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ERAMET
Investors and Analysts Presentation – April 2016
DISCLAIMER
ERAMET - INVESTORS PRESENTATION – APRIL 2016 2
This document and the materials appended to it (together, the “materials”) may include certain forward-
looking statements, beliefs or opinions, including statements with respect to ERAMET’s business, financial
condition and results of operations. These statements reflect ERAMET’s beliefs and expectations and involve
risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.
No representation is made that any of these statements or forecasts will come to pass or that any forecast
results will be achieved.
Forward-looking statements speak only as at the date of the relevant materials and ERAMET and their
advisers expressly disclaim any obligations or undertaking to release any update of, or revisions to, any
forward-looking statements in the materials. No statement in the materials is intended to be a profit forecast.
As a result, you are cautioned not to place any undue reliance on such forward-looking statements.
Nothing in these materials constitutes any offer or invitation to sell or issue, or any solicitation of any offer to
purchase or subscribe for sale, any securities in the United States or any other jurisdiction where it is or may
be unlawful to do so. ERAMET has not and does not intend to register any securities under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), or under the applicable laws of any other
jurisdiction and no such securities may be offered or sold within the United States or to, or for the account or
benefit of, U.S. Persons, each as defined in Regulation S under the Securities Act, except in transactions
exempt from such registration.
ERAMET
CONTENT
ERAMET - INVESTORS PRESENTATION – APRIL 2016 3
ERAMET: a Global Leader in Mining and Metallurgy 4
The Mining and Metallurgical Sector: Update 18
ERAMET Financial Position 51
Action Plan 58
Conclusion 63
Appendices 65
ERAMET - INVESTORS PRESENTATION – APRIL 2016 4
ERAMET: A GLOBAL LEADER IN MINING AND
METALLURGY
ERAMET: A PRESENCE IN ALL THE RAW
MATERIAL VALUE CHAIN
ERAMET - INVESTORS PRESENTATION – APRIL 2016 5
Exploration
Mine
Extractive
Metallurgy
Elaboration
Metallurgy
Recycling
Transformation
Metallurgy / Products
R&D and Engineering at each stage
ERAMET is a mining and metallurgical group
ERAMET Manganese
46%
ERAMET Nickel 22%
ERAMET Alloys 32%
A GLOBAL LEADER IN EACH OF ITS BUSINESSES
ERAMET - INVESTORS PRESENTATION – APRIL 2016 6
French mining and metallurgical group operating in
3 divisions and listed on Euronext Paris.
ERAMET Nickel:
≠1 ferronickel producer worldwide
≠3 high grade nickel producer worldwide
ERAMET Manganese:
≠2 of high-grade manganese ore worldwide
≠1 refined manganese alloys producer worldwide
ERAMET Alloys:
≠2 closed-die forging parts producer
≠1 gas-atomized powders producer
Sales breakdown by division (2015)
€3 109
million
A HISTORY SPANNING OVER MORE THAN 100
YEARS, WITH CONTINUOUS DIVERSIFICATION INTO
NEW MINING AND METALLURGICAL ACTIVITIES
ERAMET - INVESTORS PRESENTATION – APRIL 2016 7
2010 1995-97 1989-91 1880
Diversification into manganese, with the acquisition of 61% of COMILOG in Gabon
Shar
eh
old
ing
stru
ctu
re
1974 1985 1994 2006 2011 2012 1999 1983
Incorporation of Le 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
Acquisition of Erasteel (high speed steel producer)
Acquisition of 51% of Eurotungstène (cobalt and tungstene powder producer)
Diversification into closed-died forging and special steels, following contribution by the Duval family of Aubert & Duval (now ERAMET Alloys) to ERAMET
The Duval family becomes shareholder of ERAMET, through the
contribution of Aubert & Duval
Transfer of ERAP stake to Cogema, subsequently absorbed into AREVA
Transfer of AREVA 26% stake to FSI
€3.5bn Set-up of TiZir in Senegal (ilmenite
and zircon project)
Agreement with the Gabonese Republic for a phased increase of its shareholding in COMILOG (up to 35%)
Acquisition of Weda Bay Nickel (nickel project) in Indonesia
€3.1bn
€382m
€1.2bn
Div
ers
ific
atio
n o
f ac
tivi
tie
s
ERAMET Group sales
Listing of ERAMET
Acquisition of a 59% stake in Tinfos (manganese alloys, titanium dioxyde)
2008
Inauguration of Moanda Metallurgical Complex. Launch of EcoTitanium, to establish the first European facility for recycling
aviation grade titanium
Establishment of MKAD closed-die forged parts for aircraft parts manufacturers
2015
HISTORICAL AND STABLE SHAREHOLDERS
ERAMET - INVESTORS PRESENTATION – APRIL 2016 8
Duval Family : SORAME +
CEIR 37,06%
Bpifrance 25,66%
Carlo Tassara 12,79%
STCPI1
4,03%
BRGM2 1,34%
Others 19,12%
Notes
1 Distribution by shares
2 STCPI (Société Territoriale Calédonienne de Participation Industrielle) : New Caledonian provinces owned entity
3 BRGM (Bureau de Recherches Géologiques et Minières)
ERAMET’s shareholders – December 31th, 2015
ERAMET group is jointly controlled by the Duval family holdings and Bpifrance
(which recovered the FSI participation historically recovered from AREVA).
