INVESTOR PRESENTATION - Eramet · 2019. 7. 23. · ERAMET AT A GLANCE 5 €2,984 m €1,797 m sales 13% 22% EBITDA margin €84 m €256 m current operating income 13,000 employees

INVESTOR PRESENTATION

September 2017

2

DISCLAIMER

INVESTOR PRESENTATION – SEPTEMBER 2017

This presentation does not constitute an offer to sell or the solicitation of an offer to buy any

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.

The securities to be offered have not been registered under the U.S. Securities Act of 1933, as

amended (the “Securities Act”) and may not be offered or sold in the United States absent

registration or unless pursuant to an applicable exemption from the registration requirements of the

Securities Act and any other applicable securities laws. The securities will be offered outside the

United States pursuant to Regulation S under the Securities Act pursuant to an exemption from

registration. There is no assurance that the offering will be completed or, if completed, as to the

terms on which it is completed.

3

SUMMARY

ERAMET IN A NUTSHELL

FINANCIALS

PRIORITIES AHEAD

KEY INVESTMENT POINTS & TERM SHEET

1

3

5

4


FOCUS ON DIVISIONS 2

4

ERAMET IN A NUTSHELL


ERAMET AT A GLANCE

5

€2,984 m

€1,797 m sales

13%

22% EBITDA margin

€84 m

€256 m current operating income

13,000

employees in 2016

€217 m

€107 m of capital expenditure

47%

36% gearing

€1,493 m

market cap. at 04.09.2017

A diversified mining and metallurgical Group with world-class positions

o 3 business divisions with leading positions

Turnover since 2010 (in €m) Manganese Ore and Nickel metal prices evolution since 2010

Integrated NICKEL producer

Integrated MANGANESE producer

ALLOYS Producer of highly technological advanced steel

products for the most demanding industries

In 2016 / in H1 2017


3 576 3 603 3 447

3 162 3 144 3 109 2 984

1,373

1,797

2010 2011 2012 2013 2014 2015 2016 H1 2016 H1 2017

In 2016

2

4

6

8

10

12

2010 2011 2012 2013 2014 2015 2016 2017

US

D/lb

or

US

D/d

mtu

Ni price LME (USD/lb) Mn ore 44% (CRU CIF Chine)

6

ERAMET A LONG TERM PLAYER

Nickel Manganese Alloys Group


Incorporation Nickel

(operations of nickel

mines in New Caledonia)

Le Nickel becomes SLN, with Elf

Aquitaine (French State) holding

50% of the company

Acquisition by ERAP

(French State) of 70% of

SLN

Set up of ERAMET-

SLN

Listing of

ERAMET

Acquisition of Erasteel (High speed steel producer)

Acquisition of 51% of Eurotungstène (cobalt and

tungstene powder producer)

Diversification into manganese, with the

acquisition of 61% of COMILOG in Gabon

The Duval family becomes

shareholder of ERAMET, through the

contribution of Aubert & Duval

Transfer of ERAP stake to Cogema,

subsequently absorbed into AREVA

Acquisition of Weda Bay Nickel

(nickel project) in Indonesia

Diversification into closed-died forging

and specials steels, following contribution

by the Duval family and Aubert & Duval

(now ERAMET Alloys) to ERAMET

Acquisition of a 59% stake in Tinfos

(manganese alloys, titanium dioxyde)

Agreement with the Gabonese Republic for a phased increase of its

shareholding in COMILOG (up to 35%)

Set-up of TiZir in Senegal

(ilmenite and zircon project)

Transfer of

AREVA

26% to FSI

Inauguration of Moanda Metallurgical Complex.

Establishment of MKAD closed-die forged parts for aircraft parts manufacturers

Sha

reho

ldin

g st

ruct

ure

Div

ersi

ficat

ion

activ

ities

1880 1974 1983 1985 1989-91 1994 1995-97 1999 2006 2008 2010 2011 2012 2015 2016-17

Partnership

Weda Bay

Nickel

Inauguration of EcoTitanium, to establish the first

European facility for recycling aviation grade titanium

ERAMET IS PRESENT ON EVERY STAGE IN THE METALS

VALUE CHAIN…

7

R&D and engineering at each stage

Exploration

Extractive

Metallurgy

Elaboration

Metallurgy

EXPLORATION & MINING METAL VALORIZATION TRANSFORMATION

Mine

Products


Nickel – New Caledonia

Weda Bay

50+ years ressources / #7 largest

producer of nickel

Manganese - Gabon

40+ years resources / #2 high-grade Mn

ore worldwide

Zircon and Ilménite – Senegal

25+ years ressources

#1 High grade FeNi producer worldwide

#2 Manganese alloys producer worldwide

#1 refined manganese alloys

producer worldwide

#1 nickel chloride producer worldwide

#3 high grade nickel producer worldwide

#2 closed-die forging parts producer

worldwide & #1 gas-atomized powders

producer worldwide

RAW

MATERIAL

VALUE

CHAIN

5 world-class deposits

Lithium project

Titanium / producer

http://www.ville-gravelines.fr/var/ptic/storage/images/media/images/annuaire/entreprise/comilog/126157-1-fre-FR/Comilog.jpg

http://www.google.com/url?url=http://www.wedabaynickel.com/en/a-world-class-project/shareholders/&rct=j&frm=1&q=&esrc=s&sa=U&ei=fRGPVOOaIYasU4LpgbgK&ved=0CBwQ9QEwAw&usg=AFQjCNHH7-8OK4w-qOkZkhIVklHddzuocw

http://www.google.fr/url?url=http://olympiadesscientifiquesnc.unblog.fr/page/2/&rct=j&frm=1&q=&esrc=s&sa=U&ei=IQOQVOXVEeu07gbXnYDgDA&ved=0CBoQ9QEwAg&usg=AFQjCNEE3Q3opIFwr6-imYJsJ4LT82tyOQ

…WITH AN INTERNATIONAL FOOTPRINT

8

Senegal

Ilmenite and zircon mine

Gabon

Manganese mine

Manganese alloys and metal

plants

New-Caledonia

Nickel mines and

ferronickel plant

France / Europe

High speed steels and metals

powders

France / Europe/USA

Manganese alloys

Main operations:

France / Europe

Closed-die forging

Production of alloys & superalloys


11%

32%

21%

31%

5%

Sales FY 2016 (breakdown by geographic area)

France

Europe

North America

Asia

Other




Duval family: SORAME +

CEIR 37.00%

French State: APE1

25.62%

STCPI2

4.03%

BRGM3

1.34%

Others 32.01%

A COMMITTED EXECUTIVE MANAGEMENT AND A

SHAREHOLDING STRUCTURE ENSURING A LONG TERM

STRATEGY

1 APE (Agence des Participations de l’Etat)

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

provinces 3 BRGM (Bureau de Recherches Géologiques et Minières – the French Geological Survey Office)

Shareholding structure as of 30/06/2017

Outstanding shares: 26,585,360

Executive committee

Christel BORIES

Chairman and CEO

To be noted

Acquisition by Intesa, Unicredit and Ubi of Carlo Tassara’s participation (c. 12%)

in December 2016

Thomas DEVEDJIAN

Chief Financial Officer

Philippe VECTEN

CEO Mining Division

Denis HUGELMANN

CEO Alloys divisions

Philippe GUNDERMANN

Strategy and Financial

Communication

Jean de L’HERMITE

Chief Legal Officer

Michel CARNEC

HR, Health, Safety and

Security

Catherine TISSOT-COLLE

Communication and Sustainable

Development

INVESTOR PRESENTATION – SEPTEMBER 2017 9

10

Sustainable development is at the

heart of ERAMET strategy

• Protecting women and men by placing health and safety at the heart of

our issues.

