ANNUAL GENERAL MEETING Tuesday, June 5 th , 2018 Paris 05 06 2018 - PowerPoint PPT Presentation

ANNUAL GENERAL MEETING Tuesday, June 5 th , 2018 – Paris 05 06 2018

Overview 1. Opening of the General Meeting 2. Formalities and agenda 3. 2017 performance indicators 4. Consolidated financial statements and 2017 key figures 5. Review of 2017 and outlook 6. Statutory Auditors’ reports 7. Presentation of the resolutions 8. Questions & Answers session 9. Voting on the resolutions 2 05 06 2018

1. Opening of the General Meeting Sebastian RUDOW, Chairman and Chief Executive Officer 3 05 06 2018

Appointment of Sebastian Rudow as Chairman and CEO on November 30, 2017  Born in Germany in 1980  Graduated in law from the University of Mannheim and Master’s Degree from the University of Heidelberg (Germany)  Professional experience: More than ten years’ in specialized consulting, recently as a partner of Wellensiek,  a German firm specialized in advising managers, business owners and boards of directors on turnaround solutions for distressed companies, reorganization and post recovery situations  Alongside his specialized consulting activities, several appointments as Manager and Executive over the past decade in various industries  Sebastian Rudow brings along his expertise in managing post-recovery companies to continue the Group’s organic industrial development Based at the Group’s managing headquarters at Suresnes in France and splitting his time  between France and Germany 4 05 06 2018

2. Formalities and agenda Régine YU, General Secretary 5 05 06 2018

3. 2017 performance indicators Sebastian RUDOW, Chairman and Chief Executive Officer 6 05 06 2018

Review of 2017  Further profitability improvement in the Lead and Zinc segments, stable breakeven performance in the Plastics segment, smaller loss in the Special Metals segment  Supportive conditions with rise in metals prices  Very solid production and collection levels – These offset the impact of maintenance shutdowns  Strong improvement in the Group’s performance (IFRS financial indicators)  Sales: € 450.3 M (+ 18% vs. 2016)  EBITDA*: € 23,0 M (x 2.5 vs. 2016)  EBIT: € 14.5 M ( vs. breakeven in 2016)  Positive net income: € 18.0 M (vs. € -10.1 M in 2016)  Strong increase in debt  Strong increase of investments in production facilities – Chiefly for the Lead segment’s reduction furnace  With the conversion of provisions into debt – European Commission fine ( € 26.7 M) * Operating income before depreciation, amortization, impairment. 7 05 06 2018

3. 2017 performance indicators 3.1 Lead segment 8 05 06 2018

Lead segment 2017 dashboard Lead price in 2017 Group industrial performance (per metric ton) (metric tons) 3000 2800 2600 Scrap batteries +30% 105,100 processed 2400 137,100 2200 2000 1800 Lead production 117,010 1600 +5% (BSF furnace) 1400 122,600 1200 01/01/2017 01/04/2017 01/07/2017 01/10/2017 In € 2016 2017 In $ Source: LME Average annual lead price Group sales ( € per metric ton) ( € million) Source: LME +16% +21% 324.1 2,052 278.3 1,694 1,608 2015 2016 2017 2016 2017 9 05 06 2018

Lead segment key 2017 financials IFRS financial indicators Restated financial indicators* ( € million) ( € million) 2017 2016 2017 2016 Sales 324.1 278.3 Sales 324.1 278.3 Operating income Operating income before non-recurring 3.2 7.3 before non-recurring 7.3 3.7 items items as a % of sales 2.2% 1.1% as a % of sales 2.2% 1.3% Operating income Operating income before depreciation, before depreciation, 12.3 8.1 12.2 8.6 amortization, amortization, impairment (EBITDA) impairment (EBITDA) as a % of sales 3.8% 2.9% as a % of sales 3.8% 3.1% * After revaluation of inventories on a LIFO basis: When assessing the performance of its Lead operating segment, the Group uses in its internal reporting the LIFO (Last In First Out) method to measure inventories at its smelter in Germany (Nordenham), a method not permitted under IFRS. See Note 19 to the 2017 consolidated financial statements. 10 05 06 2018

Lead segment review of 2017  Supportive conditions  Significant increase in average lead prices  Good availability of scrap batteries  Good production levels and efforts to protect margins  Despite maintenance shutdowns  Encouraging and improving financial results  For the second year in a row  Pursuit of the construction works of the new reduction furnace  With the aim of becoming the cornerstone of the lead segment’s sustainable profitability 11 05 06 2018

