Eramet Sa · EURONEXT:ERA
Eramet Sa — 2020 BofA Global Metals, Mining & Steel Conference
95 slides from Eramet Sa's conference presentation, May 12, 2020
Slide 1: Investor Presentation
Investor Presentation 2020 BofA Global Metals, Mining & Steel Conference 12-14 MAY 2020
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 Eramet at a glance 1– Q1 2020 Key trends 2– 2019 Financial results 3– Operational performance 4– Strategic transformation Conclusion and outlook 3 Eramet – Investor presentation, May 2020
Slide 4: Eramet at a glance
Eramet at a glance or eramMertr
Slide 5: A global leader and a diversified mining and metallurgical Group
A global leader and a diversified mining and metallurgical Group 2 divisions, 5 BUs with global leading positions €3,671m €3,825m sales High Performance Erasteel Mining and Metals Alloys Division 6% Division €630m 23% 77% €843m EBITDA Aubert & Duval 17% €341m €581m current operating €3,671m income (
Slide 6: A Mining and Metals Division with significant resources for several decades
A Mining and Metals Division with significant resources for several decades and highly competitive mines Manganese BU Nickel BU Mineral Sands BU New Caledonia: 19.4 Mt resources of Gabon: 110 Mt resources of nickel content Senegal (Zircon & Ilmenite): 35 Mt manganese content resources (HMC) Resource
Slide 7: Steel accounting for c. 60% of Eramet's end-markets
Steel (carbon and stainless) accounting for c. 60% of Eramet’s end-markets Manganese BU Nickel BU Mineral Sands BU Carbon steel Others TiO2 pigment 89% Main Market 15% Others Batteries 28% 7% 90% Nickel 52% Zircon CP Slag 10% base 10% Chemistry alloys 68% Stainless 20% 5% and other 6% steel applicat
Slide 8: A High Performance Alloys Division with unique know-how
A High Performance Alloys Division with unique know-how dedicated to strategic industries #2 high-power closed-die forged parts producer #1 in powder metallurgy high speed steel (cutting worldwide and cold tools) A world leader in: A world player in conventional high speed steels > high performance
Slide 9: Integrated innovation centres across the entire value chain
Integrated innovation centres across the entire value chain, open innovation approach Expertise Open innovation approach Extractive metallurgy (mineralogy, Benchmark mineral processing, geometallury, hydrometallurgy & pyrometallurgy) Leadership/partner in European projects Metallurgical processing o
Slide 10: An increasingly more committed, contributive and recognized corporate citizen
An increasingly more committed, contributive and recognized corporate citizen 1 Societal engagement aligned with strategic vision A 2018-2023 CSR roadmap to structure and set the pace for our action plans Compliant with the United Nations’ Sustainable Development Goals 2 Contribute to the communitie
Slide 11: Q1 2020 Key trends
1 Q1 2020 Key trends
Slide 12: Eramet fully committed to face the Covid-19 health crisis
Eramet fully committed to face the Covid-19 health crisis Safety: the Group’s top priority Daily crisis meeting held by ExCom to take all the required sanitary and operational measures Strict health protocols rolled out on all sites; stringent guidelines applied to comply with health regulations Fur
Slide 13: Covid-19: Group's special solidarity plan
Covid-19: Group’s special solidarity plan Exceptional allocation: €1.5m Group treasury 2/3 1/3 Donations in kind Financial support of Contributions of Group executives: and equipment to actors mobilized in the CEO, Comex, Board members communities communities Community investment expenditure: €8.5m
Slide 14: Strengthened and accelerated cash control measures in 2020
Strenghtened and accelerated cash control measures in 2020 Optimising cash flow and closely monitoring net debt level High level of cash maintained: > High liquidity of €2.3bn at end-December, including credit lines not drawn down at that date for €1.5bn > In Q1 2020, all credit lines drawn down as
Slide 15: Mining & Metals division: unstable market equilibrium due to pandemic
