Slide 1: H1 2024 Half-year results
H1 2024 Half-year results July 26th, 2024 Christel BORIES, Chair & CEO Nicolas CARRÉ, CFO 1 ERAMET – H1 2024 RESULTS
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 01 02 03 04 Introduction Financial Operational Strategic roadmap performance performance update 05 06 Conclusion & Appendices outlook 3 ERAMET – H1 2024 RESULTS
Slide 4: Introduction
Introduction 01
Slide 5: H1 2024 key highlights
H1 2024 key highlights: solid operational performance and an important milestone reached in the development of metals for the energy transition Operational Financial Balance Energy transition CSR performance performance sheet projects Solid growth Positive intrinsic Robust financial Inauguration of
Slide 6: Positive intrinsic performance in a still unfavorable price environment
Positive intrinsic performance in a still unfavorable price environment, as rebound of manganese ore index price not yet materialising in invoiced prices Production Productivity & H1 2024 Intrinsic (H1 2024 vs. H1 2023) costs reduction Adjusted performance (H1 2024 vs. H1 2023) Mn ore Ni ore EBITDA
Slide 7: Free Cash-Flow reflecting growth investments & lower contribution from Weda Bay
Free Cash-Flow reflecting growth investments & lower contribution from Weda Bay Capex Economic FCF Net debt (net of capital injection from Tsingshan) €234m -€291m1 €711m Growth capex Weda Bay Adjusted leverage €149m contribution 1.0x2 €35m o/w €71m due to the low level of external ore Dividend3 sale
Slide 8: Commissioning of Centenario first lithium DLE plant
Commissioning of Centenario first lithium DLE1 plant A step forward in becoming the 1st European company to produce battery-grade lithium carbonate at industrial scale 4,000m Nov. 2024 24kt-LCE2 Altitude Start of production Production capacity Key milestone in Eramet’s strategic development into pro
Slide 9: Progressing on “Act for Positive Mining” CSR roadmap
Progressing on “Act for Positive Mining” CSR roadmap Safety as #1 priority 3 AREAS FOR ACTION TRANSLATED Continued assessment of 0.8 TRIR1 in H1 2024 INTO 10 AMBITIONS the Group’s mining sites 2024 target <1 FOR 20261 Divided by since 2018 5 Say on Climate 3 AMBITIOUS 2035 Resolution submitted at TA
Slide 10: Financial performance
Financial performance 02
Slide 11: H1 2024 financial performance
H1 2024 financial performance €m H1 2024 H1 2023 Adjusted sales1 1,674 1,901 Sales 1,452 1,604 Adjusted EBITDA1 247 339 EBITDA 102 93 Current operating income -23 -10 Net income – Continuing operations -94 52 Net income – Discontinued operations - 14 Net income – Group share -41 98 €m 30/06/2024 31/
Slide 12: Resilient intrinsic performance partly offsetting a still strongly negative price effect
Resilient intrinsic performance partly offsetting a still strongly negative price effect weighing notably on Weda Bay’s financials In €m 31 -€310m 2 56 External factors -38 67 3 4 -€69m Impact of the permits’ 100 2 -304 issuance process in Indonesia 24 1 15 246 -93 58 -10 5 5 339 +€216m -145 93 Intr
Slide 13: Net income (Group share) at -€41m, including a -€72m loss incurred by SLN
Net income (Group share) at -€41m, including a -€72m loss incurred by SLN 1 €m H1 2024 H1 2023 o/w depreciation related to the HPAL plant project in Indonesia (-€13m) against which Eramet and its partner BASF decided Sales 1,452 1,604 in June, and costs for energy transition development projects (-€
Slide 14: c.€150m growth capex financed by Eramet in H1 2024
c.€150m growth capex financed by Eramet in H1 2024 to foster future organic growth in manganese and in lithium 1 Cash capex (€m) Stringent management of current capex 356 305 2 93 Capex to sustain organic growth, o/w: €144m 71 €142m €30m Manganese ore 51 71 3 €37m Transgabonese Renovation Program To
Slide 15: Higher WCR vs 2023 year-end
