Investor Presentation

2020 BofA Global Metals, Mining & Steel Conference

12-14 MAY 2020

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

statements are based on a number of estimates and assumptions that, while considered reasonable by management at the time, are subject to significant business, economic and competitive uncertainties. Eramet cautions that such statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Eramet to be materially different from the company's estimated future results, performance or achievements expressed or implied by those forward-looking statements.

Past performance information given in this presentation is solely provided for illustrative purposes and is not necessarily a guide to future performance. No representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward-looking statements, forecast financial information or other forecast. Nothing contained in this presentation is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or future performance of Eramet.

Nothing in this presentation should be construed as either an offer to sell or a solicitation to buy or sell securities nor shall there be any offer or sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful under the securities laws of any such jurisdiction.

2 Eramet - Investor presentation, May 2020

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

Eramet at a glance

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

€630m

Alloys Division

6%

Division

23%

77%

€843m EBITDA

Aubert & Duval

€341m

17%

€581m current operating

€3,671m

income (COI)

Mineral Sands BU

Manganese BU

8%

48%

€423m

Nickel BU

€281m of capital

21%

expenditure (cash)

Historic and stable shareholders

74%

Other float

32.1%

1.3% BRGM1 4.0%

STCPI2

25.6%

APE

5 Eramet - Investor presentation, May 2020

38% gearing3

SORAME

12%

36.9%

22% ROCE4

+ CEIR (Duval

Family)

13,100

Employees in 20 countries

In 2019 / In 2018

1 BRGM (Bureau de Recherches Géologiques et Minières): the French Geological Survey Office

2 STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the New Caledonian provinces

3 Excl. IFRS16 impact

4 COI / Capital employed of year n-1

A Mining and Metals Division with significant resources for several decades and highly competitive mines

Manganese BU

Nickel BU

Mineral Sands BU

Resources

Gabon: 110 Mt resources of manganese content

Resources lifetime > 40 years

Operated for 50 years

New Caledonia: 19.4 Mt resources of nickel content

Indonesia - Weda Bay Nickel: 9.4 Mt resources of nickel content

Resources lifetime ~ 50 years Operated for ~130 years (NC)

Senegal (Zircon & Ilmenite): 35 Mt resources (HMC)

Resources lifetime > 30 years

Operated since 2014

Lithium BU (project in Argentina)

10 Mt drainable resources (LCE2) - currently mothballed

2019 Key Industrial set-up 1 figures

A highly competitive manganese mine in Gabon:

4.8 Mt manganese ore produced

6 pyro metallurgical plants in Europe, USA, Gabon: 740 kt manganese alloys produced

Sales: €1,765m

Headcount: c.4,000

6 Eramet - Investor presentation, May 2020

Highly competitive mines and 1 pyro metallurgical plant in New Caledonia :

47 kt ferronickel produced / 1.6 Mt nickel ore exported

1 high purity nickel refinery in France

1 NPI3 plant in Indonesia (ongoing start- up)

Sales: €778m

Headcount: c.2,200

  1. 2019 figures
  2. Lithium Carbonate Equivalent
  3. Nickel Pig Iron (low-grade nickel ferroalloys)
  4. Heavy Minerals Concentrate (HM sands content)

The world largest single dredge mineral sands operation in Senegal: 735 kt of HMC4 produced

1 metallurgical plant in Norway:

189 kt of titanium dioxide slag

Sales: €286m

Headcount: c.1,000

Main Market

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%

Batteries

15%

Others

28%

7%

90%

Nickel

Zircon

52%

CP Slag

10%

10%

base

68%

Chemistry

alloys

5%

Stainless

20%

and other

6%

steel

application

Chemicals

Ceramics

Others Titanium metal

Market share

#2 global producer of high-grade manganese ore

#2 global producer of manganese alloys

#1 global producer of refined manganese alloys

#1 high grade Ferronickel producer worldwide

One of the high purity nickel salts producer worldwide

#4 global producer of zircon

#5 global producer of titanium feedstock

7 Eramet - Investor presentation, May 2020

A High Performance Alloys Division with

unique know-how dedicated to strategic industries

#2 high-powerclosed-die forged parts producer worldwide

A world leader in:

  • high performance steels, superalloys and titanium
  • large closed-die forgings

A strategic supplier for aerospace, defense and

#1 in powder metallurgy high speed steel (cutting and cold tools)

A world player in conventional high speed steels A European leader in :

  • aerospace long products and in forgings for defense and nuclear markets
  • recycling

nuclear markets HPA Workforce: c.5,200

Aubert & Duval

Erasteel

92%

Aerospace

14%

High-speed steels,

Energy & Defense

11%

Tooling & Specialities

Other

2019 Sales

Recycling

2019 Sales

€642m

€205m

75%

8%

Long products

Forged products

Closed-die

High-speed

Recycling1

forged parts

steels

8 Eramet - Investor presentation, May 2020

1 Catalysts, metal oxides and batteries

Integrated innovation centres across the entire value chain, open innovation approach

Expertise

Open innovation approach

Extractive metallurgy (mineralogy, mineral processing, geometallury, hydrometallurgy & pyrometallurgy)

Metallurgical processing of alloys and high performance steels (including powder metallurgy)

Thermomechanical processing of alloys by forging and closed die-forging

Benchmark

Leadership/partner in European projects

Partnerships with universities, grandes écoles, industry, start-ups, SMEs

2019 key figures

~300 experts and technicians

25 ongoing European collaborative

(in-house R&D)

projects

€60m dedicated to innovation,

First microscope in Europe

or 1,5% of sales

equipped with QEMSCAN

mineralogy software

9 Eramet - Investor presentation, May 2020

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 communities in which sites are implemented

First risk of the Mining and Metals sector: license to operate. Eramet's DNA has always been to associate the main countries and territories where it operates

Beyond mining operation, contribute to the local development and preserve the environment

3

Ranked 3rd out of 43 mining and metals corporates for its CSR performance by Vigeo-Eiris

"Advanced" performance level

Eramet's best performance since first participating in 2011

score evolution

of 100)

overall

(out

ESG

66

44

45

48

2013

2015

2017

2019

10 Eramet - Investor presentation, May 2020

1

Q1 2020 Key trends

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

Further strong decline in accident frequency rate at 4.11 in Q1 2020: -24%vs FY 2019, already down 35% in 2019 yoy

Limited impact of Covid-19 pandemic in Q1 2020

Mining and Metals Division

  • Operations at nominal rate for all mines and plants with production volumes in line with expectations
  • Still very difficult to plan ahead for developments of the health crisis and customers' business levels

High-Performance Alloys Division

  • A&D's plants running at an operating rate of c. 65% to date
  • Erasteel's plants' operations contrasted depending on activity
  • Worsening outlook for the aeronautic sector

12 Eramet - Investor presentation, May 2020

1 TRIR (total recordable injury rate) = number of lost time and recordable injury accidents for 1 million hours worked (employees and subcontractors)

Covid-19: Group's special solidarity plan

Exceptional allocation: €1.5m

2/3

1/3

Group treasury

Contributions of Group executives:

Donations in kind

Financial support of

and equipment to

actors mobilized in the

CEO, Comex, Board members

communities

communities

Community investment expenditure: €8.5m

Strengthening actions in the health sector

Economic and social support initiatives for

communities strengthened

Numerous solidarity actions already carried

out (medical equipment, food and basic necessities

donations…)