A WORLDWIDE GEOGRAPHIC PRESENCE
(21 COUNTRIES)
ERAMET - INVESTORS PRESENTATION – APRIL 2016 9
Manganese chemicals and
recycling
SLN-Nickel mines and
ferronickel plant (New
Caledonia)
Weda Bay nickel project
(Indonesia) – (under study)
Manganese alloys plant (China)
Alloys powder and transformation plants
Manganese alloys and titanium dioxide
TiZir – Grande Côte (Senegal)
ilmenite and zircon mine
Manganese mine project (under study)
High purity nickel and alloys melting and transformation plants
Manganese mine
Manganese alloys and metal
plants (under construction)
Maboumine project - niobium
and rare earths (under study
Lithium Project (under study)
Sales breakdown by geography (2015)
Carbon steel 34%
Stainless steel 16%
Other Ni 6%
Aerospace 19%
Tooling 6%
Energy 4%
Other Alloys 3%
Other Mn 5%
Mineral sands/ pigments
2%
Batteries 2%
Chemistry 3%
DIVERSIFIED MARKETS
ERAMET - INVESTORS PRESENTATION – APRIL 2016 10
ERAMET sales breakdown by end-market (2015)
Steels: 50%
ERAMET NICKEL AT A GLANCE
#1 ferronickel producer worldwide
≠1 nickel chloride producer worlwide
≠3 high grade nickel producer worldwide
ERAMET - INVESTORS PRESENTATION – APRIL 2016 11
Positioning
Integrated ferronickel producer
Operation of nickel mines in New Caledonia (SLN)
~80% of nickel ore production transformed into ferronickel in New Caledonia and sold directly to stainless steel producers
~20% of nickel ore production transformed into nickel matte in New Caledonia, and then into high purity nickel and nickel salts at Sandouville in France
Activity overview Main applications
Main competitors
~ 65% worldwide nickel production used in stainless steel
Extensive use of stainless steel in a wide range of industries (household equipment, domestic appliances, food industry and pharmaceutical production tools, surgical equipment…)
Other main applications of nickel: aerospace, nuclear and petrochemical industries
Main clients
ERAMET ALLOYS AT A GLANCE:
AUBERT & DUVAL AND ERASTEEL
ERAMET - INVESTORS PRESENTATION – APRIL 2016 12
Positioning
#2 closed-die forging parts producer worldwide
≠1 gas-atomized powders producer
Producer of highly technological advanced steel products Elaboration of high
performance steels, super-alloys, for high and markets
Conversion of high performance steel, titanium, aluminum
Producer of special steels, tool steels, high-speed steels
Activity overview Main applications
Main competitors Main clients
Use of high advanced products in a wide range of industries given technological specificities
High mechanical strength at high temperatures for the aerospace industry (engine parts and parts of landing gears)
Airframes for aircrafts
Power generation: gas turbines, nuclear power
ERAMET - INVESTORS PRESENTATION – APRIL 2016 13
ERAMET MANGANESE AT A GLANCE
Positioning
#2 high-grade manganese ore
worldwide
#1 refined manganese alloys
producer worldwide
#1 manganese chemical
derivatives producer worldwide
Integrated manganese producer Operation of a manganese mine in
Gabon (COMILOG)
90% of manganese ore production,
transformed into manganese alloys
within the Group (plants in Norway,
China, USA and France) or by third
parties
10% remaining ore production used in a
large range of chemical applications
Integrated producer of titanium
dioxyde (TiZir)
Mining Operation in Senegal
Conversion to titanium dioxide on
Norway
Activity overview Main applications
Main competitors
> 90% worldwide manganese
production used in carbon steel
Non substitutable element in
carbon steel
Key component in a large range
of industries, mainly construction
(> 50% worldwide consumption)
and automotive
Main manganese chemical
applications:
Disposable alkaline batteries
Fertilizers and animal feed
Pigments
Main clients
RESOURCES ACCESS: WORLD-CLASS
MINERAL DEPOSITS
14
5 world-class deposits
Senegal – TiZir
Zircon and Ilménite – 25+ years ressources
Under operation (ramp-up)
Gabon - COMILOG
Manganese – 40+ years ressources
Under operation since more than 50 years
New Caledonia – SLN
Nickel – 50+ years ressources
Under operation since the end of the 19th century
Manganese
Nickel
Indonésie - Weda Bay
Nickel – 50+ years ressources
Project
Ilmenite - Zircon
Nickel
Lithium
Argentina
Lthium – 50+ years ressources
Project
A Mineral Resource is a concentration or occurrence of commercially valuable material in or on the Earth’s crust
in such grade and quantity as to give reasonable likelihood that mining will be economically viable (JORC)
KEY PARTNERSHIPS WITH COUNTRIES AND
TERRITORIES
ERAMET is associating 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 30% of COMILOG’s share capital is owned by
the Gabonese Republic.