Higher WCR vs 2023 year-end mainly reflecting higher Mn ore selling price in Q2, as well as lower activity at SLN Operating WCR1 (€m) 588 566 395 688 616 619 Cash consumption in H1 2024 mainly driven by: 308 221 270 ▪ an increase in trade receivables on Mn ore activity, mostly resulting from an incr
Slide 16: Slight increase in Net debt (+€97m)
Slight increase in Net debt (+€97m): negative economic FCF owing to continued growth capex, higher WCR and limited dividends received from Weda Bay Economic FCF (net from Tsingshan capital injection & from SLN financing from French state) -€291m FCF -€521m -354 -614 102 -134 -711 260 1 -305 35 -69 8
Slide 17: SLN’s cash needs: no impact on Eramet’s balance sheet
SLN’s cash needs: no impact on Eramet’s balance sheet thanks to financing from the French State Eramet not financing SLN anymore €354m Following signature of the agreement in April 2024: H1 2024 SLN’s cash €614m consumption neutralized Conversion of the French State’s €711m existing loans to SLN (€2
Slide 18: SLN significantly impacted by societal situation & civil disturbance in H1 2024
28 SLN significantly impacted by societal situation & civil disturbance in H1 2024 Ni SLN EBITDA down -€22m (incl. FeNi trading & others): negative Ni Ore exports down -58% impacted by local societal situation & price impact and inventory var. (-€46m), partly offset by higher riots productivity & lo
Slide 19: Sustained proactive management of debt structure
Sustained proactive management of debt structure: extension of maturity by 1 year Debt maturity as of 30 June 2024 (in €m) Group financial liquidity (in €m) Prepay Li 816 Undrawn line: RCF & term loan & Prepay Li Bank and operating debt (inc. overdrafts) 16 45 Available cash, excl. Term Loan 2,989 2
Slide 20: Successful second issue of sustainability-linked bonds for €500m
Successful second issue of sustainability-linked bonds for €500m Successful return to the SLB1 market with investors diversification Funding directly linked to our Sustainability-linked features SLB1 decarbonization roadmap Target #1 Carbon intensity reduction for -37% scope 1&2 GHG emissions €500m
Slide 21: Operational performance
Operational performance ‘t x, /
Slide 22: Overall lackluster price environment; strong rebound of Mn high-grade ore price index in Q2
Overall lackluster price environment; strong rebound of Mn high-grade ore price index in Q2 on supply shortage 25 Manganese ore (CIF China 44% - CRU) Nickel ore H1 YoY Mn variation Mn ore +3% MC FeMn -9% SiMn +6% SLN nickel ore (CIF China 1.8%) WB Nickel ore (HPM 1.8%/35%) 28 H1 23 H2 23 H1 24 H
Slide 23: Growth in mining production driven by return to normal operating conditions in Gabon
Growth in mining production driven by a return to normal operating conditions in Gabon vs 2023, and higher grade of ore at Weda Bay & GCO Manganese Nickel Mineral sands Production Production1 3.5Mt 12.3Mwmt GCO +33% vs. S1 2023 Weda +58% vs. S1 2023 Ore Bay Transportation (ore) External sales2 HMC p
Slide 24: Manganese
25 Mn Manganese
Slide 25: H1 2024 performance driven by volume increase, Mn ore price increase not yet reflected
25 H1 2024 performance driven by volume increase, 25 Mn ore price increase not yet reflected in EBITDA Mn Mn EBITDA Ore EBITDA up €32m: €m 225 ▪ +€81m intrinsic performance, o/w 193 volume/mix1 impact (+€82m) 186 ▪ -€50m extrinsic performance, o/w 154 lower selling price impact2 (-€52m) 38 39 Alloys
Slide 26: Limited transported volumes; cash cost down 15% vs H1 2023
25 Limited transported volumes due to lower seasonality & maintenance work on the railroad; cash cost down 15% vs H1 2023 reflecting higher volumes sold Mn Production up +33% vs. H1 2023, Ore production volumes (Mt) Manganese ore cash cost FOB1 ($/dmtu) penalized by logistical incidents 7.4 (landsli
Slide 27: Supply shortage from GEMCO in Australia disrupting the market