• Designing processes that respect regulations and the environment.

• Developing ways of reducing environmental impacts, engaging in

biodiversity.

• Implement a "license to market" responsibility.

• Increase resource efficiency and promote recycling.

• Maintain a trusting relationship with stakeholders.

ERAMET implements this sustainable development policy in all Group activities with:

• An environmental charter.

• A biodiversity policy adopted in 2015.

• An ethical charter updated in 2015.

• A responsible purchasing charter.

• An energy policy.

CAPITALIZE ON THE SOLID FRAMEWORK SET UP IN

TERMS OF CSR

• Strengthening the Group’s ethics compliance

and CSR programs

• Ensuring Group compliance with new

French legislation (Sapin II law, Due

diligence)

• Implement the Responsible Procurement

and Purchasing Charter through new CSR

evaluation process with suppliers

2017 main focus


11

FOCUS ON DIVISIONS


12

OVERVIEW OF ERAMET DIVISIONS

ERAMET

ERAMET Manganese ERAMET Alloys

Act

ivit

y

Fully-integrated

producer: extraction,

transformation and

commercialisation

Products: Manganese ore

and Manganese alloys

Producer of highly

technological advanced

steel products

Products: Alloys,

Atomised powder

Extraction, transformation

and commercialisation

Products: Zircon and

Titanium (Ilmenite,

Rutile, leucoxene)

Sales: €1,439m

EBITDA: €358m

Employees: 4,962

Sales: €949m

EBITDA: €74m

Employees: 4,840


New metal project

Ongoing development of

the process of direct

extraction of lithium from

lithium deposits in

Argentina

Products: Lithium

carbonate

Key

Fig

ure

s

In 2016

Mineral sands* ERAMET Nickel

Fully-integrated

producer: extraction,

transformation and

commercialisation

Products: Ferronickel and

nickel salts and metal (as

of H1 2017)

Sales: €595m

EBITDA: (€24m)

Employees: 2,534

Sales: -

EBITDA: -

Employees: 41

*included in ERAMET Manganese

… AND ITS 5 WORLD CLASS DEPOSITS M

ang

anes

e

Leading high-grade

manganese producers

Gabon

New

Met

al

Pro

ject

RESSOURCES

• 40+ y resources

• In operation for more than 50 y

KEY ELEMENTS

Senegal

In house innovative process

(10 patents)

Resources available estimated at > 25 y

In operation since 2014

Argentina

Resources available estimated at > 50 y Lithium

Project


Min

eral

sa

nd

s

Mix geological deposit

(Titanium / Zircon)

positioned on growth end

use market

Nic

kel

New-Caledonia

World class mines in

terms of quality and size

of their resources

~ 50 y resources

In operation since the end of the 19th century

Indonesia

~ 50 y resources

Partnership with Tsingshan

Weda Bay

project

13




World #2 producer of high-grade manganese ore

World #2 producer of manganese alloys

World #1 producer of refined manganese alloys


Changer photos

ERAMET MANGANESE

14

15

ERAMET MANGANESE AT GLANCE

A mining and industrial facility in Gabon A manganese mine in Gabon, operated by COMILOG

Two local transformation units in Gabon, CIM for fines agglomeration and CMM for the production of high-

purity manganese and manganese alloys

Manganese main use: carbon steel 90% of world manganese is used for the production of carbon steel in the form of alloys, 10% in the chemical

industry (cells and batteries, agriculture, pigments, etc.)

48% of ERAMET turnover In 2016

4,803 employees In H1 2017

Production of manganese alloys 3 industrial sites in Norway, 1 in France and 1 in the USA for the production of high carbon and refined

manganese alloys



WHAT IS THE USE OF MANGANESE?

EXTRACTION

OF ORE IN

ORDER TO…

…TRANSFORM IN

ALLOYS OF

MANGANESE…

…TO SATISFY THE CARBON

STEEL DEMAND

1

3

2

Carbon steel

90%

Chemistry and other

application

10%

o In the production of steel, manganese occurs mainly as alloys: on average 6 to

7 kg of manganese are used to make one tonne of steel.

o Utilization as an alloying element improve properties of the steel: hardness,

abrasion resistance, elasticity and surface condition for rolling

o Key component in large range of industries (construction and automobile)

o Manganese is found in minerals and

needs to be transformed for exploitation

(metallurgical valorization)

o Mining operations are carried on open pits

o Manganese has no satisfactory

substitute in its major application in

metallurgy

o If not transformed as manganese alloys, the ore can be used in the form of chemical

derivatives targeting various customers in the chemical industry

Construction Automobile Machine Ship White goods

Agriculture (fertilizers) Ferrites (electronic circuits) Batteries Other varied applications (pigments, fine chemistry)


17

MARKET TRENDS


1 MANGANESE ORE

2

Main market for Manganese: CARBON STEEL

After a record low level in H1 2016, sharp rise in

prices seen in H2 2016 thanks to the recovery in

carbon steel production in China and the

tightening of production by manganese ore

producers.

Prices stable at high levels since early 2017.

Regarding Manganese alloys prices, from their

low point early in the year 2016, prices grew very

strongly and remain currently firm.

Demand for manganese largely depends on

changes in the global production of carbon steel.

Global carbon steel production in H1 2017 grew

by 4.5% compared with H1 2016 and 0.4%

compared with H2 2016.

Momentum continued to be very strong in China.

Worldwide

production

An

alys

is

Evolution of

Manganese ore

and alloys prices

Source: CRU Western Europe spot prices Exane BNP Paribas

In Mt

DECREASE OF CARBON STEEL INVENTORIES DUE TO

SUPPORTIVE DEMAND

0

2

4

6

8

10

400

600

800

1 000

1 200

1 400

1 600

1 800

2 000

High-carbon ferromanganese Silico-manganeseMedium-carbon ferromanganese Mn CRU CIF Chine 44%

US

D/d

mtu

EU

R/t

E

UR

/t

EU

R/t

18

PERSPECTIVES ON END USE MARKETS


1 EXPECTED DEMAND OF CRUDE STEEL: MODERATE GROWTH WITH A STEADY DEMAND

SUPPORTIVE DEMAND IN CHINA: IN TERMS OF END USE

Source: World Steel Association, ArcelorMittal

Forecast crude

steel demand in

China (in tonnes)

+2.1 % -0.8 %

+4.7 % +4.5 %

+1.2 %

+2.5 % +3.7 %

+2.0 %

+0.8 %

+0.4 %

+2.4 %

+0.0 %

Growth rate CAGR %

’10-17 ’17-27

Apparent demand for crude steel

In million metric ton

612 668 688 766 740 700 709 706 668 655

69 73 77 81 86 89 92 95 134 148

302 330 350

366 371 375 382 390 470 499 168 180 161

163 170 176 181 183 196 198

108 117 126

123 139 123 119 124 155 158

152 158 155

155 163 155 157 157 157 157

1 411 1 526 1 557

1 654 1 669 1 618 1 640 1 655 1 780 1 815

2010 2011 2012 2013 2014 2015 2016 2017 2025 2027

Other developed

North America

Europe

Emerging countries

India

China

// //

2

Total +2.3 % +0.9 %

19

ERAMET EXPERTISE ON MANGANESE: EXTRACTION AND

PREPARATION


The ore is mixed with coke in an electric

furnace. Ferromanganese or

silicomanganese is obtained, which is

used in ERAMET customers’ steel

production processes.

