Slide 1: Third Quarter 2024 Earnings Call
Third Quarter 2024 Earnings Call October 23, 2024
Slide 2: Forward-Looking Statements
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 opera
Slide 3: Non-GAAP Measures
Non-GAAP Measures This presentation includes information regarding certain non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow and Net debt. These measures are presented because management uses this information to monitor and evaluate financial results and trends and believes this
Slide 4: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 5: Q3 2024 Highlights
Q3 2024 Highlights > Safety: Recordable case rate (RCR)(1) of ~1.7 per million hours worked in Adjusted EBITDA Bridge Q3 2024; YTD RCR of ~1.9 per million hours worked in € millions > Shipments: 352 thousand tons (-5% YoY) > Revenue: €1.6 billion (-5% YoY) > Net income: €3 million > Adjusted EBITDA:
Slide 6: Jack Guo, Chief Financial Officer
Jack Guo Chief Financial Officer
Slide 7: Packaging & Automotive Rolled Products
Packaging & Automotive Rolled Products Q3 Q3 Q3 2024 Performance 2024 2023 % â–³ Segment Adjusted EBITDA of €61 million Shipments (kt) 261 261 — % > Higher packaging shipments Revenue (€m) 993 954 4 % > Lower automotive and specialty shipments 61 67 (9)% > Unfavorable metal costs given tighter scrap
Slide 8: Aerospace & Transportation
Aerospace & Transportation Q3 Q3 Q3 2024 Performance 2024 2023 % â–³ Segment Adjusted EBITDA of €47 million Shipments (kt) 48 53 (9)% > Stable aerospace shipments Revenue (€m) 383 404 (5)% > Lower TID shipments 47 79 (41)% > Unfavorable price and mix Segment Adj. EBITDA (€m) > Unfavorable impact of
Slide 9: Automotive Structures & Industry
Automotive Structures & Industry Q3 Q3 Q3 2024 Performance 2024 2023 % â–³ Segment Adjusted EBITDA of €10 million Shipments (kt) 42 55 (24)% > Lower automotive and industry shipments (Q3 2023 Revenue (€m) 293 370 (21)% includes CED business which was sold in Q3 2023) > Unfavorable price and mix Segm
Slide 10: Free Cash Flow
Free Cash Flow YTD YTD YTD 2024 Free Cash Flow Highlights in € millions 2024 2023 Net cash flows from operating activities 292 321 > Free Cash Flow of €57 million; lower compared to YTD 2023 as a result of: Purchases of property, plant and – YTD 2024 includes €6 million impact at Valais as (235) (20
Slide 11: Net Debt and Liquidity
Net Debt and Liquidity Net Debt and Leverage Debt / Liquidity Highlights in € millions > Leverage of 2.8x at quarter-end > Target leverage range of 1.5x to 2.5x; currently expect to be back in the range in 2025 > In August 2024, successfully refinanced U.S. Dollar and Euro denominated Senior Notes D
Slide 12: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 13: End Market Updates
End Market Updates Packaging Automotive 38% 30% > Canstock inventory adjustments behind us in both North > Production of light vehicles remains well below pre-America and Europe COVID levels in Europe > Demand remains healthy in both North America and > Demand starting to soften in North America; de
Slide 14: Update on Impact of Flooding in the Valais
Update on Impact of Flooding in the Valais > In late June 2024, Constellium’s plate and extrusion shops in Sierre, as well as the casthouse in Chippis, were severely flooded Financial Impact at Valais – Operations were suspended; cleaning efforts are well underway as a Result of the Flood with safet
Slide 15: Key Messages and Guidance
Key Messages and Guidance Challenging environment in Q3 and Q4 2024 Targets > Further weakening across most end markets in EU; starting to see weakness in certain end markets in NA > Results impacted by the significant flooding event in Switzerland in late June, though significant 2024 Adjusted EBIT
Slide 16: Appendix
YN Appendix » a ——————————
Slide 17: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months ended Nine months ended September 30, 2024 September 30, (in millions of Euros) 2024 2023 2024 2023 Net income 3 64 91 118 Income tax expense 5 18 37 35 Income before tax 8 82 128 153 Finance costs—net 36 36 101 106 Income from operations
Slide 18: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Nine months ended Three months ended September 30, September 30, (in millions of Euros) 2024 2023 2024 2023 Net cash flows from operating activities 86 154 292 321 Purchases of property, plant and equipment, net of grants received (96) (76) (235) (209) Free Cash Flow (1
Slide 19: Net Debt Reconciliation
Net Debt Reconciliation (in millions of Euros) September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 Borrowings 1,828 1,895 1,883 1,868 1,909 Fair value of net debt derivatives, 2 — 1 (2) —net of margin calls Cash and cash equivalents (152) (213) (180) (202) (159) Net
Slide 20: Reconciliation of LTM Segment Adjusted EBITDA to Net Income
Reconciliation of LTM Segment Adjusted EBITDA to Net Income Twelve months ended (in millions of Euros) September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 P&ARP 250 256 271 283 272 A&T 286 318 331 324 304 AS&I 100 116 123 133 139 H&C (29) (29) (28) (27) (25) Segment
Slide 21: Borrowings Table
Borrowings Table At September 30, At December 31, 2024 2023 (in Nominal Nominal Nominal (Arrangement Accrued Carrying Carrying millions Value in Value in Rate fees) Interests Value Value of Euros) Currency Euros Senior Unsecured Notes Issued November 2017 and due 2026 $ 250 5.875 % — — — — 230 Issue