METALS HIGHER ESG STANDARDS ECONOMIC DEVELOPMENT 1200 BC 1700 1800 1900 2020 2040 ERAMET'S CAPITAL MARKETS DAY 2023 | 18
Slide 19: New ERAmet well aligned with the new age of metals
New ERAmet well aligned with the new age of metals INFRASTRUCTURE ENERGY TRANSITION FOR GLOBAL ECONOMIC DEVELOPMENT MORE METALS EVEN MORE METALS POPULATION INCREASED GLOBAL DECARBONIZATION ELECTRIFICATION GROWTH URBANIZATION GDP GROWTH OF TRANSPORTATION 25 28 22 40 25 28 3 27 Mn Ni Ti Zr Mn Ni Li Co
Slide 20: A balanced strategy tailored for the new era of metals
A balanced strategy tailored for the new era of metals Two strategic axes 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 MARKETS & Alloys MARKETS Ni
Slide 21: Right portfolio, organization, time
RIGHT PORTFOLIO OF ASSETS ORGANIZATION TIME To become a major player In the New ERA of metals and the energy transition ERAMET'S CAPITAL MARKETS DAY 2023 | 21
Slide 22: Strategic & CSR Roadmaps, Corporate Purpose
02 STRATEGIC & CSR ROADMAPS CORPORATE PURPOSE GEOFF STREETON Chief Development Officer VIRGINIE DE CHASSEY Chief Sustainability and External Affairs Officer ERAMET'S CAPITAL MARKETS DAY 2023
Slide 23: Metals at the heart of the global economy & energy transition
Metals at the heart of the global economy & energy transition Global economic trends & decarbonization to drive strong increase in demand for materials and metals POPULATION GROWTH: c.10bn by 2050 Bt INCREASED URBANIZATION: c.7/10 people in cities by 2050 GLOBAL GDP INTENSITY GROWTH, IN PARTICULAR E
Slide 24: Lithium, cobalt and nickel critical metals for e-mobility
Lithium, Cobalt and Nickel critical metals used for e-mobility Booming demand expected for EV batteries will require significant electric1,2 vehicles amount of metals ELECTRIC NMC3 811 battery CARS1 (70 KWH BEV) 28 27 3 x4 GROWTH IN GLOBAL 70% 2 GLOBAL EV SALES Ni Co Li EV SALES BETWEEN IN 2040 45KG
Slide 25: Lithium and Nickel class I poised for sustained high growth
Lithium and Nickel class I poised to experience sustained high growth LITHIUM DEMAND 10-YEAR FORECASTS1 NICKEL CLASS I DEMAND 10-YEAR FORECASTS1,2 Li Demand, kt-LCE Ni Demand, kt 5000 CAGR 5000 CAGR 2021-40 2021-40 +12% +9% 4000 4000 CAGR 3000 CAGR 3000 2021-30 2021-30 +20% +12% 2000 2000 1000 1000
Slide 26: Mining & Metals the foundation of the global EV supply chain
Mining & Metals companies the foundation of the global EV supply chain MHP NiSO4 ORE CoSO4 MINE HPAL REFINERY PCAM plant Production 1 2 3 4 5t Ni-Co ore Cells NMC Li-NMC & Modules Journey of a NMC1 811 battery EXTRACTION CAM GIGA- CAR Brine & Refinery Production FACTORY Manufacturer (70 KWH BEV) Li
Slide 27: Higher than ever expectations on CSR practices
Higher than ever expectations on CSR practices for Mining & Metals companies Top ten business risks and opportunities for mining and metals1 ESG GEOPOLITICS CLIMATE LICENCE CHANGE TO OPERATE SUPPLY COSTS CHAIN & PRODUCTIVITY DISRUPTION WORKFORCE CAPITAL DIGITAL NEW & INNOVATION BUSINESS MODELS 10 8
Slide 28: Expand value in resilient and fast-growing markets
Expand value in resilient and fast-growing markets Strategy aligned with global macro trends GROW IN METALS supporting SUSTAINABLY DEVELOP CRITICAL global economic development METALS for the energy transition Producing low emission products and Developing ongoing and future projects, high-grade ore
Slide 29: Sustainable accelerators to drive further growth
Sustainable accelerators to drive further growth and capture value INNOVATION DIGITAL TRANSFORMATION Eramet Ideas, an open innovation center ▪ Supporting delivery of the CSR roadmap Mine 4.0 OPERATIONAL Plant 4.0 IMPROVEMENTS ▪ Unlocking value in our mineral deposits ▪ Improving the competitiveness
Slide 30: Contributing to the search for solutions with stakeholders
Contributing to the search for solutions with stakeholders NO FURTHER PREVENTIVE ACTIVE FINANCING CONCILIATION DISCUSSIONS PROVIDED PROCEDURE with French and local by Eramet to the ongoing for SLN authorities, as well as New Caledonian other stakeholders subsidiary ERAMET'S CAPITAL MARKETS DAY 2023
Slide 31: Agile global exploration & business development capability