Prevent the spread and support the communities:

€10m to support projects in 2020

13 Eramet - Investor presentation, May 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 a precaution

63%1 gearing (as calculated for covenant purposes) at 2019 year-end (74%, excl. IFRS 16 only)

2020 strict cash control plan

Cut in capex: modularity and flexibility; lithium project in Argentina currently mothballed

Tight control of opex and working capital: dedicated committee strictly and regularly monitoring all operating expenses

Partial unemployment arrangements for several sites in France in the context of the pandemic

No dividend to be paid in 2020

Subject to Shareholders' approval on 26 May

14 Eramet - Investor presentation, May 2020

1 Excl. IFRS 16 impact, excl. French state loan to SLN

Mining & Metals division: unstable market equilibrium due to pandemic, reduced demand and limitations in supply to date

New operational records in Q1 2020 in Gabon

Lower demand in the context of the pandemic: significant

production cuts announced by western steel producers

Lower supply, but length of actual limitations in South Africa (40% of global ore production1) on both ore and alloys production remains

unknown

New operational records in Q1 2020 in New-Caledonia

Reduction in both demand and supply of nickel

Some ore -and metal- producing countries' activities adversely affected by pandemic including among others Canada and the

Philippines

New operating performance record in Q1 2020 in Senegal

Global supply heavily affected by the spread of

COVID-19, particularly in South Africa (30% of the world's zircon supply and c. 50% of global titanium slag production)

Significant decrease in global demand likely to occur in the coming quarters, in the aftermath of the downturn observed in China in Q1

15 Eramet - Investor presentation, May 2020

1 Seaborne

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 for the months ahead in the aerospace sector (more than 70% of A&D's sales) owing to reduced delivery rates at Airbus and Boeing, the sector's largest

players

Reduced production rates by approx. one-thirdvs. their pre- crisis levels announced by Airbus for the months ahead1

Aerospace sector's entire supply chain impacted

Erasteel

Continuing significant slowdown of automotive sector, weighing on cold work and cutting tools demand, therefore on high-speedsteel activity, more than 90% of Erasteel's sales

Global automotive sales expected to drop by c.25% in 2020, in the context of the pandemic

Good performance, specifically in Asia, of the market of high-qualitypowder metallurgy high speed steels

16 Eramet - Investor presentation, May 2020

1 Excl. military programmes

Q1 2020 sales down 11% yoy only, affected by the sharp decline in material prices…

High Performance

Erasteel

Alloys Division

5%

25%

Mining and Metals

Division

75%

Aubert & Duval 20%

Mineral Sands

€774 m

Manganese BU

BU

46%

9%

Nickel BU

20%

Unfavourable price environment hitting the Metals & Mining division's activity

-34% in manganese ore market prices (CIF China 44%) in Q1 2020 yoy; steeper price decline for Eramet (-41%), as January & February sales were signed based on lower spot prices in Dec. 2019

Sharp decline in ferronickel prices, at a large discount to the LME reflecting the fall in demand for stainless steel, despite LME prices up +3% yoy

Conversely, average price of nickel seaborne ore (CIF China 1.8%) up +32% yoy to USD 67.7/wmt, following the Indonesian ban, effective as of 1st January 2020

Strong decline in Erasteel sales

Erasteel's sales down 34% to €40m, due to steeper slowdown in the automotive sector, worsened by the health crisis and declining raw material prices

17 Eramet - Investor presentation, May 2020

…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% for mineral sands production

Q1 2020 production volumes sold in full

  • c.1 Mt (+29%) of manganese ore ; 17 kt of zircon (+32%) and 52 kt (+33%) of TiO2

High Performance Alloys division

Q1 aeronautical sales up 3% to €115m, despite lower volumes of some aerospace programs ; sales up in land- based turbine, energy and defence sectors

Contrasted production at Erasteel: Swedish sites' effective

operations, thanks to high-speed steels made using powder metallurgy techniques

18 Eramet - Investor presentation, May 2020

1 OEE: Overall Equipment Efficiency, reflects the intensity of mining production (real production/maximum theoretical production)

Delivering on our strategic roadmap, in an adverse environment

Operational performance

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
  • +80% over 2 yrs (1.6 Mwmt vs 0.9 Mwmt)

Constant progress in operating performance in Mineral Sands

Relevance of SLN Business model

Cash-costreduction in both H2 2019 (-5% vs H1), and Q1 2020 (-8% vs Q4 2019)

CSR

achievements

Strategic roadmap

Progress on the CSR roadmap

2019 high performance index at 112 pts, i.e. 12 pts > 2019 target 50% decrease in accident frequency over 2018-2019

New strategic milestones

Weda Bay Nickel: start of NPI production in April 2020

Continuing manganese ore organic growth in Gabon

Lithium project currently mothballed: performance yield leading to 1st quartile cash cost

19 Eramet - Investor presentation, May 2020

2

2019 Financial results

EBITDA showing solid operating performance, in a depressed price environment in 2019

Sales €3,671m

  • -4%vs 2018

EBITDA €630m

  • -25%vs 2018

COI €341m

(Current operating income)

Net debt €1,207m (excluding IFRS 16 impact)

High Performance

Erasteel

Mining and Metals

Alloys Division

6%

Division

23%

77%

Aubert & Duval 17%

Mineral Sands

€3,671m

Manganese BU

BU

48%

8%

Nickel BU

21%

Net income - Group share

€(184)m

Gearing174%

ROCE212%

21 Eramet - Investor presentation, May 2020

  1. Net debt-to-equity ratio, excluding IFRS 16 impact
  2. COI divided by capital employed for year N-1

Financial performance adversely impacted by manganese prices and non-recurring items

Deteriorated manganese price environment

-21% on average for manganese ore1 prices

-7% on average for refined manganese alloys'1 prices

-5% on average for standard manganese alloys'1 prices

A&D one-offs

Delivery and sales hampered by logistics issue, following quality review including in-depthrestructuring of former production and management routines

Exceptional payments to the Gabonese state

Advance payment of 2019 income tax and tax adjustment

-€268m

EBITDA impact

vs 2018

-€49m

EBITDA impact

-€160m

Net debt cash-outflows

-€114m

Net debt cash-outflows

22 Eramet - Investor presentation, May 2020

1 CRU index: manganese ore CIF China 44% ; MC FeMn (Europe) ; SiMn (Europe)

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. IFRS 16 non cash impact

74%

38%

ROCE (COI / capital employed1 for previous financial year)

12%

22%

The data presented and commented on is adjusted data from Group Reporting, in which joint

ventures

are accounted for using

proportionate consolidation until end-2018. The reconciliation with the published financial statements is presented in the appendices.

