Constellium Se · NYSE:CSTM
Constellium — FY2020 Earnings Presentation
25 slides from Constellium's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter and Full Year 2020 Earnings Call
Fourth Quarter and Full Year 2020 Earnings Call February 25, 2021 Exhibit 99.2
Slide 2: Forward-looking statements
Certain statements contained in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This presentation may contain “forward-looking statements” with respect to our business, results of operations and financial conditi
Slide 3: Non-GAAP measures
Non-GAAP measures This presentation includes information regarding certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA per metric ton, Free Cash Flow and Net debt. These measures are presented because management uses this information to monitor and evaluate financial resu
Slide 4: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 5: Adjusted EBITDA and Free Cash Flow Above Guidance Range
Adjusted EBITDA and Free Cash Flow Above Guidance Range Q4 2020 Highlights Ø Shipments of 374 thousand tons, up 2% YoY Ø Revenue decreased 9% YoY to €1.2 billion Ø Net income of €26 million Ø Adj. EBITDA of €111 million, down 8% YoY Ø Cash from Operations of €71 million Ø Free Cash Flow of €28 milli
Slide 6: Resilient Performance with Significant Free Cash Flow Generation in 2020
Resilient Performance with Significant Free Cash Flow Generation in 2020 FY 2020 Highlights Ø Shipments of 1.4 million tons, down 10% YoY Ø Revenue decreased 17% YoY to €4.9 billion Ø Net loss of €17 million Ø Adj. EBITDA of €465 million, down 17% YoY Ø P&ARP: Record Adj. EBITDA in 2020 Ø Cash from
Slide 7: Sustainability Embedded in Our Progress
Ø Developing our 2030 Sustainability strategy Ø Advanced planning stages of an investment to increase recycling capacity in Europe of at least 60kt annually Sustainability Embedded in Our Progress Safety is Our Top Priority External Recognition Planning for our Future Sustainability-Linked Financing
Slide 8: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 9: Q4 2020 Performance: Packaging and Automotive Rolled Products
Q4 2020 Performance Packaging and Automotive Rolled Products Q4 Adjusted EBITDA Bridge € in millions Ø Adjusted EBITDA of €82 million Ø Higher packaging and automotive shipments Ø Improved price and mix Ø Unfavorable metal costs and inefficiencies related to MS strike Ø Unfavorable FX translation Q4
Slide 10: Q4 2020 Performance: Aerospace and Transportation
Q4 2020 Performance Aerospace and Transportation Q4 Adjusted EBITDA Bridge € in millions Q4 2020 Q42019 Var. Shipments (kt) 43 56 (23)% Revenues (€m) 214 350 (39)% Adj. EBITDA (€m) 13 45 (72)% Adj. EBITDA (€ / t) 296 807 (63)% FY Adjusted EBITDA Bridge € in millions Ø Adjusted EBITDA of €13 million
Slide 11: Q4 2020 Performance: Automotive Structures and Industry
Q4 2020 Performance Ø Adjusted EBITDA of €22 million Ø Higher Industry shipments Ø Strong cost control, notably labor, subcontractor / consulting fees, and energy Ø Unfavorable FX translation Automotive Structures and Industry Q4 Adjusted EBITDA Bridge € in millions Q4 2020 Q42019 Var. Shipments (kt
Slide 12: Q4 Cost Performance and Cost Highlights
Q4 2020 Q4 2019 Var. Revenues (€m) 1,243 1,372 (9)% Costs (€m) 1,132 1,251 (10)% Adj. EBITDA (€m) 111 121 (8)% Cost Highlights Q4 Cost Performance Cost Flex / Incremental Margin Performance in Q4* Horizon 2022 Target: €75 million annualized cost savings } 8% decremental Adj. EBITDA margin with stron
Slide 13: Consistent Free Cash Flow Generation
FY20 FY19 Net cash flows from operating activities 334 447 Purchases of property, plant and equipment, net of grants (177) (271) Other investing activities — (1) Free Cash Flow 157 175 Free Cash Flow Ø Free Cash Flow: >€100 million Ø Capex: ~€225 million Ø Cash interest: ~€130 million Ø Cash taxes:
Slide 14: Net Debt and Liquidity
Net Debt and Liquidity € in millions Ø Committed to deleveraging Ø Leverage of 4.3x at year end Ø Net debt declined YoY Ø Liquidity of nearly €1.0 billion Ø No near term bond maturities Ø Refinanced 2025 notes in Q1 2021 — expected to reduce annualized cash interest by ~€20 million Net Debt and Leve
Slide 15: Constellium's First Sustainability-Linked Notes
Ø Sustainability is at the core of our business, aluminium is inherently sustainable Ø Aligns business and financing with sustainability commitments and values Ø Creates direct link between sustainability targets and funding costs Ø Second Party Opinion provided by: SPT 1: Reduce GHG Emissions Inten
Slide 16: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 17: End Market Updates
End Market Updates Diversified end market exposure; primarily targeting secular growth markets Market Highlights % Revenue Packaging Secular Growth Strong market in North America and in Europe Focus on sustainability driving increased demand for aluminium cans Canmakers adding capacity in both North
Slide 18: Key Messages and Guidance
Key Messages and Guidance Focused on delivering on our strategy and increasing shareholder value Resilient performance in 2020 Quick response to crisis Business model and strategy are battle tested Delivered on commitment of consistent FCF generation Substantial Opportunities from Sustainability Meg
Slide 19: Q&A
Q&A @ constellium Fourth Quarter 2020 —Eamings Call 19
Slide 20: MSCI Disclaimer
MSCI Disclaimer: The use by Constellium of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Constellium by MSCI. MSCI services and data
Slide 21: Net Debt Reconciliation
December 31, 2020 September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 Borrowings 2,391 2,456 2,536 2,399 2,361 Fair value of cross currency basis swaps, net of margin calls 42 26 5 1 6 Cash and cash equivalents (439 ) (432 ) (378 ) (270 ) (184 ) Cash pledged for issuance of guarantees
Slide 22: Reconciliation of Net Income to Adjusted EBITDA (Three Months)
Reconciliation of Net Income to Adjusted EBITDA Three months ended December 31, € millions 2020 2019 Net income 26 22 Income tax expense (5 ) (10 ) Income before income tax 21 12 Finance costs - net 35 40 Share of income of joint-ventures — 3 Income from operations 56 55 Depreciation and amortizatio
Slide 23: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA Twelve months ended € millions December 31, 2020 September 30,2020 June 30,2020 March 31,2020 December 31,2019 Net (loss) / income (17 ) (21 ) (40 ) 8 64 Income tax (benefit) / expense (17 ) (22 ) (25 ) (4 ) 18 (Loss) / income before income tax (34 ) (
Slide 24: Borrowings Table
Borrowings Table At December 31, 2020 2019 € millions Nominal Value in Currency NominalRate Nominal Value in Euros (Arrangement fees) Accrued Interests CarryingValue CarryingValue Secured Pan-U.S. ABL (due 2022) $ — Floating — — — — 127 Secured U.S. DDTL (due 2022) $ — Floating — — — — — Secured PGE
Slide 25: Cash Flows from / (used in) Operations
Cash Flows from / (used in) Operations Three months ended € millions September 30,2020 June 30,2020 March 31,2020 September 30,2019 June 30,2019 March 31,2019 Net (loss) / income 20 (32) (31) 1 17 24 Adjustments Depreciation and amortization 64 66 66 66 60 57 Impairment of assets 9 5 - - - - Pension