Senegal
10% of Grande Côte’s share capital is owned by the
Republic of Senegal.
Long-term relationship reinforced by the significant
contribution to the local economies
Main private employer in Gabon and in New Caledonia.
Primary challenge of social and environmental related
matters.
ERAMET - INVESTORS PRESENTATION – APRIL 2016 15
A PROACTIVE SUSTAINABLE DEVELOPMENT
POLICY
ERAMET - INVESTORS PRESENTATION – APRIL 2016 16
ERAMET has put sustainable development at the centre of its
strategy
To protect as a priority the health and safety of its employees.
To develop industrial processes in compliance with environmental
regulation.
To reduce the environmental impacts of its activities, especially regarding
biodiversity
To develop product stewardship ("license to market").
To intensify sustainable use of resources and to promote recycling.
To sustain a trusting relationship with its stakeholders
ERAMET's sustainable development policy covers all its activities
and is implemented through:
An Environnemental Charter.
A Biodiversity Policy formalized in 2015.
An Ethical Charter updated in 2015.
A Responsible Purchasing Charter.
An Energy Policy.
CONCLUSION
ERAMET - INVESTORS PRESENTATION – APRIL 2016 17
ERAMET is a French mining and metallurgical diversified group
The Group owns leadership positions on each of its businesses.
Plans for competitiveness and restructuring have been established to cover the economic climate
Critical advantages to ensure the future and sustainable growth
World-class deposits.
Developed partnerships with local authorities (specific governance for SLN and COMILOG for
example).
High performance R&D all over the raw material value chain.
New innovating projects towards new high-valued metals and new extension of the Group’s
geographical positions.
THE MINING AND METALLURGICAL SECTOR:
UPDATE
ERAMET - INVESTORS PRESENTATION – APRIL 2016 18
-11%
-15%
-24% -26% -27%
-30% -30%
-40% -42% -42%
-49%
-60%
-50%
-40%
-30%
-20%
-10%
0%
Gold Aluminium Copper Platinium Zinc Silver PalladiumIron(ore) Molybdenium Nickel
Manganese(ore)
A DEEPENING CRISIS IN THE GLOBAL
METALS MARKET IN 2015...
A PARTICULARLY DEPRESSED RAW MATERIAL SECTOR
ERAMET - INVESTORS PRESENTATION – APRIL 2016 19
Evolution of metal prices: end of 2015 spot prices compared to end of 2014 spot prices
…WITH NOT YET HIGH PRICES REBOUND IN
2016…
ERAMET - INVESTORS PRESENTATION – APRIL 2016 20
Evolution of metal prices: 2016 spot prices (20 March 2016) compared to end of 2015 spot prices
0,0%
15,2%
-1,4%
5,1%
7,9% 9,7% 9,5%
1,8%
25,1%
0,0%
-2,3%
14,5%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
Lead Gold Aluminium Copper Platinium Zinc Silver Palladium Iron (ore)Molybdenium Nickel Manganese ore
-38%
-44%
-65% -65%
-71% -73% -74%
-76% -80%
-90%
-80%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
Rio Tinto BHP Biliton Vale ERAMET Glencore
AfricanRainbowMinerals First Quantum
AngloAmerican Sherritt
... WHICH HAS IMPACTED ALL ACTORS IN
THIS SECTOR IN 2015...
EVOLUTION OF SHARE PRICES FOR MAIN MINING COMPANIES IN 2015
ERAMET - INVESTORS PRESENTATION – APRIL 2016 21
... AND CURRENTLY IN 2016...
EVOLUTION OF SHARE PRICES FOR MAIN MINING COMPANIES IN 2016
22 ERAMET - INVESTORS PRESENTATION – APRIL 2016
Update: 6 April 2016 (from 1 January 2015)
-26%
-36% -39%
-43%
-52% -56%
-61%
-71% -75%
-90%
-80%
-70%
-60%
-50%
-40%
-30%
-20%
-10%
0%
AfricanRainbowMinerals Rio Tinto Vale BHP Biliton Glencore
AngloAmerican
FirstQuantum ERAMET Sherritt
ERAMET - INVESTORS PRESENTATION – APRIL 2016 23
... ERAMET GROUP METALS ARE
PARTICULARLY IMPACTED
0
5
10
15
20
25
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
US
D/lb
or
US
D/d
mtu
Evolution of LME nickel and manganese ore prices
LME Ni price (USD/lb) Mn ore 44% (CRU CIF China, USD/dmtu)
Current
prices
World number 1 producer of ferronickel.
