Constellium Se · NYSE:CSTM
Constellium — Q2 2020 Earnings Presentation
24 slides from Constellium's earnings presentation, Jul 22, 2020
Slide 1: Second Quarter 2020 Earnings Call
Second Quarter 2020 Earnings Call July 22, 2020 Exhibit 99.2
Slide 2: Forward-looking statements
Forward-looking statements Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain “forward-looking statements” with respect to our business, results of ope
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: COVID-19 Update
} Health and safety of our employees is our first priority } Precautions in place } ~0.5% of employees with COVID-19 cases; all have recovered or are recovering } All plants operating well; closely monitoring COVID-19 hot spots } Demand returning in some end markets, but visibility generally remains
Slide 6: Q2 2020 Highlights
} Shipments of 310 thousand tons, down 25% compared to Q2 2019 } Revenue decreased 33% YoY to €1.0 billion } Net loss of €32 million compared to net income of €17 million in Q2 2019 } Adjusted EBITDA of €81 million decreased 51% YoY } Adjusted EBITDA of €228 million in H1 2020, down 24% YoY } Cash f
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges H1 2020 vs. H1 2019, Q2 2020 vs. Q2 2019
Adjusted EBITDA Bridges H1 2020 vs. H1 2019 Q2 2020 vs. Q2 2019 € millions (51)% (24)% € millions
Slide 9: Packaging and Automotive Rolled Products
} Adjusted EBITDA of €58 million } Lower shipments of packaging, automotive and specialty products } Weaker price and mix } Strong cost control Q2 2020 Commentary Packaging and Automotive Rolled Products Adjusted EBITDA Bridge € in millions Q2 2020 Q2 2019 Var. Shipments (kt) 221 284 (23 )% Revenues
Slide 10: Aerospace and Transportation
Aerospace and Transportation Q2 2020 Q2 2019 Var. Shipments (kt) 45 63 (28 )% Revenues (€m) 250 383 (35 )% Adj. EBITDA (€m) 31 64 (51 )% Adj. EBITDA (€ / t) 691 1,018 (32 )% Q2 2020 Commentary } Adjusted EBITDA of €31 million } Lower shipments of aerospace and TID products } Weaker price and mix } S
Slide 11: Automotive Structures and Industry
Q2 2020 Commentary Automotive Structures and Industry Adjusted EBITDA Bridge € in millions } Adjusted EBITDA of €(1) million } Lower shipments of automotive and industry products } Weaker price and mix } Strong cost control Q2 2020 Q2 2019 Var. Shipments (kt) 44 66 (33 )% Revenues (€m) 222 347 (36 )
Slide 12: Cost Performance
Cost Performance Strong cost performance in Q2 *Does not include State Loans (€m) Q2 2020 Q2 2019 Var. Revenues 1,031 1,538 (33 )% Costs (incl. metal) 950 1,371 (31 )% Adj. EBITDA 81 167 (51 )% ~€100 million of cost reductions compared to Q2 2019, excluding metal and depreciation Includes benefits f
Slide 13: Net Debt and Liquidity
Ø Committed to deleveraging Ø FCF generation of €54 million in H1 2020 Ø Liquidity of €949 million Ø Closed German credit facilities in July for €50 million of additional liquidity Ø Refinanced 2021 Senior Notes Ø Cash interest of €150-160 million expected for 2020 Net Debt and Liquidity € in millio
Slide 14: Jean-Marc Germain, Chief Executive Officer
Jean-Marc GermainChief Executive Officer
Slide 15: Sustainability
} Recordable injury rate decreased to 2.40 in 2019 from 3.31 in 2016 } Improved energy efficiency by 6.4%* – the equivalent of 100k mt of CO2 savings } Recycled >560k mt of externally sourced aluminium scrap } Set a target to reduce GHG emissions intensity by 25% in 2025* } Received Aluminium Stewar
Slide 16: End Market Updates
End Market Updates Diversified portfolio of end market exposures Market Highlights % LTMRevenue Packaging } Market strong in North America; stable in Europe } Recession resilient } Focus on sustainability driving increased demand for aluminium cans } Conversion from steel to aluminium continues in E
Slide 17: Q&A
Q&A ¢ Constellium ‘Second Quarter 2020 - Earnings Call 17
Slide 18: Appendix
Appendix ¢ Constellium ‘Second Quarter 2020 - Earnings Call 18
Slide 19: Net Debt Reconciliation
June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 Borrowings 2,536 2,399 2,361 2,370 2,378 Fair value of cross currency basis swaps, net of margin calls 5 1 6 (5 ) 8 Cash and cash equivalents (378 ) (270 ) (184 ) (152 ) (213 ) Cash pledged for issuance of guarantees — —
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months endedJune 30, 2020 Three months endedJune 30, 2019 Six months ended June 30, 2020 Six months ended June 30, 2019 Net (loss) / income (32 ) 17 (63 ) 41 Income tax (benefit) / expense (11 ) 9 (19 ) 24 (Loss) / income before income
Slide 21: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended June 30, 2020 Twelve months ended March 31, 2020 Twelve months ended December 31, 2019 Twelve months ended September 30, 2019 Twelve months ended June 30, 2019 Net (loss) / income (40 ) 8 64 (16 ) 200 Income tax expense (
Slide 22: Borrowings Table
Borrowings Table At June 30, 2020 At June 30, 2020 At December 31, 2019 € millions Nominal Value in Currency Nominal Value in Currency NominalRate Effective Rate Nominal Value in Euros (Arrangement fees) Accrued Interests CarryingValue CarryingValue Secured Pan US ABL (due 2022) $ — Floating 3.43 %
Slide 23: Liquidity
Liquidity € millions Six months ended June 30, 2020 Cash and cash equivalents 378 Factoring Facilities 48 Inventory Based Facility 78 Pan-U.S. ABL 280 Delayed Draw Term loan 148 Other 17 Total Liquidity 949
Slide 24: Cost Flex Reconciliation
Cost Flex Reconciliation CSTM (€m) Q2 2020 Q2 2019 Var. Revenues 1,031 1,538 (507) Costs (incl. metal) 950 1,371 (421) Adj. EBITDA 81 167 (86) ∆ Cost / ∆ Revenue 83% ∆ Adj. EBITDA / ∆ Revenue 17% A&T (€m) Q2 2020 Q2 2019 Var. Revenues 250 383 (133) Costs (incl. metal) 219 319 (100) Adj. EBITDA 31 64