25 Supply shortage from GEMCO in Australia currentling disrupting the market and providing support for current ore price upside Mn H2 2024 manganese ore cost curve (simplified) 2024 manganese ore price & consensus For illustrative purpose (excl.Gemco) Manganese ore (44%) H1 2024 Index average - 1m l
Slide 28: Mn alloys’ conversion margins not yet impacted by recent rise in Mn ore prices
Mn alloys’ conversion margins not yet impacted by recent rise in Mn ore prices, 25 conversely to FCF Mn Stable margin vs. H1 2023, the decline in selling price being Sales volumes up 4% YoY to 322 kt, as well as production (up offset by lower reductants cost (coke & manganese ore) 4%) mainly to bene
Slide 29: Nickel
28 Ni Nickel
Slide 30: Resilient contribution from Weda Bay in a lower price environment
28 Resilient contribution from Weda Bay in a lower price 28 environment Ni Ni Weda Bay contribution to Adj. EBITDA WB contribution to EBITDA down 244 -€101m: €m ▪ +€101m intrinsic performance, o/w 143 higher HG saprolite & limonite volume 246 impact (+€86m) 145 ▪ +€3m projects ▪ -€205m extrinsic per
Slide 31: Strong production growth at Weda Bay; lower sales volume in H1
28 Strong production growth at Weda Bay; lower sales volume in H1 as permit for low-grade saprolite not granted, but higher grade and pricing premiums Ni Stainless-teel production up, driven by China’s record exports in Q2, Continued growth of production: volumes up 40% YoY adding pressure on prices
Slide 32: Mineral sands
Mineral sands _ w eramMeT
Slide 33: GCO EBITDA reflecting higher volumes & grade in a context of lower prices
22 40 GCO EBITDA reflecting higher volumes & grade in a context of lower prices Ti Zr EBITDA €m 49 50 GCO EBITDA up €10m (excl. ETI): ▪ +€27m intrinsic performance, o/w 40 higher grade impact (+€33m) ▪ -€26m extrinsic performance, o/w lower price impact (-€21m) 9 H1 2023 H1 2024 GCO Holding ETI H1 2
Slide 34: Sharp increase of HMC production in H1 2024
22 40 Sharp increase of HMC production in H1 2024 thanks to higher grade and efficiency Ti Zr Global demand for Zircon stabilizing, although still below 2023 HMC production up 33% to 407kt thanks to: levels • sharp rise in the average grade of the sands being mined Global demand for TiO2 pigments be
Slide 35: Strategic roadmap update
Strategic roadmap update O4 :
Slide 36: 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 global SUSTAINABLY DEVELOP CRITICAL economic development METALS for the energy transition RESILIENT MARKETS FAST-GROWING MARKETS Manganese
Slide 37: Centenario 1st plant: a competitive battery-grade DLE technology project
3 Centenario 1st plant: a competitive battery-grade DLE technology project coming on-stream shortly Li One of the most advanced DLE process First plant key figures In-house development DLE technology Production capacity covering 12 patents 24kt-LCE battery grade Nov. 2024 Mid-2025 YEARS On-site test
Slide 38: Centenario 1st plant: attractive profitability underpinned by first quartile cost position
3 Centenario 1st plant: an attractive profitability underpinned by first quartile cost position Li Illustrative cash cost curve of the lithium industry1 (2025, Eramet internal estimates) Expected Cash cost2, k$/t LCE CIF China strong resilience through-the-cycle Current long-term price forecast (mar
Slide 39: Centenario 2nd plant: conditionally approved
3 Centenario 2nd plant: conditionally Board approved Li Second plant key figures 30kt-LCE Production capacity 1 c.$800M Construction capex1 Expected cash cost Ex- $4.5-5.0k/t-LCE works2 (1st quartile) Subject to the obtention of construction permits Subject to the implementation of the new investmen
Slide 40: Building a portfolio of projects in energy transition metals