Leading global producer of nickel chloride.
One of only three producers of high purity nickel worldwide
ERAMET - INVESTORS PRESENTATION – APRIL 2016 24
ERAMET NICKEL
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
0
3 000
6 000
9 000
12 000
15 000
18 000
21 000
24 000
27 000
30 000
Jan
-11
Ap
r-1
1
Jul-
11
Oct-
11
Jan
-12
Ap
r-1
2
Jul-
12
Oct-
12
Jan
-13
Ap
r-1
3
Jul-
13
Oct-
13
Jan
-14
Ap
r-1
4
July
-14
Oct-
14
Jan
-15
Apr-
15
Jul-15
Oct-
15
Jan
-16
LME stocks SHFE stocks LME Nickel spot price (USD/t) Stocks nickel
(in tonnes)
NICKEL PRICES
The nickel price has been steadily decreasing throughout 2015 and has contracted by 42% between late 2014 and late 2015.
A variation of 1 USD/lb on the LME nickel price implies a variation of 110 €million on ERAMET Current operating income. (with an exchange rate of 1.10 USD/€)
At the beginning of 2016, nickel prices remain under pressure of very important stocks level.
25 ERAMET - INVESTORS PRESENTATION – APRIL 2016
LME nickel price
USD/lb USD/tonne
2011 2012 2013 2014 2015 2016
NICKEL ORE AVAILABILITY
Following the implementation by Indonesian government of the ore export ban, total imports (including Indonesia) reduced by 27% in 2015vs. 2014 and around 50% vs. 2013
ERAMET - INVESTORS PRESENTATION – APRIL 2016 26
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
1 2 3 4 5 6 7 8 910 11 12
1 2 3 4 5 6 7 8 910 11 12
1 2 3 4 5 6 7 8 910 11 12
1 2 3 4 5 6 7 8 910 11 12
1 2 3 4 5 6 7 8 910 11 12
1 2 3 4 5 6 7 8 910 11 12
Indonesian ore - Mt Filipino ore - Mt
Imports of nickel ore in China
in million wet metric tonnes
2015
-27% y-o-y
2010 25 M wmt
2011 48 M wmt
2012 64 M wmt
2013 71 M wmt
2014 47 M wmt
2015 34 M wmt
Nickel content in Filipino ore
is much lower than
Indonesian ore
SUMMARY OF PRODUCTION SHUTDOWNS
IMPACT ON 2016 OUTPUT (FROM AUGUST 2015)
ERAMET - INVESTORS PRESENTATION – APRIL 2016 27
kt
Reminder: World mining production 2014: 2.19 Mt
World refined nickel production 2014: 1.98 Mt
Update: March 2016
110
137
2015 2016 potential
130
Total cuts:
110 kt in 2015
137 kt in 2016
CHINESE NPI PRODUCTION UNDER
PRESSURE
ERAMET - INVESTORS PRESENTATION – APRIL 2016 28
Monthly NPI production in China slowing down significantly over the last few months
GLOBAL STAINLESS STEEL PRODUCTION
The stainless steel production slightly decreases year-on-year in 2015 (-0.4%)
Stainless steel production is expected to remain stable in 2016
ERAMET - INVESTORS PRESENTATION – APRIL 2016 29
Forecast
0
5 000
10 000
15 000
20 000
25 000
30 000
35 000
40 000
45 000kt 41 800 41 209
50%
2015
50%
Rest of the world
China
-0,4%
2016
48%
52%
2014
41 372
48%
52%
2013
37 786
50%
50%
2012
35 336
54%
46%
2011
33 207
59%
41%
Source : ERAMET Nickel estimates
NICKEL SUPPLY / DEMAND BALANCE
We expect the market to enter into a limited deficit in 2016.
Potential supply curtailment or better than expected demand could generate a wider deficit.