Manganese ore extraction 1

Transport by rail and sea 2

Processing (Alloys) 3

Shipment to chemistry players

3a

End-Application

The raw manganese ore comes from Moanda in Gabon.

After milling and washing, it is partially enriched and

agglomerated

The ore is transported by rail (the Transgabon railway), administered

by SETRAG, a subsidiary of COMILOG, to the port of Owendo near

Libreville, from where it is exported

End-Application

4a

Shipment to steelworkers

4

5

20

ERAMET MANGANESE KEY ELEMENTS


ERAMET PRODUCTION OF MANGANESE ALLOYS KEY FIGURES*

M€ H1 17 H1 16 2016 2015 2014

Sales 920 620 1,439 1,430 1,429

EBITDA 403 65 358 196 266

Current operating

Income 346 0 219 58 137

Industrial investment 36 44 104 164 199

MANGANESE ORE: POSITIONING AND CASH COST TOP TIER CUSTOMERS

(In thousands of tonnes)

ERAMET objective: 4 million tonnes manganese ore produced for 2017

ERAMET Manganese accounted for 10% of world production of Manganese in

2016

2016

cas

h-c

ost

po

siti

on

(o

re)

•2nd quartile

•3rd quartile

•1st quartile

•4th quartile

P

Australia

South-Africa

Source: ERAMET estimates

*Including TiZir

ERAMET has one of

the lowest cash

cost of the industry

33% 29% 20% 16% 10% 9% 11% 11% 9%

25% 25% 32% 36%

34% 31% 38%

38% 36%

42% 46% 48% 49%

56% 59% 51%

51% 55%

779 784 730 746

696 710 702

349 362

2010 2011 2012 2013 2014 2015 2016 H1 2016 H1 2017

High-carbonferromanganese

Standardsilicomanganese

Refined alloys

http://www.ferroglobe.com/

http://www.google.com/url?url=http://www.envass.co.za/assmang&rct=j&frm=1&q=&esrc=s&sa=U&ei=5Rh2VZK0A4vpUtLAAQ&ved=0CBYQ9QEwAA&usg=AFQjCNGRxCfErFh6df0j_gkuchTejhbYRg

http://www.google.com/url?url=http://umk.co.za/&rct=j&frm=1&q=&esrc=s&sa=U&ei=GiHTVInPLImE7QbQgoH4Bw&ved=0CBYQ9QEwAA&usg=AFQjCNFVE00oOGRPrnHvpWXwLgA_wBfTdw

MINERAL SANDS


TiZir is included in ERAMET Manganese

21

AT A GLANCE

22

TiZir 50% ERAMET a 50/50 joint venture with the Australian Group, Mineral Deposits Limited, bringing together this leading downstream

metallurgical asset and an upstream source of ore.

Integrated operations maximising margin and minimising risk.

TiZir aims to become one of the world’s leading players in zircon and titaniferous raw materials.

Two main products: Zircon and Ilmenite Extraction of mineral sands (mineral raw materials which contain heavy minerals concentrated over time in an

alluvial or windy environment)

TiZir Senegal Production of heavy mineral concentrates of 614,000 tonnes in 2016

TiZir Norway Transformation of the extracted Ilmenite (metallurgical valorization) into Titanium slag which are

bought by pigments producers


894 employees In H1 2017

WHAT IS THE USE OF ZIRCON?

42%

15%

13%

18%

12% Ceramics

Foundry sands

Refactory

Chemistry

Other

1,1 Mt

in 2015 57%

12%

31% China

Western Europe

Rest of the World

1,1 Mt

in 2015

MINERALURGICAL

EXTRACTION AND

SEPARATION

DOWNSTREAM :

MICRONIZATION

OR CHEMISTRY

FINISHED PRODUCTS

1

3

2

Zirconia Zircon « flour grade »

Refractory and foundry Ceramic Zirconium metal and salts of

zirconium

Key figures

World production of zircon in 2015: 1.3 Mt

World consumption of zircon in 2015: 1.1 Mt.

Applications by final markets Consumption of zircon by regions

Main applications of zircon

• Ceramics, refractory products, foundry and chemistry (necessary in the composition of nuclear reactors)

• The zircon can also be converted to zirconia or reduced to zirconium. Zirconia can be used in microelectronics or jewelery.


http://www.zirconia-ceramic.com/up_product/2011111823474319331.jpg

WHAT IS THE USE OF TITANIUM DIOXIDE (TiO2)

UPSTREAM:

titanium ore

(Ilmenite,

leucoxene,

rutile)

MIDSTREAM:

Titanium slag

DOWNSTREAM: pigments and titanium metal

1

3

2

Key figures

World production of TiO2 in 2015: 6.99 Mt

Global consumption of TiO2 in 2015: 6.82 Mt

Applications by final markets Consumption of TiO2 by regions

Main applications of TiO2

• More than 90% of TiO2

feedstocks (in the form of titanium slag, ilmenite, leucoxene and rutile) are used for the manufacture of pigments for paints, paper and plastics

• About 5% of the production is used for the manufacture of titanium metal (aeronautics, ...)

Mineralurgical

extraction and

separation

Production of

slag and

synthetic rutile

(high purity

TiO2)

Pigment Titanium metal

34%

22%

20%

10%

14% China

North America

Western Europe

Asia - Pacific

Rest of the World

7 Mt

in 2015

91%

5% 4% Pigment

Ti metal

Other

7 Mt

in 2015


TRENDS FOR TiO2 FEEDSTOCK AND ZIRCON

25 INVESTOR PRESENTATION – SEPTEMBER 2017

1

2 ZIRCON

Particularly used for the ceramics market.

The low stock levels and higher demand in China allowed for

price increases which will be effective in H2 2017.

TiO2-Feedstocks (Ilmenite, Rutile, Leucoxene and Titanium

dioxide slag) is mainly used for pigments production.

Price recovery in the market (ilmenite notably), driven by high

demand for pigments.

Future supply will be influenced by the timing of investment

decisions for mine expansions or new supply to provide feed

for beneficiation facilities such as synthetic rutile.