Building a portfolio of projects in energy transition metals Projects still in study phases EV Battery recycling in Nickel class 1 & cobalt Growth opportunities Dunkirk refining in Indonesia for lithium in Chile Partnership Acquisition of c.120 kHa of exploration & After an in-depth assessment, Eram
Slide 41: Conclusion & outlook
Conclusion & outlook 05
Slide 42: Favorable seasonality and positive outlook for Mn ore price in H2
Favorable seasonality and positive outlook for Mn ore price in H2, on the back of a persistent sluggish demand Economic conditions remain sluggish at the start of H2 Weak domestic demand in China; real estate crisis continues to weigh on the Group’s markets Mn ore supply significantly disrupted in 2
Slide 43: Further growth in mining operations, capex plan revised down by €150m
Further growth in mining operations, supported by a capex plan revised down by €150m mainly due to the postponed construction of Centenario 2nd plant 2024 volume guidance 2024 capex guidance 7.0-7.5Mt 6.6 Mt Vs. 7.0-7.7Mt €550-600m3 25 previously Mn Financed by Eramet in 2024 Transported manganese o
Slide 44: Illustrative 2024 adjusted EBITDA update with higher H2 performance
Mn ore consensus price increase driving illustrative 2024 adjusted EBITDA update with a significantly higher performance in H2 vs H1 2024 illustrative Adjusted EBITDA Q1 2024 HY 2024 Press Release Press Release Market upside €1.2-1.3bn Manganese high-grade ore €750-900m +€400-450m H2 current average
Slide 45: Q&A
Q&A “ transformation of the Earth’s mineral Become a reference for the responsible resources, for living well together ”
Slide 46: Appendices
Appendices 06
Slide 47: Safety results
Safety results Eramet accident frequency rate (FR21,2) 16 15 13.6 14 13.4 13 Divided by 12 11 10.9 5x since 20153 10 9 8.3 8 7 6 5.4 5 4.1 4 New 3 2.2 perimeter 2 1.1 1.1 0.8 1 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 H1 2024 1. FR2 = number of lost-time and recordable injury accidents for 1 m
Slide 48: CSR commitment recognized by leading ESG rating agencies
A CSR commitment and performance recognized by leading ESG rating agencies 48 ERAMET – H1 2024 RESULTS
Slide 49: Our new ambitious CSR roadmap
Our new ambitious CSR roadmap 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 and 4 Control & optimize water 7 Reduce the CO2 FOR 20
Slide 50: Lower input cost prices reflected in cost base of Mn alloys in H1 2024
Lower input cost prices reflected in cost base of Mn alloys in H1 2024 Reductants consumption prices 100 basis €/t 140 Lower energy & reductant purchase prices reflected in the Mn 120 H1 24 vs. H1 23 = -18% 400 alloys’ cost base in H1 2024 (3 to 5-month lag between purchasing 100 and consumption of
Slide 51: Higher freight rates in H1 2024 (+c.20%)
Higher freight rates in H1 2024 (+c.20%) Freight rates ($/t)1 - bulk European Freight rates include: 50 H1 24 vs. H1 23 = +19% ▪ chartering costs, based on route times charter rate2 40 ▪ transportation fuel costs3 30 Freight rates up c.20% in H1 2024 vs. H1 2023: H1 24 vs. H1 23 = +17% ▪ Manganese:
Slide 52: H1 2024 Global carbon steel & Mn ore production
25 H1 2024 Global carbon steel & Mn ore production Mn Global carbon steel production (Mt) Global manganese ore production - Mn content (Mt)1 Stable -11% China down (-2%) despite 1,888 20.7 recent government stimuli & additional exports 5.0 54% 0.8 India & Turkey sharply up 3.0 973 971 (respectively
Slide 53: Manganese ore & alloys CRU index price trends
25 Manganese ore & alloys (refined & standards in Europe) CRU index price trends Mn Monthly change in manganese ore prices1 Monthly change in manganese alloys prices2 $/dmtu Mwmt €/t H1 24 vs. H1 23 = +3% 9 4,000 8 3,500 7 3,000 6 2,500 H1 24 vs. H1 23 = -9% 5 2,000 4 1,500 3 2 1,000 500 H1 24 vs. H
Slide 54: Global stainless steel production and primary Ni production & demand
