Constellium Se · NYSE:CSTM
Constellium — BNP Paribas High-Yield and Leveraged Finance Conference 2015
44 slides from Constellium's conference presentation, Jan 15, 2015
Slide 1: BNP Paribas High-Yield and Leveraged Finance Conference
Exhibit 99.1 BNP Paribas High-Yield and Leveraged Finance Conference London, January 2015
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: Introduction
y & Introduction a Constellium
Slide 4: Constellium at a Glance
Constellium at a Glance 9,750 employees * €4.4 billion in sales ** 24 manufacturing sites World-class R&D centre in Voreppe, France Headquartered in Amsterdam, The Netherlands. Listed on the New York Stock Exchange. * Includes approximately 1,300 Wise employees ** Unaudited pro forma information for
Slide 5: From Pechiney, Alusuisse, and Alcan to Constellium
From Pechiney, Alusuisse, and Alcan to Constellium More than a century of growth January 2011 1855 Rio Tinto sells 51% Pechiney of Alcan Engineered Products to Apollo, 10% to FSI and keeps the 2000 remaining 39% stake Alcan Aluminium Limited merges with Algroup/ May 2013 Constellium listed on the Ne
Slide 6: From Private Equity to NYSE
From Private Equity to NYSE Shares of Constellium (in millions) Rio Tinto Free float Apollo Bpifrance Management (1) From time to time, including upon departure from Constellium, participants in Management may withdraw their shares from Management and hold them for their own account. 5
Slide 7: Constellium's Shareholding Structure
Constellium’s Shareholding Structure Public shareholders (84.4%) 12.2% (12.2%) Constellium’s shares 3.4% commenced trading on the French government New York Stock Exchange sovereign fund and NYSE Euronext Paris in May 2013 84.4% Management (3.4%) Legacy management equity plan for Constellium senior
Slide 8: Video
[LINK TO VIDEO] ¢ Constellium
Slide 9: Business Overview
y 2) Business Overview a Constellium
Slide 10: Expanded Constellium at a Glance
Expanded Constellium at a Glance Aerospace Automotive Packaging Market growth forecast : 8% (1) Market growth forecast Market growth forecast(3): 3% continues to increase Aluminum crash management systems: #2 world-wide Can body stock: #1 Europe Aerospace plates: #1 world-wide Major player in auto b
Slide 11: Constellium's Product Focus
Constellium’s Product Focus Global aluminum fabrication market by production technology and product segment Global aluminum Rolled & extruded Product segment ® Our Proprietary Focus Aerospace alloys Aero plates & sheets Our Bright, closures, focus other specialty Auto body sheet & automotive structu
Slide 12: Highlights
Highlights Leading positions in attractive and balanced Leading supplier of high value-add aluminum rolled and extruded products in key end-markets and geographies end-markets Advanced R&D and World-class R&D capabilities enable Constellium to continue to grow the Company’s portfolio of high value-a
Slide 13: What We Do in Aerospace
What We Do in Aerospace Plate, wing skin and sheet Floor beams Wing spars Lower wing skin panels Upper wing skin panels Fuselage frames Stringers, tubes and small extrusions Fuselage panels Fuselage stiffeners Lower stringers Landing gear Forging stock and precision castings Center wing box Upper Wi
Slide 14: Our Competitive Position in Aerospace
Our Competitive Position in Aerospace Global leader with unique capabilities Creating value-added products Global capability One of only two players with dual continent ® footprint Density gain only Composite design With redesign World’s most powerful stretcher capable of producing w/o redesign (tod
Slide 15: What We Do in Automotive
What We Do in Automotive Auto body sheet Auto structures Doors, hoods, deck lids, fenders, trunk closure (hang-on-parts) Crash management parts, bumpers, Aluminum sheet reinforcement parts, beams, car floors Biggest volume potential for aluminum Aluminum extrusions, castings or sheet We supply high
Slide 16: Our Competitive Position in Premium Automotive
