Constellium Se · NYSE:CSTM
Constellium — Q2 2017 Earnings Presentation
24 slides from Constellium's earnings presentation, Jul 27, 2017
Slide 1: Second Quarter 2017 Earnings Call
Second Quarter 2017 Earnings Call July 27, 2017 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: Q2 2017 Highlights
Q2 2017 Highlights Total Shipments down 1% compared to Q2 2016; Automotive shipments increased 18% Revenue increased 12% to €1.4 billion primarily due to higher metal prices Net Income improved to €15 million from €9 million in Q2 2016 Adjusted EBITDA increased 19% YoY to a record €127 million Each
Slide 6: Q2 2017 Segment Highlights
A&T Adjusted EBITDA of €41 million H1 2017 up 14% YoY Transportation, Industry, and Defense rolled product shipments increased 11% - more than offsetting decrease in Aerospace rolled product shipments Q2 2017 Segment Highlights P&ARP Automotive rolled product shipments increased 31% YoY U.S. automot
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges
H1 2017 vs. H1 2016 Q2 2017 vs. Q2 2016 Adjusted EBITDA Bridges € millions +19% +11% € millions
Slide 9: Q2 2017 Performance Highlights: Packaging and Automotive Rolled Products
Q2 2017 Performance Highlights Adjusted EBITDA of €57 million Better price and mix Incremental cost from our automotive readiness program in the U.S. Automotive rolled product shipments up 31% YoY Packaging and Automotive Rolled Products Adjusted EBITDA Bridge € in millions Q2 2017 Q2 2016 Var. Ship
Slide 10: Q2 2017 Performance Highlights: Aerospace and Transportation
Q2 2017 Performance Highlights Adjusted EBITDA of €41 million Transportation, Industry, and Other shipments increased 11%, offsetting decrease in Aerospace shipments Better price and mix, as expected, and strong operating cost performance H1 2017 Adjusted EBITDA up 14% YoY Aerospace and Transportati
Slide 11: Q2 2017 Performance Highlights: Automotive Structures and Industry
Q2 2017 Performance Highlights Automotive Structures and Industry Adjusted EBITDA Bridge € in millions Q2 2017 Q2 2016 Var. Shipments (kt) 62 58 5% Revenues (€m) 288 266 8% Adj. EBITDA 33 29 12% Adj. EBITDA (€ / t) 530 497 7% Adjusted EBITDA of €33 million Higher shipments on strong market demand So
Slide 12: Net Debt and Liquidity
Net Debt and Liquidity € in millions Net Debt and Leverage Liquidity Maturity Profile Debt / Liquidity Highlights Leverage down to 5.1x from 5.5x in Q1 2017 No bond maturities until 2021 Actively managing liquidity profile $300 million pan U.S. ABL New €100 million French inventory based revolving c
Slide 13: Project 2019
Project 2019 Project 2019 initiatives underway and already showing benefits Launched Project 2019 in Q1 2017 Project organization and governance in place €10 million of annual run rate cost savings achieved through Q2 2017; wide range of additional initiatives underway Better working capital perform
Slide 14: Intend to Move Corporate Domicile to France
Intend to Move Corporate Domicile to France Better aligns corporate cost structure with earnings profile Expected to simplify corporate structure, reduce corporate costs and provide benefit from additional potential tax savings Subject to shareholder approval Completion expected by mid-2018 Will als
Slide 15: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 16: End-market Updates
End-market Updates Automotive: North America: Constellium customer platforms increasing in Q2 despite lower U.S. Automotive SAAR Europe: Constellium customer platforms growing at or faster than the slightly improved market Aerospace: OEM build rates higher in 2017 than 2016 as narrow body ramp up mo
Slide 17: Financial Guidance and H2 2017 Outlook
Financial Guidance and H2 2017 Outlook Updating 2017 Adjusted EBITDA guidance to the high end of the high single-digit growth range Expect normal seasonality and weaker Adjusted EBITDA generation in H2 2017 as compared to H1 2017 Expect weaker H2 2017 Free Cash Flow compared to H1 2017 due to lower
Slide 18: Appendix
Appendix ¢ Constellium ‘Second Quarter 2017 - Eamings Call 18
Slide 19: Shipments by Product Line
Shipments by Product Line (000’s metric tons) Three months ended June 30, 2017 Three months ended June 30, 2016 Six months ended June 30, 2017 Six months ended June 30, 2016 Packaging rolled products 208 227 416 432 Automotive rolled products 39 30 73 57 Specialty and other thin-rolled products 11 1
Slide 20: IFRS – Income Statement
IFRS – Income Statement Three months ended June 30, 2017 (unaudited) Three months ended June 30, 2016 (unaudited) Six months ended June 30, 2017 (unaudited) Six months ended June 30, 2016 (unaudited) Revenue 1,382 1,233 2,710 2,383 Income from operations 73 80 173 133 Finance costs – net (39) (44) (
Slide 21: IFRS – Statement of Financial Position
IFRS – Statement of Financial Position At June 30, 2017 (unaudited) At December 31, 2016 Current assets 1,525 1,410 Non-current assets 2,239 2,377 Total Assets 3,764 3,787 Current liabilities 1,186 1,035 Non-current liabilities 3,095 3,322 Equity (517) (570) Total Equity and Liabilities 3,764 3,787
Slide 22: Net Debt Reconciliation
Net Debt Reconciliation June 30, 2017 March 31, 2017 December 31, 2016 Borrowings 2,326 2,433 2,468 Fair value of cross currency basis swaps 11 (38) (77) Cash and cash equivalents (286) (309) (347) Cash pledged for issuance of guarantees (7) (9) (9) Net Debt 2,044 2,077 2,035 LTM Adjusted EBITDA 398
Slide 23: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months ended June 30, 2017 Three months ended June 30, 2016 Six months ended June 30, 2017 Six months ended June 30, 2016 Net income 15 9 28 1 Income tax expense 12 26 39 45 Income before income tax 27 35 67 46 Finance costs – net 39 4
Slide 24: Borrowings Table
Borrowings Table € millions June 30, 2017 December 31, 2016 Nominal Value in Currency Nominal Rate Effective Rate Nominal Value in Euros (Arrangement fees) Accrued Interests Carrying Value Carrying Value Secured ABL Ravenswood (due 2018) — Floating — — — — — 46 Muscle Shoals (due 2020) — Floating —