ERAMET - INVESTORS PRESENTATION – APRIL 2016 30
-69
48
91
169
90
30
-46
-100
-50
0
50
100
150
200kt
2015
2014 2013 2012 2011 2010 2016
Forecast
Source : ERAMET Nickel estimates
CASH COST - 2015 - FOCUS ON
NEW-CALEDONIA
ERAMET - INVESTORS PRESENTATION – APRIL 2016 31
Positioning of Caledonia assets with respect to the other assets Vale and Glencore (cash
cost C1 Wood MacKenzie)
SLN
KNS
Vale NC
More than 70% of nickel producers are in cash losses
Current price
CASH COST OBJECTIVE: 4.5 USD/LB
ERAMET - INVESTORS PRESENTATION – APRIL 2016 32
CASH COST REDUCTION IS A FIRST PRIORITY FOR SLN
Optimisation of transitory nickel content of
ore processed in Doniambo
Ongoing review of mining plan
Reduction of production costs
Optimisation of investment with strict
limitations
Increase in exports of low-grade ore
Volumes emerging from volumes processed to
access pockets of high-grade ore
Change to the SLN product mix
Production of ferronickel only, to replace the
current ferronickel / nickel matte mix
8.3
2013
-30%
4.5
End of
2017 2015
5.8
2014
7.4
SLN cash cost (USD/lb)
(Source: Wood Mackenzie - cash cost C1)
*
* Based on economic conditions at the start of 2016
Target
NICKEL PRICE CONSENSUS
ERAMET - INVESTORS PRESENTATION – APRIL 2016 33
Per lb nickel price forecast (US$/lb)
Price forecast
(USD/lb) 2016 2017
LT
nominal Last update
Expert 1 4.54 5.67 7.70 07/03/2016
Expert 2 4.08 4.99 15/01/2016
Expert 3 4.54 5.44 8.72 18/03/2016
Expert 4 3.86 4.20 6.93 08/02/2016
Expert 5 4.20 6.00 10.75 10/02/2016
Expert 6 4.24 5.03 10.86 11/02/2016
Average 4.24 5.22 9.51
World number 2 producer of high-power closed-die forged parts
World number 1 player in gas atomized powder metallurgy
A leading producer of high-performance special steels
ERAMET - INVESTORS PRESENTATION – APRIL 2016 34
ERAMET ALLOYS
ERAMET - INVESTORS PRESENTATION – APRIL 2016 35
ERAMET ALLOYS: SALES PER MARKET
+6%
High-speed steel + Equipment
49%
2011
910
15%
28%
13%
43%
Energy
Aircraft industry
2015
991
9%
17%
14%
59%
2014
938
13%
19%
11%
55%
2012
997
13%
23%
16%
57%
2013
904
13%
19%
13%
Other
In M€
ERAMET Alloys is well positionned on the hight growth aircraft industry sector
ERAMET - INVESTORS PRESENTATION – APRIL 2016 36
STRENGTHENED OPERATIONAL
PERFORMANCES
Trend of current operating income - Aubert & Duval and Erasteel 2012-2015 (in million of €).
Significant improvement for Aubert & Duval
50
31
20
3
-23
-8
-16
-8
2013 2014 2012 2015
Erasteel
Aubert & Duval
400
600
800
1000
1200
1400
1600
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
CONTINUOUS GROWTH IN THE AEROSPACE
MARKET
ERAMET - INVESTORS PRESENTATION – APRIL 2016 37
Number of
aircraft Actual Forecast
Deliveries
Further rise in Boeing and Airbus deliveries
IMPLEMENTATION OF THE 1ST
INTEGRATED
AIRCRAFT-GRADE TITANIUM SUPPLY CHAIN IN EUROPE
ERAMET - INVESTORS PRESENTATION – APRIL 2016 38
World number 2 producer of high-grade manganese ore
World number 2 producer of manganese alloys
Leading global producer of refined manganese alloys
Leading global producer of manganese chemical derivatives
ERAMET - INVESTORS PRESENTATION – APRIL 2016 39
ERAMET MANGANESE
MANGANESE ORE PRICES
ERAMET - INVESTORS PRESENTATION – APRIL 2016 40
Manganese ore prices have fallen to their lowest level for 20 years at the begining.
Rebound observed in March 2016.
CIF CHINA MANGANESE ORE 44% PRICES
Chart source: CRU
A drop of 1 USD/dmtu in price results in a decrease of 90 M€ in ERAMET's annual current
operating income (with an exchange rate of 1.10 USD/€).
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
4,5
5,0
5,5
6,0
Jan-13 Oct-12 Jul-12 Apr-12 Oct-14 Jul-14 Apr-14 Oct-11 Oct-13 Jul-13 Apr-13 Jul-11 Apr-11 Jan-11 Jan-12 Apr-16 Jan-16 Oct-15 Jul-15 Apr-15 Jan-15 Jan-14
US
D/d
mtu
2011 2012 2013 2014 2015 2016
ERAMET - INVESTORS PRESENTATION – APRIL 2016 41
GLOBAL CARBON STEEL PRODUCTION
World steel production is contracting compared to the historical trend
Source: World Steel Association, ERAMET estimates
Forecast
0
300
600
900
1 200
1 500
1 800
Mt
2016
-3%
Rest of the world
China
2015
1 626
51%
49%
2014
1 672
51%
49%
2013
1 645
50%
50%
2012
1 558
53%
47%
2011
1 531
55%
45%
1 591
51%
49%
189
704 747
1 308
1 661
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
1950
1952
1954
1956
1958
1960
1962
1964
1966
1968
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
China
Rest of World
World
kt
ERAMET - INVESTORS PRESENTATION – APRIL 2016 42
WORLD STEEL PRODUCTION
World steel production is contracting compared to the historical trend
Source: World Steel Association
1950-2014
CAGR +3.3%
1950-1974
CAGR +5.6%
1974-2001
CAGR +0.7%
2001-2014
CAGR +4.9%
ERAMET - INVESTORS PRESENTATION – APRIL 2016 43
CHINA REAL ESTATE
Construction is the main carbon steel market in China
Housing inventory is getting worked-off during the last months for Tier-1 and Tier-2 cities
Source: Exane BNP Paribas Research
SUMMARY OF PRODUCTION SHUTDOWNS
(FROM END 2015)
ERAMET - INVESTORS PRESENTATION – APRIL 2016 44
Mt
Ore (seaborne)
Total cuts expected in 2016:
Mn ore: ~ 3.6 Mt (out of 30 Mt /year seaborne)
Mn alloys: ~ 150 kt
Information updated April,2016 Sources: press, analyst memos, ERAMET data
0
5000
10000
15000
20000
25000
30000
35000
Ore
Production cut
Production
~ 12%
Production is adapting with present impact on prices
ERAMET - INVESTORS PRESENTATION – APRIL 2016 45
Mn ORE: SOUTH AFRICA FOCUS
Beginning of the adjustment in Q4’15, with production and/or curtailment in South Africa
In Q4’15 the smaller South African player disappeared from the market and South32 closed its mines
during 2 months.