23 Eramet - Investor presentation, May 2020

1 Sum of shareholders' equity, net debt, provisions for site rehabilitation, restructuring and other social risks, less financial fixed assets, excluding Weda Bay Nickel capital employed

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 quality review)

1

Provisions on asset impairment tests - (Erasteel in 2019, A&D in 2018)

1

Reversal of asset impairment tests - GCO / EMI

Capital gain on disposal - Guilin / Weda Bay Nickel

  1. (65)
  1. (200)

0

97

0

158

Lithium project

(25)

(24)

Financial result

(134)

(95)

Pre-tax result

89

371

Share in income from associated companies

(7)

(3)

Income tax

2

Net income

o/w Minority interests' share

Net income - Group share

  1. (241)
  1. 126
    39 73
  1. 53

1

HP Alloys Division: €(114)m impact of non- recurring items, o/w €(49)m EBITDA, €(64)m of other operating expenses

2

Income tax includes €(147)m of taxes due to Gabon, o/w Comilog 2019 Income tax (€90m)

24 Eramet - Investor presentation, May 2020

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 performance and higher prices

High Performance Alloys Division contribution hampered by logistics issue and strong market decline at Erasteel

EBITDA In €m

2019

20181

Change2

Mining and Metals Division

Manganese BU

560

784

-29%

Nickel BU

38

(18)

n.a.

Mineral Sands BU1

106

62

+70%

High Performance Alloys Division

(26)

46

n.a.

Holding & eliminations

(48)

(31)

+55%

Group

630

843

-25%

25 Eramet - Investor presentation, May 2020

  1. TiZir 50% until 30 June 2018, 100% from 1st July 2018 onwards
  2. Data rounded up to higher or lower %

Income highly sensitive to metal prices

SENSITIVITIES

Change

Annual impact on EBITDA

(+/-)

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.€135m

Oil price per barrel

+$10/bbl

c.€(20)m1

26 Eramet - Investor presentation, May 2020

1 For an exchange rate of $/€1.13

Continued high liquidity at €2.3bn at 2019 end-year

Credit lines fully withdrawn as a precaution as of 31st March 2020

Revolving credit facility ("RCF")

  • €981m RCF maturing 2024

Term loan:

  • €350m loan granted in December with a 2- year maturity and an option to extend to January 2024 at Eramet hand
  • Intended for general purposes and investment

European Investment Bank ("EIB") financing:

  • €120m loan maturing in 2030
  • Intended to support R&D expenditure, modernisation and digital transformation

Group financial liquidity (€m)

3,000

2,806

2,500

2,468

2,299

2,000

1,825

848

1,367

1,500

1,000

981

500

981

981

350

0

120

120

31/12/2017

31/12/2018

31/12/2019

pro forma*

Available cash

Undrawn line: Revolving Credit Facility ("RCF")

Undrawn line: Term Loan

Undrawn line: European Investment Bank ("EIB") financing

27 Eramet - Investor presentation, May 2020

  • Pro forma of the repayment of the €250m RCF drawdown on 18 January 2018 and post-extension to 2023 of the RCF signed on 13 February 2018

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 for €300m due May 2025

Average maturity of Group's 3-year debt; c. 90% at a fixed rate

685

15

Debt maturity at 31 December 2019 (€m)

Commercial papers, banks & operating debts

497

Eramet bonds

TiZir bond

500

French State Loan to SLN

231

317

280

17

78

169

233

37

300

100

202

170

68

17

6

6

10

33

32

68

17

6

6

10

2020

2021

2022

2023

2024

2025

2026

2027

2028

>2028

28 Eramet - Investor presentation, May 2020

3

Operational performance

Mining and Metals Division

Manganese BU

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 the world (-3.1%)

Still a slight surplus in supply/demand balance in Q1 2020

Stocks at Chinese ports at 5.8 Mt1 end-March (+0.5 Mt since end-2019) : about 10 weeks of yearly consumption in China

Global carbon steel production

Global manganese ore production

(manganese content)

-1.8%

-4.1%

+5.9%

Mt

+3.6%

Mt

2,100

1,867

22

19.2

20.3

1,802

20

1,800

18

1,500

53%

16

52%

14

1,200

12

900

10

8

451

443

5.0

4.8

600

47%

6

48%

51%

52%

4

300

2

49%

48%

0

0

2018

Q1 2019

2019

Q1 2020

2018

Q1 2019

2019

Q1 2020

China

Rest of the world

Source: Worldsteel Association, except for February 2020 China data (National

Bureau of Statistics in China) / Eramet estimates

32 Eramet - Investor presentation, May 2020

1 Incl. 1.1 Mt of ore in Bonded warehouses, not accounted before (0.5 Mt end-2019)

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 manganese alloys' prices (-7% for refined ferromanganese in Europe) in 2019,

reflecting global market slowdown (particularly for automotive industry) ; rebound in Q1 2020 (average ferromanganese price at €1,399, +3% vs Q4 2019), despite strong uncertainty for the coming months, notably in Europe

$/dmtu

Monthly change in manganese ore and medium-carbon ferromanganese (refined) prices1

€/t

9

FY= -7.3%

1,900

8

1,800

1,700

Q = -9.6%

7

1,600

6

1,500

5

1,400

1,300

4

FY= -21.4%

1,200

3

1,100

2

Q =

-33.8%

1,000

900

1

800

Jan-15

Jul-15

Jan-16

Jul-16

Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Jul-19

Jan-20

Jul-20

Q

Q Q1 2020 vs Q1 2019 price variation

Manganese ore

Medium-carbon Ferromanganese

FY FYFY 2019 vs FY 2018 price variation

33 Eramet - Investor presentation, May 2020

1 Manganese ore: CRU CIF China 44%

Medium-carbon FerroMn: CRU Western Europe spot price

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 (+70% transport capacity since 2016)

Thus external sales up +29% in Q1 2020 to 1 Mt (+15% to 3.9 Mt in 2019)

Manganese alloys' production up +3% both in Q1 2020 and in 2019 (reflecting the nominal production level of the Group's plants)

Sales volume rising by +3% in Q1 2020 (at 181 Kt) after +4% in 2019 (at 733 kt), driven by the sale of standard products

Manganese ore production and agglomerates

kt

+10.0%

+28.2%

kt

5,000

800

4,000

3,000

2,000

4,330

4,765

400

1,000

1,288

1,005

0

0

2018

Q1 2019

2019

Q1 2020

Manganese alloys' production

+2.6%

+2.8%

720740

397386

191

354

196

323

108

106

83

90

2018

Q1 2019

2019

Q1 2020

Commodities (HC FeMn et SiMn)

34 Eramet - Investor presentation, May 2020

Refined alloys

(incl. Mn Metal)

Nickel BU

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 demand was up +3.1% in 2019, notably supported by battery development (+31%); but down -13.5% in Q1 2020 yoy following contraction of stainless steel production worldwide

Increase in global primary nickel production (+9.4% and +4.6% in 2019 and Q1 2020 yoy, respectively), driven by continued growth in NPI in Indonesia and China

Global stainless steel production

China

Rest of world

-12.1%

Kt

+4.3%

60,000

51,766

49,636

50,000

40,000

53%

57%

30,000

20,000

12,397

10,901

10,000

47%

43%

52%

56%

0

48%

44%

2018

Q1 2019

2019

Q1 2020e

Global primary nickel production (excl. recycling)

