Constellium Se · NYSE:CSTM
Constellium — Q2 2018 Earnings Presentation
22 slides from Constellium's earnings presentation, Jul 24, 2018
Slide 1: Second Quarter 2018 Earnings Call
Second Quarter 2018 Earnings Call July 24, 2018 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 2018 Highlights
Q2 2018 Highlights Total Shipments up 4% compared to Q2 2017 Successfully executing on our automotive strategy with shipments up 20% Revenue increased 7% YoY to €1.5 billion on higher metal prices and higher shipments Net income of €55 million compared to net income of €15 million in Q2 2017 Adjuste
Slide 6: Q2 2018 Segment Highlights
A&T Adjusted EBITDA of €43 million Continued focus on developing TID end markets Transportation, Industry and Other rolled product shipments up 7% YoY in H1 2018 Q2 2018 Segment Highlights P&ARP Adjusted EBITDA of €75 million Automotive rolled product shipments increased 27% YoY FT3 ramp up in Neuf-
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges YTD 2018 vs. YTD 2017 Q2 2018 vs. Q2 2017 € millions +19% +22% € millions
Slide 9: Packaging and Automotive Rolled Products Q2 2018 Performance Highlights
Q2 2018 Performance Highlights Adjusted EBITDA of €75 million Higher automotive shipments Improved price & mix due to higher auto shipments and favorable metal costs Good cost control partially offset by incremental costs from the ramp up of automotive programs Unfavorable FX translation Packaging a
Slide 10: Aerospace and Transportation Q2 2018 Performance Highlights
Q2 2018 Performance Highlights Adjusted EBITDA of €43 million Higher Aerospace rolled product shipments Weaker price and mix and unfavorable metal costs Solid operating cost performance Unfavorable FX translation Aerospace and Transportation Adjusted EBITDA Bridge € in millions Q2 2018 Q2 2017 Var.
Slide 11: Automotive Structures and Industry Q2 2018 Performance Highlights
Q2 2018 Performance Highlights Automotive Structures and Industry Adjusted EBITDA Bridge € in millions Adjusted EBITDA of €39 million Higher shipments of both Automotive and Other extruded products Improved price and mix Slightly higher costs Q2 2018 Q2 2017 Var. Shipments (kt) 66 62 7% Revenues (€m
Slide 12: Project 2019 Three Pillars
Project 2019 Three Pillars Cost Reduction €32 million of annual run rate cost savings achieved as of June 30, 2018 Wide range of additional cost reduction initiatives underway Working Capital Improvement Committed to further improvement of working capital turns Expect working capital investments rel
Slide 13: Net Debt and Liquidity
Net Debt and Liquidity € in millions Net Debt and Leverage Maturity Profile Liquidity Debt / Liquidity Highlights Committed to deleveraging Q2 2018 leverage of 4.3x down from 5.1x YoY No bond maturities until 2021 Ample liquidity of over €500 million Sierre asset sale proceeds received in July Reduc
Slide 14: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 15: End Market Updates
End Market Updates Automotive: North America: SAAR stronger YoY in Q2 Europe: Market continued to grow YoY in Q2 Demand for luxury cars, light trucks, and SUVs remains strong Global trade uncertainty Aerospace: Sustained OEM build rates OEM backlogs remain near record highs Packaging: Market remains
Slide 16: Financial Guidance and Outlook
Financial Guidance and Outlook Based on our current outlook, we expect: 11% to 13% Adjusted EBITDA growth in 2018 High single digit Adjusted EBITDA growth in 2019 Adjusted EBITDA of over €500 million in 2019 Targeting positive Free Cash Flow in 2019 Net Debt / Adjusted EBITDA target of below 3.5x Fo
Slide 17: Q&A
Q&A @ constettium Second Quarter 2018 - Earnings Cal 17
Slide 18: Appendix
Appendix @ constellium Second Quarter 2018 -Eamings Cal 18
Slide 19: Net Debt Reconciliation
Net Debt Reconciliation June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 Borrowings 2,184 2,093 2,127 2,257 2,326 Fair value of cross currency basis swaps, net of margin calls 20 46 32 31 11 Cash and cash equivalents (166) (211) (269) (300) (286) Cash pledged for issua
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months ended June 30, 2018 Three months ended June 30, 2017 Six months ended June 30, 2018 Six months ended June 30, 2017 Net income 55 15 31 28 Income tax expense 25 12 29 39 Income before income tax 80 27 60 67 Finance costs – net 36
Slide 21: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended June 30, 2018 Twelve months ended March 31, 2018 Twelve months ended December 31, 2017 Twelve months ended September 30, 2017 Twelve months ended June 30, 2017 Net (loss) / income (28) (68) (31) 29 23 Income tax expense 7
Slide 22: Borrowings Table
Borrowings Table € millions June 30, 2018 December 31, 2017 Nominal Value in Currency Nominal Rate Effective Rate Nominal Value in Euros (Arrangement fees) Accrued Interests Carrying Value Carrying Value Secured Pan US ABL (due 2022) $90 Floating 4.32% 77 — — 77 65 Secured Inventory Based Facility (