South African manganese ore exports
in million wet metric tonnes
8,3
11,1
12,1
2016 2014 2015
Forecast
(Q1 2016 annualized)
Source: ERAMET estimates
ERAMET - INVESTORS PRESENTATION – APRIL 2016 46
ERAMET AND ITS COMPETITORS POSITIONS ON
PRODUCTION COST
• 2nd quartile
• 3rd quartile
• 1st
quartile • 4th
quartile
P
Vale
South 32
Assmang
UMK
ERAMET
Privat P
ERAMET is strongly positioned on the cash cost curve
Historical record of manganese ore production in 2015 (3.9 million tons transported)
In light of current market conditions, the manganese ore production has been cut in Q1 2016.
PRODUCTION OF ERAMET MANGANESE IN 2015 IN
LINE WITH THE ANNUAL TARGET OF 4 MILLION TONS
MANGANESE ORE AND SINTER PRODUCTION
ERAMET - INVESTORS PRESENTATION – APRIL 2016 47
3 868
0
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000+11%
2015 2014
3 481
2013
3 703
2012
3 037
2011
3 434
2010
3 201
kt
MANGANESE ORE PRICES FORECAST
ERAMET - INVESTORS PRESENTATION – APRIL 2016 48
Manganese prices forecast (US$/dmtu), CIF China
Price forecast (USD/dmtu)
CIF China 2016 2017 Last update
Expert 1 2.6 2.9 22/02/2016
Expert 2 3.69 4.0 30/03/2016
Expert 3 2.73 3.0 16/01/2016
Expert 4 2.90 3.0 15/12/2015
Average 2.83 3.20
TIZIR: AN INTEGRATED PLAYER IN
TITANIUM DIOXIDE AND ZIRCON MARKETS
ERAMET - INVESTORS PRESENTATION – APRIL 2016 49
Upstream: GCO
Grande Côte Operations to become a new major
player in the mineral sands production:
Ilmenite primarily used as a feedstock for TTI
upgrading facility
Zircon for the ceramic industries
TiZir:
JV with Mineral Deposits Limited (Australia)
2 sites: GCO in Senegal and TTI in Norway
TiZir Titanium and Iron (TTI)
Tyssedal, Norway
Grande Côte Operations (GCO)
Diogo,Senegal
Downstream: TTI
TiZir Titanium and Iron is producing upgraded
titanium dioxide feedstock for the pigment industry
and high purity pig iron.
MINERAL SANDS: PRODUCTION AT
“GRANDE CÔTE” IN SENEGAL
PRODUCTION OF HEAVY MINERALS SANDS (KT)
ERAMET - INVESTORS PRESENTATION – APRIL 2016 50
189176
137131
90
58
0
50
100
150
200
Q2-2015 Q1-2015 Q4-2014 Q3-2014 Q4-2015 Q3-2015
kt
Production rate at the end of the year is in line with the expected targets.
ERAMET FINANCIAL
POSITION
ERAMET - INVESTORS PRESENTATION – APRIL 2016 51
KEY FIGURES
ERAMET - INVESTORS PRESENTATION – APRIL 2016 52
The reported data and notes are adjusted data based on the Group's reporting, in which joint ventures are accounted for using proportionate
consolidation. Reconciliation with the published financial statements is presented in the Appendix on page 60.
