Eramet Group Presentation

MAY 2022
Our purpose, our reason for acting

« Become a reference for the

responsible transformation of
the Earth’s mineral resources,
for living well together »

Our purpose sets a course. Conveying both our DNA and our collective ambition,
it fuels our vision and the daily actions of
all employees and stakeholders.

2 Eramet – Group presentation, May 2022

Eramet at a glance
A global pure player in Mining & Metals

Refocused on 4 M&M activities Strong financials results

Mineral Sands BU
in 2021
Lithium BU
9% (in development)
Li

Nickel BU 29% Sales1

€3.7bn EBITDA1
62%
Manganese BU > €1bn

Employees
Long term and stable shareholders c. 8,500
STCPI4
4% Leverage2
SORAME
5
APE (French state) + CEIR (Duval < 1x
27% Family)
Number of 37%
shares
issued3
28,755,047

32% 1
2
Reflecting new Eramet scope, excl. discontinued operations in accordance with IFRS5
Net debt / EBITDA
3 Capital and number of shares’ increase due to the Odirnan conversion
Others float 4 STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the

New Caledonian provinces

4 Eramet – Group presentation, May 2022 5 APE (Agence des Participations de l’Etat)
Operations in manganese, nickel, mineral sands
Development in lithium, nickel & cobalt, EV batteries recycling
1

Li

Mineral Sands Lithium BU

Manganese BU Nickel BU (in development)
BU
Applications

Pigments and Batteries: Energy

Steels used for Stainless steel and storage for electric
titanium metal
construction and nickel-based alloys vehicles
transportation Ceramics,
Batteries, fertilizers Batteries chemicals and Portable electronic
refractory devices

> EBITDA: €137m

> EBITDA: €910m > EBITDA: €113m > EBITDA: - €5m
> Headcount:
> Headcount: > Headcount: > Headcount: c.100
c.1,000
c.4,500
2021

c.2,300
> Localisation: > Localisation:
> Localisation: > Localisation: Argentina
Senegal, Norway,
Gabon, Norway, New Caledonia,
Cameroon
France, USA Indonesia
(project)

1Reflecting new Eramet scope, excl. discontinued operations in accordance with IFRS 5: Sandouville (divested in Feb. 2022),
Aubert & Duval (MOU signed in Feb.2022, closing expected at year-end) and Erasteel (divestment process ongoing)

5 Eramet – Group presentation, May 2022

 Long life world class deposits positioned on the first
quartile of the mining industry cost curve

SENEGAL NEW CALEDONIA

Diogo Area, Kouaoua, Népoui,
Mineral Sands Poum, Tiébaghi,Thio,
18.9 Mt reserves Nickel
3.6 Mt reserves

ARGENTINA INDONESIA
Salar de Centenario-Ratones, Weda Bay,
Lithium Nickel
1.1 Mt reserves 3.5 Mt reserves
GABON
Moanda,
Manganese
65 Mt reserves
6 Eramet – Group presentation, May 2022
A committed, contributive and recognised corporate citizen

1 2 3
Societal
Reducing
engagement Contributing to
energy/climate
embedded in the communities' lives
footprint
strategic vision

Our Purpose drives our License to operate: Validation of the Group's

ways of working Partnering with the CO2 emissions reduction
countries and territories target “well below 2°C” by
A 2018-2023 CSR
where we operate is in the SBTi1:
roadmap to structure and
our DNA o 2035: -40% Reduction
set the pace for our action
plans Beyond mining operation, target in absolute CO2
we contribute to the emissions (vs 2019)
Aligned with the United
local development and o 2050: Contributing to
Nations’ Sustainable
take care of the carbon neutrality
Development Goals
environment (scopes 1 and 2)

7 Eramet – Group presentation, May 2022 1 SBTi: Science Based Targets initiative
ESG performance recognised by leading agencies

2021 CDP Climate 2021 Vigeo

change
Score 66/100: Advanced
Score B (B in 2020) level (vs 66/100 in 2019)
Among leading Sector rank: 3/44
companies in the sector

2021 Sustainalytics 2020 ISS ESG

Overall score B-, prime status

Risk rating score improvement 26.2 (vs First decile of the M&M panel
38.8 in 2020)

