Eramet Group: 1st QUARTER TURNOVER 2013

April 30, 2013 Paris, April 30(th), 2013 PRESS RELEASE 1(st) QUARTER TURNOVER 2013 * 797 M€ turnover in 1(st) quarter 2013, down 9% compared with 1(st) quarter 2012, affected by global economic crisis * Higher manganese ore prices * Surplus nickel production, mainly in China, weighing on prices ----------------------------------------------------- Turnover Q1 2012 Q1 2013 (€ millions) ----------------------------------------------------- ERAMET Manganese 374 388 ----------------------------------------------------- ERAMET Nickel 236 181 ----------------------------------------------------- ERAMET Alloys 271 231 ----------------------------------------------------- Holding company & eliminations (4)  (3) ----------------------------------------------------- ERAMET Group 877 797 ----------------------------------------------------- In the 1(st) quarter of 2013 the Group's activity continued to be affected by the global economic crisis, as seen in growth rates that are very low or even negative in many countries, particularly in Europe. While remaining far higher than in other countries, the Chinese economy's growth continued to slow down gradually. Moreover, the Group's turnover was penalised by very low LME nickel prices, reflecting extremely high growth in nickel ore production in Indonesia and the Philippines. The substantial increase in imports of those ores into China led to sharp growth in nickel pig-iron production in the country, outpacing the increase in world stainless steel production over the same period. * ERAMET Manganese: turnover up 4% from 1(st) quarter 2012 Thanks to growth of 9% in China and 3% in India, and despite an average 4% decrease for the rest of the world, global production of carbon steel rose 2% in the 1(st) quarter of 2013 compared with the 1(st) quarter of 2012. CIF China spot prices (source: CRU) for manganese ore increased 18% in the 1(st) quarter of 2013 compared with the 1(st) quarter of 2012. Europe spot prices (source: CRU) for manganese alloys decreased 4% in the 1(st) quarter of 2013 compared with the 1(st) quarter of 2012 and were stable in relation to the 4(th) quarter of 2012. ERAMET Manganese's production of manganese ore and sinter grew 82% to almost 860,000 tonnes in the 1(st) quarter of 2013 compared with the 1(st) quarter of 2012, which was impacted by a non-recurrent technical incident. Manganese alloy production increased 12% over the same period, thanks to the gradual ramp-up of the New Guilin plant in China. ERAMET Manganese's external shipments of manganese ore and sinter rose 55% in the 1(st) quarter of 2013 compared with the 1(st) quarter 2012. Manganese alloy sales remained stable over the same period. * ERAMET Nickel: turnover down 23% from 1(st) quarter 2012 ERAMET Nickel's turnover decreased 23% in the 1(st) quarter of 2013 compared with the same period in 2012, because of a 12% fall in nickel prices (average LME nickel price 7.85 USD/lb. in 1(st) quarter 2013) and a correlating decrease in production. Thanks to 14% growth in China and despite a 4% average decrease for the rest of the world, world stainless steel production grew 4% in the 1(st) quarter of 2013 compared with the 1(st) quarter of 2012. Nevertheless, the physical nickel market remained in surplus in the 1(st) quarter of 2013, mainly due to the increase in Chinese nickel pig-iron production, made possible by ore exports from Indonesia and the Philippines. * ERAMET Alloys: turnover down 15% compared with 1(st) quarter 2012 ERAMET Alloys' turnover decreased 15% in the first quarter of 2013 compared with the same period in 2012. This decrease reflects highly deteriorated conditions on the high speed steel and tooling markets, mainly related to the automotive sector, and on the energy and defence markets. As part of these units' adjustment to lower activity, ERAMET Alloys continued to implement its competitiveness plan, including a project involving a 23% cut in the Firminy plant's headcount. Aerospace turnover, which rose slightly, is at a high level and should continue to grow in the coming months. * The ERAMET Group's financial situation With a sound financial situation but taking recent trends on its markets into account, the Group selectively continued its capital investment programme. In 2013, the ERAMET Group's capital expenditure levels will be lower than in 2012. * Outlook Taking into consideration mainly the current state of the nickel market, the ERAMET Group's current operating income in the 1(st) half of 2013 will be significantly lower than for the 2(nd) half of 2012. - ooOoo - DIARY ERAMET's Annual General Meeting will take place at 10:30 am on May 15(th), 2013 at Salons Hoche - 9, Avenue Hoche - 75008 PARIS. -------------------------------------------------------------------------------- ABOUT ERAMET ERAMET is a leading global producer of: * alloying metals, particularly manganese and nickel, used to improve the properties of steel, * high-performance special steels and alloys used in industries such as aerospace, power generation and tooling. ERAMET is also studying or developing major projects in new activities such as mineral sands (titanium dioxide and zircon), lithium, niobium and rare earths, as well as in recycling. The Group employs approximately 14,000 people in 20 countries. ERAMET is part of Euronext Paris Compartment A. CONTACT Vice-President Investor Relations and Economic Studies Philippe Joly Tel: +33 (0)1 45 38 42 02 Investor Relations and Economic Analyst David Fortin Tel: +33 (0)1 45 38 42 86 For more information: www.eramet.com -------------------------------------------------------------------------------- APPENDIX Turnover ----------------------------------------------------------------------- Turnover (M€) Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 ----------------------------------------------------------------------- ERAMET Manganese 374 379 380 427 388 ----------------------------------------------------------------------- ERAMET Nickel 236 224 196 242 181 ----------------------------------------------------------------------- ERAMET Alloys 271 255 220 251 231 ----------------------------------------------------------------------- Holding company & eliminations (4) 0 (3) (1) (3) ----------------------------------------------------------------------- ERAMET Group 877 858 793 919 797 ----------------------------------------------------------------------- Production and shipments ---------------------------------------------------------------------------- Metric tons Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 ---------------------------------------------------------------------------- Manganese ore and sinter production 471 200 840 600 838 600 886 400 859 600 ---------------------------------------------------------------------------- Manganese alloy production 176 000 178 200 189 800 186 200 197 300 ---------------------------------------------------------------------------- Manganese alloy sales 195 500 170 800 177 200 201 300 196 300 ---------------------------------------------------------------------------- Nickel production* 14 220 13 465 14 578 14 184 13 128 ---------------------------------------------------------------------------- Nickel sales** 13 602 14 721 12 551 15 807 11 707 ---------------------------------------------------------------------------- *     Ferronickel and matte **   Finished products Press release Q1 2013 (PDF): http://hugin.info/143395/R/1697588/559429.pdf This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Groupe Eramet via Thomson Reuters ONE [HUG#1697588]