Constellium Se · NYSE:CSTM
Constellium — Q2 2019 Earnings Presentation
21 slides from Constellium's earnings presentation, Jul 25, 2019
Slide 1: Second Quarter 2019 Earnings Call
Second Quarter 2019 Earnings Call July 24, 2019 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 2019 Highlights
Q2 2019 Highlights Total Shipments up 4% YoY to 413 thousand metric tons Revenue increased 4% YoY to €1.5 billion Net income of €17 million compared to net income of €55 million in Q2 2018 Adjusted EBITDA of €167 million increased 8% YoY; H1 2019 increased 10% YoY Cash from Operations of €128 millio
Slide 6: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 7: Adjusted EBITDA Bridges H1 2019 vs. H1 2018, Q2 2019 vs. Q2 2018
Adjusted EBITDA Bridges H1 2019 vs. H1 2018 Q2 2019 vs. Q2 2018 € millions +8% +10% € millions
Slide 8: Q2 2019 Performance Highlights: Packaging and Automotive Rolled Products
Q2 2019 Performance Highlights Adjusted EBITDA of €79 million Higher automotive and packaging shipments Favorable metal costs offset by costs from the ramp up of automotive programs Ramp up of FT3 in Neuf-Brisach and Bowling Green on track Packaging and Automotive Rolled Products Adjusted EBITDA Bri
Slide 9: Q2 2019 Performance Highlights: Aerospace and Transportation
Q2 2019 Performance Highlights Adjusted EBITDA of €64 million Increased Aerospace shipments offset by lower TID shipments Improved price and mix, primarily on TID shipments Solid operational performance Aerospace and Transportation Adjusted EBITDA Bridge € in millions Q2 2019 Q2 2018 Var. Shipments
Slide 10: Q2 2019 Performance Highlights: Automotive Structures and Industry
Q2 2019 Performance Highlights Automotive Structures and Industry Adjusted EBITDA Bridge € in millions Adjusted EBITDA of €30 million Higher Automotive shipments Higher costs largely related to new product launches and footprint expansion Q2 2019 Q2 2018 Var. Shipments (kt) 66 66 1% Revenues (€m) 34
Slide 11: Project 2019 Three Pillars
Project 2019 Three Pillars Cost Reduction €68 million of annual run rate cost savings achieved as of June 30, 2019 Target of €75 million of annual run-rate cost savings by December 31, 2019 Working Capital Improvement Strong working capital performance on back of solid operating performance and incr
Slide 12: Net Debt and Liquidity
Net Debt and Liquidity € in millions Net Debt and Leverage Maturity Profile Liquidity Debt / Liquidity Highlights Strong Cash from Operations and Free Cash Flow generation in Q2 2019 Announced €100 million redemption of 2021 bonds in July 2019 Remain committed to deleveraging Expect leverage below 3
Slide 13: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 14: End Market Updates
End Market Updates Automotive: North America: Market SAAR expected to decline in 2019 Europe: Market expected to decline slightly in 2019 Demand for luxury cars, light trucks, and SUVs remains strong Penetration driving increased demand for rolled and extruded aluminium products Aerospace: Sustained
Slide 15: Financial Guidance and Outlook
Financial Guidance and Outlook Focused on delivering on our strategy and increasing shareholder value Targets for 2019 : Adjusted EBITDA growth of 13% to 15% Free Cash Flow of €125 million to €175 million Net Debt / Adjusted EBITDA below 3.8x Targets for 2022: Adjusted EBITDA of over €700 million Ne
Slide 16: Q&A
Q&A @ constellium Second Quarter 2019 -Eamings Cal 16
Slide 17: Appendix
Appendix @ constettium Second Quarter 2019 -Earnings Cal 17
Slide 18: Net Debt Reconciliation
June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 Borrowings 2,378 2,421 2,151 2,103 2,184 Fair value of cross currency basis swaps, net of margin calls 8 2 9 25 20 Cash and cash equivalents (213) (222) (164) (279) (166) Cash pledged for issuance of guarantees — — — — —
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months ended June 30, 2019 Three months ended June 30, 2018 Six months ended June 30, 2019 Six months ended June 30, 2018 Net income 17 55 41 31 Income tax expense 9 25 24 29 Income before income tax 26 80 65 60 Finance costs – net 43
Slide 20: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended June 30, 2019 Twelve months ended March 31, 2019 Twelve months ended December 31, 2018 Twelve months ended September 30, 2018 Twelve months ended June 30, 2018 Net income / (loss) 200 238 190 168 (28) Income tax expense 2
Slide 21: Borrowings Table
Borrowings Table € millions June 30, 2019 December 31, 2018 Nominal Value in Currency Nominal Rate Effective Rate Nominal Value in Euros (Arrangement fees) Accrued Interests Carrying Value Carrying Value Secured Pan U.S. ABL (due 2022) $106 Floating 4.43% 93 — — 93 — Secured Inventory Based Facility