Mining & Metals division: unstable market equilibrium due to pandemic, reduced demand and limitations in supply to date New operational records in New operational records in New operating performance Q1 2020 in Gabon Q1 2020 in New-Caledonia record in Q1 2020 in Senegal Lower demand in the context R
Slide 16: High-Performance division: aerospace and automotive sectors deeply affected
High-Performance division: aerospace and automotive sectors deeply affected by pandemic A&D As of mid-March, slowdown or temporary suspension of some operations in France, following roll-out of health protocols To date, production level of c. 65 % of nominal capacity Significant slowdown expected fo
Slide 17: Q1 2020 sales down 11% yoy only
Q1 2020 sales down 11% yoy only, affected by the sharp decline in material prices… High Performance Erasteel Mining and Metals Alloys Division 5% Division 25% 75% Aubert & Duval 20% Mineral Sands €774 m Manganese BU BU 46% 9% Nickel BU 20% Unfavourable price environment hitting the Metals & Mining d
Slide 18: Supported by new operational records for the Mining & Metals division
…supported by new operational records for the Mining & Metals division Mining and Metals division New Q1 operational records in Q1 2020 > 1.3 Mt in produced manganese ore volumes (+28% vs. Q1 2019) > 918 kwmt in produced nickel ore volumes (+5%) > 331 kwmt in nickel ore exports (+41%) > OEE1 up +12%
Slide 19: Delivering on our strategic roadmap, in an adverse environment
Delivering on our strategic roadmap, in an adverse environment Mining operational records in both 2019 and Q1 2020 Continuing record production in Manganese ore > +15% over 2 yrs (4.8 Mt in 2019 vs 4.1 Mt in 2017) Ongoing increase in nickel ore exports Operational performance > +80% over 2 yrs (1.6
Slide 20: 2019 Financial results
2019 Financial results 2
Slide 21: EBITDA showing solid operating performance in a depressed price environment
EBITDA showing solid operating performance, in a depressed price environment in 2019 High Performance Erasteel Mining and Metals Alloys Division 6% Division Sales €3,671m 23% 77% -4% vs 2018 Aubert & Duval 17% Mineral Sands €3,671m BU Manganese BU 8% 48% Nickel BU 21% EBITDA €630m -25% vs 2018 C
Slide 22: Financial performance adversely impacted by manganese prices and non-recurring items
Financial performance adversely impacted by manganese prices and non-recurring items Deteriorated manganese price environment -21% on average for manganese ore1 prices -€268m EBITDA impact -7% on average for refined manganese alloys’1 prices vs 2018 -5% on average for standard manganese alloys’1 pri
Slide 23: Key financial figures
Key financial figures €m 2019 2018 Sales 3,671 3,825 EBITDA 630 843 % Sales 17% 22% Current operating income 341 581 % Sales 9% 15% Net income – Group share (184) 53 Net debt (Net cash) 1,304 717 Net debt (Net cash), excl. IFRS 16 non cash impact 1,207 717 Gearing (Net debt-to-equity ratio), excl. I
Slide 24: Net income-Group share at €(184)m
Net income-Group share at €(184)m, penalised by €(114)m of non-recurring items at High Performance Alloys Division and exceptionally high level of taxes €m 2019 2018 Sales 3,671 3,825 Current operating income 1 341 581 Other operating income and expenses (118) (116) o/w: Non-current provisions (A&D
Slide 25: All Mining & Metals Division's activities EBITDA positive
All Mining & Metals Division’s activities EBITDA positive Continued solid EBITDA contribution from Manganese BU (89% of Group EBITDA), despite lacklustre pricing momentum Nickel BU back to positive EBITDA contribution for the first time since 2014 Mineral Sands BU driven by strong operational perfor
Slide 26: Income highly sensitive to metal prices
Income highly sensitive to metal prices Annual impact on EBITDA SENSITIVITIES Change (+/-) Manganese ore prices (CIF China 44%) +$1/dmtu c.€150m1 Manganese alloys’ prices +$100/t c.€70m1 Nickel prices (LME) +$1/lb c.€110m1 Nickel ore prices (CIF China 1.8%) +$10/wmt c.€20m1 Exchange rates +$/€0.1 c.