28 H1 2024 Global Stainsless steel production and global primary Ni production & demand Ni Global stainless-steel Global primary nickel Global primary nickel production (Mt)1 production (kt)1 demand (kt) (excl. recycling) +8% +6% +7% Global stainless-steel 57.2 3,253 3,136 production up 8% in H1 652
Slide 55: LME & nickel ore historical price
28 LME & nickel ore historical price Ni Monthly change in nickel LME prices Monthly change in nickel ore prices2 k$/t kt $/wmt mt 35 350 160 20 140 18 30 300 H1 24 vs. H1 23 = -24% 16 120 25 250 14 100 12 20 200 80 10 15 150 8 H1 24 vs. H1 23 = -28% 60 10 100 6 40 4 5 50 20 H1 24 vs. H1 23 = -34% 2
Slide 56: Zircon premium & chloride ilmenite historical price
22 40 Zircon premium & chloride ilmenite historical price Ti Zr Monthly premium zircon FOB prices1 Monthly chloride ilmenite FOB prices1,2 $/t $/t 400 2,400 350 H1 24 vs. H1 23 = -8% 2,000 300 1,600 H1 24 vs. H1 23 = -9% 250 1,200 0 2019 2020 2021 2022 2023 2024 2022 2023 2024 Zircon Chloride ilmeni
Slide 57: Lithium demand forecast & lithium carbonate historical price
3 Lithium demand forecast & lithium carbonate historical price Li Lithium demand forecast1 Lithium carbonate price (CIF Asia)3 Mt-LCE2 $kt-LCE2 8 90 2024-2029 2024-2034 7 CAGR +18% +15% x1.4 80 Batteries +21% +18% 70 6 Others +3% +3% 60 5 x1.8 50 $12.6k/t-LCE 4 on 19/07/24 40 3 x2.4 30 2 20 Consensu
Slide 58: Centenario Lithium
Centenario Lithium 1 2 3 Phase 1 Brine Preparation Direct Lithium Extraction Membrane Separation Remove suspended material; Capture Lithium Purify, concentrate Lithium adjust pH and Recover water 1 2 Water Treatment Plant 5 4 3 Camp 6 4 Forced Evaporation Pilot Plant Concentrate Lithium and Recover
Slide 59: Group Adjusted EBITDA sensitivity to market prices
Group Adjusted EBITDA sensitivity to market prices Annual impact Sensitivities Change on Adjusted EBITDA Manganese ore prices (CIF China 44%) +$1/dmtu c.€255m1 Manganese alloy prices +$100/t c.€65m1 Ferronickel selling prices – SLN +$1/lb c.€70m1 Nickel ore prices (CIF China 1.8%) SLN exports +$10/w
Slide 60: Key figures
Key figures H1 2024 Holding company, Total from eliminations, In €m Manganese Nickel Mineral sands Lithium operations restatements continuing and other entities Sales 996 313 141 - 2 1452 EBITDA 225 -93 50 -11 -70 102 Current Operating Income 137 -106 33 -11 -76 -23 Cash Capex -131 -10 -15 -142 -5 -
Slide 61: Cash-flow table
Cash-flow table €m H1 2024 H1 2023 Operating activities EBITDA 102 93 Cash impact of below EBITDA items -150 -71 Cash-flow from operations -48 22 Change in WCR -146 26 Net cash generated by operating activities (1) -194 48 Investing activities Industrial investments -289 -291 Other investment flows
Slide 62: H1 2024 FCF by activity
H1 2024 FCF by activity 3 32 Alloys 35 WB dividends 4 -29 Ore -52 Others -102 -€291m -€139m €85m -139 SLN local FCF Group economic FCF Capital -85 -291 injection from Tsingshan -156 -187 -187 FCF net of: ▪ SLN’s financing €145m from the French SLN’s financing from the -145 State (€145m) French State
Slide 63: Bond maturities
Bond maturities Amount as at Initial €m Currency Initial amount 30/06/2024 Maturity date Coupon (in m) May 2023 bond issue € 500 500 May 2028 7.00% May 2024 bond issue € 500 500 November 2029 6.50% 63 ERAMET – H1 2024 RESULTS
Slide 64: 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 the ▪ Deliver organic growth with very long-term commitment cycle quick payback and attractive ▪ Return valu
Slide 65: Shareholding at 31 May 2024
Shareholding at 31 May 2024 APE1 27.1% Free float 31.8% STCPI2 Number of shares 4.0% issued 28,755,047 Duval family SORAME + CEIR 37.1% 1. APE (Agence des Participations de l’Etat): French State 2. STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the New Caled
Slide 66: Contacts
Contacts Director of Investor Relations Sandrine NOURRY-DABI sandrine.nourrydabi@eramet.com Investor Relations Senior Analyst Fabien PONT fabien.pont@eramet.com