Million of € 2015 2014 2013
Sales 3,109 3,144 3,162
EBITDA 92 363 231
% Sales 3% 12% 7%
Current operating income (207) 75 (45)
% Sales (7%) 2% (1%)
Total impairment of assets and tax receivables (668) (27) (423)
Net income – Group share (714) (159) (370)
Net financial debt (878) (547) (218)
Net debt-to-equity ratio
before impairment in 2015 36% 20% 7%
Net debt-to-equity ratio
before impairment in 2015 49% - -
ERAMET - INVESTORS PRESENTATION – APRIL 2016 53
CURRENT OPERATING INCOME (COI)
Million of €
Million of € 2015 2014
Nickel (261) (52)
Alloys 27 23
Manganese 58 137
Holding (31) (33)
Group (207) 75
-400
-200
0
200
400
600
800
1000
Nickel Manganese Alloys Group
ERAMET - INVESTORS PRESENTATION – APRIL 2016 54
CHANGE IN CURRENT OPERATING INCOME
-207
-77
-47
75
Current
Operating
income
2015
Provisions
Ni inventories
Exceptional
items
9
Current
Operating
income
2014
Depr. Prov.
and others
-10
Productivity/
Savings
76
Costs
of factors
102
Currencies
72
Prices
-407
Volume/Mix
In million of €
IMPAIRMENT IN 2015
EXCEPTIONAL IMPAIRMENT OF 668 M€ DUE TO METAL MARKET CRISIS
Total impairment in 2015 include:
• 474 million of euros in assets;
• 194 million of euros in tax receivables for SLN.
ERAMET - INVESTORS PRESENTATION – APRIL 2016 55
In million of €
Assets
Tax receivables
1.6 BILLION EUROS IN FINANCIAL
LIQUIDITY ON 31 DECEMBER 2015
ERAMET - INVESTORS PRESENTATION – APRIL 2016 56
Financial liquidity of ERAMET group
630
1 611
981
1,800
1,600
1,400
1,200
1,000
800
600
400
200
0
Proforma 31/12/2015
1,611
0
31/12/2015
1,611
Million of €
Cash and cash equivalents
Revolving credit line
Strong financial liquidity.
Draw-down on the revolving credit facility (RCF) at start of January 2016.
DEBT MATURITY SCHEDULE
Proforma gross debt on 31/12/2015 including RCF draw-down at the start of 2016.
No major debt maturities in 2016
Does not include potential refinancing
ERAMET - INVESTORS PRESENTATION – APRIL 2016 57
85
>2025
82
2024
12
2023
13
2022
19
2021
127
2020
624
2019
58
2018
987
895
2017
410
2016
156
Manganese
Alloys
Holding - Group Nickel
RCF draw down in January 2016
58
ACTION PLAN
ERAMET - INVESTORS PRESENTATION – APRIL 2016
STRENGTHENING OF CASH PRESERVATION
MEASURES
ERAMET - INVESTORS PRESENTATION – APRIL 2016 59
Suspension of
major projects
Projects
Restriction of
capital
expenditure
CAPEX
2016 programme
Asset disposal
360 M€* in cost reduction and
productivity improvement
Operational plan for
2014-2017
Decrease in alloy and
ore production
ERAMET Manganese
Project to strengthen SLN
performance plan during the
first half of 2016
ERAMET Nickel - SLN
*in annual impact on current operating income compared to 2013
Major strengthening of operational action plan in
view of increased cash-flow
ERAMET - INVESTORS PRESENTATION – APRIL 2016 60
REDUCTION IN INDUSTRIAL CAPITAL
EXPENDITURE
0
50
100
150
200
250
300
350
400
450
500
550
600
650
-23%
2015
267
2014
346
2013
587
2012
641
2011
492
2010
326
2009
286
2008
419
2016
ERAMET Alloys
ERAMET Nickel
ERAMET Manganese
In million of €
ERAMET - INVESTORS PRESENTATION – APRIL 2016 61
CONTINUATION OF 2014-2017 PROGRAM FOR COST
REDUCTION AND PRODUCTIVITY IMPROVEMENT
2014
2015
2016
-
2017
Total of:
€360 million
2014-2017
Outside of the strengthening during the first half of 2016 of the SLN specific economic action plan.
Target is reached at midpoint with savings of around €180 million at the end of 2015, on
the total savings of €360 million at the end of the plan.
STRATEGY FOCUS ON CASH FLOW
GENERATION
ERAMET - INVESTORS PRESENTATION – APRIL 2016 62
Over the short term:
Focus our efforts on our core businesses.
Increase competitiveness to strengthen our market positions.
And in the long term:
Selectively develop target projects with strong value-creating, resulting in
particular from our R&D.
ERAMET - INVESTORS PRESENTATION – APRIL 2016 63
CONCLUSION
CONCLUSION: A GROUP MOBILISED TO
ADDRESS THE RAW MATERIAL CRISIS
Dynamic actions taken:
• Industrial investments specifically restricted to safety and maintenance.
• Suspension of major projects.
• Asset transfers planned for 2016.
• Resolute pursuit of cost reduction and productivity improvement with an objective of 360 M€* by
the end of 2017 (half of the target was reached by the end of 2015).
• Strengthening of the SLN productivity improvement and cost reduction plan launched in the first
half of 2016.
• In light of current market conditions, cuts of manganese ore production in Q1 2016.
High financial liquidity of the Group:
• 1.6 billion of € on 31 December 2015.