Slide 27: Continued high liquidity at €2.3bn at 2019 end-year
Continued high liquidity at €2.3bn at 2019 end-year Group financial liquidity (€m) Credit lines fully withdrawn as a precaution as of 31st March 2020 3,000 2,806 2,500 2,468 Revolving credit facility ("RCF") 2,299 > €981m RCF maturing 2024 2,000 1,825 848 1,367 Term loan: > €350m loan granted in Dec
Slide 28: Issuance of 2025 bond; no major debt maturity within the next 3 years
Issuance of 2025 bond allowing for repurchase of part of 2020 bond; no major debt maturity within the next 3 years Group gross debt at €2,055m at 31 December 2019 (excl. IFRS 16 non cash items) Extension of debt maturity in November 2019: repurchase of 2020 bonds for €227m and issuance of new bonds
Slide 29: Operational performance
3 Operational performance
Slide 30: Mining and Metals Division
ZZN Mining and Metals Division eramMerT
Slide 31: Manganese BU
Manganese BU
Slide 32: Pandemic leading to uncertainty in global carbon steel market
Pandemic leading to uncertainty in global carbon steel market 2019 global carbon steel production up +3.6%, almost exclusively driven by China (+8.3%); rest of world receding overall (-1.3%). Q1 2020 down -1.8% yoy, with production declining in China (-0.5%) due to the pandemic, down in the rest of
Slide 33: Price recovery in Q1 2020 after 2019 significant decrease
Price recovery in Q1 2020 after 2019 significant decrease; price up at USD 5.5/dmtu mid-April Average manganese ore prices significantly down at USD 5.6 /dmtu in 2019 (-21%), particularly in Q4; prices down -34% in Q1 2020 yoy at USD 4.4 /dmtu but bounced back vs Q4 2019 (+8%) Likewise, decline in m
Slide 34: Continuing record manganese ore production at Comilog
Continuing record manganese ore production at Comilog: 4.8 Mt in 2019 (+10% yoy), 1.3 Mt in Q1 2020 (+28% yoy) Record manganese ore production driven by new dry mining process Ore volumes transported up +25% in Q1 2020 at 1.2 Mt (after +17% in 2019 at 4.6 Mt) thanks to railway logistics improvement
Slide 35: Nickel BU
Nickel BU
Slide 36: Global stainless steel production up in 2019, sharply down in Q1 2020
Global stainless steel production up significantly in 2019, sharply down in Q1 2020 due to automotive sector and pandemic 2019 global stainless steel production up +4.3% in 2019, driven by growth in China (+12.2%); sharply down -12.1% in Q1 2020 due to global economic downturn Global primary nickel
Slide 37: Nickel prices showed high volatility in 2019
Nickel prices showed high volatility in 2019, mainly fuelled by the announcement of the Indonesian ban Indonesian ban announcement in September 2019 introduced strong market volatility with speculative effect both on prices and inventory, against a background of international tensions Supply/demand
Slide 38: SLN rescue plan: decisive breakthroughs achieved in 2019
SLN rescue plan: decisive breakthroughs achieved in 2019 for major enablers New business model for SLN: metallurgy and exports ✔ 4 Mwmt/year licence for low grade ore exports, granted by New Caledonian government (4 Mwmt/year to be achieved in 2021) ✔ Additional 2 Mwt/year low-grade ore exports requ
Slide 39: Record Ni ore export; FeNi production down
Record Ni ore export; FeNi production down following disrupted mining operations at East Coast centres Ore production up +15% in 2019 yoy (at 4.7 Ferronickel production down 1% in Q1 2020 Mwmt), +5% in Q1 2020 yoy (at 0.9 Mwmt) yoy (-13% in 2019), still due to lower-grade ore Volumes of low grade (1
Slide 40: Continued cash cost reduction at 5.25 USD/lb in Q1 2020
Relevance of the new business model: continued cash cost reduction at 5.25 USD/lb in Q1 2020 Decrease of cash cost in H2 vs H1 2019 (-5%) and in Q1 2020 vs Q4 2019 (-8%) Significant positive impact from ore exports, first lever of SLN rescue plan Favourable external factors, mainly €/$ FX rate, as w
Slide 41: Sandouville plant: significant progress towards recovery in 2019