Responsible Mining performance monitoring

Ongoing CSR performance self-assessments of

1st sites, according to IRMA standard

8 Eramet – Group presentation, May 2022

A future leading player in the new age of metals…

Pure player in Mining and Metals contributing to a sustainable future

Grow in metals supporting Develop critical metals for

global economic development energy transition

Resilient markets Fast-growing markets

MANGANESE ORE & ALLOYS LITHIUM

NICKEL NICKEL/COBALT SALTS

MINERAL SANDS BATTERY RECYCLING

Demonstrated leadership and continuous Huge potential to benefit from energy

value-accretive organic growth transition

Most of mines and plants are positioned on the first quartile of the industry cash cost curves

ATTRACTIVE and SUSTAINABLE POSITIONING

CASH-GENERATING BUSINESS

9 Eramet – Group presentation, May 2022

A portfolio contributing to the battle for climate change

Greener product offering

World class assets, providing the highest
metal contents at lower carbon contents

CO2 reduction targets SBTi certified

Perfectly positioned to benefit from booming metal requirement

for energy transition
28 27 3

Ni Co Li

Global demand in 2020 vs. 2030 vs. 2040 (in k-tonnes1) Source: Eramet analysis

10 Eramet – Group presentation, May 2022 1 Lithium: in k-tonnes of LCE (Lithium Carbonate Equivalent)
Grow in metals supporting
global economic development
 Manganese main growth drivers: carbon steel
(90% of global production) and China

Manganese ore Manganese alloys

1 “Low-grade local” ore Standard
< 30% Mn content
Manganese Ore > High-Carbon FeMn
Average 0.4 t of Mn content (6 to 8% carbon)
per tonne of ore “Medium-grade” ore > Standard SiMn
> 30% but < 43% (< 2 to 3.5% carbon)

“Rich”/“High-grade” Refined
ore > 43% > o/w Medium Carbon
2
FeMn (< 1.5 to 2%
Manganese Alloys carbon)
Average 1.8 t of Mn ore per
tonne of alloy
Key Features
No futures market: OTC negotiation
3 > CRU index: bi-weekly
Carbon steel 90% Carbon steel > Fastmarkets Metal Bulletin index: weekly
Average 10 kg of alloy per South Africa: 40% of seaborne production in 2021
Properties of Mn:
tonne of steel China: 53% of Global carbon steel production in 2021;
makes steel harder,
(7 kg of Mn content per 10%
more elastic, wear- tonne of steel) Others c.60% of Global Mn alloys production in 2021
resistant.
chemistry
Uses of Mn: batteries,
construction, fertiliser and paint
automotive sectors. pigments and other
metallurgical
applications
12 Eramet – Group presentation, May 2022
Manganese BU key features (1/2)

Reserves Industrial set-up

Reserves’ lifetime > 20 years in

Gabon Gabon: Moanda, world’s leading high-grade
(44%) manganese ore mine
Operated for 50 years > Operated by Comilog,
> Highly competitive cash cost
> Ore transportation to Libreville port (600 km of
2021 production track), operated by Setrag, a 51% subsidiary of
Comilog
Mn ore Mn alloys
Europe (Norway, France), USA, Gabon: 6 pyro-
metallurgical plants to transform the ore into alloys
7 Mt c.750 kt > Lowest carbon footprint

13 Eramet – Group presentation, May 2022

Manganese BU key features (2/2)

Market Share Key Players Key Consumers

Mn ore Mn alloys
1st global producer of
high-grade Mn ore
1st global producer of Privat
refined Mn alloys
Main market for Mn Alloys:
Europe and North
America

14 Eramet – Group presentation, May 2022

 Nickel main growth drivers: stainless steel
and batteries
Nickel ore
1 Sulfide-type ore (Canada, Russia), 26% of global production
Extraction of Ni ore > Nickel combined with several other valuable metals
in order to… > to be transformed in nickel concentrate