Regional demand in 2020

Ti02-Feedstocks

Demand by feedstock product: 2011 –2021

Demand by end-use: 2011 –2021

INDUSTRY CHARACTERISTICS IMPROVING MARKET CONDITIONS INDUSTRY OUTLOOK

TRENDS ON ILMENITE AND ZIRCON: INDUSTRY

MARKET DYNAMICS


Demand and global GDP/urbanisation

strongly correlated

Opaque product pricing

Emergence of China in 2010

Influence of major producers’ strategies

Demand growth driven by improving

economic fundamentals

Limited inventories throughout supply

chain

Investment deferrals

Environmental pressure driving

rationalisation in China

Declining resource base

Pigment

• higher plant utilisation rates

• contract prices continue to increase

High-grade titanium feedstock

• restart of idled operations removing

excess capacity

• higher spot prices for rutile

Zircon

• supply limitations point to further

price recovery

World #1 Producer of High Grade Ferronickel

World #1 Producer of Nickel Chloride

One of the only three global producers of high purity Nickel

ERAMET NICKEL


ERAMET NICKEL AT A GLANCE

28

5 Mines and one pyrometallurgical plant in New Caledonia Exploitation of 5 of its own mines + 4 subcontracted mines, two ore-processing plants (washing plants) and

a pyrometallurgical plant in Doniambo, Noumea

SLN is certified ISO 14 001 and ISO 9 001 for the industrial site

Nickel main use: stainless steel Is mainly used to produce stainless steel (2/3 of the world production) with a strong development expected in the

medium term on the battery market (high purity nickel, nickel salts)

Weda Bay nickel project One of the world's largest undeveloped nickel deposits

Project to be developed in partnership with Tsingshan


Nickel refinery in France A refinery plant to produce nickel salts and high-purity nickel




WHAT IS THE USE OF NICKEL?


EXTRACTION

OF ORE IN

ORDER TO…

…BE

TRANSFORMED IN

NICKEL ALLOYS…

…TO SATISFY MAINLY THE STAINLESS

MARKET DEMAND

1

3

2 o Allied to other elements, it can be used for different applications in growing

industry. Its rich and varied properties are chiefly in alloys, electroplating and

catalyst in organic synthesis

o Stainless market (main market): nickel combined with chromium makes it

corrosion-resistant and more ductile and malleable

o Nickel-based alloys: conception of superalloys for its mechanical

performances and to meet the most stringent requirements (for aerospace

and nuclear power for example)

o Strong development expected on the battery market

o Nickel belongs to the transition metals and is hard

and ductile

o They are two main types of nickel ore: sulphide ores

(nickel combined with several other metals ie cobalt,

silver etc.) or oxide ores (as in New Caledonia, to be

transformed as ferronickel)

Tran

spo

rt

Co

nst

ruct

ion

Hyg

ien

e an

d h

ealt

h

220 000

260 000

300 000

340 000

380 000

420 000

460 000

500 000

540 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

22 000

Jan-

14F

eb-1

4M

ar-1

4A

pr-1

4M

ay-1

4Ju

n-14

July

-14

Aug

-14

Sep

-14

Oct

-14

Nov

-14

Dec

-14

Jan-

15F

eb-1

5M

ar-1

5A

pr-1

5M

ay-1

5Ju

n-15

Jul-1

5A

ug-1

5S

ep-1

5O

ct-1

5N

ov-1

5D

ec-1

5Ja

n-16

Feb

-16

Mar

-16

Apr

-16

May

-16

Jun-

16Ju

l-16

Aug

-16

Sep

-16

Oct

-16

Nov

-16

Dec

-16

Jan-

17F

eb-1

7M

ar-1

7A

pr-1

7M

ay-1

7Ju

n-17

Jul-1

7A

ug-1

7S

ep-1

7

YTD 2017: (-16 kt)

59% 44% 50% 48% 48% 46%

41% 46% 50% 52% 52%

54%

33 207 35 336

37 786 41 372 41 209

44,925

0,00

5 000,00

10 000,00

15 000,00

20 000,00

25 000,00

30 000,00

35 000,00

40 000,00

45 000,00

2011 2012 2013 2014 2015 2016

MARKET TRENDS


1 NICKEL PRICES REMAINING AT LOW LEVEL

2017 total primary Ni demand expected to face a

robust growth, after a 8% increase in 2016, driven

by all segments: stainless steel, plating and

booming perspectives for batteries

2017 primary Ni supply expected to increase

the growth being fueled by Indonesian NPI ramp-up

(including Tsingshan operations)

Partially constrained by ore supply from Philippines

: -4% in H1 2017 (Government sanctions or bad

weather) and Indonesian allowed shipments

resuming only very slowly

All in all, the balance should result in a greater

deficit than 2016 (-54KT)

Visible stocks (LME and SHFE warehouses) still

stand at a high level. However producers and

distributors inventories are low and there is good

outlook in China, fueling the recent price increase.

44% 49% 48%

56% 51% 52%

Rest of

World

China

2 STRONG SUPPLY FOR STAINLESS STEEL DRIVEN BY CHINA

Worldwide

production (2/3 of the Nickel market) A

nal

ysis

Evolution of

nickel prices

Main market for Nickel: STAINLESS STEEL

kt +9.0%

USD

/lb /t

10.0

9.1

8.2

7.3

6.4

5.5

4.5

3.6

2.7

tonnes

+34%

Source: ISSF and ERAMET

0

30,000

60,000

90,000

120,000

150,000

180,000

210,000

240,000

270,000

300,000

330,000

360,000

390,000

420,000

450,000

480,000

510,000

540,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

Ja

n-1

4

Fe

b-1

4

Ma

r-1

4

Ap

r-1

4

Ma

y-1

4

Ju

n-1

4

Ju

ly-1

4

Au

g-1

4

Se

p-1

4

Oc

t-1

4

No

v-1

4

De

c-1

4

Ja

n-1

5

Fe

b-1

5

Ma

r-1

5

Ap

r-1

5

Ma

y-1

5

Ju

n-1

5

Ju

l-1

5

Au

g-1

5

Se

p-1

5

Oc

t-1

5

No

v-1

5

De

c-1

5

Ja

n-1

6

Fe

b-1

6

Ma

r-1

6

Ap

r-1

6

Ma

y-1

6

Ju

n-1

6

Ju

l-1

6

Au

g-1

6

Se

p-1

6

Oc

t-1

6

No

v-1

6

De

c-1

6

Ja

n-1

7

Fe

b-1

7

Ma

r-1

7

Ap

r-1

7

Ma

y-1

7

Ju

n-1

7

Ju

l-1

7

LME stocks SHFE stocks LME Nickel spot price (USD/t)Nickel inventories

(in tonnes)LME nickel stocks (in tonnes) SHFE nickel stocks (in tonnes) LME nickel settlement (USD/tonne)

PERSPECTIVES ON END USE MARKETS


1 OUTLOOK FOR PRIMARY NICKEL DEMAND

2 STAINLESS DEMAND INDEX

Stainless will remain the largest

application while automotive batteries

will be a major growth driver.

Roskill forecasts a primary nickel

demand CAGR of 4% to 2030, up from

3.1% if automotive batteries were not

included

In kt Ni

The good news for stainless is that

usage should continue to rise and

especially for steel the outlook is even

more robust

Source: Roskill, OEF, MBR’s Stainless Steels Market Tracker & MBR’s Steel Forecaster

ERAMET NICKEL EXPERTISE: A FULLY-INTEGRATED

PRODUCER


SLN25® ferronickel shots are

manufactured at the Doniambo smelter

in New Caledonia and considered as

products perfectly tailored to the

needs of our customers who produce

stainless steels.