Sandouville plant: significant progress towards recovery in 2019, lower Q1 2020 Improved operating rate in 2019 thanks to support of experts’ task force Nickel salt and High purity nickel production (6.9 kt) and sales volume (6.7 kt) almost doubled in 2019 Improved key financial indicators at end-20
Slide 42: Mineral sands BU
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Slide 43: Still strong demand for CP slag products despite pandemic
Still strong demand for CP slag products despite pandemic affecting pigment end-markets Pigment market (90% of titanium-based end-products1) Decreasing global demand in TiO2 pigments in Q1 2020, driven by spreading pandemic in China, whereas supply stabilised Demand from high value-added raw materia
Slide 44: Downturn in Zircon product end-markets due to pandemic
Downturn in Zircon product end-markets due to pandemic: prices still at high level after a slight erosion in Q4 2019 Ceramics and Chemicals markets (~50% and 20% respectively of zircon's end-uses) Global demand for zircon down -4% at least in Q1 2020 yoy after being down -10% in 2019, due to ceramic
Slide 45: TiZir: high level of production in Senegal and Norway
TiZir: high level of production in Senegal and Norway HMC1 production (titanium ore and zircon): Norwegian plant functioning close to nominal > -5% in 2019, +10% in Q1 2020 yoy, thanks capacity, except for taping incident last summer to high operational performance (record high OEE) Titanium dioxide
Slide 46: High Performance Alloys division
High Performance Alloys division
Slide 47: An aerospace market deeply impacted by the Covid-19 pandemic
An aerospace market deeply impacted by the Covid-19 pandemic Global aerospace market suffering from the Covid-19 pandemic Global air traffic should fall by 23% in 20201: first drop in 10 years. It would take at least 3 years to recover its former level The whole aerospace industry is “now in the mid
Slide 48: Q1 2020 sales impacted by a slowdown in production
Q1 2020 sales impacted by a slowdown in production starting mid-March and still depressed automotive market Sales by segment A&D1 sales (flat in Q1 2020, -19% in 2019 yoy) -16.9% -13% decrease in 2019 in aerospace segment (more than 1,020 70% of A&D sales) due to delays impacting sales in a stable -
Slide 49: High Performance Alloys' 2019 results impacted by sales decline and margin squeeze
High Performance Alloys’ 2019 results impacted by overall sales decline and margin squeeze at Erasteel A&D1 EBITDA at €1m, including logistics one-offs Significant slowdown in shipments, linked to delivery delays resulting from quality processes’ conformity review: -€49m EBITDA impact in 2019, vs -€
Slide 50: Strategic transformation
4 Strategic transformation 1st metal tapping at Weda Bay Nickel’s NPI plant
Slide 51: Our vision
Our vision Our ambition Develop a selective portfolio of value-accretive mining and metallurgical activities Be among the best in each of our businesses, in terms of performance, profitability and innovation Be admired for our strategic model, our management system and our societal commitment OUR ST
Slide 52: Continuing Group strategic transformation
Continuing Group strategic transformation: increasing cash generation and portfolio diversification 3 2 EXPAND our portfolio in GROW metals for the energy in our attractive businesses transition Manganese ore Lithium: ▪ Growth in volumes in ▪ Project in Argentina currently 1 Moanda (Gabon) based on
Slide 53: New modular approach for brownfield expansion of Moanda manganese ore operations
New modular approach for brownfield expansion of Moanda manganese ore operations A HIGHLY COMPETITIVE MINE IN GABON A NEW MODULAR EXPANSION Operated by Comilog for 50 years Enhance production of the Bangombé plateau through dry processing Strong quality high-grade oxide commercial ore > €51m of earl
Slide 54: Weda Bay nickel: highly competitive NPI production in Indonesia
Weda Bay nickel: highly competitive NPI production in Indonesia, effective start-up in April 2020 MINING & METALS BUSINESS MODEL ATTRACTIVE METRICS Weda Bay Nickel business model balanced Production Production in 2 activities: mining and metallurgy target - Ore target - NPI 6 Mwmt1/year 35 kt2/year