Our Competitive Position in Premium Automotive We supply auto body sheet mainly to premium Growth in premium automotive German OEMs(1) Vehicle production (units) CAGR ’13-’20 + 5% A6/A7/A8/ 2,428 Other Q3/TT EU 1,733 2,469 + 5% 1,744 1,615 2,241 + 5% 2013 2020 Series 5/6 A/B/C/E/S/SL/CL(S) Audi Merc
Slide 17: Well-Positioned to Capture BiW Growth Opportunities
We were Well-Positioned to Capture BiW Growth Opportunities … Global aluminum BiW market forecast (kt) Constellium well-positioned to capitalize CAGR ’12-‘20 China (+39%) US (+38%) Europe (+13%) We are joining forces with UACJ to supply auto body sheet to the North American auto industry with initia
Slide 18: Wise Strengthens Ability to Take Advantage of BiW Market
… and Wise Strengthens Constellium’s Ability to Take Advantage of the BiW Market Development in North America Under CAFE standards, light vehicles sold in the United States will have to increase fuel efficiency by ~50% by 2025 As a result, automotive OEMs are expected to shift more components from s
Slide 19: Wise Further Enhances Our Competitive Position in Packaging
Wise Further Enhances Our Competitive Position in Packaging Resulting in increased aluminum can stock Increased use of aluminumin Europe, and with room to go consumption(1) % breakdown of cans sold Can stock consumption (ktons) CAGR 2013-2018E +3.3% 984 836 +5.4% 22% 260 42% 199 +2.6% 78% 724 58% 63
Slide 20: Advanced R&D and Technological Capabilities Provide Leverage with Customers
Advanced R&D and Technological Capabilities Provide Leverage with Customers World-leading R&D capabilities Close partnership with our customers Innovation Partner(s) Description Long-term partnerships with European universities World class R&D facility in Voreppe, France Major Low density alloy suit
Slide 21: Long Standing Relationships with a Global, Blue Chip Customer Base
Long Standing Relationships with a Global, Blue Chip Customer Base Diverse customer base with 10 largest customers representing approximately 45% of 2013 revenues with average length of relationships with Constellium’s top 20 customers exceeding 25 years All of Constellium’s major packaging, aerospa
Slide 22: Stable Business Model with Limited Commodity Price and FX Exposure
Stable Business Model with Limited Commodity Price and Foreign Exchange Exposure Strong visibility into future volumes and managed exposure We have long-term contracts with customers in our three core end-markets: Aerospace: We enter into 5 year contracts with our largest aerospace customers Automot
Slide 23: Financial Overview
y © Financial Overview * Constellium
Slide 24: Financial Policy
Financial Policy Despite temporary releveraging linked to capital needed for growth investment projects, Leverage Constellium remains committed to returning leverage metrics to more moderate levels following cash flow payback on these investments and other opportunistic options Constellium has stron
Slide 25: Our Business Model Remains Unchanged
Our Business Model Remains Unchanged Impact of Wise We are a value-added leader in converting aluminum into highly profitable products Focused on selected high-end products and high-growth markets Secure our business with long-term contracts Profitability We seek to maximize return on invested capit
Slide 26: Side-by-Side Financials
Side-by-Side Financials Constellium (IFRS) Wise (U.S. GAAP) Volumes (ktons) Volumes (ktons) Constellium Adjusted EBITDA (€m) Wise Adjusted EBITDA ($m) Adj. EBITDA / ton (€/t): € 216 € 273 € 270 Adj. EBITDA / ton ($/t): $223 $241 $261 Note: Constellium and Wise financials based on IFRS and U.S. GAAP
Slide 27: Pro Forma Financial Statistics
Pro Forma Financial Statistics Pro forma volumes (ktons) Pro forma adjusted EBITDA (€m) 1,411 € 352 386 1,116 € 72 € 286 302 € 62 1,025 € 280 814 € 224 2013 9 months ending 9/30/2014 2013 9 months ending 9/30/2014 Constellium Wise Constellium Wise Pro forma leverage (Debt / Adjusted EBITDA) Pro form
Slide 28: Summary of Constellium Q3 2014 Performance
Summary of Constellium Q3 2014 Performance Commentary A&T segment performance and outlook Continued strong performance in P&ARP and AS&I Outlook / mix EBITDA negatively impacted by €6 million compared to Q3 Solid demand in aerospace market with majority of business 2014 due to higher metal premiums