Nickel ore extraction 1

Nickel ore transformation 2

Ferronickel 3

Nickel Matte 4

End-Application 6

9 mining centers in New Caledonia (of which 4 where

the extraction is partially subcontracted )

Important tonnages

High nickel content (2.45%-2.5%)

Important reserves

Ore storage and loading

At Doniambo (New Caledonia), the ore is unloaded

from three ships chartered all year by SLN to provide

the link to the mining centers

Variety of Applications

AOD converter

Electric Arc Furnace EAF

Oxygen converter

VOD equipment

Induction furnace

It then produce

Very high purity nickel metal

(99.99% Ni)

Very high purity nickel chloride

(NiCI2)

Very high purity nickel carbonate

(NiCO3)

The Sandouville plant (France)

applies a hydrometallurgy process to

transform the matte received from its

Finnish supplier and recovers the

nickel and cobalt it contains.

ERAMET NICKEL KEY ELEMENTS


ERAMET PRODUCTION OF NICKEL* (IN TONNES) KEY FIGURES

M€ H1 17 H1 16 2016 2015 2014

Sales 312 255 595 686 781

EBITDA (59) (36) (24) (156) 42

Current operating

Income (104) (89) (119) (261) (52)


SLN CASH COST (USD/LB) TOP TIER CUSTOMERS

55,227

53,369

55,012

53,015

56,447

54,360 53,719

2016201520142013201220112010

*Ferronickel and matte

*Annual rate, based on economic conditions at the start of 2016

2015

6.0

-25%

end-2020 end-2017

4.5

mid-2017 2016

5.06

4.0

2018-2020 5.17

SLN PERFORMANCE AND PRODUCTIVITY PLAN – CASH-COST

TARGET: USD 4/lb END 2020*


Grade optimization

Lean in mining operations

Export of low-grade ore

Stoppage of Bessemer melting shop

Technical productivity through measures to increase

work time and overhaul organizations

Maintenance / reliability

Slag valorization

Productivity in support functions

Purchasing gains

Others

USD 4/lb end-2020*

USD 6/lb in 2015

*Annual rate, based on economic conditions at the start of 2016

USD 4.5/lb in end-2017

Raise the company’s productivity through measures to

increase work time and overhaul organizations.

Reduce SLN’s energy bill through measures on energy

efficiency and the revision of electricity prices

To be noted that on top of those measures, a new power

plant will be built in New Caledonia, benefitting from the

French State guarantee on the banking financing (up to

€320m)

Lean Supports

Plant projects

Mining projects

Strenghtening

plan

MINING PROJECTS

PLANT PROJECTS

LEAN SUPPORTS

STRENGHTENING PLAN

34

FOCUS ON ERAMET NICKEL PRODUCTION: TOWARDS A

DIVERSIFIED NICKEL PORTFOLIO


1 Weda Bay

2 Sandouville

o VERY COMPETITIVE INDUSTRIAL NEW SET

UP

o 43% HELD BY ERAMET

o 30,000kt OF NICKEL (of which 13,000kt for

ERAMET)

o First commercial transactions in 2020

55,000

tonnes

2016

2020

88,000

tonnes

Nickel Pig Iron

Nickel Haute pureté

Ferronickel

2

1

o Main markets: electronic markets and batteries

o LONG TERM AGREEMENT CONCLUDED for the

supply of Sandouville with external nickel matte as

of H2 2017

o Start of the new process in 2017. Ramping-up over

the next months

o 15,000kt OF HIGH PURITY NICKEL

The group is

adapting its mix

production to

meet the final

demand

TSINGSHAN: A PRIVATE UNLISTED COMPANY, BASED IN CHINA AND INDONESIA

Leading global producer of stainless steel since 2014

Stainless steel production capacity of approximately 6.5 million tonnes, including 1

million tonnes in Sulawesi, Indonesia

USD 13 billion in sales in 2015

o THE WORLD LARGEST DEPOSIT NOT YET IN OPERATION accounting for

more than 9mt of Ni content

o AGREEMENT (integrated partnership) WITH TSIGNSHAN IN JUNE 2017

World #2 producer of high-power closed-die forged parts for aeronautics and energy generation

World #1 player in gas-atomised powder metallurgy

A leading producer of high-performance special steels

ERAMET ALLOYS


37

ERAMET ALLOYS AT A GLANCE

A primarly European presence Stamped parts and long products: 7 Aubert & Duval plants in France

High-speed steels and recycling: 2 Erasteel plants in France, 3 in Sweden, 1 in China, 1 in the USA, 1 in the UK

Forging and forging: a partnership in India SQUAD

Unique know-hows Recognized skills in R&D and development of complex processes or products (in the field of alloys, super alloys

and titanium alloys...) for strategic industries (specifically aerospace)

A Titanium industry developed in partnership Titanium Recycling: EcoTitanium partnership

Titanium transformation: UKAD partnership

Machining of titanium parts: MKAD partnership




Main market: aerospace

In house design & production

USE AND PRODUCTION ROUTES OF ERAMET ALLOYS

PRODUCTS

ALLOYS

PRODUCTION…

…TRANSFORMATION…

…FOR STRATEGIC INDUSTRIES SPECIALLY

AERONAUTICS

1

3

2

o Metallic alloys made by combining metallic elements, in order to generate special usage properties such as strength,

heat resistance, resistance to corrosion, fatigue, hardness…

o ERAMET Alloys is covering the all spectrum of metallurgical solutions:

o ERAMET has strong know how in alloys transformation to meet the most demanding challenges:


Superalloys High performance

special steels High speed steel

Recycling

aerospace

titanium

Closed die forging Forging Rolling

Titanium,

aluminium alloys

outsourced

Machining

Aeronautical structure: bringing resistance to

crucial points Energy: a recognized performance

38

39

MARKET TRENDS


Main market for alloys: AEROSPACE SECTOR

The aerospace sector continues to enjoy steady

growth and is the leading contributor to ERAMET

Alloys.

Products rates for single aisle, both at Boeing and

Airbus are very high (high production output), and

globally order book is full at least for the 5 coming

years at OEMs.

The demand in aircraft is driven by world traffic

growth, aircraft deliveris growth, demand from

emerging countries and fleet renewal.

Demand in the

sector

An

alys

is

Perspectives in

the sector

Design

40

ERAMET ALLOYS EXPERTISE: DESIGN AND DEVELOPMENT

OF HIGH-PERFORMANCE STEELS

1 Raw material sourcing

Melting Transformation

Heat treatment Finishing, machining

Non-destructive testing

End-Application

2

3 4

5 6

7

8

Based on the customers’ order,

the production range will be

designed in collaboration with the

various production departments

The raw materials consist of iron,

scraps and off-cuts which are

carefully selected and analyzed

chemically as well as ferro-alloys

Two stages can be distinguished:

primary metallurgy, which consists in

melting the material and secondary

metallurgy, during which the metal is

refined. The metal is then poured into

ingots.

The ingots or capsules produced are

then heated and processed to obtain

semi-finished products, forged parts,

closed-die parts, bars or wires.