3. 2017 performance indicators 3.2 Zinc segment 12 05 06 2018

Zinc segment 2017 dashboard Zinc price in 2017 Group industrial performance* (per metric ton) (metric tons) 3700 3200 +1% 72,580 Waelz oxide production* 2700 73,270 2200 23,778 = Zinc oxide 1700 production 23,800 1200 01/01/2017 01/04/2017 01/07/2017 01/10/2017 In € In $ 2016 2017 Source: LME * Including 100% of Recytech S.A. Average annual zinc price Group restated sales** ( € per metric ton) ( € million) ** Including 50% of Recytech S.A. 124.6 2,561 +35% +35% 92.1 1,896 1,737 2015 2016 2017 2016 2017 Source: LME 13 05 06 2018

Zinc segment key 2017 financials IFRS financial indicators Restated financial indicators* ( € million) ( € million) 2017 2016 2017 2016 Sales 124.6 92.1 Sales 98.4 73.2 Operating income Operating income before non-recurring 32.2 16.6 before non-recurring 16.4 6.9 items items as a % of sales 25.6% 18.0% as a % of sales 16.7% 9.6% Operating income Operating income before depreciation, before depreciation, 35.9 19.9 9.4 19.3 amortization, amortization, impairment (EBITDA) impairment (EBITDA) as a % of sales 23.6% 21.6% as a % of sales 19.6% 12.8% * To assess the performance of the Zinc segment, the Group also releases restated financial data including the contribution from 50%-owned Recytech S.A. consolidated proportionately, even though this method is not permitted under IFRS. See Note 19 to the 2017 consolidated financial statements. 14 05 06 2018

Zinc segment review of 2017  Very solid production levels in both activities  These made up for the major maintenance shutdown at Harz-Metall GmbH  Strong sales growth  Strong increase in zinc prices  Significant improvement in financial performance compared with 2016 and between the first and second half in 2017  Strong increase in zinc prices  Scheduled maintenance shutdown at Harz-Metall GmbH in the first half (no shutdowns in 2016) 15 05 06 2018

3. 2017 performance indicators 3.3 Plastics segment 16 05 06 2018

Plastics segment 2017 dashboard Group industrial performance C2P S.A.S. (metric tonnes) (France) 2017 2016 Change 14,830 Production 10,600 tonnes 11,300 tonnes -6% -11% Polypropylene produced € 11.0 M € 12.1 M Sales -9% 13,260 € 0.6 M € 0.8 M EBIT -25% 2016 2017 Group Sales C2P Germany GmbH ( € million) (Germany) -12% 2017 2016 Change 15.5 13.6 Production 2,700 tonnes 3,600 tonnes -25% € 2.6 M € 3.4 M Sales -24% € -0.6 M € -0.5 M EBIT -20% 2016 2017 17 05 06 2018

Plastics segment key 2017 financials IFRS financial indicators ( € million) 2017 2016 Sales 13.6 15.5 Operating income before non- 0.1 0.3 recurring items as a % of sales 0.7% 1.9% Operating income before depreciation, amortization, 0.6 0.5 impairment (EBITDA) as a % of sales 3.7% 3.9% 18 05 06 2018

Plastics segment review of 2017  Challenging market conditions  Low oil price: fierce competition between virgin materials vs. recycled materials  Decline in production and sales  Especially in Germany  Breakeven result 19 05 06 2018

3. 2017 performance indicators 3.4 Special Metals segment 20 05 06 2018

Special Metals segment 2017 dashboard Production 2017 sales breakdown ( € million) (per tonnes) 138.6 € 3.2 M € 0.6 M 91.0 € 4.8 M 37.3 36.1 € 5.3 M 9.1 5.9 4.4 4.4 Gallium Germanium Arsenic Others Arsenic Germanium Gallium Others 2016 2017 21 05 06 2018

Special Metals segment key 2017 financials IFRS financial indicators ( € million) 2017 2016 14.2 15.0 Sales Operating income before non- (1.9) (3.3) recurring items as a % of sales nm nm Operating income before depreciation, (2.0) (1.4) amortization, impairment (EBITDA) nm nm as a % of sales 22 05 06 2018

Special Metals segment review of 2017  Slight decline in sales  Solid performance in the fourth quarter of 2017  Reduction in the segment’s financial loss  Solid arsenic sales volumes  Sales and marketing initiatives to boost germanium margins  Efforts to diversify the metals portfolio  Cost-cutting measures 23 05 06 2018

4. Consolidated financial statements and 2017 key figures Pierre-Yves CHARRA, Chief Financial Officer 24 05 06 2018