Eramet (ERA) Investor update summary

Capital increase and funding plan

• €500m rights issue planned for Q4 2026 to strengthen equity and the balance sheet, support near-term financing needs and maintain bank-covenant compliance.

• Three-pillar funding plan combines the capital increase with a performance improvement plan, including ReSolution, and strategic asset monetization to support a return to medium-term growth.

• 2025 losses drove higher net debt, adjusted leverage of 5.5x and gearing of 125%, with bank-covenant breaches; operating performance improved in H1 2026.

• Dividends will resume only when adjusted leverage falls below 1.0x; deleveraging is targeted well before 2030.

• Asset disposals remain on track, with management avoiding fire sales; signing may occur this year and closing is expected next year.

Transaction structure and ownership

• All shareholders receive preferential subscription rights pro rata; APE will subscribe for its 27.1% share and may buy all or part of Sorame-CEIR’s rights at a 5% discount to theoretical value.

• The French State is expected to subscribe for 64% of the increase, including family rights; banks are expected to underwrite the remaining market portion.

• If APE does not buy all Sorame-CEIR rights, Sorame-CEIR may subscribe for the balance; put and call options could transfer shares later, subject to regulatory approvals.

• APE’s effective voting rights are capped below 49%; the French State is to remain below 50% of share capital, and an AMF waiver is required for crossing the 30% threshold.

• APE is expected to become the largest shareholder and Sorame-CEIR the second-largest; a new shareholder agreement includes liquidity protections against excessive selling.

Timing and capital allocation

• Completion is targeted after Q3 2026 turnover, scheduled for 29 October, and before year-end; timing depends on market conditions and an AMF waiver.

• Process includes AMF prospectus approval, execution and targeted settlement; preparatory work and formation of a banking syndicate are planned.

• Failure to complete by mid-2027 could weaken financial flexibility, bank-covenant compliance and refinancing of short-term debt maturities.

• Argentina final investment decision is expected next year; if positive, related capex would occur in 2028–2030. Centenario debottlenecking’s first step is $350m.