Slide 55: Lithium project in Argentina: currently mothballed
Lithium project in Argentina: currently mothballed HIGHLY VALUE-ACCRETIVE PROJECT STATUS STATUSUPDATE: UPDATE:PROJECT PROJECTMOTHBALLED ON HOLD Long life low cost and scalable project, c.10 Mt April 2020: decision not to engage the LCE1 drainable resources, c.50 years of resources construction of th
Slide 56: A leap in corporate social responsibility (CSR) in 2019
A leap in corporate social responsibility (CSR) in 2019 Launch of 2018-2023 CSR Roadmap Improvement of non-financial rating 3 components to meet Eramet’s challenges Vigeo Eiris rating’s progression in assessed ESG domains 13 objectives set for 2023 with an annual measurement 56 Eramet – Investor pre
Slide 57: Strong CSR Performance in 2019
Strong CSR Performance in 2019 Increase in the CSR Performance index* 112 representing +12 points compared with 2019 target 80% of industrial sites ISO14001 certified 87% of purchased electricity produced with carbon- 1.2 free footprint Ratio of rehabilitated / cleared areas -35% €20m accidents Inve
Slide 58: Conclusion and outlook
Conclusion and outlook eramMer,t
Slide 59: Committed to delivering our roadmap in 2020
Committed to delivering our roadmap in 2020, despite the uncertainties related to the pandemic Very low visibility for quarters ahead Very tight operational management to face the crisis Limited impact in Q1 2020 but extent and length of the pandemic still unknown Decrease in demand and one-off rest
Slide 60: Appendices
Appendices
Slide 61: Eramet detailed presentation
Eramet detailed presentation
Slide 62: Key partnerships with host countries and territories
Key partnerships with host countries and territories Eramet associates the main countries and French Nippon Steel State2 territories where it operates France 10% New-Caledonia > STCPI holds 34% of SLN’s share capital > STCPI holds around 4% of Eramet’s STCPI1 34% 56% Eramet share capital Gabon > Aro
Slide 63: Activities' diversification and shareholding structure
A long term player 100% of TiZir owned by Eramet (OPA on MDL) Société Le Nickel was incorporated to operate nickel mines in New Caledonia Launch of EcoTitanium Sale of Erachem and Bear Metallurgical Corporation Sale of Eurotungstene Transfer of the 26% stake held by the French State Le Nickel became
Slide 64: Steels represent c.60% of Eramet sales
Steels represent c.60% of Eramet sales Recycling Other (Chemical High-speed steels, Toolings & Specialities and Foundry) 0% Others 5% 8% Stainless Steel Energy & Defense 2% 2% 2% Aérospace Steels: 58% 13% 6% 17% 6% Other Mineral Sands 3% 21% 48% 48% 8% 6% 19% Pigment 4% 21% 38% Carbon Steel 2% Ceram
Slide 65: A global geographic footprint
PROJECTS MINING SITES A global geographic footprint PROCESSING Manganese Nickel Mineral sands Lithium Erasteel Aubert & Duval NORWAY SWEDEN 3 sites 1 site 3 sites UNITED KINGDOM 1 site FRANCE 12 sites UNITED 2 sites STATES 1 site 1 site SPAIN 1 site 1 site CHINA 1 site 1 site INDIA 1 site SENEGAL Di
Slide 66: Manganese main growth drivers: carbon steel and China
Manganese main growth drivers: carbon steel (90% of global production) and China Manganese key features 3 types of manganese ore 1 > “Low-grade local” ore: < 30% of manganese content Manganese Ore > “Medium-grade” ore: > 30% but < 43% Average 0.4 t of Mn content > “Rich” / “High-grade” ore: > 43% pe
Slide 67: Manganese BU: a first class competitiveness
Manganese BU: a first class competitiveness thanks to excellent mining operation Manganese BU key features A highly competitive manganese mine in Gabon (Moanda), operated by Comilog > High-grade oxyde ore 44% > First quartile cash cost Two units of local transformation in Gabon, CIM and CMM, for hig
Slide 68: Nickel main growth drivers: stainless steel and batteries
Nickel main growth drivers: stainless steel and batteries 1 Nickel key features Extraction of ore in Two main types of nickel ore order to… > Sulfide-type ore (nickel combined with several other valuable metals) as in Canada, Russia to be transformed in Nickel concentrate 2 > Laterite-type ore as in