An agile and global exploration & business development capability EXPLORATION & BUSINESS key geographies DEVELOPMENT & beyond Identify long-term growth options Focused on 28 27 3 Strong track record Ni Co Li of delivery ERAMET'S CAPITAL MARKETS DAY 2023 | 31
Slide 32: A key contributor to a sustainable future
A key CONTRIBUTOR to a sustainable future An ambitious CSR roadmap embedded within strategic vision ERAMET'S CAPITAL MARKETS DAY 2023 | 32
Slide 33: CSR transformation since 2018
transformation since 2018 108% achievements over CSR roadmap period and 115% in 2022 COMMITTED TO COMMITTED TO COMMITTED TO PEOPLE ECONOMIC THE PLANET RESPONSIBILITY +125,000 BENEFICIARIES -40 % CARBON INTENSITY 1.2 x REHABILITATION 2018-2022 areas ratio since 2019 vs. -26% 2023 target vs. 0.9x 2014
Slide 34: Act for Positive Mining
Ready to take a new impulse Act for POSITIVE MINING A new and ambitious CSR Roadmap 2024-2026 ERAMET'S CAPITAL MARKETS DAY 2023 | 34
Slide 35: Addressing the main sustainability issues identified by stakeholders
Addressing the main sustainability issues identified by our stakeholders 2024-2026 CSR roadmap is tailored to address the most pressing issues SIGNIFICANT ISSUES PRIORITY ISSUES Energy consumption Biodiversity & GHG emissions Health & safety Human rights of employees & subcontractors Contribution &
Slide 36: Act for positive mining
Act for positive mining Responsible mining is part of the solution to support the energy transition RESULT-ORIENTED TARGETS 3 AREAS - Across all operational entities OF ACTION TRANSLATED INTO - Shared from field to corporate 10 AMBITIONS Entire organization aligned FOR 2026 on best practices ERAMET'
Slide 37: Care for People
Care FOR PEOPLE Going further to protect workers and communities TARGET CSR ROADMAP 2026 2024 2026 1 TAKE CARE <1.0 FR21 (frequency rate) OF HEALTH AND SAFETY OF PEOPLE ON OUR SITES 90% NEW Employees global benefits program 2 PROVIDE AN INCLUSIVE 30% Female managers (%) ENVIRONMENT WHERE EVERYONE CA
Slide 38: Trusted Partner for Nature
TRUSTED PARTNER for Nature Going further to protect the environment TARGET CSR ROADMAP 2026 2024 2026 4 60% Water recycling rate at GCO CONTROL AND OPTIMIZE WATER CONSUMPTION 80% Water recycling rate at Centenario 5 Rehabilitation ratio BIODIVERSITY PRESERVATION 100% NEW Mining sites having a Biodiv
Slide 39: Transform our value chain
Transform OUR VALUE CHAIN Going further to involve our ecosystem TARGET CSR ROADMAP 2026 2024 2026 7 REDUCE -36% Reduce carbon intensity (scope 1 & 2 GHG emissions) vs 20191 THE CO2 FOOTPRINT OF OUR VALUE CHAIN 67% NEW % of scope 3 committed to reduce CO2 8 OPTIMIZE MINERAL Prepare RESOURCES CONSUMP
Slide 40: Aligning with the highest standard in responsible mining
Aligning with the highest standard in responsible mining through CSR roadmap A standard encompassing international best practices 10 EQUAL multi- stakeholders BEST-IN-CLASS comprehensive ASSESSMENT process TRANSPARENCY through 100% NEW governance standard of mining sites public report Including NGOs
Slide 41: On track to achieve long-term objectives
On track to achieve long-term objectives Ambitious 2035 targets Biodiversity 100 % SITES WITH D&I LABEL TOWARDS NET POSITIVE IMPACT -40 CO2 EMISSIONS % REDUCTION1 SCOPES 1&2 VS. 2019 ERAMET'S CAPITAL MARKETS DAY 2023 1 Absolute target, in tons of CO 2 | 41
Slide 42: Leading player in the new era of metals
Strategic and CSR roadmap paving the way for Eramet to become a LEADING PLAYER In the new era of metals contributing to a sustainable future ERAMET'S CAPITAL MARKETS DAY 2023 | 42
Slide 43: Grow in metals supporting global economic development
03 GROW IN METALS SUPPORTING GLOBAL ECONOMIC DEVELOPMENT Strategy & Operations GEOFF STREETON Chief Development Officer KLEBER SILVA Chief Operating Officer ERAMET'S CAPITAL MARKETS DAY 2023
Slide 44: Diversified portfolio of world-class deposits and downstream processing
Diversified portfolio of world-class deposits and downstream processing FRANCE NORWAY 25 MINING SITE Dunkirk Kvinesdal, 25 Mn Porsgrunn, PROCESSING Mn Eramet Ideas Sauda UNITED 25 R&D CENTER Mn Trappes STATES Marietta ASIA 28 27 Ni Co INDONESIA AFRICA 25 WEDA BAY ARGENTINA 3 GABON Mn Li SALAR MOANDA