The product’s metallurgical structure

is changed by combined heating and

cooling, which makes it possible to

modify its mechanical properties.

Samples are taken for mechanical

testing to ensure that the customer’s

requirements in terms of elasticity,

hardness and tensile strength are met.

The final peeling or milling stages

produce different finishes.

These controls (ultrasonic, magnetic, etc.) ensure the quality of products by revealing

the existence of any type defect that might occur within the material or on its surface.


41

ERAMET ALLOYS KEY ELEMENTS

KEY FACTS KEY FIGURES

M€ H1 17 H1 16 2016 2015 2014

Sales 564 497 949 991 938

EBITDA 61 40 74 78 81

Current operating

Income 32 13 27 27 23



POSITIONING TOP TIER CUSTOMERS

Aubert & Duval well positioned in high power close die forged parts.

Example: engine disks for the A350 and B777 models, landing gear

for the A350 model, wing structuring parts for Airbus…

Aubert & Duval’s teams were rewarded at the salon du Bourget (the

Paris air show), with the "Best Performer Supplier Award", handed

out by Airbus Helicopters (Paris, June 2017).

Opening of MKAD, a joint venture between Aubert &

Duval and Mecachrome, on 14 October 2014 o Aerospace grade titanium machining parts

Launch in early 2017 of spent catalysts and batteries

facilities at Commentry (France) o New commercial segment, which will gradually ramp up over

the coming months but which is expected to weight on

Erasteel’s results for the H2

Launch of EcoTitanium on 3 February o First European producer of aerospace grade titanium using

recycled material

Launch of Galaad on 11 May 2017 o New atomising tower in Ancizes (France) which will produce

powders from superalloys directed at the aerospace sector

and the additive manufacturing segment

NEW METAL PROJECT


PERSPECTIVES ON LITHIUM END USE MARKETS

Source: Avicenne Energy Report (December 2015); Deutsche Bank, BCG CMI lithium model


Demand across all lithium applications is

expected to remain strong, growing at a

CAGR between 8 to 12 % over the period

2015-25

Lithium-ion batteries, ERAMET key target

market, represent the key segment of

demand underpinned by the growing

importance of electric vehicles

Expected CAGR between 11-20% over 2015-

2025, vs. average 4% across other

applications.

0

150

300

450

600

BCG (2016)

57%

+12 % pa

Avicenne

(2015)

102

48%

183

52%

43%

Deutsche

Bank

(2016)

Others

Batteries

+8 to +12% pa

22%

78%

Kt LCE

60%

40%

69%

31%

2010 A 2015 A 2025 E

Lithium demand

43

NEW METAL PROJECT WHICH PREPARES ERAMET FUTURE


ERAMET LITHIUM PROJECT IN ARGENTINA ENTERS ITS LAST PHASE OF DEVELOPMENT BEFORE AN INVESTMENT DECISION

Extremely dynamic lithium

market in 2016. Bright

perspectives

Success in piloting the

innovative patented

extraction process : few

hundreds kg of lithium

carbonate battery grade

produced in 2016

Pre-feasibility study

performed

Investment of 350-380

MUSD

Environmental permitting

demand filed in December

2016

2017- 2018 : Detailed feasibility study and

economical valuation

Start of construction scheduled early 2019

subject to investment decision

Start of production end of 2021

Production capacity : 20 ktpy lithium carbonate.

Active continuation of CSR programs

Key Lithium Applications

Note: The chart above is not intended as an exhaustive list of lithium products and their applications, but depicts a select number of lithium applications. *Brines : lithium from salt flat deposits – Spodumene : lithium from hard rock deposits

Li-Ion Batteries –

Portable Devices Glass & Ceramics Grease Pharmaceuticals Aluminium-alloys

ERAMET Target Applications

Li-Ion Batteries –

Electric Vehicles

ERAMET secured mining rights over a very vast 500 km² domain with ressources >7MT LCE

(50 years+ of operations)

0

1 000

2 000

3 000

4 000

5 000

6 000

US$/t LCE

Cumulative Industry LCE Production (kt)

ERAMET process

competitiveness target

(LCE produced from brines*)

LCE produced from

spodumene*

Spodumene

producers

Spodumene

conversion

cost

(US$2800/t)

44

FINANCIALS


39%

54%

48% 52% 48% 45% 49% 45% 46% 48%

45% 51%

34%

21%

24%

27% 27% 26% 22% 25% 22% 20%

19% 17%

27%

25%

28%

21% 25% 29%

29% 30% 32% 32%

36%

31%

3 792

4 346

2 689

3 576 3 603 3 447 3 162 3 144 3 109 2 984

1 373

1,797

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H12016

H12017Manganèse Nickel Alloys

FREE CASH FLOW EBITDA MARGIN

FINANCIAL PERFORMANCES


CURRENT OPERATING INCOME SALES

-200

-100

0

100

200

300

400

H1

2013

H2

2013

H1

2014

H2

2014

H1

2015

H2

2015

H1

2016

H2

2016

H1

2017

Nickel Alloys Manganese GroupIn €m

84 170

142

-240

-50

-292

226 172

H1 2015 H2 2015 H1 2016 H2 2016 H1 2017

Of which asset disposals

2

36% 35%

2%

27%

22%

12% 7%

12% 3%

13%

4%

22%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H12016

H12017

17% in average

since 2007

Breakdown by divisions excluding holding and eliminations

In €m

In €m

46


ACTION PLAN PERFORMED IN THE LAST 3 YEARS TO

GENERATE FCF AND REINFORCE THE BALANCE SHEET

Industrial action plan to increase productivity and performances:

€306m on aggregate savings since 2014 on annual basis

Disposal of assets for a total impact of €144m

Maturity extension of the c.€1bn revolving credit facility in January 2017

€200m French State loan agreement in July 2016 with a final maturity in June 2024 (bullet)

Issue of €100m perpetual convertible bond in September 2016 (net share setteled undated bonds convertible into new shares ie ODIRNAN)

REINFORCE THE

EQUITY

INCREASE

PRODUCTIVITY

PERFORMANCES

ASSET

DISPOSALS INCREASE

LIQUIDITY

Generate Free

Cash Flow

Reinforce the

balance sheet

47

411 716 675

988 501

136

162 161

175

163

2 754

1 779 1 776 1 669 1 837

547

878 836

1 163

664

2014 2015 2016 H1 2016 H1 2017

IFRS Net Debt Joint-venture contribution Equity

DEBT ANALYSIS (1/2)


CHANGE IN NET DEBT STRONG BALANCE SHEET

RECONCILIATION OF NET DEBT

0

500 500

230 30

30 1 698

1 416 1 186

1 698

1 946 1 946

2016 H1 2016 H1 2017

RCF not drawn Part of the RCF repaid on 25/07/2017Credit lines not drawn Available Cash

RCF repayment

for €500m at end-

June 2017

Additional

repayment for

€230m in July

2017

1

2

SIGNIFICANT FINANCIAL LIQUIDITY

In €m H1 2017 H1 2016 2016

Gross IFRS debt 1,910 2,265 2,366

Available IFRS cash (1,409) (1,277) (1,691)

IFRS Net debt 501 988 675

Joint Venture gross debt 170 179 168

Joint Venture available cash (7) (4) (7)

Net debt 664 1,163 836 Undrawn Undrawn

In €m

In €m

-664

-836

-10794 (107)

185

(836)

(664)

Net debt at

end of H1 2017

Industrial

investments

Change in

operating WCR

Cash gener.

from op.