Slide 69: Nickel BU: a key transformation underway
Nickel BU: a key transformation underway Nickel BU key features Successful implementation of new business model in New Caledonia > 4 main operated mines and one pyrometallurgical plant > High-grade ferronickel (23% Ni) and nickel ore exported (1.7 to 1.9 % Ni) Ramp-up of Weda Bay nickel project > On
Slide 70: Nickel BU: SLN mineral resources x4 thanks to new business model
Nickel BU: SLN mineral resources x4 thanks to new business model SLN amongst Tier one nickel industry players, thanks to significant mineral resources, Poum SLN 2021 targeted mining production SLN mineral resources of 1,050 Mt1 on Spur R average (1.85% grade), equivalent to Tiebaghi Kouaoua c.19.4 M
Slide 71: Mineral Sands growth drivers: ceramics and pigments market
Mineral Sands growth drivers: ceramics and pigments market Zircon key features Titanium dioxide slag key features Long Term pricing agreement1 (spot prices in China only) Dredge or Dredge 1 open pit mining mining followed followed by by mineral 1 mineral separation Titanium separation minerals (ruti
Slide 72: Mineral Sands BU: operations integrated from Senegal to Norway
Mineral Sands BU: operations integrated from the mine in Senegal to the conversion plant in Norway Mineral Sands BU key features TiZir Senegal (GCO): > Extraction of heavy mineral (mineral raw materials which contain heavy minerals concentrated). > Production of ilmenite (titanium-iron oxide), leuco
Slide 73: High Performance Alloys Division Key Features
High Performance Alloys Division Key Features
Slide 74: A comprehensive industrial set up with unique tools
A comprehensive industrial set up with unique tools Located in: Europe (France, Sweden, Spain, UK) Main competitors Asia (China, India) US Main customers 14 industrial sites in France 74 Eramet – Investor presentation, May 2020
Slide 75: Lithium project
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Slide 76: Lithium main growth drivers: energy storage
Lithium main growth drivers: energy storage, including Li-on EV battery; +13% pa growth 1 Extraction from Energy storage market: mainly salar brines or from driven by environmental regulations, lithiniferous minerals EV sales and mobility development (spodumene) in order to… Lithium carbonate and li
Slide 77: A booming lithium market over the next years
A booming lithium market over the next years Forecast lithium demand1 (in kt LCE) 603 22% 30% Others 291 Others Batteries 41% EV Batteries 102 29% 48% 57% 43% 30% 2010 2019 2025e 20191 20251 Glass & Ceramics Glass & Ceramics 11% Greases Electric vehicles 20% 3% 30% Others Others 8% Energy storage 5%
Slide 78: Lithium Extraction process
Lithium Extraction process 78 Eramet – Investor presentation, May 2020
Slide 79: 2019 detailed figures
2019 detailed figures
Slide 80: Positive operating performance offset by external factors and one-off items
Positive operating performance offset by external factors and one-off items (€m) 8 -46 35 -23 107 -18 843 1 2 -46 22 -36 -€216m 3 External factors -268 A&D one- 630 off items 17 -19 21 35 -62 60 +€39m 4 4 5 Operating performance 2018 Mn SLN Ni SLN FeNi Sand- TiZir HP Alloys’ Fixed Others A&D Mn pric
Slide 81: €423m industrial cash capex in 2019
€423m industrial cash capex in 2019, o/w €192m growth capex and projects early works €231m related to safety & environment (10%), productivity (21%) and maintenance (69%) of industrial equipment €60m growth capex including Transgabonese railway renovation programme €132m early works for the expansio
Slide 82: Net debt impacted by €(274)m non-recurring cash outflows
Net debt impacted by €(274)m non-recurring cash outflows 1 3 2019 early capex for Comilog expansion (€51m) and Exceptional payments to the Gabonese state: lithium project (€81m) advance payment of 2019 income tax (€71m), tax adjustment (€43m) 2 A&D logistics issue one-off items: mainly negative 4 im
Slide 83: Eramet in China