Slide 45: First strategic axis
First strategic axis Market leadership and continuous value-accretive organic growth Grow in metals supporting Sustainably develop critical global economic development metals for the energy transition Resilient Fast-growing MANGANESE ORE & ALLOYS LITHIUM markets markets NICKEL NICKEL/COBALT FOR BATT
Slide 46: Manganese
MANGANESE ERAMET'S CAPITAL MARKETS DAY 2023 | 46
Slide 47: Manganese market driven by carbon steel and emerging demand
Manganese market driven by carbon steel and emerging demand in India and the battery sector MANGANESE A KEY METAL CARBON STEEL A LARGE AND STABLE MARKET ACROSS INDUSTRIES +1% CAGR 2023e-2026e1 APPLICATIONS CARBON STEEL PRODUCTION SHARE 2023e INDIA 90% Carbon steel industry emerging Growth driven by
Slide 48: Manganese ore: high-grade deposits dominate first quartile
Manganese ore: high-grade deposits dominate the first quartile of the cost curve Concentrated market, South Africa main exporter & marginal swing producer MANGANESE ORE GRADES MANGANESE ORE INDUSTRY COST CURVE1 (Simplified) Cash-cost $/dmtu Eramet - >40%Mn Australia Brazil Manganese content 40% CARB
Slide 49: Manganese ore: pricing premium of high-grade
Manganese ore: pricing premium of high-grade driven by scarcity of supply and increasing demand PRICING PREMIUM1 44%Mn - 37%Mn indices spread What are the drivers of the high-grade pricing premium? US$/dmtu 1.2 Lower energy and reductant costs in the furnace x2 0.8 Undersupply of high-grade products
Slide 50: Manganese alloys value drivers
Manganese alloys value drivers A REGIONAL MARKET North America and Europe most attractive markets Highest value in refined alloys APPLICATIONS Steady growth in global demand for refined +4% CAGR 2023-2026e1 50 to 85% 2% to 8% Standard Mn content carbon content (overcapacity, low margins) Steel (cons
Slide 51: Value add in manganese: high grade ore and greener products
Value add in manganese supported by high grade ore and greener products offering ORE ALLOYS Further grow manganese ore production ▪ Capitalize on the customer demand for high- ▪ Production agility to respond to market signals grade ores ▪ Unlock value through productivity Unlock green premium to cap
Slide 52: A 35-year relationship with Gabon
A 35 years long-lasting relationship with Gabon Well integrated and accepted business partner Shared ownership of Comilog & Setrag, Gabonese state holding 28.9% and 9% respectively CAMEROON Comilog: 75-year mining concession Libreville Transgabonese railway Setrag:30 -year Transgabonese railway conc
Slide 53: Moanda: world's largest high-grade manganese mine
Moanda: world s largest high-grade manganese mine Two plateaux operated by Comilog (63.7% Eramet) BREAKDOWN OF RESOURCES (%)1 7.5 Mt ▪ 3.2 Mt Mn content 67% ORE PRODUCTION (2022) ▪ 18% of worldwide Mn supply OKOUMA 8% $2.3 1.2 /dmtu t/t MASSENGO 454 Mwmt2 of resources FOB CASH COST STRIP RATIO (2022
Slide 54: An integrated value chain from mine to customer
An integrated value chain from mine to the customer Extraction, Moanda (Bangombé Okouma) Owendo Port, Libreville Railway Station Dry mining Stacking units Mn ore >44% grade Fine by-products c.38% grade Railway Station (Moanda) Shipment 700 km Stationary C. 50-200kt Mn alloys washing SiMn vessels Mn
Slide 55: Moanda: responsible mine engaged in key initiatives
MOANDA: responsible mine engaged in key initiatives CARE TRANSFORM TRUSTED PARTNER FOR PEOPLE OUR VALUE CHAIN FOR NATURE CSR fund dedicated Mine electrification with 270ha rehabilitated in 2022 to developing local very low carbon footprint 1.65x ratio economies Mining operations fully Lekedi foundat
Slide 56: Significant increase in ore production and long-term targets
Significant increase in ore production and robust long-term targets ORE PRODUCTION (Mt) >10 8 Mt >8.5 Significant organic growth over the past +80% 7.5 Production capacity five years with limited capex Implementing initiatives to continue 4.3 c.7.0 improving cash cost positioning ▪ Further improveme
Slide 57: Improving and expanding transportation capacity