Net debt at

end of 2016

In €m

H1 2017 H1 2017 proforma H2 2016

Equity* *including minority interests

48

Desintermediated debt 45%

Banking debt 38%

Bank overdrafts 3%

Finance leases 3%

Other borrowings 11%

-31%

-30% -27% -33% -28%

-12%

7%

20%

49%

47%

70%

36%

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 H1 2016 H1 2017

DEBT ANALYSIS (2/2)


KEY DEBT ELEMENTS

GEARING TYPE OF GROSS DEBT (AS OF 30/06/2017)

€730m RCF repayment out of €981m as of end

of June 2017 (pro forma)

In July 2017, TiZir (an ERAMET 50% owned

company) issued a new $300m bond (maturing

in July 2022) which will mainly refinance the

previous one scheduled to mature in

September 2017.

The reduction in debt is the result of (i) priority

given by the company to cash generation and

(ii) markets improvement.

ERAMET gearing is in line with the sector

average

GROSS DEBT SCHEDULE AS AT 30/06/2017 (IN €M)

199

2017 2018 2019 2020 2022 2021 2023 2024 >2025

260

118 160

147 125 163

13 40

835

29 22

Manganese

Nickel

RCF Alloys

Holding - Group

€1,861m

Pro forma maturity schedule as at 30/06/2017, including RCF repayment and TiZir’s Bond

refinancing

Gross debt pro forma (ie gross

IFRS debt and Joint Venture

gross debt)

Net cash position from 2007 to 2012

49

PRIORITIES AHEAD


STRATEGIC PRIORITIES - UNDER REVIEW


FIX UNDERPERFORMING

BUSINESSES

ERAMET AIMS FOR MANAGERIAL AND OPERATIONAL EXCELLENCE AT ALL LEVELS OF ITS ORGANIZATION

REINFORCE ASSETS WITH

GLOBAL LEADERSHIP

3

1

Lithium

Weda Bay

Manganese

Aubert & Duval downstream

DIVERSIFY THE PORTFOLIO

THROUGH GROWTH ON

SELECTED HIGH VALUE

PROJECTS

2

COMMITMENT TO COST

REDUCTION AND

IMPROVED

PRODUCTIVITY

ERAMET MEANS TRANSFORM ERAMET IN

A HIGH PERFORMING

ORGANIZATION

LEVERAGE ON ERAMET

STRONG KNOW HOW

SLN

Erasteel

Other projects

Aubert & Duval

upstream

51

o PRODUCTIVITY AND ENERGY EFFICIENCY o Raise the company’s productivity through measures to increase work time and overhaul organizations.

o Reduce SLN’s energy bill through measures on energy efficiency and the revision of electricity prices.

o RAMP-UP ON SANDOUVILLE NEW MODEL o Successful ramp-up due to the change in matte sourcing.

o Selling nickel metal in whole plates rather than in pieces (better margins).

o ACTIONS FOCUSED ON INDUSTRIAL SET UP AND CUSTOMER RELATIONSHIP o Reconfiguration of the steel melting shops: centralization of the 2 existing steel meltings’ activity on a single one located in Les Ancizes,

closure of the Firminy steel melting shop.

o Maximize capacity utilisation through better availability of the equipment and productivity improvement

o Reduce waste.

o Specialization and optimization of rolling mills: concentration of large diameter rolled products on one site and small diameter rolled products

on another one. Closure of the other rolling mills.

o Improve the customer experience: improve service and business performance.

o ACTION ON COMILOG o Increase of the availability and utilization rates of mining equipments (trucks, shovels) through improved maintenance.

o Increase in the operating rate of the ore processing plant by optimizing operating parameters.

o Renovation plan of the Transgabonese railway (SETRAG).

o OPTIMIZATION OF PRODUCTION PARAMETERS o These optimizations allow half year after half year to increase ERAMET production, as already demonstrated.


REDUCE COSTS AND INCREASE PRODUCTIVITY

o REACH FULL CAPACITY AND OPTIMIZE THE ASSET

52

LEVERAGE ERAMET STRONG KNOW-HOW

220 employees

30 M€ spent in 2016

150 products

o R&D activity across the entire metals value chain, from mining to products including recycling

o Specific know-how, often produced by the group R&D with solid social and environmental criteria

o Leverage network through open innovation

Adapting the Sandouville’s plant to a

new source of nickel matte Lithium project in Argentina

Development of the new Aubert & Duval ML340

superalloy. This new ultra high-performance steel

will form the turbine shaft for the LEAP and

Silvercrest aircraft engines.

Support a production increase

at the Mn alloys plants

AN EFFICIENT SET UP FOR A HIGH LEVEL APPLIED

RESEARCH

AP

PL

ICA

TIO

N E

XE

MP

LE

S

10 patents on a very

original and innovative

process.

Reduction by 15% of fuel

consumption thanks to this

alloy.

New business model for

the Sandouville refinery.

Best performance of

the Mn alloys plant

worldwide.


TRANSFORMING ERAMET IN A HIGH PERFORMING

ORGANIZATION

o New industrial facilities will come on stream and be ramped up (ex: Ecotitanium, the last

link in the European aerospace-grade titanium sector)

o Reconfiguration of Sandouville to handle a new commodity

o Roll-out of the Transgabonais railway modernisation plan (SETRAG)

o Start of the detailed engineering design stage for the Lithium project (deposit in Argentina)


o Review the managerial model: build leaner organization

o Right people at the right places

o Leverage best practices

o Promote agility and accelerate decision making

o Reinforce discipline and execution

o Create a continuous improvement mindset

Focus on investments selected

on the criteria of value

creation

Managerial

transformation

54

KEY INVESTMENT

POINTS & TERM SHEET


KEY INVESTMENT POINTS

SOLID POSITIONS IN ITS BUSINESS

• Significant value in its assets with world class orebodies

(high grade ore and significant resources), having long term

expected lives

• World leading positions in almost all its business segments

• An experienced specialist with a high knowledge of all its

businesses

• High reputation with customers

A STABLE SHAREHOLDING STRUCTURE FOR A LONG TERM ACTOR

• A stable shareholder structure,

ensuring a long term strategy

• A committed management team

• Stable relationships with partners,

clients and countries where ERAMET

is operating

A BALANCE SHEET THAT SHOWED ITS ROBUSTNESS THOUGH THE CYCLES

• Action plan to reduce cost and improve productivity at the

level of each business unit

• Develop ERAMET agility through value added partnership

and/or investments

• Continue to benefit from R&D projects focused on a

practical use of innovations

• Capitalize on ERAMET historical CSR framework

• A successful de-risking strategy on the balance sheet

• Improved results in 2016 and H1 2017

• A resilient EBITDA margin (17% in average since 2007)