Ni Class I*

Ni Class II - NPI Indonesia

Ni Class II - NPI China

NI Class II - High-grade Ferronickel & others

+4.6%

Kt

+9.4%

2,343

2,500

2,142

2,000

951

1,500

940

1,000

468

590

NPI

578

248

553

344

239 kt

42%

500

234

233

132

124

485

459

115

112

75

107

0

2018

Q1 2019

2019

Q1 2020e

36 Eramet - Investor presentation, May 2020

* Class I: product with nickel content of 99% or more

Source: Eramet estimates

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 balance was in slight deficit in 2019 (-24kt); in surplus in Q1 2020 (+70 kt) due to decreasing demand since H2 2019

Hence overall increase in nickel metal stocks at LME and SHFE by +35% vs end-2019 (257 kt at end-March 2020), after throughing in November 2019

LME prices down in Q1 2020 vs. Q4 2019 at USD 5.77/lb (-17%) but up (+3%) yoy

LME Nickel price

USD / lb USD/tonne

9.1 20 000

8.2 18 000

7.3 16 000

Nickel Stocks

LME Stocks

SHFE Stocks

Ni price

(tonnes)

600 000

FY=+6.1%

570 000

540 000

510 000

480 000

450 000

420 000

390 000

360 000

6.4

14 000

330 000

300 000

5.4 12 000

10 000

4.5

8 000

3.6

6 000

Jul-15

Jan-16

2.7

Jan15-

37 Eramet - Investor presentation, May 2020

270 000

240 000

210 000

180 000

Q = +2.7%

150 000

120 000

90 000

60 000

30 000

-

Jul-16

Jan-17

Jul-17

Jan-18

Jul-18

Jan-19

Jul-19

Jan-20

  1. Q1 2020 vs Q1 2019 price variation

FYFY 2019 vs FY 2018 price variation

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-gradeore exports request submitted for authorization to New- Caledonian authorities in April 2020, to offset insufficient economy on the energy lever

Enablers for productivity gains and fixed cost reduction in mines and plants

  • Doniambo plant reorganisation: majority agreement signed with unions on April 2019 regarding the transition from 5 to 4 shifts
  • 147 hrs agreement implemented at mining sites1, creating conditions for 7/7 days and 21/24 hours operations

Reduction in energy price

  • 1/3rd of target achieved, subject to conditions starting 1st January 2020:
    • €8.5m / year, max. reduction if Ni LME price < USD 6.5/lb
    • €8.5m / year, max. profit return to Enercal, if Ni LME price > USD 10.0/lb

Priority objective to reach a sustainable positive cash generation

Target to reduce cash-cost by USD 1.30/lb2 in 2021

38 Eramet - Investor presentation, May 2020

  1. Signed in November 2018
  2. Versus 2018

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 Mwmt), +5% in Q1 2020 yoy (at 0.9 Mwmt)

Volumes of low grade (1.5%-1.8%) exported

ore up +32% in 2019 and +41% in Q1 2020 yoy

Seaborne nickel ore prices up +31% in H2 2019 vs H1, +32% in Q1 2020 yoy, supported by Indonesian ban announcement

Ferronickel production down 1% in Q1 2020 yoy (-13% in 2019), still due to lower-gradeore loaded into the furnaces, as a result of past social and societal disruptions in the East Coast mining centres

Ferronickel sales volumes down -15% in 2019 (at 47 kt) and -3% in Q1 2020 yoy (at 11.6 kt),

Ferronickel sold at a large discount applied to the LME in Q1 2020

Nickel ore exports

Ferronickel production

In ktH

+40.9%

In kt of Ni

-0.8%

-12.7%

+31.5%

4,000

54.3

4,000

60

47.4

1,623

1,500

1,234

1,000

500

235

331

12.2

12.1

0

0

2018

Q1 2019

2019

Q1 2020

2021

2018

Q1 2019

2019

Q1 2020

target

39 Eramet - Investor presentation, May 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 well as Q1 2020 lower energy costs

SLN cash-costhampered by lower ferronickel production, as a result of lower-grade ore loaded into the furnaces due to past mines disruption

Lower ferronickel

(USD/lb)

production

External factors

Capex, non-operating costs

Ore exports

and financial expenses1

USD -0.16/lb

USD +0.44/lb

USD -0.19lb

+USD 0.71lb

5.82

6.05

5.91

6.62

5.74

-5%

2018

H1 2019

H2 2019

2019

2019

cash-cost

cash-cost

break-even cost

40 Eramet - Investor presentation, May 2020

1 2019 capex related to 2019 tonnage; non-operating costs and financial costs booked in SLN's company financial statements

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-2019

EBITDA loss halved to €21m in 2019

Significant reduction of cash consumption (free cash-flow of -€32m vs -€54m)

Slowdown in production down 17% yoy in Q1 2020

Technical operations below expectations, in addition to a 2-weekshutdown at end-March attributable to the health crisis

Sales volumes stable at 1.6 kt in Q1 2020

High purity nickel production

(nickel metal and salts)

In kt of Ni

-17%

+86%

9.0

6.9

4.5 3.7

1.81.5

0.0

2018

Q1 2019

2019

Q1 2020

41 Eramet - Investor presentation, May 2020

Mineral sands BU

Still strong demand for CP slag products despite pandemic affecting pigment end-markets

Pigment market (90% of titanium-basedend-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 materials producers continued to bolster demand in CP grade titanium slag2, as produced by Eramet in Norway

Average CP slag reaching USD 800/t in Q1 2020 (rising by 11% vs Q1 2019) as global supply sustained. In 2019, average price was USD 752/t (+10% vs 2018)

Monthly change in CP grade titanium dioxide slag prices3

840

Q

= +10.8%

770

700

FY = +9.8%

630

560

Jan-16Jul-16Jan-17Jul-17Jan-18Jul-18Jan-19Jul-19Jan-20Jul-20

  1. Q1 2020 vs Q1 2019 price variation

FYFY 2019 vs FY 2018 price variation

43 Eramet - Investor presentation, May 2020

  1. Titanium dioxide slag, ilmenite, leucoxene and rutile
  2. For the production of pigments through chloride process
  3. Source CP slag: Market consulting, Eramet analysis

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 ceramics market contraction (particularly with the real estate sector fallback in China)

Supply/demand balance for zircon is still slightly in surplus in Q1 2020; sustained demand for TiZir

products, which seems to reflect zircon consumers' build-up of safety stocks, especially in Europe

Average zircon price thus fell to price of premium zircon in 2019

USD 1,385/t in Q1 2020 (shrinking by 13% vs Q1 2019). Average was USD 1,575/t, up 7% vs 2018

$/t

Monthly premium zircon prices1

1,600

1,500

1,400

FY

= +7.4%

1,300

Q

= -12.6%

1,200

1,100

1,000

500

Jan-16

Jul-16

Jan-17Jul-17

Jan-18Jul-18

Jan-19

Jul-19

Jan-20Juil.-20

  1. Q1 2020 vs Q1 2019 price variation

FYFY 2019 vs FY 2018 price variation

44 Eramet - Investor presentation, May 2020

1 Source Zircon premium: FerroAlloyNet.com, Eramet analysis

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

Titanium dioxide slag production down -10%

high OEE)

> lower grade mined from 2019 onwards

in Q1 2020 yoy, stable in 2019

according to mining plan

CP slag sales' volumes up +33% in Q1 2020

Zircon sales down -11% (at 58 kt), up +32% to

(at 52 kt), due to unfavourable market conditions

17 kt in Q1 2020

in Q1 2019; down -10% in 2019 yoy (at 180 kt)