Eramet in China ERAMET SALES IN CHINA ERAMET IN CHINA Mining and Metals 3 Locations 135 Division headcount 94% 1 Sales office HPA Division 6% Eramet Trading Ltd. Mineral (Shanghai) 31 Sands BU 5% 2019 1 Distribution center Manganese $980m BU 51% Aubert & Duval Moulds and Die Technology co. Ltd. 31 N
Slide 84: Manganese BU – Key figures
Manganese BU – Key figures In €m 2019 2018 Sales 1,765 1,857 EBITDA 560 784 COI 459 699 CAPEX cash (214) (171) Operating cash flow(1) 317 529 84 Eramet – Investor presentation, May 2020 (1) EBITDA + Δ(simplified WCR) – cash CAPEX
Slide 85: Nickel BU – Key figures
Nickel BU – Key figures In €m 2019 2018 Sales 778 738 EBITDA 38 (18) COI (58) (111) CAPEX cash (39) (57) Operating cash flow(1) 0 (51) 85 Eramet – Investor presentation, May 2020 (1) EBITDA + Δ(simplified WCR) – cash CAPEX
Slide 86: Mineral sands BU – Key figures
Mineral sands BU – Key figures In €m 2019 2018(2) Sales 286 212 EBITDA 106 62 COI 64 35 CAPEX cash (13) (12) Operating cash flow(1) 84 53 (1) EBITDA + Δ(simplified WCR) – cash CAPEX (2) TiZir 50% until 30 June 2018, 100% from 1st July 2018 onwards 86 Eramet – Investor presentation, May 2020
Slide 87: High Performance Alloys Division - Key figures
High Performance Alloys Division - Key figures In €m 2019 2018 Sales 847 1,020 EBITDA (26) 46 COI (68) (8) CAPEX cash (56) (61) Operating cash flow(1) (87) (41) 87 Eramet – Investor presentation, May 2020 (1) EBITDA + Δ(simplified WCR) – cash CAPEX
Slide 88: CRU price trends in manganese alloys in Europe
CRU price trends in manganese alloys (refined and standard) in Europe CRU price trends for manganese alloys in Europe between January 2015 and April 2020 €/t 2,000 1,500 FY = -7.3% Q = -9.6% 1,000 Q = -11.0% FY = -4.2% 500 Q = -6.4% FY = -5.5% 0 Janv.-15 Jan-16 Janv.-17 Jan-18 Janv.-19 Jan-20 Janv.-
Slide 89: Reconciliation Group reporting and published accounts
Reconciliation Group reporting and published accounts Full Year Full year Full Year Full year Joint-venture Joint-venture €m 2019 2019 2018 2018 Published1 contribution Reporting2 Published1 contribution Reporting2 Sales 3,671 0 3,671 3,725 100 3,825 EBITDA 630 0 630 828 16 843 Current operating inc
Slide 90: Group income statement
Group income statement €m 2019 2018 Sales 3,671 3,825 EBITDA 630 843 % Sales 17% 22% Current operating income 341 581 % Sales 9% 15% Other operating income and expense (118) (116) Operating income 223 465 Financial result (134) (95) Pre-tax income 89 371 Share of income of equity affiliates (7) (3)
Slide 91: Cash-flow table
Cash-flow table €m 2019 2018 Operating activities EBITDA 630 843 Cash impact on items under EBITDA (420) (345) Cash from operating activities 210 498 Change in WCR (124) (49) Net cash generated by operating activities (1) 86 449 Investment activities Industrial investments (455) (281) Other investme
Slide 92: Group Balance Sheet at 31 December 2019
Group Balance Sheet at 31 December, 2019 4,054 4,054 3,646 3,646 1,398 1,605 241 3,294 3,030 303 1,091 995 20 26 1,304 616 760 717 2018 2019 2018 2019 Fixed assets Equity-Group share Provisions and net deferred tax Net debt WCR Minority interests Financial instruments 92 Eramet – Investor presentati
Slide 93: Bond maturities
Bond maturities Amount at Maturity €m Currency Initial amount 31/12/19 date Interest rate (in m) 2013 bond issue € 525 234 Nov-2020 4.50% 2016 ODIRNAN bond issue € 100 97 perpetual 4.00% TiZir bond renewal - July 2017 USD 300 285 July-2022 9.50% September 2017 bond issue € 500 500 Feb-2024 4.20% Nov
Slide 94: Shareholding at 31 December 2019
Shareholding at 31 December, 2019 Number of shares issued: 26,636,000 Other float Duval Family: 32.1% SORAME + CEIR 36.9% 1.3% BRGM** 4.0% STCPI* 25.6% APE * STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the New Caledonian provinces ** BRGM (Bureau de Reche
Slide 95: Contacts
CONTACTS Executive VP Strategy & Innovation – Investor Relations Philippe GUNDERMANN philippe.gundermann@eramet.com Investor Relations Manager Sandrine NOURRY-DABI sandrine.nourrydabi@eramet.com
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