ONGOING ACTION PLAN TO GAIN COMPETITIVE EDGE


TERM SHEET


Issuer ERAMET

Rating Unrated

Notional Amount EUR 300m+

Issue Type Fixed

Status of the Notes Senior, Unsecured, Unsubordinated

Form of the Notes Bearer dematerialized

Maturity 6 – 7 years

Documentation Standalone / Change of Control / Make Whole Call / 3 month par call / Clean-Up Call (80%)

Governing Law French

Listing Euronext Paris

Denominations €100,000 + €100,000

Use of Proceeds General Corporate Purpose and refinancing of its existing debt

Targeted bonds EUR 525m 4.500% due November 2020

Tender price 106.125%

Offer period 11 September – 20 September 4pm CET (intermediaries may have earlier deadlines)

Prioritary allocation Tendering bondholders must contact the dealer managers to request an allocation code to

receive priority allocation in the new issue

57

APPENDIX


INCOME STATEMENT

59

In €m H1 2017 H1 2016 2016 2015 2014 2013 2012 2011

Sales 1,797 1,373 2,984 3,109 3,144 3,162 3,447 3,603

EBITDA 389 56 375 92 363 231 407 789

% of Sales 22% 4% 13% 3% 12% 7% 12% 22%

Amortisation and depreciation of fixed assets

and provisions for contingencies and losses (133) (147) (291) (299) (288) (276) (254) (235)

Current operating Income 256 (91) 84 (207) 75 (45) 153 554

% of Sales 14% (7%) 3% (7%) 2% (1%) 4% 15%

Other operating income and expenses (28) (55) (179) (606) (129) (503) (74) (63)

Operating Income 228 (146) (95) (813) (54) (548) 79 491

Financial income (52) (53) (79) (90) (68) (32) (7) 30

Pre-tax Income 68 (199) (174) (903) (122) (580) 72 521

Share of income of equity affiliates (1) - (2) (1) 0 1 0 1

Income tax (107) - (61) (8) (49) 72 (29) (219)

Net income 68 (199) (237) (912) (171) (507) 43 303

Minority interest (13) (58) (58) (198) 12 (137) 34 108

Net income – Group share 81 (141) (179) (714) (159) (370) 9 195


CASH FLOW STATEMENT

60

In €m H1 2017 H1 2016 2016 2015 2014 2013 2012 2011

Operating activities

EBITDA 389 56 375 92 363 231 407 789

Cash impact of items under EBITDA (204) (95) (228) (252) (238) (157) (149) (155)

Cash generated from operations 185 (39) 147 (160) 125 74 258 634

Change in WCR 94 (59) (26) 153 (82) 87 (41) (43)

Net cash generated by operating activities (1) 279 (98) 121 (7) 43 161 217 591

Investing activities

Industrial investments (107) (85) (217) (267) (346) (587) (641) (492)

Other investment flows - (109) 30 (16) 26 (7) 5 (33)

Net cash from investing activities (2) (107) (194) (187) (283) (320) (594) (636) (525)

Free Cash Flow (1) + (2) 172 (292) (66) (290) (277) (433) (419) 66

Cash linked to equity operations (3) - 100 - (25) (252) (285) (187)

Impact of changes on exchange rates 3 7 8 (41) (27) 19 (1) (21)

(Increase)/Reduction in net financial debt position 172 (285) 42 (331) (329) (666) (705) (142)

(Net financial debt) at beginning of period (836) (878) (878) (547) (218) 448 1153 1295

(Net financial debt) at closing of period (664) (1,163) (836) (878) (547) (218) 448 1153


GROUP BALANCE SHEET

61

Assets - €M Liabilities - €M

836 664

882858

261250

720 634

2.745

31/12/2016

2.818

3.538

1.515

30/06/2017

3.379

44

30/06/2017

3.379

20

1.587

31/12/2016

3.538

Fixed assets Provisions and net deferred tax Net debt

Minority interests

Equity

Financial instruments WCR


RECONCILIATION OF GROUP REPORTING AND PUBLISHED

ACCOUNTS

62

(1) Financial statements prepared under applicable IFRS, with joint ventures are accounted for using equity method

(2) Group reporting, in which joint ventures are accounted for using proportionate consolidation.

(€ million) 1st half year Joint-venture 1st half year 1st half year Joint-venture 1st half year FY Joint-venture FY

2017 contribution 2017 2016 contribution 2016 2016 contribution 2016

Published (1)

Reporting (2)

Published (1)

Reporting (2)

Published (1)

Reporting (2)

Sales 1 741 56 1 797 1 329 44 1 373 2 897 87 2 984

EBITDA 375 14 389 54 2 56 366 9 375

Current operating income 250 6 256 (85) (6) (91) 91 (7) 84

Operating income 222 6 228 (139) (7) (146) (47) (48) (95)

Net income for the period - Group share 81 - 81 (141) - (141) (179) - (179)

Net cash generated by operating activities 292 (13) 279 (96) (2) (98) 98 23 121

Industrial investments 105 2 107 79 6 85 206 11 217

(Net financial debt) (501) (163) (664) (988) (175) (1 163) (675) (161) (836)

Shareholders' equity 1 851 (14) 1 837 1 679 (10) 1 669 1 791 (15) 1 776

Shareholders' equity - Group share 1 587 - 1 587 1 408 - 1 408 1 515 - 1 515


ERAMET ORGANIZATION


MANGANÈSE

Mineral Deposits Ltd

SETRAG Transgabon railway (99.98%)

Mine (Maonda) &

Metallurgy complex

COMOLOG Dunkerque (France)

ERAMET

Manganese

10 sites

COMLOG COMILOG

Asia Ltd

ERAMET

Norway

ERAMET

Marietta TiZir

3 sites

Manganese Alloys

(Norway)

Manganese Alloys

(USA)

3 sites 1 site 2 sites

(100%) (100%) (50%)

(50%)

(80%)

(20%)

Gabonese

State (28.94%)

Others (7.35%)

(63.71%)

(100%)

NICKEL

(90%)

1 site

SLN

ERAMET

Nickel

PT Weda Bay Nickel

5 mines

1 metallurgical plant

(56%)

(100%) New-Caledonia

Nisshin Steel 10% STCPI 34% French State 1 share

Ferronickel

Sandouville Refinery

(100%)

Le Havre (France)

NICKEL SALTS &

METAL BUSINESS UNIT

Strand Minerals Pte Ltd

(Singapour)

Mine and

hydrometallurgical

plant (project)

Halmahera (Indonesia)

PT Antam

ERAMET

Alloys

Albert & Duval

7 sites Erasteel

8 sites

Interforge (France)

94%

UKAD (France)

(50%)

Titanium alloys

Aluminium alloys Special steels

Superalloys

Erasteel HEIML

(China) (49%)

Pre-alloyed powder metallurgy

(100%) (100%)

ALLOYS ERAMET

ERAMET

group

Eramet Engineering (100%)

Eramet Research (100%)

Eramet International(100%)

ERAMET

Alloys ERAMET

Manganese ERAMET

Nichel

Mineral sands (90%

TiZir) (Senegal)

TiZir Titan & Iron

(Norway)

Documents

INVESTOR PRESENTATION - Eramet · 2019. 7. 23. · ERAMET AT A GLANCE 5 €2,984 m €1,797 m sales 13% 22% EBITDA margin €84 m €256 m current operating income 13,000 employees