HMC production1

OEE rate2

Titanium dioxide production

(GCO, Senegal)

(GCO, Senegal)

(TTI, Norway)

+9.9%

+12%

-9.4%

in kt

-5.0%

+5.2%

in kt

0.0%

in t/hour

800

774

735

+6%

200

189

189

+107%

5 000

4 867

4 134 4 347 4 333 4 590

4 000

400

3 500

100

3 000

171

188

2 500

1 995

53

48

2 000

0

2018

Q1 2019

2019

Q1 2020

0

0

2018

Q1 2019

2019

Q1 2020

2014

2017

2018

Q1

2019

Q1

2019

2020

45 Eramet - Investor presentation, May 2020

  1. HMC: Heavy Mineral Concentrates
  2. Overall Equipment Efficiency of the mine

High Performance Alloys division

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 midst of the gravest crisis [it] has ever known" (Airbus)

Defence sector should stay stable as military expenses are a key support to national economies and Security programmes

Severe slowdown expected, owing to reduced delivery rates at Airbus and Boeing, the sector's largest players

Global activity to be reduced -30%to -50% depending on aircraft programmes, affecting narrow-body as well as wide-body models

47 Eramet - Investor presentation, May 2020

1 Source: Brokers notes, Airbus and Boeing websites

Q1 2020 sales impacted by a slowdown in production starting mid-March and still depressed automotive market

Sales by segment

-16.9%

1,020

558

-9.7%

847

104

484

130

70

217

88

196

113

114

213

189

19

24

21

58

21

36

14

16

3

4

2018

Q1 2019

2019

Q1 2020

A&D1:

Erasteel:

€156m / €642m

€40m / €205m

Aerospace

High-speed steels,

Tooling & Specialties

Energy & Defense Recycling

Others

Q1 2020/ 2019

48 Eramet - Investor presentation, May 2020

A&D1 sales (flat in Q1 2020, -19% in 2019 yoy)

-13% decrease in 2019 in aerospace segment (more than 70% of A&D sales) due to delays impacting sales in a stable market environment

Several agreements signed with aerospace and energy top-tier customers in 2019

To date, production level at A&D sites of c. 65 % of nominal capacity, following roll-out of health protocols

Significant slowdown expected for the months ahead in

the aerospace sector

Erasteel sales (-34% in Q1 2020, -10% in 2019 yoy)

Continuing significant slowdown of automotive sector,

weighing on high-speed steel activity (more than 90% of

Erasteel's sales)

Good performance, specifically in Asia, of the market of high-qualityhigh-speed steels made out of powder

metallurgy

1 Aubert & Duval, EHA and other

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 -€13m in 2018

-€160m cash impact

€27m loss incurred by Erasteel

Shrinking sales in automotive market

Negative squeeze impact on high-speed steels margin (-€19m)

FCF close to break-even at year-end thanks to tight WCR management

High Performance Alloys Division EBITDA

EBITDA by entity

84

-€72m

86

-€37m

A&D

-€35m

46

Erasteel

36

10

1

-2

-26

-27

2017

2018

2019

2017

2018

2019

49 Eramet - Investor presentation, May 2020

1 Aubert & Duval, EHA and other

4

Strategic transformation

1st metal tapping at Weda Bay Nickel's NPI plant

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 STRATEGIC VISION IN 5 YEARS

Sustainable

Business

Committed &

Home for best

Entrepreneur

value creator

partner

contributive

talents

of choice

corporate

citizen

Strategic Transformation

Managerial Transformation

Digital Transformation

51 Eramet - Investor presentation, May 2020

Continuing Group strategic transformation:

increasing cash generation and portfolio diversification

1

FIX / REPOSITION

our least performing assets

Nickel

  • SLN new business model: decisive breakthroughs achieved
  • Sandouville: recovery

High Performance Alloys

  • Restructuring to be redefined given the scale of the crisis in the aeronautics sector following the pandemic

2 GROW

in our attractive businesses

Manganese ore

  • Growth in volumes in Moanda (Gabon) based on a modular approach, supported by dry processing

Weda Bay Nickel (Indonesia)

  • Start of mining operations in Q4 2019
  • Ongoing NPI plant ramp -up

Mineral sands

  • Tizir (Senegal): continuous improvement of operational performance ; debottlenecking under review
  • Cameroon: exploration permits granted in rutile

3

EXPAND our portfolio in metals for the energy transition

Lithium:

  • Project in Argentina currently mothballed
  • Pilot plant on site confirming highest industry yield in real conditions

Nickel and cobalt salts

  • Study of Weda Bay diversification towards products for EV batteries

Li-ion batteries' recycling

  • R&D programme

52 Eramet - Investor presentation, May 2020

New modular approach for brownfield expansion of Moanda manganese ore operations

A HIGHLY COMPETITIVE MINE IN GABON

Operated by Comilog for 50 years

Strong quality high-grade oxide commercial ore 46%

Deep reserves of 269 Mt representing several decades, allowing a long term target of 7Mt production

A NEW MODULAR EXPANSION

Enhance production of the Bangombé plateau

through dry processing

  • €51m of early works cashed out in 2019

New modular approach with progressive and flexible development

1st phase: opening of the new Okouma

Strong cash flow generation

Manganese ore capacity

(in Mt)

c.6

4.3

4.8

+40%

2018 2019 1st phase of new modular

approach

53 Eramet - Investor presentation, May 2020

plateau, supported by dry processing

  • production capacity up c.25% to c.6 Mt
  • €150m capex over 2 years
  • roll-outschedule to be finalized with Gabonese partner

Continuing railway line renovation: already +70% transport capacity achieved since end- 2016

Strong commitment to E&S: employment,

biodiversity, water

Weda Bay nickel: highly competitive NPI production in Indonesia, effective start-up in April 2020

MINING & METALS BUSINESS MODEL

Weda Bay Nickel business model balanced in 2 activities: mining and metallurgy

One of the largest nickel oxidised deposits in the world

First mining production started in October 2019 to supply several NPI plants on Halmahera island, o/w JV plant

0.5 Mwmt of nickel ore produced at end-2019, ready for smelting at JV plant

Ongoing NPI JV plant ramp-up, ahead of schedule

Key milestone: 1st metal tapping in April

Gradual ramp-up: towards 80% nominal capacity in December 2020

No capex for plant construction for Eramet

54 Eramet - Investor presentation, May 2020

ATTRACTIVE METRICS

Production

Production

target - Ore

target - NPI

6 Mwmt1/year

2

/year

35 kt

Eramet

43%5

Nickel

Tsingshan4

Eramet

resources

57%5

off-take

600 Mt3 ore

15 kt2/year

9 Mt Ni

HIGHLY COMPETITIVE NPI PRODUCTION IN INDONESIA

  1. Mwmt: million of wet metric tons (production)
  2. In nickel content in NPI
  3. Mt: million of dry metric tons (resources)
  4. #1 global stainless steel producer
  5. % held in Strand MineralsPte Ltd, which owns 90% of PT Weda Bay Nickel (see 2019 URD)

Lithium project in Argentina: currently mothballed

HIGHLY VALUE-ACCRETIVE PROJECT

Long life low cost and scalable project, c.10 Mt

LCE1 drainable resources, c.50 years of resources

Battery grade lithium carbonate production (24 kt LCE1)