Critical enabler of improving and expanding transportation capacity ORE TRANSPORTED (Mt) Improving logistics and safety measures >10 ▪ Increase train capacity >8.5 ▪ Railway 4.0: optimizing route +80% 7.2 7.0 ▪ Securing tracks 4.0 Digitalizing transportation activities with IROC 2018 2022 2023e 2026
Slide 58: A leading Mn alloys producer in favorable markets
A leading Mn alloys producer in favorable markets Largest producer of refined Mn alloys Well positioned to capture value out c.680 10x kt ALLOYS PRODUCTION DEMAND BY 2030 (2022) 47% of refined High exposure to Europe and U.S. automotive industries c.15% of global demand refined alloys1 Access to low
Slide 59: Maximizing the value of manganese alloys business
Maximizing the value of manganese alloys business with agility in a very competitive market 2026 TARGETS ▪ Strong focus on refined FeMn ▪ Increased focus on asset utilization, flexible production Up to 800kt and product optimization MN ALLOYS CAPACITY Production can flex ▪ Long-term productivity imp
Slide 60: Become a supplier of choice for green steel
Become a supplier of choice for green steel Pathway to unlock green premium through low emission intensity offering Lowest existing carbon footprint Ambitious Mn alloys decarbonization in the industry roadmap ▪ CO2 footprint is c.60% lower than industry ▪ Objective to reduce CO2 emissions intensity
Slide 61: Nickel
NICKEL ERAMET'S CAPITAL MARKETS DAY 2023 | 61
Slide 62: Nickel: a metal for economic development and energy transition
Nickel: a metal for both economic development and energy transition MAIN APPLICATIONS OF PRIMARY NICKEL 20221 Critical component in numerous products 66% STAINLESS STEEL ▪ Resistance to oxidation, high ductility and melting point for steel 15% BATTERIES ▪ Greater energy density and larger storage ca
Slide 63: Nickel growth: 8% CAGR driven by batteries demand
Nickel growth: 8% CAGR over 2023-2026 driven by batteries demand NICKEL GROWTH DEMAND1 (Mt) +8% 3.8Mt Significant long-term boom driven by 3.0Mt strong batteries demand +21% ▪ Expectation for battery market to accelerate starting 2024, representing over 20% of global +2% nickel consumption ▪ Batteri
Slide 64: A growth strategy focused on Weda resource position
A growth strategy focused on Weda resource position WEDA BAY RESOURCES Mwmt . 3,000 . 2,500 2.8Bt 1 Steps to generate value Continue to drill out ore body 2,000 . Start of mining Focus on low-cost mining and achieve IRMA operations 1,500 . certification 1,000 . Valorize limonite ore into emerging HP
Slide 65: Indonesia emerging as largest producer of nickel
Indonesia emerging as largest producer of nickel Weda Bay Industrial Park (IWIP): a key global supplier & still ramping-up Indonesia represents 38% of IWIP enabled 25% of Indonesia s export value of supply, and will continue growing nickel related products (2022) NICKEL SUPPLY EVOLUTION (2022 2026)1
Slide 66: Weda operating since 2019
Weda operating since 2019 NI ORE SALES 21.1 / c.30 Mwmt Mwmt PARTNERSHIP WITH TSINGSHAN (38.7% Eramet) 2,800 Mwmt (2022) (2023e) ▪ c.200kt Ni content2 OF RESOURCES1 ▪ c.7% of worldwide supply Ore grade 0.46 t/t 1.2 1.9 Weda Bay % STRIP RATIO SAPROLITE INDONESIA 1.0 1.4 % 1ST QUARTILE CASH COST LIMON
Slide 67: PT Weda Bay: key regional ore supplier to IWIP
PT Weda Bay: key regional ore supplier to an extensive industrial park (IWIP) of NPI & HPAL plants PT Weda Bay NPI Plant INDONESIA WEDA BAY MINE & INDUSTRIAL PARK (IWIP) (43% Eramet with offtake contract) ▪ 37 kt-Ni NPI production (2022) Contract of work boundary Other producers Existing road 58 RKE
Slide 68: Weda Bay: committed to responsible development
Weda Bay: committed to responsible development of the mining industry in Indonesia CARE TRANSFORM FOR PEOPLE OUR VALUE CHAIN 11,000 BENEFICIARIES from impactful Committed to operating in compliance initiatives with IRMA STANDARDS ▪ Supporting multiple infrastructure initiatives ▪ Engaging with Indon
Slide 69: Weda Bay: unlocking the full potential of the mine
Weda Bay: unlocking the full potential of the mine WEDA BAY NICKEL ORE SOLD VOLUMES (Mwmt)1 Exceptional ramp up in mining and NPI production plant in just four years x2 60 ▪ Productive combination of expertise with ▪ Leveraging strong capabilities c.30 21.1 Low capital-intensive mining operations 0.
