Constellium Se · NYSE:CSTM
Constellium — FY2018 Earnings Presentation
22 slides from Constellium's earnings presentation, Feb 21, 2019
Slide 1: Fourth Quarter and Full Year 2018 Earnings Call
Fourth Quarter and Full Year 2018 Earnings Call February 21, 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: FY 2018 Highlights
FY 2018 Highlights Total Shipments of 1.5 million tons up 3% compared to 2017 Successfully executing on our automotive strategy with shipments up 16% YoY Revenue increased 9% YoY to €5.7 billion on higher shipments, higher metal prices and improved price and mix Net income of €190 million compared t
Slide 6: Q4 2018 Highlights
Q4 2018 Highlights Total Shipments of 370 thousand tons up 6% compared to Q4 2017 Revenue increased 12% YoY to €1.4 billion on higher shipments and improved price and mix Net loss of €57 million compared to net loss of €80 million in Q4 2017 Adjusted EBITDA of €104 million increased 1% YoY Project 2
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges FY 2018 vs. FY 2017, Q4 2018 vs. Q4 2017
Adjusted EBITDA Bridges FY 2018 vs. FY 2017 Q4 2018 vs. Q4 2017 € millions +1% +11% € millions – Q4 2017 Q4 2018
Slide 9: Packaging and Automotive Rolled Products Q4 2018 Highlights
Q4 2018 Highlights Adjusted EBITDA of €55 million Automotive shipments up 13% YoY and packaging shipments up 6% YoY FT3 ramp up in Neuf-Brisach on track Bowling Green integration proceeding; operational performance improving Packaging and Automotive Rolled Products Q4 Adjusted EBITDA Bridge € in mil
Slide 10: Aerospace and Transportation Q4 2018 Highlights
Q4 2018 Highlights Adjusted EBITDA of €38 million Solid operational performance with higher Aerospace and TID shipments Higher costs, largely labor related TID shipment performance gradually improving after manufacturing challenges Aerospace and Transportation Q4 Adjusted EBITDA Bridge € in millions
Slide 11: Automotive Structures and Industry Q4 2018 Highlights
Q4 2018 Highlights Automotive Structures and Industry Adjusted EBITDA of €21 million Continue to experience higher costs related to maintenance, new product launches and footprint expansion Slightly higher Industry shipments Nominations of €1.3 billion in 2018 Q4 2018 Q4 2017 Var. Shipments (kt) 57
Slide 12: Project 2019 Three Pillars
Project 2019 Three Pillars Cost Reduction €43 million of annual run-rate cost savings achieved as of December 31, 2018 Target of €75 million of annual run-rate cost savings by December 31, 2019 Working Capital Improvement Committed to improvement of working capital turns Expect working capital inves
Slide 13: Net Debt and Liquidity
Net Debt and Liquidity € in millions Net Debt and Leverage Maturity Profile Liquidity Debt / Liquidity Highlights Remain committed to deleveraging Leverage expected to increase temporarily; Net debt to increase from the application of IFRS 16 (~€100-125M) and the Bowling Green acquisition (~€160M) i
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: Market SAAR expected to fall slightly in 2019 Europe: Market expected to grow slightly YoY in 2019 Demand for luxury cars, light trucks, and SUVs remains strong Penetration to drive increased demand for rolled and extruded aluminium products Aerospace: S
Slide 16: Financial Guidance and Outlook
Financial Guidance and Outlook Based on our current outlook for 2019, we expect: Adjusted EBITDA growth of 8% to 10% Free Cash Flow in excess of €50 million Targets for 2022: Adjusted EBITDA of over €700 million Net Debt / Adjusted EBITDA of 2.5x Focused on delivering on our strategy and increasing
Slide 17: Q&A
Q&A @ constettium Fourth Quarter 2018 - Earnings Call 17
Slide 18: Appendix
Appendix @ constellium Fourth Quarter 2018 = Eamings Cal 18
Slide 19: Net Debt Reconciliation
Net Debt Reconciliation December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 Borrowings 2,151 2,103 2,184 2,093 2,127 Fair value of cross currency basis swaps, net of margin calls 9 25 20 46 32 Cash and cash equivalents (164) (279) (166) (211) (269) Cash pledged for is
Slide 20: Reconciliation of Net Income to Adjusted EBITDA (Three Months)
Reconciliation of Net Income to Adjusted EBITDA € millions Three months ended December 31, 2018 Three months ended December 31, 2017 Net loss (57) (80) Income tax expense 2 24 Loss before income tax (55) (56) Finance costs – net 32 120 Share of loss of joint-ventures 10 8 Income / (loss) from operat
Slide 21: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended December 31, 2018 Twelve months ended September 30, 2018 Twelve months ended June 30, 2018 Twelve months ended March 31, 2018 Twelve months ended December 31, 2017 Net income / (loss) 190 168 (28) (68) (31) Income tax exp
Slide 22: Borrowings Table
Borrowings Table € millions December 31, 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) — Floating 4.51% — — — — 65 Secured Inventory Based Facility (