Eramet: 2021 Integrated Report

2021

Integrated Report

The purpose of the integrated report is to communicate to stakeholders the challenges Eramet is helping to address and how the Group's activities create financial and non-financial value. It draws on the reference framework established by the International Integrated Reporting Council (IIRC) and complements our other publications. The information presented has been selected based on its relevance and materiality. The integrated report is included in the Universal Registration Document (URD) and is also available as a standalone publication on Eramet's website.

IIRC is a member of the Value Reporting Foundation, a global non-profit organisation that offers a comprehensive range of resources designed to help companies and investors develop a common understanding of corporate value and how it is created, preserved or eroded.

CONTENTS

OF THE INTEGRATED REPORT

Manifesto 3

Message

from the Chair and CEO 4

2021 Key figures 6

Our locations 8

History of the Eramet Group 10

Organisation of activities 11

Activities

- Mining and Metals activities 12

- High Performance Alloys 17

Innovation 18

Trends and opportunities 20

Business model 22

Value creation 24

Strategy 26

CSR Commitment 30

Risk management 32

Governance 34

Financial performance 36

Non-financial performance 39

2022 Outlook 41

ERAMET 2021 - INTEGRATED REPORT 3

Working towards a more sustainable world: this is the most pressing challenge facing humankind.

To meet this challenge, and because metals are essential, our industries have a major role to play - both here and now, and for future generations. This means successfully implementing a vital energy and ecological transition, which entails continually striving to use our natural resources more responsibly.

We have made this role a top priority within our corporate purpose: to become a reference for the responsible transformation of the Earth's mineral resources for 'living well' together.

Because we are convinced of the validity of our approach, we place operational and financial performance on the same level as social responsibility.

Although our vision to make Eramet a committed and contributive corporate citizen remains consistent, our model has changed considerably.

Today, we have everything in place to meet the two challenges of the new era of metals: produce more and produce better.

We are at the beginning of a new chapter in the history of the Eramet Group."

CHRISTEL BORIES

CHAIR AND CEO

4 INTEGRATED REPORT - ERAMET 2021

MESSAGE FROM

CHRISTEL BORIES

Eramet had an exceptional year in 2021. Our excellent performance in operation, CSR and finance reflect the commitment and agility of our teams, who knew how to seize opportunities in an unsettled and uncertain environment.

This outstanding performance illustrates the relevance of our operational model, which produces significant internal improvements driven by long-term growth in production volumes and cash flow. It is also the result of the large-scale strategic and managerial transforma- tion we have been undertaking over the last four years, which has led us to redirect our portfolio towards the highest value-accretive activities and to enable our teams to become more autonomous and agile.

This growth must be sustainable and responsible. In 2021, our level of CSR performance remained high due to the ambitious commitments under- taken for the safety and development of our employees, quality of life for the communities living close to our sites, and to protect the climate and preserve biodiversity.

In 2021, we also accelerated our stra- tegic repositioning towards high-growth mining and metallurgical activities. We relaunched construction of our lithium plant in Argentina and signed a memo- randum of understanding for the sale of Aubert & Duval.

Recent market developments - with excellent growth in demand for metals that are crucial for the energy transi- tion and increased environmental andsocietal requirements - have confirmed our strategic choices. More than ever, we believe Europe needs to secure the supply of these metals. The tragedy in Ukraine and the high level of climate instability facing the continent is a painful reminder of these strategic challenges.

With an asset portfolio containing these metals that are essential for our future - nickel, cobalt, lithium, and manganese - Eramet is positioned as a key player in the energy transition.

The women and men who work at Eramet are therefore more committed than ever and - strengthened by a renewed Executive Committee - they are approaching this new chapter in the Group's history with the ambition of becoming a reference for the responsible transformation of the Earth's mineral resources and for 'living well' together.

The outstanding performance seen in 2021 illustrates the relevance of our operational model, which produces significant internal improvements driven by long-term growth in production volumes and cash flow.

ERAMET 2021 - INTEGRATED REPORT

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