(Project) Laterite-type ore (New Caledonia, Indonesia), 74%

> Nickel to be transformed into ferronickel, NPI (“Nickel Pig
2 2 Iron”) or nickel metal
…be transformed in …or Ni class II1…
Ni Class I1… Primary Nickel production2
Class I Product: Nickel salt and Nickel metal through
Nickel base hydrometallurgical process
alloys
Class II Product: Ferronickel (15-50% Ni) and NPI (<15%
7%
Ni) through pyrometallurgical process
Batteries 12% 3 Stainless
(o/w c.70% EV) steel
battery
…to satisfy mainly the Key Features
stainless market Properties of Ni:
12%
demand Mass & surface Nickel is traded on the LME and SHFE index (pure metal,
Others resistance to Class I)
1 tonne of 300 series
contains 80 kg of nickel oxidation;
69% ductility; high China: 57 % of global stainless-steel production in 2021
melting point;
electrical resistance; Global nickel demand: x3.53 by 2040 vs. 2020, mainly
catalytic properties driven by battery metals growth
Uses of Ni:
transport,
1 Class I: product with nickel content of 99% or more;
construction, Class II: product with nickel content of less than 99%
15 Eramet – Group presentation, May 2022 hygiene, health 2 Excluding Recycling
3 Source: Market studies, Eramet
Nickel BU key features (1/2)

Reserves Industrial set-up

Indonesia (PT Weda Bay): world class deposit, largest nickel

Reserves’ lifetime > 25 years for
mine, 1 ferroalloys1 plant (NPI)
both New Caledonia and Indonesia
> First-tier mine
Operated for ~130 years in New
Caledonia and since 2019 in New Caledonia (SLN): 5 highly competitive mines and 1 pyro
Indonesia metallurgical plant
> High-grade ferronickel (23% Ni) and nickel ore exported
(1.7 to 1.9 % Ni)

2021 production

Weda Bay SLN

5.4 Mwmt c.39 kt-Ni

14 Mwmt c.39 kt-Ni nickel ore ferronickel
nickel ore 2 nickel ferroalloys2
o/w c.3 Mwmt exported

1Eramet holds a 43% stake in Strand Minerals Pte. Ltd, (the holding company which owns 90% of PT
Weda Bay Nickel), in partnership with Tsingshan, the leading global producer of stainless steel
16 Eramet – Group presentation, May 2022 2 On a 100% production basis
Nickel BU key features (2/2)

Market Share Key Players Key Consumers

4th high grade ferronickel

producer worldwide
1st source of high grade
seaborne ore (exports
from New-Caledonia)

17 Eramet – Group presentation, May 2022

 Mineral Sands main growth drivers: ceramics and
pigments market

Zircon key features Titanium dioxide key features

Dredge or
Dredge 1 open pit
mining mining followed
followed by by mineral
1 mineral separation
Titanium
separation
minerals (rutile,
ilmenite,
2
2 leucoxene)
Midstream :
micronisation or
Midstream 3
chemistry
(optional):
titanium slag
/ synthetic
rutile 90%
30% 3
Foundry/Refractory
4
Finished 50% Downstream:
products pigments and
Ceramics
titanium metal TiO2 pigment
20%
6%
4%
Chemicals Titanium
Others metal
18 Eramet – Group presentation, May 2022
Mineral Sands BU key features (1/2)

Reserves Industrial set-up

Senegal (GCO): world’s largest single dredge mineral sands

Reserves’ lifetime > 20 operation
years in Senegal (Zircon &
> Ore rail transportation from mine to Dakar port operated by GCO
Titanium ore1)
Norway (TTI): 1 metallurgical plant
Operated since 2014
> Transformation of ilmenite (metallurgical valorization) into
titanium slag and pig iron

Cameroon: launch of pre-feasibility study for Akonolinga project

(rutiliferous block) in 2022

2021 production

HMC2 Zircon TiO2 Slag

804 Kt 64 Kt 209 Kt

1 Rutile, ilmenite, leucoxene

19 Eramet – Group presentation, May 2022 2 Heavy Minerals Concentrate (HM sands content)
Mineral Sands BU key features (2/2)

Market Share Key Players

4th global producer of

zircon

4th global producer of

titanium feedstock

20 Eramet – Group presentation, May 2022

Develop metals for energy
transition
Lithium main growth drivers: energy storage, including
Li-on EV battery

1 Key Features
Extraction from
salar brines or from
lithiniferous minerals Energy storage market:
(spodumene) in order to… > Mainly driven by environmental
regulations, EV sales and mobility
development
2
…be transformed Li-ion batteries’ cathodes:
into Lithium > Composition includes lithium
Carbonate… 3 carbonate or lithium hydroxide
…or into Lithium
Hydroxide… Global lithium demand for battery
metals
4 > x141 by 2040 vs. 2020
76%
Others 6%
…to satisfy mainly the Energy
Metal powders 2% Energy Storage storage
3%
Greases demand
Glass & 13%
Ceramics in the form of
lithium-ion
batteries for
portable electronics,
electric vehicles and the
storage of electricity
22 Eramet – Group presentation, May 2022 1 Source: Market studies, Eramet
on transport networks
Lithium BU (in development) key features (1/2)

