Groupe Eramet : ERAMET Group: 3rd quarter 2013 turnover

Paris, October 21^st, 2013

PRESS RELEASE

ERAMET Group: 3^rd quarter 2013 turnover

• ERAMET group turnover down 6% for the first 9 months of 2013 compared with the same period in 2012, mainly as a result of lower nickel prices
   
• All-time record for manganese ore production in 3^rd quarter 2013
   
• Manganese ore production increased 27% over first            9 months of 2013 compared with the same period in 2012

In the 3^rd quarter of 2013, the ERAMET group's turnover totalled 754 M€, a 5% decrease compared with the 3^rd quarter of 2012, mainly due to lower nickel prices, which were partly offset by positive trends in the manganese market and manganese ore production.

• ERAMET Manganese: turnover increased  to 1,178 M€, up 4% for the first nine months of 2013 compared with the same period in 2012, up
  6% in 3^rd quarter 2013 vs. 3^rd quarter 2012

Global carbon steel production rose 3% over the first nine months of 2013 compared with the same period in 2012 and 5% in the 3^rd quarter of 2013 compared with the 3^rd quarter of 2012. It was mainly driven by Chinese growth (+10% in the 3^rd quarter of 2013 compared with the 3^rd quarter of 2012).

Europe spot prices for manganese alloys (source: CRU) decreased 9% on average over the first nine months of 2013 compared with the same period in 2012 and by 12% in the 3^rd quarter of 2013 compared with the 3^rd quarter of 2012 because of global overcapacities.

ERAMET Manganese's alloy shipments increased 5% in the first nine months of 2013 compared with the same period in 2012 and 1% in the 3^rd quarter of 2013 compared with the 3^rd quarter of 2012.

Manganese ore inventory in Chinese ports gradually decreased again and is at the low levels of late 2012.

CIF China spot prices (source: CRU) for high grade manganese ore have recovered since the start of the year. They rose 12% to 5.49 USD/dmtu on average over the first nine months of 2013 compared with the same period of 2012 and 4% in the 3^rd quarter of 2013 compared with 3^rd quarter 2012.

External shipments of manganese ore and sinter rose 35% over the first nine months of 2013 compared with the same period in 2012 and 54% in the 3^rd quarter of 2013 compared with 3^rd quarter 2012.

Manganese ore and sinter production in Moanda (Gabon) increased 27% over the first nine months of 2013 compared with the same period in 2012 and 16% in the 3^rd quarter of 2013 compared with 3^rd quarter 2012.

An all-time record for manganese ore and sinter was achieved in the 3^rd quarter of 2013.

• ERAMET Nickel: at 518 M€, turnover decreased 21% over the first nine months of 2013 compared with the same period in 2012,
  down 23% in 3^rd quarter 2013 vs. 3^rd quarter 2012

Stainless steel production increased approximately 5% over the first nine months of 2013 compared with the same period in 2012.

The decrease in turnover is mainly due to LME nickel prices, which averaged 6.98 USD/lb. over the first nine months of 2013, a 13% drop compared with the same period in 2012, and fell 15% in the 3^rd quarter of 2013 compared with the 3^rd quarter of 2012.

This price decrease results from a significant oversupply of nickel and very high inventories.

This LME pricing level is especially low in relation to the production costs of a large part of the nickel industry.

Metallurgical nickel production in Doniambo (New Caledonia) decreased 6% over the first nine months of 2013 compared with the same period in 2012 and 3% in 3^rd quarter 2013 compared with 3^rd quarter 2012, in line with market oversupply.

• ERAMET Alloys: at 677 M€, turnover decreased 9% over the first nine months of 2013 compared with the same period in 2012, down 7% in 3^rd quarter 2013 vs. 3^rd quarter 2012

ERAMET Alloys' turnover with the aerospace sector grew 4% over the first nine months of 2013 compared with the same period in 2012, but non-aerospace activities (energy, tooling, etc.) were heavily affected by the economic environment, particularly as regards automotive markets.

In this context, ERAMET Alloys continues to implement its performance improvement programme.

• The ERAMET group's financial situation

Taking into account the payment of dividends to minority shareholders in the Group's subsidiaries and the now much lower amount of capital expenditure, in particular, the ERAMET group's consolidated net cash was slightly negative as of September 30^th, 2013.

• Outlook

ERAMET Group

In line with the announcements made when the 1^st half 2013 results were announced, given current conditions on the nickel market, the ERAMET group's current operating income in the 2^nd half of 2013 will be significantly lower than in the 1^st half of 2013.

The Group is stepping up its measures to decrease its costs and capital expenditure, adjust its productions to its markets and reduce its working capital requirements.

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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 with high growth potential, such as mineral sands (titanium dioxide and zirconium), 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

Head of Financial Communications 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

Production and shipments

*     Ferronickel and matte

**   Finished products