Constellium Se · NYSE:CSTM
Constellium — FY2017 Earnings Presentation
27 slides from Constellium's earnings presentation, Feb 23, 2018
Slide 1: Fourth Quarter and Full Year 2017 Earnings Call
Fourth Quarter and Full Year 2017 Earnings Call February 22, 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: Q4 2017 Highlights
Q4 2017 Highlights Total Shipments up 2% compared to Q4 2016 Automotive shipments increased 35% Revenue increased 8% YoY to €1.2 billion on higher aluminium prices Net Loss of €80 million compared to a net loss of €20 million in Q4 2016 Adjusted EBITDA increased 22% YoY to €100 million Adjusted EBIT
Slide 6: Q4 2017 Segment Highlights
A&T Adjusted EBITDA of €34 million Continued progress in developing Transportation, Industry and Defense end markets Announced multi-year agreement with Bombardier Q4 2017 Segment Highlights P&ARP Adjusted EBITDA of €44 million Automotive rolled product shipments increased 52% YoY FT3 ramp up in Neu
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges
FY 2017 vs. FY 2016 Q4 2017 vs. Q4 2016 Adjusted EBITDA Bridges € millions +22% +14% € millions
Slide 9: Q4 2017 Performance Highlights: Packaging and Automotive Rolled Products
Q4 2017 Performance Highlights Adjusted EBITDA of €44 million Higher Automotive shipments partially offset by lower Packaging shipments Slightly weaker packaging price and mix Good cost performance offset by incremental costs from the ramp up of automotive programs and FX translation Packaging and A
Slide 10: Q4 2017 Performance Highlights: Aerospace and Transportation
Q4 2017 Performance Highlights Adjusted EBITDA of €34 million Lower Aerospace rolled product shipments Continuing benefit from aerospace price and mix effect Solid operating cost performance offset by FX translation Aerospace and Transportation Adjusted EBITDA Bridge € in millions Q4 2017 Q4 2016 Va
Slide 11: Q4 2017 Performance Highlights: Automotive Structures and Industry
Q4 2017 Performance Highlights Automotive Structures and Industry Adjusted EBITDA Bridge € in millions Adjusted EBITDA of €27 million Higher shipments of both Automotive and Other extruded products on strong market demand Slightly weaker price and mix Solid cost performance Q4 2017 Q4 2016 Var. Ship
Slide 12: Project 2019 Three Pillars
Project 2019 Three Pillars Cost Reduction €22 million of annual run rate cost savings achieved as of December 31, 2017 Wide range of additional cost reduction initiatives underway Working Capital Improvement Better working capital performance in 2017 Committed to further working capital improvement
Slide 13: Net Debt and Liquidity
Net Debt and Liquidity € in millions Net Debt and Leverage Liquidity Maturity Profile Debt / Liquidity Highlights Leverage of 4.4x Reduced by 1.0x in 2017 No bond maturities until 2021 2021 bond only ~0.7x LTM Adjusted EBITDA Ample liquidity at over €500 million Reduced leverage, ample liquidity and
Slide 14: Free Cash Flow and 2018 Expectations
Expect to be FCF negative Cash interest: ~€130 million Cash taxes: ~€20-25 million Minimal cash impact from the U.S. Tax Cuts and Jobs Act of 2017 Expect working capital investments related to the ramp up our growth projects Capex: €275 million FX Rate Sensitivity (+0.10 USD/EUR) FCF: minimal Adjust
Slide 15: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 16: End-market Updates
End-market Updates Automotive: North America: Slight decline in auto sales in 2017; Q4 rebound off summer lows Europe: Market grew in 2017; Q4 strong Demand for luxury cars, light trucks, and SUVs remains strong Aerospace: Sustained OEM build rates OEM backlogs remain near record highs Packaging: Ma
Slide 17: Sale of Assets at Sierre
Sale of Assets at Sierre Signed a binding agreement with Novelis to sell the North Building Assets of Sierre plant in Switzerland, which have been leased and operated by Novelis since 2005, and to contribute the plant’s shared infrastructure to a 50-50 joint venture No impact to Constellium’s curren
Slide 18: Financial Guidance and Outlook
Financial Guidance and Outlook High single digit Adjusted EBITDA growth in 2018 High single digit Adjusted EBITDA growth annually through 2020, leading to over €500 million of Adjusted EBITDA in 2020 Targeting positive Free Cash Flow in 2019 Net Debt / Adjusted EBITDA target of below 4.0x Focused on
Slide 19: Q&A
Q&A @ constellium Fourth Quarter and Ful Year 2017 ~Eamings Call 19
Slide 20: Appendix
Appendix @ constellium Fourth Quarter and Ful Year 2017 ~Eamings Call 20
Slide 21: Shipments by Product Line
Shipments by Product Line (000’s metric tons) Three months ended December 31, 2017 Three months ended December 31, 2016 Year ended December 31, 2017 Year ended December 31, 2016 Packaging rolled products 185 198 807 856 Automotive rolled products 44 28 158 113 Specialty and other thin-rolled product
Slide 22: IFRS – Income Statement
IFRS – Income Statement Three months ended December 31, 2017 Three months ended December 31, 2016 Year ended December 31, 2017 Year ended December 31, 2016 Revenue 1,248 1,161 5,237 4,743 Income from operations 68 29 321 246 Finance costs – net (116) (37) (243) (167) Share of loss of joint-ventures
Slide 23: IFRS – Statement of Financial Position
IFRS – Statement of Financial Position At December 31, 2017 At December 31, 2016 Current assets 1,400 1,410 Non-current assets 2,311 2,377 Total Assets 3,711 3,787 Current liabilities 1,110 1,035 Non-current liabilities 2,920 3,322 Equity (319) (570) Total Equity and Liabilities 3,711 3,787 € millio
Slide 24: Net Debt Reconciliation
Net Debt Reconciliation December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 December 31, 2016 Borrowings 2,127 2,257 2,326 2,433 2,468 Fair value of cross currency basis swaps, net of margin calls 32 31 11 (38) (77) Cash and cash equivalents (269) (300) (286) (309) (347) Cash pledged f
Slide 25: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months ended December 31, 2017 Three months ended December 31, 2016 Year ended December 31, 2017 Year ended December 31, 2016 Net loss (80) (20) (31) (4) Income tax expense 24 6 80 69 Income / (loss) before income tax (56) (14) 49 65 F
Slide 26: Reconciliation of Net Income to Adjusted EBITDA (LTM)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended September 30, 2017 Twelve months ended June 30, 2017 Twelve months ended March 31, 2017 Net income 29 23 17 Income tax expense 62 63 77 Income before income tax 91 86 94 Finance costs – net 164 175 180 Share of loss of jo
Slide 27: Borrowings Table
Borrowings Table € millions December 31, 2017 December 31, 2016 Nominal Value in Currency Nominal Rate Effective Rate Nominal Value in Euros (Arrangement fees) Accrued Interests Carrying Value Carrying Value Secured ABL Ravenswood (due 2018) — Floating — — — — — 46 Muscle Shoals (due 2020) — Floatin