1st quartile cash-cost ($3.5k/t) amongst the best in the industry

Pilot plant on site (operating in real conditions since December 2019) to continue its activity in order to finish collecting the process results

Eramet lithium yield vs competition

90%

70-75%

Evaporation process

50-55%50-55%

Comp. 1

Comp. 2

Comp. 3

Eramet

STATUS UPDATE: PROJECT MOTHBALLED

April 2020: decision not to engage the construction of the lithium production plant

  • Considerable uncertainty in the global economy due to current sanitary crisis
  • In such context, cash preservation measures to be strengthened and accelerated

As a result, in 2020:

  • Expense of c. €150m, including an asset impairment charge
  • Cash outflows of c. €90m

All measures taken to allow a restart in the best conditions when possible

(Comp: competitor)

Direct extraction process

55 Eramet - Investor presentation, May 2020

1 LCE = Lithium Carbonate Equivalent

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 presentation, May 2020

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

1.2

Ratio of rehabilitated / cleared areas

-35%

accidents

(employees, temps and subcontractors' FR2)

87%

of purchased electricity produced with carbon- free footprint

€20m

Invested in the communities' benefit **

*

The CSR Performance index measures the annual progress of Eramet's 2018-2023

57 Eramet - Investor presentation, May 2020 **

CSR programme

Expenditures for local populations and sponsorship, including this year's exceptional

contribution of Comilog to the financing of road rehabilitation in Moanda (€5m)

Conclusion and outlook

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 restricted supply resulting in considerable unstable market equilibriums

Reduction in production rates recently announced in the aerospace sector as well as in the

automotive's to have a deep impact on the High Performances Alloys division over the long term

Strict cash control

Implementation of 2020 cash control plan and strict control over net debt

Lithium project mothballed

New milestones for the Group's strategic roadmap

Ramp-upof Weda Bay's mining and metallurgical operations in 2020 Strengthening on our leadership market positions: sustained growth in Manganese

Suspension of the 2020 production and EBITDA guidance,

given the lack of visibility over the coming months

59 Eramet - Investor presentation, May 2020

Appendices

Eramet detailed presentation

Key partnerships with host countries and territories

Eramet associates the main countries and territories where it operates

New-Caledonia

  • STCPI holds 34% of SLN's share capital
  • STCPI holds around 4% of Eramet's share capital

Gabon

  • Around 29% of Comilog's share capital is owned by the Gabonese Republic

Senegal

  • 10% of Grande Côte Opérations's3 share capital is owned by the Republic of Senegal

Long-term relationship reinforced by the significant contribution to the local economies

#2 private employer in Gabon and main private employer in New Caledonia

Sensitive & responsible for social and environmental related matters

Nippon Steel

French

State2

France

10%

1

34%

STCPI

56%

Eramet

Others

7%

Gabonese

State 29%

64%

Eramet

62 Eramet - Investor presentation, May 2020

  1. STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the New Caledonian provinces
  2. 1 share
  3. TiZir's operations in Senegal
Transfer of the 26% stake held by the French State to FSI Equation (which became APE)
Creation of Eramine Sudamerica (lithium project
in Argentina)
Diversification into manganese alloys and titanium dioxyde through the acquisition of
Tinfos

A long term player

100% of TiZir owned by Eramet (OPA on MDL)

Shareholding structure

Société Le Nickel was incorporated to operate nickel mines in New Caledonia

Le Nickel became SLN, with Elf Aquitaine (French State) as a 50% shareholder

The stake held by the French state in SLN increased to 70%

Creation of Eramet-

SLN (Sandouville)

The Duval family becomes shareholder of Eramet, through the contribution of Aubert & Duval

Launch of EcoTitanium

Sale of Erachem and Bear Metallurgical Corporation

Sale of Eurotungstene

Weda Bay Nickel partnership in

Indonesia

Inauguration of Moanda

Metallurgical Complex (2014)

Creation of MKAD for the

closed-die forging of parts for aeronautics (2015)

Diversification into the production of ilmenite and zircon through TiZir in

Senegal

diversification Activities'

Listing of

Eramet

Acquisition of Weda Bay Nickel (nickel project) in Indonesia

Diversification into forged and closed-die forged parts, following the contribution of Aubert & Duval to Eramet

Diversification into manganese with the acquisition of 61% of COMILOG in Gabon

Acquisition of Erasteel (diversification into production of high-speed steel)

1880

1974

1983

1985

1989

1994

1995

1999

2006

2008

2011

2012

2014

2016

2018

1991

1997

2009

2015

2017

2019

Group

Manganese

63

Eramet - Investor presentation, May 2020

Nickel

Mineral Sands

LithiumAlloys

Steels represent c.60% of Eramet sales

Recycling

Other (Chemical

and Foundry)

High-speed steels, Toolings & Specialities

0%

Others

5%

8%

Stainless Steel

Energy & Defense

2%

2%

2%

Aérospace

Steels: 58%

13%

6%

17%

6%

Other Mineral Sands 3%

21%

48%

8%

48%

6%

Pigment 4%

19%

21%

38% Carbon Steel

Ceramics 2%

3%

Other Nickel

18%

Stainless Steel

64 Eramet - Investor presentation, May 2020

A global geographic footprint

PROJECTS

MINING SITES PROCESSING

Manganese

Nickel

Mineral sands

Lithium

Erasteel Aubert & Duval

UNITED

STATES

1 site 1 site

2019 Group turnover (by sales destination)

Others

France 9%

NORWAY

SWEDEN

3 sites 1 site

3 sites

UNITED

KINGDOM

1 site

FRANCE

12 sites

2 sites

SPAIN

1 site

1 site

1 site

SENEGAL

Diogo region

GABON

Moanda

CHINA

1 site

INDIA

1 site

INDONESIA (Halmahera Island)

Weda Bay

NEW CALEDONIA

Kouaoua, Népoui,

Poum, Thio,

Thiébaghi

USA 16%

5% 36%Asia

ARGENTINA

Salar de Centenario-Ratones

35%

Europe

65 Eramet - Investor presentation, May 2020

Manganese main growth drivers: carbon steel (90% of global production) and China

1

Manganese Ore

Average 0.4 t of Mn content

per tonne of ore

2

Manganese Alloys

Average 1.8 t of Mn ore per

tonne of alloy

Manganese key features

3 types of manganese ore

  • "Low-gradelocal" ore: < 30% of manganese content
  • "Medium-grade"ore: > 30% but < 43%
  • "Rich" / "High-grade" ore: > 43%

Two manganese alloys families

  • Standard
  • High carbon ferromanganese (6 to 8% carbon)
  • Standard silicomanganese (< 1.5 to 2% carbon)
  • Refined
  • Of which medium carbon ferromanganese (< 1.5 to 2% carbon)

No market trade: Spot prices

Carbon steel

Manganese makes steel harder, more elastic and more wear-resistant. Widely used in the construction and automotive sectors.