Slide 70: Mineral Sands
MINERAL SANDS ERAMET'S CAPITAL MARKETS DAY 2023 | 70
Slide 71: Resilient market supported by urbanization and construction
Resilient market supported by urbanization and construction sectors Solid demand for GCO high-quality products (titanium-based products and zircon) TITANIUM APPLICATIONS ZIRCON APPLICATIONS 4% 30% OTHERS REFRACTORIES (INCLUDING WELDING) & FOUNDRY TiO2 Zr 7% +2.8% 89% +2.8% 50% CERAMICS TITANIUM META
Slide 72: Refocused on upstream and optimizing existing asset
Refocused on upstream and optimizing existing asset to increase value generation Refocus on mine production in Senegal portfolio (Grande Côte Operations, "GCO") ▪ Sale of pyrometallurgical plant ▪ Optimization and expansion ("ETI") in Norway end-September 2023: (debottlenecking, higher grade) $245m
Slide 73: Grande Côte Operations (GCO)
operation1 OPERATED BY GCO (90% ERAMET) 4 th 3.03 Bt LARGEST PRODUCER OF BOTH TITANIUM FEEDSTOCK OF MINERAL AND ZIRCON SANDS RESOURCES MAURITANIA 2 nd 24 Diogo YEARS LARGEST NON-INTEGRATED Dakar SENEGAL CHLORIDE ILMENITE PRODUCER LIFE OF MINE 742 kt INVESTMENT TO GROW HEAVY MINERAL CAPACITY UNDERWAY
Slide 74: GCO: best-in-class safety & CSR
GCO: best-in class in terms of safety & CSR, supporting development growth CARE TRANSFORM TRUSTED PARTNER FOR PEOPLE OUR VALUE CHAIN FOR NATURE Best-in class safety results Aligning Solar farm project1 with IRMA standards ▪ 0.3 FR2 YTD-2023 ▪ 20% ▪ 1ST Group independent electricity supply ▪ 4YEARS a
Slide 75: Driving organic growth: 30% production capacity increase
Driving organic growth: 30% production capacity increase over 2022-2026 HEAVY MINERAL CONCENTRATE (HMC) PRODUCTION (in kt) 2018 2023: slight production decrease, as lower average content of the mined +50% area 1,050 774 742 700 Expanding production with three key initiatives ▪ Launched dry mining ca
Slide 76: Sustainably develop critical metals for energy transition
04 SUSTAINABLY DEVELOP CRITICAL METALS FOR ENERGY TRANSITION Strategy & Operations GEOFF STREETON Chief Development Officer KLEBER SILVA Chief Operating Officer ERAMET'S CAPITAL MARKETS DAY 2023
Slide 77: Second strategic axis
Second strategic axis Positioned to benefit from energy transition Grow in metals supporting Sustainably develop critical global economic development metals for the energy transition Resilient Fast-growing MANGANESE ORE & ALLOYS LITHIUM markets markets NICKEL NICKEL/COBALT FOR BATTERIES MINERAL SAND
Slide 78: Asset portfolio addresses powering the energy transition
Asset portfolio perfectly addresses the critical issue of powering the energy transition Business opportunities for Eramet ENERGY KEY CATHODE leveraging on deposits & TRANSITION CRITICAL expertise MATERIALS Large lithium deposit in Argentina and partnership option in 28 22 Alsace Ni Li Opportunity t
Slide 79: Positioned to create value leveraging core expertise
Well positioned to sustainably create value leveraging on our core expertise PRIMARY SECONDARY UPSTREAM UPSTREAM 22 28 27 22 28 27 25 Li Ni Co Li Ni Co Mn Mining and first Refining & CAM Battery Battery life cycle transformation production recycling High-returns Positioned to business leveraging par
Slide 80: Developing projects in a sustainable and responsible manner
Developing projects in a sustainable and responsible manner A B Li 22 Ni 28 27 Co C Li 22 Ni 28 SEEDING PROJECTS PROJECTS OUR FUTURE UNDER STUDY IN THE MAKING Centenario Phase 1: MHP (Ni-Co) in Indonesia Exploration unit production starting Q2 2024 EV Battery recycling Innovation center Centenario P
Slide 81: Seeding our future for sustainable growth
VATIO IN NO N A Seeding our future for sustainable growth Paving the way for future development options EXPLORATION ▪ Opportunities identified and active business development SEEK to enlarge our resource base ▪ Establishing exploration positions in Indonesia and Chile and brownfield to our operation
