Slide 1: First Quarter 2023 Earnings Call
First Quarter 2023 Earnings Call April 26, 2023 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 VAR, 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
Slide 4: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 5: Q1 2023 Highlights
Ø Safety: Delivered best in class safety performance, recordable case rate(1) of 1.6 per million hours worked in Q1 2023 Ø Shipments: 389kt (-3% YoY) Ø Revenue: €2.0 billion (-1% YoY) Ø Value-Added Revenue: €754 million (+16% YoY) Ø Net income: €22 million Ø Adjusted EBITDA: €166 million (-1% YoY) Ø
Slide 6: Jack Guo, Chief Financial Officer
Jack Guo Chief Financial Officer
Slide 7: Value-Added Revenue Bridge Q1 2023 vs. Q1 2022
Value-Added Revenue Bridge Q1 2023 vs. Q1 2022 € millions
Slide 8: Packaging & Automotive Rolled Products
Q1 Adjusted EBITDA Bridge Packaging & Automotive Rolled Products Q1 2023 Q1 2022 %r Shipments (kt) 259 276 (6)% Revenue (€m) 1,030 1,168 (12)% Adj. EBITDA (€m) 55 82 (33)% Adj. EBITDA (€ / t) 213 296 (28)% Q1 2023 Performance Ø Adjusted EBITDA of €55 million Ø Higher automotive shipments; lower pack
Slide 9: Aerospace & Transportation
Aerospace & Transportation Q1 2023 Q1 2022 %r Shipments (kt) 58 55 6% Revenue (€m) 452 385 17% Adj. EBITDA (€m) 73 53 37% Adj. EBITDA (€ / t) 1,246 961 30% Ø Adjusted EBITDA of €73 million Ø Higher aerospace shipments; lower TID shipments Ø Improved price and mix Ø Higher operating costs mainly due
Slide 10: Automotive Structures & Industry
Q1 2023 Performance Automotive Structures & Industry Q1 2023 Q1 2022 %r Shipments (kt) 72 70 3% Revenue (€m) 483 459 5% Adj. EBITDA (€m) 43 37 17% Adj. EBITDA (€ / t) 599 520 15% Ø Adjusted EBITDA of €43 million Ø Higher automotive shipments; lower industry shipments Ø Improved price and mix Ø Highe
Slide 11: Managing the Current Inflationary Environment
Broad based and significant inflationary pressures expected to continue throughout 2023 Metal supply remains tight Higher costs for alloying elements like magnesium and lithium Labor and other non-metal costs higher, particularly European energy A number of tools working to offset inflation: Solid c
Slide 12: Free Cash Flow
Free Cash Flow Q1 2023 Q1 2022 Q1 2023 Free Cash Flow Highlights Ø Free Cash Flow of €(34) million, in line with our expectations Ø Strong Adjusted EBITDA Ø Higher capital expenditures Ø Increase in working capital Ø Higher cash interest Net cash flows from operating activities 34 58 Purchases of pr
Slide 13: Net Debt and Leverage
Ø Leverage of 2.8x at quarter-end Ø Balance sheet approaching target leverage of 2.5x Ø Expect leverage to continue to decline Ø Long-term target leverage range of 1.5x to 2.5x Ø No near-term bond maturities Ø Strong liquidity position € in millions Net Debt and Leverage Maturity Profile(1) Liquidit
Slide 14: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 15: Market Commentary
Market Commentary Packaging Inventory adjustments continue in North America and Europe Seeing some signs of demand weakness in both regions given current inflationary environment, lack of promotional activity and following the multi year period of rapid growth during COVID Long-term trends remain in
Slide 16: Favorable Market Trends and Secular Growth Drivers
Packaging Automotive Aerospace Specialties Circular Economy ü ü ü ü Lightweighting ü ü ü Electrification ü ü Sustainable Packaging ü ICE = internal combustion engine; BEV = battery electric vehicle Majority of Our Portfolio Serving End Markets Benefiting From Sustainability-Driven Secular Growth Sec
Slide 17: Key Messages and Guidance
Targets Strong performance in 1Q 2023 Strong Adjusted EBITDA despite a number of challenges including significant inflationary pressures Aerospace and automotive shipments continued to rebound Solid operational performance and strong cost control Leverage of 2.8x at quarter-end Exciting future ahead
Slide 18: Appendix
Appendix @ constellium First Quater 2023 Earnings Call 18
Slide 19: VAR Reconciliation
Three months ended March 31, (in millions of Euros) 2023 2022 Revenue 1,956 1,979 Hedged cost of alloyed metal (1,211) (1,227) Revenue from incidental activities (7) (6) Metal price lag 16 (94) VAR 754 652 Adjusted EBITDA 166 167 VAR Margin 22.0% 25.7% VAR Reconciliation
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Three months ended March 31, (in millions of Euros) 2023 2022 Net income 22 179 Income tax expense / (benefit) 5 39 Income before tax 27 218 Finance costs - net 35 30 Income from operations 62 248 Depreciation and amortization 72 66 Unrealized losses / (gains) on derivatives 8 (57) Unrealized exchan
Slide 21: Free Cash Flow Reconciliation
(in millions of Euros) Three months ended March 31, 2023 2022 Net cash flows from operating activities 34 58 Purchases of property, plant and equipment, net of grants received (68) (32) Free Cash Flow (34) 26 Free Cash Flow Reconciliation (in millions of Euros) Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 202
Slide 22: Net Debt Reconciliation
(in millions of Euros) March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Borrowings 2,099 2,056 2,169 2,158 2,138 Fair value of net debt derivatives, net of margin calls 1 1 (1) (5) (1) Cash and cash equivalents (193) (166) (171) (156) (160) Net Debt 1,907 1,891 1,997
Slide 23: Reconciliation of Net Income to Adjusted EBITDA (LTM)
Twelve months ended (in millions of Euros) March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Net income 151 308 285 253 393 Income tax (benefit) / expense (139) (105) (100) 57 83 Income before tax 12 203 185 310 476 Finance costs - net 136 131 139 137 142 Income from o
Slide 24: Borrowings Table
At March 31, At December 31, 2023 2022 (in millions of Euros) Nominal Value in Currency Nominal Rate Nominal Value in Euros (Arrangement fees) Accrued Interests Carrying Value Carrying Value Secured Pan-U.S. ABL(due 2026) $167 Floating 154 — 1 155 81 Secured PGE French Facility (repaid in May 2022)