3

90%Carbon steel

Average 10 kg of alloy per

tonne of steel

(7 kg of Mn content per

tonne of steel)

  • CRU index: monthly
  • Metal Bulletin index: weekly

China: 54 % of global carbon steel production

10%

Others

chemistry batteries, fertiliser and paint pigments and other metallurgical applications

66 Eramet - Investor presentation, May 2020

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-gradeoxyde ore 44%
  • First quartile cash cost

Two units of local transformation in

Gabon, CIM and CMM, for high grade manganese production and manganese alloys

5 pyrometallurgical industrial plants in the USA and in Europe (1 in France, 3 in Norway)

Ore transportation in Gabon operated by a 100% owned railway company (600 km of track)

Main customers

Main competitors

67 Eramet - Investor presentation, May 2020

Nickel main growth drivers: stainless steel and batteries

1

Nickel key features

Extraction of ore in

order to…

2

…be transformed in

nickel ferroalloys1

2

Ferronickel

…or in pure nickel

23% Ni

NPI

salt2

10 / 15% Ni

Two main types of nickel ore

  • Sulfide-typeore (nickel combined with several other valuable metals) as in Canada, Russia to be transformed in Nickel concentrate
  • Laterite-typeore as in New-Caledonia and Indonesia to be transformed into ferronickel, NPI ("Nickel Pig Iron") or nickel metal

1 tonne of serie 300 (inox) contents 80 kg of nickel

Stainless steel

Mass & surface resistance to oxidation; ductility; high melting point; electrical resistance; catalytic properties Widely used in transport, construction, hygiene and

health

68%

3

…to satisfy mainly the

stainless market

demand 10%Nickel

base

7%

alloys

15%

Batteries

Others

Nickel is traded on the LME index (pure metal)

China : 56 % of global stainless steel production

68 Eramet - Investor presentation, May 2020

  1. Ferronickel and NPI through pyrometallurgical process
  2. Nickel salt and nickel metal through hydrometallurgical process

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-gradeferronickel (23% Ni) and nickel ore exported (1.7 to 1.9 % Ni)

Ramp-up of Weda Bay nickel project

  • One of the world's largest undeveloped nickel deposits with huge mining potential
  • Project being developed in partnership with Tsingshan, #1 global stainless steel producer
  • NPI production start in H1 2020 in parallel to mining development.13 kt off-take for Eramet

First-tier mine and NPI production position

Ramp-up of the high purity nickel refinery in Sandouville, France

  • Production of nickel salts and high-purity nickel (Total capacity of 15,000 t)

Main customers

Main competitors

69 Eramet - Investor presentation, May 2020

Nickel BU: SLN mineral resources x4 thanks to new business model

SLN amongst Tier one nickel industry

players, thanks to significant mineral

Poum

SLN 2021 targeted mining

resources,

production

SLN mineral resources of 1,050 Mt1 on

Spur R

average (1.85% grade), equivalent to

Tiebaghi

Kouaoua

c.19.4 Mt nickel content, o/w:

Poro

Boualoudjelima

Kaala

> c.600 Mt1 nickel exports (1.5%-1.8%

Bonini

grade on average), i.e. c.11.3 Mt nickel

Bouadjoulema

Dothio

content

Népoui

Thio

> c.200 Mt1 suitable for local metallurgy at

Tontouta

Doniambo plant (2.4% on average), i.e.

5.5 Mt nickel content

Resources are JORC compliant2

Global annual production of > 7 Mwmt3 by 2021 (> +50% vs 2019) to support ferronickel production as well as 4 Mwmt3 ore exports target

70 Eramet - Investor presentation, May 2020

  1. Mt: million of dry metric tons (resources)
  2. Resources JORC compliant (Australasian Joint Ore Reserves Committee)
  3. Mwmt: million of wet metric tons (production)

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 mining

followed by

1 mineral separation

2

Midstream :

micronisation or

chemistry

Foundry Others 2%

11%

Refractory 15%Finished

products 52%

Ceramics

20%

Chemicals

71 Eramet - Investor presentation, May 2020

1

Dredge or

open pit

mining followed

by mineral

Titanium

separation

minerals (rutile,

2

ilmenite,

leucoxene)

Midstream

3

(optional):

titanium slag

/ synthetic

rutile

89%

Downstream:

pigments and

titanium metal

TiO2 pigment

5% 6%Titanium

Others metal

1 LT agreements between buyers and sellers, on a yearly or half-year basis mainly; not exchange traded , no published price index

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), leucoxene, rutile and zircon

Ore rail transportation from the mine to the port of Dakar operated by TiZir

TiZir Norway (TTI): Transformation of ilmenite (metallurgical valorization) into titanium slag and pig iron

Main competitors

72 Eramet - Investor presentation, May 2020

High Performance Alloys

Division

Key Features

A comprehensive industrial set up with unique tools

Located in:

Europe (France, Sweden, Spain, UK)

Asia (China, India)

US

14 industrial sites in France

Main competitors

Main customers

74 Eramet - Investor presentation, May 2020

Lithium project

Others
Glass&
20%Ceramics
4
…to satisfy mainly the5%Greases
Energy Storage

Lithium main growth drivers: energy storage, including Li-on EV battery; +13% pa growth

1

Extraction from

salar brines or from lithiniferous minerals (spodumene) in order to…

2

3

…be

transformed into

Lithium

Carbonate1

Energy storage

in the form of

lithium-ion59%demand

batteries for

16%

portable electronics,

electric vehicles and the

storage of electricity

on transport networks

…or into

Lithium

Hydroxide

Energy storage market: mainly driven by environmental regulations, EV sales and mobility development

Lithium carbonate and lithium hydroxide enter the composition of the Li-ion batteries' cathodes

Forecast Li-ion battery market in 2025: c. 80%1 of total demand for lithium, vs c. 60% in 2019

Lithium market's estimated annual growth rate: at a minimum of 13% over the 2019-2025e period

76 Eramet - Investor presentation, May 2020

1 Source: Market studies, Eramet

A booming lithium market over the next years

Forecast lithium demand1 (in kt LCE)

603

22%

291

30%

Others

Others Batteries

41%

102

EV Batteries

29%

48%

57%

30%

43%

2010

2019

2025e

20191

20251

Glass & Ceramics

Glass & Ceramics

11%

Greases

20%

Electric vehicles

3%

30%

Others

8% Others

Energy

Greases

storage

5%

48%

22%

41%

59%

Others

78%

Consumer & Electronics

Energy

11%

storage

7%

16%

Others

Electric buses

Electric vehicles

2%

8%

E-bike

3%

Mass energy Storage

8%

2%

Mass energy Storage

18%

Consumer & Electronics

Electric buses E-bike

77 Eramet - Investor presentation, May 2020

1 2019 Registration Document

Source: Eramet and Market consulting estimates

Lithium Extraction process

78 Eramet - Investor presentation, May 2020

2019 detailed figures

Positive operating performance offset by external factors and one-off items

(€m)

8

-46

35

-23

-18

843

107

-46

1

2

3

+€39m

Operating performance

22-36

-268

A&D one-

off items

4

-€216m

External factors

17

-19

630

35

21

-62

60

4

5

2018

Mn

SLN Ni

SLN FeNi

Sand-

TiZir

HP Alloys'