Reserves Industrial set-up

Reserves’ lifetime > 40

years in Argentina (LCE1) Argentina: majority share of 50.1% for Eramet,

> Pilot plant operating in real conditions since December 2019

Market Share
> First large-scale and sustainable lithium industrial complex
Lithium expected market leveraging on its own process in Europe (in development)
share post full ramp-up1:
c. 2.5%

Clear path to start up

Q1 2022 Q1 2024 H2 2025

Start of plant construction Commissioning Full ramp-up at 24ktpa
Potential for
further development

23 Eramet – Group presentation, May 2022 1 On a 100% basis

Lithium BU (in development) key features (2/2)

Direct Lithium Extraction (DLE) process

Use of an active solid to extract and

concentrate the lithium: competitive
process developed by Eramet

~90% lithium recovery yield

> much higher than traditional evaporation
process

1 week lead time

> vs. 18 months on evaporation process

Optimized management of the deposit’s

hydric balance

A pilot plant is in operation on site since

Dec. 2019 and has demonstrated, in real
conditions, the performance of Eramet’s
process

24 Eramet – Group presentation, May 2022

Battery-grade Ni/Co project co-developed with BASF in
Indonesia: study phase to be completed in 2022

Production of nickel-cobalt for the manufacturing for Li-ion batteries

Partnership with BASF since 2020:
> Evaluation of hydro-metallurgical plant development, incl. a high-pressure acid leaching
(“HPAL”) unit
> Ore from Weda Bay deposit
Highest CSR standards:
> Implementation of the most stringent local regulations as well as Eramet’s environmental
& social standards and policies
> No deep-sea tailings disposal

Mid-2020
decade
Expected installations
start-up

25 Eramet – Group presentation, May 2022

Entering pre-industrialization studies for the battery
recycling project

Major progress in the Li-ion battery recycling project

An innovative closed-loop process fully piloted in 2020-2021 within Eramet Research &
Innovation Center

Developing our partnership with SUEZ to produce “black mass” (a metal concentrate of
nickel, cobalt, manganese, lithium and graphite) from end-of-life lithium-ion battery
recycling
> 2022-2024: initiating the pre-industrial phase, based on maturity achieved over
several years of R&D
> 2024: estimated target date for the start of blackmass production in France

Start of industrialization studies for blackmass and other scrap refining in France
> Stand-alone 100% Eramet for battery grade metals production from blackmass
> 2022-2024: construction and operation of a pre-industrial demo-plant at Eramet
Research & Innovation center in Trappes
> 2025-2026: estimated target date for start of refining operation in France

STRATEGIC METAL RECYCLING: a virtuous circular economy approach, key

for European sovereignty and responsible supply

26 Eramet – Group presentation, May 2022

Eramet Ideas*: a European center of excellence in mining,
extractive metallurgy and circular economy
Open innovation approach Our Partners
Leadership / partnership in European projects
Innovation Council of worldwide academic experts
Open innovation challenge

High-level R&D infrastructure in Trappes, near Paris

60+ years of experience
Lab & Pilot facilities in geometallurgy, hydrometallurgy
& pyrometallurgy
High performance observation tools

Strategic projects
Lithium Battery Recycling: development of an
innovative process for recycling lithium-ion batteries
used in electric vehicles
Ni-Co: production of nickel and cobalt sulfate for the
Lithium battery market
FerroAlloys: invent the technology leading to zero
carbon dioxide emission.