Slide 82: Acquisition of concessions in Atacama region (Chile)
VATIO IN NO N A Acquisition of exploration and mining concessions in Atacama region (Chile) Significant milestone in strategic push to build a portfolio of future projects in energy transition metals Additional $10m Secures 100% ownership of a package of $95m component subject exploration and mining
Slide 83: Acquisition of concessions in Atacama region (Chile)
VATIO IN NO N A Acquisition of exploration and mining concessions in Atacama region (Chile) Exploration potential for significant lithium brine resources c.120,000 Ha OF EXPLORATION & MINING CONCESSIONS La Isla Antofagasta o/w c.40,000Ha of salars surfaces region Aguilar Atacama region Grande Sole c
Slide 84: Nickel class 1 in Indonesia: growing HPAL capacities
R STU DE D N Y U B Nickel class 1 in Indonesia Ramping up ore output to serve a growing, local ore HPAL processing industry GROWING HPAL CAPACITIES IN INDONESIA... INSTALLED INDONESIAN HPAL CAPACITY (ktpa-Ni)1 TOTAL ORE SOLD VOLUME (Mwmt) 2022-26 600-650 2022-26 60 x4 x3 ~30 21 c.150 2022 2026e 2022
Slide 85: Nickel class 1 in Indonesia: MHP project
R STU DE D N Y U B Nickel class 1 in Indonesia Scope to create a significant source of competitive Western-controlled nickel Ore sourced from the world-class PT Weda Bay Nickel orebody Leveraging our access to proven Chinese HPAL technology Limonite ore High-Pressure Acid Leaching (HPAL) feed IRMA-c
Slide 86: EV Battery recycling
R STU DE D N Y U B EV Battery recycling Favoring an integrated approach and partnership model Integrated Upstream Downstream battery recycling Recovering blackmass1 by dismantling and shredding Extracting battery-grade Li, Ni and business model Li-ion batteries and scrap Co from blackmass ▪ DFS fina
Slide 87: Geothermal lithium in France
R STU DE D N Y U B Geothermal lithium in France Assessing the feasibility of a very low-carbon intensity project Located in the emerging Rhine Valley geothermal lithium field Bringing Leveraging on lithium our Direct exploration Lithium permits and Close to 0 Lithium extraction Extraction expertise
Slide 88: Our flagship Centenario project
E MAKI TH N IN G C Our flagship Centenario project CENTENARIO RESOURCES (Mt-LCE) Leveraging strong resource position to benefit from the growth in energy 15Mt Mt-LCE transition 16 1 14 One of the most attractive deposits in the 12 Lithium Triangle 10 Untapped significant resource 8 @ average grade o
Slide 89: Centenario: Phase 1 and Phase 2 economics
E MAKI TH N IN G C Our flagship Centenario project State-of-the- Eramet Development Phase 1 phase Unlocking the potential Phase 2 1st tranche In-house DLE Partnership with Tsingshan since end-2021 technology (50.1% Eramet, 49.9% Tsingshan) c.30kt-LCE >$30m 24kt-LCE Production capacity production cap
Slide 90: Centenario: first quartile cost position
E MAKI TH N IN G C Our flagship Centenario project Phase 1 - Attractive profitability underpinned by first quartile cost position COST CURVE OF THE LITHIUM INDUSTRY (2028, ERAMET INTERNAL ESTIMATES) Cash cost1, $/kg LCE 30 Expected strong resilience through-the-cycle 25 Spot price 20 Current long- F
Slide 91: Centenario: low-impact sustainable extraction
E MAKI TH N IN G C Our flagship Centenario project Phase 1 - Battery-grade lithium extracted with a low-impact sustainable method CONTINUOUS R&D HIGHEST STANDARDS TO IMPROVE OUR TECHNOLOGY TO BECOME A BENCHMARK Mining site to engage IRMA -60% Scope 3 CO2 intensity audit by end of 2024 performance vs
Slide 92: Centenario Phase 1 on time and focused on commissioning
E MAKI TH N IN G C Our flagship Centenario project Phase 1 on time and focused on commissioning Phase 1 advancement towards 75 % COMPLETION RATE 1,420 PEOPLE ON ON TRACK commissioning THE CONSTRUCTION TO START SITE LITHIUM CARBONATE c.90% >95 % Past four PRODUCTION years IN Q2 2024 performance LITHI
