Investors and Analysts Presentation April 2016 · 2 ERAMET - INVESTORS PRESENTATION – APRIL 2016 This document and the materials appended to it (together, the “materials”) may

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: 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: A GLOBAL LEADER IN MINING AND

METALLURGY

ERAMET: A PRESENCE IN ALL THE RAW

MATERIAL VALUE CHAIN


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


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


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


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)


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 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


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

http://www.google.fr/imgres?imgurl=http://cmcasavignon.fr/wp-content/uploads/2010/10/photonum2.jpg&imgrefurl=http://cmcasavignon.fr/activites-commissions/initiation-a-la-photo-numerique.html&usg=__s6fvG7PweLveEXPakLW4N9jYlOM=&h=450&w=425&sz=20&hl=fr&start=5&zoom=1&tbnid=7KFSS7VuOEYywM:&tbnh=127&tbnw=120&ei=MRuUTvPiC5CL4gSjsryqCA&prev=/search?q=appareil+photo+num%C3%A9rique&hl=fr&gbv=2&tbm=isch&itbs=1

http://fr.dreamstime.com/register?jump_to=http://fr.dreamstime.com/stock-image-detail-of-jet-landing-gear-image6758911

http://www.denora.it/Portals/0/De NOra DNOX/Plating anodes application 2 rgb.JPG

ERAMET ALLOYS AT A GLANCE:

AUBERT & DUVAL AND ERASTEEL


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


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 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


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)

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

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

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.


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

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

A PROACTIVE SUSTAINABLE DEVELOPMENT

POLICY


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 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


-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


Evolution of metal prices: end of 2015 spot prices compared to end of 2014 spot prices

…WITH NOT YET HIGH PRICES REBOUND IN

2016…


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


... 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 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 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


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)


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


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


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.


-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


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


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


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 ALLOYS


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


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


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


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 MANGANESE

MANGANESE ORE PRICES


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


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


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%


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)


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


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 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

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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


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


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


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)


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


KEY FIGURES


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% - -


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


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.


In million of €

Assets

Tax receivables

1.6 BILLION EUROS IN FINANCIAL

LIQUIDITY ON 31 DECEMBER 2015


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


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


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


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 €


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


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.


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.


* annual impact on Group's current operating income compared to 2013


APPENDICES

RECONCILIATION OF GROUP REPORTING

AND PUBLISHED ACCOUNTS


(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


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


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


2015 Million of € 2014 2013 2012

Sales 991 938 904 997

EBITDA 78 81 49 40

Current operating income 27 23 4 (5)


ERAMET MANGANESE: KEY FIGURES


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


ASSETS


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


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

Investors and Analysts Presentation April 2016 · 2 ERAMET - INVESTORS PRESENTATION – APRIL 2016 This document and the materials appended to it (together, the “materials”) may

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