Slide 29: We Continue to Work with our Proven Track Record
We Continue to Work with our Proven Track Record Leading positions Advanced R&D in attractive and and technological balanced capabilities end-markets Experienced Global network of management team efficient facilities Long-standing Attractive pipeline relationships with of growth a diversified and in
Slide 30: Appendix
y Appendix ® Constellium
Slide 31: Constellium Organizational Chart
Constellium Organizational Chart 30
Slide 32: Q3 2014 Update
y @ 03 2014 update a Constellium
Slide 33: Q3 2014 Highlights
Q3 2014 Highlights (% change Q3 2014 vs Q3 2013) Adjusted EBITDA of €72 million, up 13% Shipments of 266k metric tons, up 4% Revenues: €927 million, up 8% (on a like-for-like* basis up 3%) Continued strong performance in P&ARP and AS&I A&T results below expectations due to operational challenges and
Slide 34: Consistent Year over Year Improvement
Consistent Year over Year Improvement Adjusted EBITDA (€m) +22% +3% +64% +40% +26% Adjusted EBITDA / metric ton (€/t) +24% +4% +61% +40% +26% Strong performance and consistent improvement in every quarter Source: Company earnings reports 33
Slide 35: Q3 2014 Segment Performance
Q3 2014 Segment Performance Adjusted EBITDA (€m) Adjusted EBITDA per ton 34
Slide 36: Strong Cash Flow From Operating Activities Partially Offset by Higher Capex
Strong Cash Flow From Operating Activities Partially Offset by Higher Capital Expenditures Nine months Nine months € millions ended ended Sept 30, 2014 Sept 30, 2013 Cash flow from operating activities 122 79 Margin calls included in cash flow from operating activities (11) (4) Cash flow from operat
Slide 37: Improving Trade Working Capital Despite Higher LME and Premiums
Improving Trade Working Capital Despite Higher LME and Premiums 36
Slide 38: Strong Balance Sheet with Enhanced Liquidity
Strong Balance Sheet with Enhanced Liquidity € millions September 30, 2014 Total Debt (*) 634 Cash and Cash Equivalents 426 Net Debt 208 Net Debt / LTM Adjusted EBITDA 0.7x Liquidity (**) 746 (*) Including fair value of cross currency interest swap and cash pledged for issuance of guarantees (**) Li
Slide 39: Non-GAAP Measures Reconciliations
Non-GAAP Measures Reconciliations
Slide 40: Adjusted EBITDA Reconciliation Q4 2013
Adjusted EBITDA Reconciliation Q4 2013 Year ended Year ended € in millions December 31, 2012 December 31, 2013 Net income from continuing operations €149 €96 Income tax expense 46 39 Income before income tax €195 €135 Finance costs - net 60 50 Other expenses/share of results of joint-ventures 8 24 I
Slide 41: IFRS – Statement of Financial Position
IFRS – Statement of Financial Position € millions September 30, 2014 December 31, 2013 Non-current assets 846 674 Current assets 1,425 1,069 Assets held for sale 14 21 Total Assets 2,285 1,764 Equity 43 36 Non-current liabilities 1,312 970 Current liabilities 921 749 Liabilities held for sale 9 9 To
Slide 42: Net Debt Reconciliation
Net Debt Reconciliation € millions September 30, 2014 December 31, 2013 Borrowings 663 348 Fair value of cross currency interest rate swap (20) 26 Cash and cash equivalents (426) (233) Cash pledged for issuance of guarantees (9) (9) Net Debt 208 132 41
Slide 43: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Three months Three months € millions ended Sept 30, 2014 ended Sept 30, 2013 Cash flow from operating activities 76 80 Margin calls included in cash flow from - (2) operating activities Cash flow from operating activities 76 78 excluding margin calls Capital ex
Slide 44: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation € millions Q3 2014 Q3 2013 Net income 12 45 Income tax expense 12 21 Net Income from discontinued operations - (4) Income before income tax 24 62 Finance costs - net 10 10 Share of results of joint-ventures - (3) Income from operations 34 69 Depreciation and impairment
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