Slide 93: Scalable deposit offering clear growth perspectives
E MAKI TH N IN G C Our flagship Centenario project Scalable and high-quality deposit offering clear growth perspectives TARGETED CAPACITY PRODUCTION (ON A 100% BASIS, IN kt-LCE) Strong upside to unlock >75 from a sequenced approach ▪ Subsequent phases to be implemented c.55 with the same or better e
Slide 94: Centenario Phase 2, 1st tranche
E MAKI TH N IN G C Our flagship Centenario project Phase 2, 1st tranche, conditionally board approved (construction permitting ongoing) ATTRACTIVE MARKET FUNDAMENTALS APPEALING PHASE 2 (1ST TRANCHE) METRICS ▪ Limited competitive pressure with >50% 30 kt 4.5-5.0 k$/t LCE of new lithium projects to be
Slide 95: Phased approach to de-risk penetration in a growing market
E MAKI TH N IN G C Our flagship Centenario project Phased approach to de-risk our penetration in a growing market Start of phase 1 Start of phase 2 2021 2022 2023 2024 2025 2026 PRODUCTION Phase 1 CONSTRUCTION PERIOD RAMP-UP AT NAMEPLATE CAPACITY Conditional Eramet board approval FINANCING PROCESS P
Slide 96: Financial Review
05 FINANCIAL REVIEW NICOLAS CARRÉ Chief Financial Officer ERAMET'S CAPITAL MARKETS DAY 2023
Slide 97: Our financial journey
Our financial journey 2018-2020 2021-2022 2023-2026 Sources Growth: Mn ore & GCO Growth: Mn ore, Weda Bay Growth: Mn ore, Weda Bay of funds Axis #1 & GCO & GCO Market conditions Market conditions Market conditions Growth: Lithium Phase 1 & Phase 2 Axis #2 Market conditions Capital Axis #1: Mn ore +
Slide 98: Strong intrinsic performance delivered in core businesses
Strong intrinsic performance delivered in our core businesses BRIDGE FROM 2018 EBITDA TO 2022 ADJUSTED EBITDA1 ( 75 1,897 194 355 -40 -163 1,393 235 398 843 c. intrinsic performance EBITDA Mn activities Weda Bay Other 2 SLN Adj. EBITDA Net market Exchange Other 4 Adjusted Intr. perf. Contrib. Intr.
Slide 99: Guidance FY 2023: demonstrating resilience
Guidance FY 2023: demonstrating resilience BRIDGE FROM 2018 EBITDA TO 2023 ADJUSTED EBITDA1 ( ▪ Strong intrinsic gains expected c.- in H2 2023, largely offsetting external impact subdued performance in H1 due to non-recurring incidents intrinsic performance 504 ▪ 2023 performance to be largely and n
Slide 100: Strategic repositioning to liberate cash resources
Strategic repositioning to significantly liberate cash resources BRIDGE FROM 2018 NET DEBT TO H1 2023 NET DEBT ( m) 1,906 -275 c.40% -209 Average cash conversion over the period (excl. SLN & divested assets) ▪ Reshaped asset portfolio -942 having a cash generation profile in line with industry -376
Slide 101: Balance sheet with leverage back below 1.0x
Balance sheet now better positioned with leverage back below 1.0x ADJUSTED LEVERAGE (Net debt1 / LTM rolling Adjusted EBITDA2) ▪ Sharp decrease in leverage 4.0x essentially on the back of favorable market recovery in 2021 and growth momentum in 3.0x Manganese and Weda Bay operations 2.0x ▪ Less vola
Slide 102: More balanced credit profile and debt maturity
A more balanced credit profile underpinned by recent reshaping of debt portfolio c.3 yrs DEBT MATURITY PROFILE - At 30 June 2023 ( 551 AVERAGE DEBT 51 MATURITY 422 6.4 % 48 300 316 74 76 236 AVERAGE COST 500 OF GROSS DEBT 159 51 222 300 115 Ba2 BB+ 240 48 185 111 115 78 RESPECTIVE RATINGS 2023 2024
Slide 103: Ample liquidity to address future growth capex
Ample liquidity to address future growth capex GROUP FINANCIAL LIQUIDITY ( m) 2,596 Active financial facility management with the 2,467 extension of the RCF until June 2028 and the 2,175 successful increase of the term loan to 935 1,080 935 Additional liquidity secured since end-June ▪ Innovative $4