150 1st
experts, engineers microscope in Europe
and technicians equipped with QEMSCAN
mineralogy software
28 Eramet – Group presentation, May 2022
* Eramet Ideas : Innovation, Development, Engineering for Advanced Solutions
Appendices
 A longtime player
Partnership signed for restarting the construction of the lithium plant in Argentina
Closing of the sale of the Sandouville (France)
hydrometallurgical plant to Sibanye-Stillwater
Successful start-up and ramp-up of the Weda Bay Nickel nickel ferroalloy production plant

Start-up of the Centernario pilot site (lithium project)

Launch of EcoTitanium
Sale of ERACHEM and Bear Metallurgical Corporation
Sale of Eurotungstene
Inauguration of Moanda Metallurgical Complex (2014) 100% of TiZir owned by
Creation of MKAD for the closed-die forging of parts for aeronautics (2015) Eramet (OPA on MDL)

Weda Bay Nickel partnership in Indonesia

Diversification into manganese alloys

Diversification of activities
Transfer of the 26% stake held by the French
and titanium dioxide through the acquisition of Tinfos
State to FSI Equation (which became APE)
Shareholding structure

Creation of Eramine Sudamerica (lithium project in Argentina)

The Duval family becomes shareholder of Eramet,

through the contribution of Aubert & Duval
Diversification into ilmenite and zircon production
through TiZir in Senegal

Listing of Eramet

Acquisition of Weda Bay Nickel (nickel project) in Indonesia

Société Le Nickel was incorporated

to operate nickel mines in New Caledonia
Diversification into forged and closed-die
Le Nickel became SLN, forged parts, following the contribution of
with Elf Aquitaine (French Aubert & Duval to Eramet
government) holding a 50% stake Manganese
The stake held by the Diversification into manganese, with the Nickel
French state in SLN acquisition of a 61% stake of COMILOG in Gabon
Mineral Sands
increased to 70%
Lithium
Creation
of Eramet-SLN Group
(Sandouville) Alloys

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

1880 1974 1983 1985 1989-91 1994 1995-97 1999 2006 2008-09 2011 2012 2014-15 2016-17 2018 2019 2020 2021

30 Eramet – Group presentation, May 2022

A global geographic footprint
FRANCE NORWAY
Dunkerque Kvinesdal,
Porsgrunn,
Sauda
Tyssedal

EUROPE
PROJECT

MINING SITE

PROCESSING

Manganese
Nickel
ASIA-
Mineral sands
OCEANIA Lithium

AMÉRIQUES
AMERICAS

AFRIQUE
AFRICA

UNITED STATES
NEW
Marietta CALEDONIA
Kouaoua, Népoui,
ARGENTINA CAMEROON SENEGAL
Poum, Tiébaghi, Thio
Salar de Centenario- Akonolinga Diogo Area
Doniambo
Ratones
GABON INDONESIA
Moanda Weda Bay Nickel

31 Eramet – Group presentation, May 2022 N.B: geographic footprint excluding discontinued operations (Sandouville, Aubert & Duval and Erasteel)
Key partnerships with host countries and territories
Eramet associates the main countries and territories where it operates

Gabon New-Caledonia Senegal

Nippon Steel French
2
Others France State Senegalese State
7% 10%
Gabonese 10%3
State 29%
64% STCPI1 34% 56% Eramet
Eramet
90% Eramet

Indonesia4 Argentina

PT Antam Tsingshan
Tsingshan
10.0%
Eramet
38.7%
49,9% 50,1% Eramet
51.3%

Significant contribution to the local economies

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

1 STCPI (Société Territoriale Calédonienne de Participation Industrielle): entity owned by the New Caledonian
provinces, holds around 4% of Eramet’s share capital
2 1 share
3 TiZir’s operations in Senegal

32 Eramet – Group presentation, May 2022 4 Eramet holds a 43% stake in in Strand Minerals Pte. Ltd, holding company which owns 90% of PT WB Nickel
2021 Group turnover1 by sales destination

Others

France 6%
7%

18% 43%
NA 2021 Group Turnover
Asia
€3.7bn

Europe 26%

1 Application of IFRS 5 i.e. excl. Discontinued operations at 31 December 2021

33 Eramet – Group presentation, May 2022 (Aubert & Duval, Erasteel, Sandouville)
2021 Group turnover1 by end market

Other Mineral Sands Other 2

Pigment 2% Stainless Steel
5%
Ceramics 5%
3%
2%

10%
6%
Stainless Steel 29% 21%
29% 48%
6%
19% 62%

54%
Carbon Steel

1 Application of IFRS 5 i.e. excl. Discontinued operations at 31 December 2021

34 Eramet – Group presentation, May 2022 (Aubert & Duval, Erasteel, Sandouville)
2 Chemicals, fourndry and third party transportation
Director of Investor Relations

Sandrine NOURRY-DABI
[email protected]