Fixed

Others

A&D

Mn price* Ni price TiZir price Erasteel

Input

Currency Scope

2019

EBITDA volumes

ore

volumes

ouville

volumes

volumes

costs

Logistics

margin

costs*

and Other EBITDA

volumes

issue

squeeze

1

Ferronickel sales penalised by lower production

on the back of disrupted mining operations

2

Volumes impacted by lower global feed grade,

as planned, due to geological conditions

3

Fixed costs penalised by higher freight costs in

Gabon

4

Negative squeeze impact on manganese

alloys' margin: -€65m*

5

Input costs mainly related to wage inflation, purchase of South African manganese ore, cost of fuel, metallurgical reducing agents (coke) and freight

80 Eramet - Investor presentation, May 2020

  • Manganese alloys' margin squeeze: -€52m included in Mn price impact, -€13m in Input costs

€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 expansion of manganese ore production in Gabon (€51m) and for the lithium development project in Argentina (€81m)

Industrial cash capex (€m)

525

+51%

423

350

132

267

281

€192m

230

60

59

217

57

175

38

47

208

179

183

224

231

0

2015

2016

2017

2018

2019

Early capex (CLG & Li)

Growth

EHS /Productivity /Renovation

Manganese ore dry processing in Gabon: crushing and screening equipment

81 Eramet - Investor presentation, May 2020

Net debt impacted by €(274)m non-recurring cash outflows

1

2

2019 early capex for Comilog expansion (€51m) and lithium project (€81m)

A&D logistics issue one-off items: mainly negative

impact on 2019 EBITDA (€49m) and higher level of inventory (€80m) due to delays in shipments

3

Exceptional payments to the Gabonese state:

advance payment of 2019 income tax (€71m), tax

adjustment (€43m)

4

Dividends paid to Eramet shareholders (€20m)

and Comilog minority shareholders (€86m)

(€m)

31

-291

679

-132

-68

1

A&D one-off

items

Exceptional

-160payments

-717

Operating CF

excl. A&D logistics issue one-offs

2

-110

-113

-114

-68

3

-106

-38

4

-97

€287m

-1,207

-1,304

2018 Net EBITDA

Change

Capex excl. Early Capex

Other

A&D

Financial

Comilog

Other

Other

Dividends Other 2019 Net

IFRS 16

2019 Net

Debt

excl. A&D

in WCR

early capex (Comilog,

income &

logistics

cost

2018

taxes paid

Taxes

Debt,

(non-

Debt

logistics

excl.A&D

Lithium)

expense

issue

Income tax

to Gabon

excl.

cash)

issue

logistics

IFRS 16

one-offs

issue

impact

82 Eramet - Investor presentation, May 2020

Eramet in China

ERAMET SALES IN CHINA

Mining and Metals

Division

94%

HPA Division

Mineral

6%

Sands BU

5%

2019

Manganese

$980m

BU 51%

Nickel BU

38%

High Performance Alloys

Division

6%

ERAMET IN CHINA

3 Locations

135

headcount

1 Sales office

Eramet Trading Ltd.

31

(Shanghai)

1 Distribution center

Aubert & Duval Moulds and

31

Die Technology co. Ltd.

(Wuxi)

1 High-speed steel drawing shop

Erasteel Innovation

Materials Ltd.

73

(Tianjin)

83 Eramet - Investor presentation, May 2020

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

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

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

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

CRU price trends in manganese alloys (refined and standard) in Europe

CRU price trends for manganese alloys in Europe

€/t

between January 2015 and April 2020

2,000

1,500

FY= -7.3%

Q = -9.6%

1,000

FY= -4.2%

Q = -11.0%

500

Q = -6.4%

FY= -5.5%

0

Janv.-15

Jan-16

Janv.-17

Jan-18

Janv.-19

Jan-20

Janv.-21

Medium-carbon ferromanganese

High-carbon ferromanganese

Silicomanganese

Q

Q

Q

Q1 2020 vs Q1 2019 price variation

FY

FY

FY

FY 2019 vs FY 2018 price variation

88 Eramet - Investor presentation, May 2020

Source: CRU spot Prices Western Europe

Reconciliation Group reporting and published accounts

€m

Full Year

Joint-venture

Full year

Full Year

Joint-venture

Full year

2019

2019

2018

2018

contribution

contribution

Published1

Reporting2

Published1

Reporting2

Sales

3,671

0

3,671

3,725

100

3,825

EBITDA

630

0

630

828

16

843

Current operating income

341

0

341

574

7

581

Operating income

223

0

223

398

68

465

Net income for the period - Group share

(184)

0

(184)

53

(0)

53

Net cash generated by operating activities

86

0

86

437

12

449

Industrial investments

455

0

455

278

3

281

(Net financial debt)

(1,304)

0

(1,304)

(717)

0

(717)

Shareholders' equity

1,639

0

1,639

1,909

(1)

1,908

Shareholders' equity - Group share

1,398

0

1,398

1,606

(1)

1,605

89 Eramet - Investor presentation, May 2020

  1. Financial statements prepared under applicable IFRS, which joint ventures are accounted for using equity method.
  2. Group reporting, in which joint ventures are accounted for using proportionate consolidation.

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)

Income tax

(227)

(241)

Net income

(145)

126

Minority interests

39

73

Net income - Group share

(184)

53

The data presented and commented on is adjusted data from Group Reporting, in which joint ventures are accounted for using proportionate consolidation until end-2018. The reconciliation with the published financial statements is presented in the previous page

90 Eramet - Investor presentation, May 2020

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 investment flows

11

(379)

Net cash from investment activities (2)

(444)

(660)

Free Cash Flow (1) + (2)

(358)

(211)

Cash from equity operations

(117)

(123)

Impact of fluctuation in exchange rate and other

(6)

(7)

Right of use relating to lease contracts acquisition (IFRS16)

(12)

-

(Increase) / Reduction in net debt

(493)

(341)

(Net debt) at start of period (1)

(811)

(376)

(Net debt) at close of period

(1,304)

(717)

91 Eramet - Investor presentation, May 2020

(1) Restated for the first-time application of IFRS 16 as of January 1, 2019

Group Balance Sheet at 31 December, 2019

4,054

3,646

3,646

1,605

3,294

3,030

303

995

26

616

760

717

4,054

1,398

241

1,091

20

1,304

2018

2019

2018

2019

Fixed assets

Equity-Group share

Provisions and net deferred tax

Net debt

WCR

Minority interests

Financial instruments

92 Eramet - Investor presentation, May 2020

Bond maturities

€m

Amount at

Maturity

Currency

Initial amount

31/12/19

Interest rate

date

(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%

November 2019 bond issue

300

300

May-2025

5.875%

93 Eramet - Investor presentation, May 2020

Shareholding at 31 December, 2019

Number of shares issued: 26,636,000

Other float

32.1%

BRGM** 1.3%

4.0%

STCPI*

94 Eramet - Investor presentation, May 2020

Duval Family:

36.9% SORAME + CEIR

25.6%

APE

  • STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the New Caledonian provinces
  • BRGM (Bureau de Recherches Géologiques et Minières): the French Geological Survey Office

CONTACTS

Executive VP Strategy & Innovation - Investor Relations

Philippe GUNDERMANN

philippe.gundermann@eramet.com

Investor Relations Manager

Sandrine NOURRY-DABI

sandrine.nourrydabi@eramet.com

Attachments

  • Original document
  • Permalink

Disclaimer

Eramet SA published this content on 11 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 May 2020 16:08:05 UTC