Slide 104: Focus on growth, keeping strict leverage control
Now moving our focus to growth, keeping strict leverage control through the cycle 01 02 03 Balance sheet Capex Dividend ▪ Maintain adjusted ▪ Disciplined investment policy ▪ Reward shareholders leverage below 1x on ▪ Deliver organic growth with for their long-term average through very quick payback
Slide 105: Deploying capital to grow world-class asset base
Deploying capital to grow our world-class asset base CAPEX PLAN FOR THE NEXT 3 YEARS c. Industrial investments (in c.900 2024-2026e CAPEX net of Tsingshan share c.600 c.190 ▪ > over c.100 the next three years reflecting investment c.160 decisions to date1 c.275 c.400 125-175 75-100 ▪ c. (mostly rela
Slide 106: 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 Market conditions 849 c.800 19 EBITDA EBITDA Adjusted Adjusted 2015 2018 EBITDA EBITDA (excl. divested (excl. divested 2023e long-term portfo
Slide 107: Earnings resilience supported by diversification
Earnings resilience supported by further business diversification PAST AND EXPECTED BREAKDOWN OF ADJUSTED EBITDA FOR ILLUSTRATIVE PURPOSE (excl. Holding) 9% 21% 70% EBITDA 2018 Adjusted EBITDA 2022 Adjusted EBITDA (excl. divested portfolio1) (excl. divested portfolio1) long-term potential2,3 Mangane
Slide 108: Financial leverage at manageable levels through growth phase
Financial leverage expected to remain at well manageable levels throughout growth phase ADJUSTED LEVERAGE (Net debt1 / LTM rolling Adjusted EBITDA2) ▪ Reinvestment of cash generated in Gabon, Weda Bay & Senegal ▪ Optimization of the funding structure for Centenario Phase 2 ▪ Swift deleveraging expec
Slide 109: Robust plan for financial sustainability
Robust plan for financial sustainability SUSTAINED CLEAR STRATEGIC STRONG CSR OPERATIONAL ROADMAP COMMITMENT EXCELLENCE Disciplined capex Intrinsic performance Key differentiator program supporting capitalizing on diversified enhancing growth momentum & world-class asset base competitiveness Sustain
Slide 110: Conclusion
06 CONCLUSION CHRISTEL BORIES Chair & Chief Executive Officer ERAMET'S CAPITAL MARKETS DAY 2023
Slide 111: Ambitious mid-term production targets
Ambitious mid-term production targets > 10Mt Up to 800 kt 60Mwmt MN ORE MN ALLOYS WB NI ORE (TARGETS ASSESSED BASED ON (MARKETABLE) MARKET DEMAND & MARGINS) ENERGY TRANSITION 1.0Mt >75 kt-LCE PROJECTS IN Preparation HMC LI BATTERY GRADE LCE phase ERAMET'S CAPITAL MARKETS DAY 2023 | 111
Slide 112: Eramet perfectly positioned to 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 SOLID ENABLING MARKETS TRACK RECORD GROWTH ERAMET'S CAPITAL MARKETS DAY 2023 | 112
Slide 113: Appendix
07 APPENDIX ERAMET'S CAPITAL MARKETS DAY 2023
Slide 114: A new era: from the age of oil to the age of metals
A new era: from the age of oil to the age of metals MINERAL DEMAND FOR CLEAN ENERGY TECHNOLOGIES Mt 3 SCENARIOS BY 2040 45 40 x6 35 /vehicle 30 25 20 TRANSITION METALS 15 INTENSITY USED IN EVs 10 compared to conventional 5 cars 0 2020 2040 - Stated Policies 2040 - Sustainable 2040 - Net-zero by 2050
Slide 115: Indonesian Ni ore price driven by LME index with grade premium
Indonesian Ni ore price driven by LME index with a grade premium Ni ORE PRICE VS. LME Ni ore ($/lb-ni) 35 30 The higher the ore grade the higher the ore price 25 Indonesian Domestic Ni ore price 20 ▪ Based on LME ▪ Premium factor linked to grade 15 The higher the LME ▪ Discount factor linked to humi
Slide 116: Lithium project value underpinned by cash accessibility features
Lithium project value underpinned by cash accessibility features Direct investment >$100m in foreign currency for Decrees issued by new mining projects or existing projects expansions Framework the Argentinian Government1 Secured cash repatriation Benefits of the Decree 234/2021 Creating the Percent