Long term potential:
• Looking beyond today’s metal crisis, stemming largely from the trend in the Chinese economy, the
Group’s markets continue to show fundamental potential in the long term.
ERAMET - INVESTORS PRESENTATION – APRIL 2016 64
* annual impact on Group's current operating income compared to 2013
ERAMET - INVESTORS PRESENTATION – APRIL 2016 65
APPENDICES
RECONCILIATION OF GROUP REPORTING
AND PUBLISHED ACCOUNTS
ERAMET - INVESTORS PRESENTATION – APRIL 2016 66
(1) Financial statements prepared under applicable IFRS, with joint ventures are accounted for using equity method
See 2015 consolidated financial statements.
(1) Group reporting, in which joint ventures are accounted for using proportionate consolidation.
(€ million) Full year Joint-venture Full year Full year Joint-venture Full year
2015 contribution 2015 2014 contribution 2014
Published (1)
Reporting (2)
Published (1)
Reporting (2)
Sales 3 015 94 3 109 3 075 69 3 144
EBITDA 92 - 92 363 - 363
Current operating profit (loss) (191) (16) (207) 86 (11) 75
Operating profit (loss) (744) (69) (813) (15) (39) (54)
Profit (loss) for the period - Group share (714) - (714) (159) - (159)
Net cash generated by operating activities (13) 6 (7) 50 (7) 43
Industrial capital expenditure 242 25 267 305 41 346
Net financial debt position (716) (162) (878) (411) (136) (547)
Shareholders' equity 1 788 (9) 1 779 2 756 (2) 2 754
Shareholders' equity - Group share 1 466 - 1 466 2 322 - 2 322
PROFIT AND LOSS ACCOUNT ON 31
DECEMBER 2015
ERAMET - INVESTORS PRESENTATION – APRIL 2016 67
M€ 2015 2014 2013
Sales 3,109 3,144 3,162
EBITDA 92 363 231
% of sales 3% 12% 7%
Current operating income (207) 75 (45)
% of sales (7%) 2% (1%)
Other products and operational costs (606) (129) (503)
Operating Income (813) (54) (548)
Financial income (90) (68) (32)
Pre-tax income (903) (122) (580)
Share of income of equity affiliates (1) 0 (1)
Income tax (8) (49) 72
Net income (912) 171 (507)
Minority interest (198) 12 137
Net income - Group share (714) (159) (370)
ERAMET NICKEL: KEY FIGURES
ERAMET - INVESTORS PRESENTATION – APRIL 2016 68
2015 Million of € 2014 2013 2012
Sales 686 781 704 898
EBITDA (156) 42 (130) 53
Current operating income (261) (52) (222) (38)
Industrial CAPEX 56 97 172 147
ERAMET ALLOYS: KEY FIGURES
ERAMET - INVESTORS PRESENTATION – APRIL 2016 69
2015 Million of € 2014 2013 2012
Sales 991 938 904 997
EBITDA 78 81 49 40
Current operating income 27 23 4 (5)
Industrial CAPEX 44 48 64 84
ERAMET MANGANESE: KEY FIGURES
ERAMET - INVESTORS PRESENTATION – APRIL 2016 70
2015 Million of € 2014 2013 2012
Sales 1,430 1,429 1,562 1,560
EBITDA 196 266 350 357
Current operating income 58 137 218 240
Industrial CAPEX 164 199 346 399
ASSETS
ERAMET - INVESTORS PRESENTATION – APRIL 2016 71
BALANCE SHEET AS AT 31 DECEMBER 2015
848 701
3 407
3 003
4 255
3 704
Working Capital Requirement
Fixed assets
878547
935
862
313
432
1 4662 322
4 255
92
3 704
112
Financial instruments
Provisions and deferred taxes
Net debt
Minority interests
Equity – Group share
LIABILITIES
31/12/2015 31/12/2014 31/12/2014 31/12/2015
In million of €
EXAMPLE OF TARGET PROJECT IN
DEVELOPMENT: LITHIUM
ERAMET IS CONTINUING TO ASSESS THE ECONOMIC VIABILITY OF A LITHIUM PROJECT IN ARGENTINA
ERAMET - INVESTORS PRESENTATION – APRIL 2016 72
Lithium: an extremely dynamic market
Projected deficit at the end of 2016 due to a strong upward
trend in demand, supported by the Lithium-ion battery market
Increase in prices
Quality deposits
An innovative process developed using internal Group
skills
10 registered patents
ERAMET aims to enter this market alongside a partner
ERAMET Deposit
Antofagasta
CONTACT
Vice President Strategy and Financial Communication Philippe Gundermann
Tel: +33 (0)1 45 38 42 78 Investor Relations and Strategic Analyst
Hughes-Marie Aulanier
Tel: +33 (0)1 45 38 38 04
Strategy and Financial Communication Analyst Ludovic Donati Tel: +33 (0)1 45 38 42 88
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