Constellium Se · NYSE:CSTM
Constellium — Q3 2018 Earnings Presentation
22 slides from Constellium's earnings presentation, Oct 25, 2018
Slide 1: Third Quarter 2018 Earnings Call
Third Quarter 2018 Earnings Call October 25, 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: Q3 2018 Highlights
Q3 2018 Highlights Total Shipments up 1% compared to Q3 2017 Automotive shipments increased 14% Revenue increased 12% YoY to €1.4 billion on higher metal prices and improved price and mix Net income of €217 million compared to net income of €21 million in Q3 2017 Adjusted EBITDA of €114 million incr
Slide 6: Q3 2018 Segment Highlights
A&T Adjusted EBITDA of €29 million Increased Aerospace shipments offset lower TID shipments Continued focus on developing TID end markets despite manufacturing challenges Q3 2018 Segment Highlights P&ARP Adjusted EBITDA of €60 million Automotive rolled product shipments increased 21% YoY FT3 ramp up
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges YTD 2018 vs. YTD 2017 Q3 2018 vs. Q3 2017 € millions +2% +15% € millions
Slide 9: Packaging and Automotive Rolled Products Q3 2018 Performance Highlights
Q3 2018 Performance Highlights Adjusted EBITDA of €60 million Higher automotive shipments partially offset by lower packaging shipments Improved price & mix due to higher automotive shipments Incremental costs from the ramp up of auto programs and increased planned maintenance and reliability spendi
Slide 10: Aerospace and Transportation Q3 2018 Performance Highlights
Q3 2018 Performance Highlights Adjusted EBITDA of €29 million Higher aerospace shipments offset by lower TID shipments Improved price and mix Higher costs, partially related to manufacturing challenges Aerospace and Transportation Adjusted EBITDA Bridge € in millions Q3 2018 Q3 2017 Var. Shipments (
Slide 11: Automotive Structures and Industry Q3 2018 Performance Highlights
Q3 2018 Performance Highlights Automotive Structures and Industry Adjusted EBITDA Bridge € in millions Adjusted EBITDA of €29 million Higher shipments of Automotive and Other extruded products on strong market demand Improved price and mix Higher costs largely related to maintenance, new product lau
Slide 12: Project 2019 Three Pillars
Project 2019 Three Pillars Cost Reduction €38 million of annual run rate cost savings achieved as of September 30, 2018 Wide range of additional cost reduction initiatives underway Working Capital Improvement Committed to improvement of working capital turns Expect working capital investments relate
Slide 13: Net Debt and Liquidity
Net Debt and Liquidity € in millions Net Debt and Leverage Maturity Profile Liquidity Debt / Liquidity Highlights Committed to deleveraging Q3 2018 leverage of 3.8x down from 4.8x YoY No bond maturities until 2021 Ample liquidity of over €700 million Reduced leverage, ample liquidity and no bond mat
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: SAAR expected to decline slightly YoY in 2018 Europe: Market expected to grow slightly YoY in 2018 Demand for luxury cars, light trucks, and SUVs remains strong Uncertainty over global trade and emissions regulation testing Aerospace: Sustained OEM build
Slide 16: Financial Guidance and Outlook
Financial Guidance and Outlook Based on our current outlook, we expect: 11% to 13% Adjusted EBITDA growth in 2018 High single digit Adjusted EBITDA growth in 2019 Adjusted EBITDA of over €500 million in 2019 Targeting positive Free Cash Flow in 2019 Net Debt / Adjusted EBITDA target of below 3.5x Fo
Slide 17: Q&A
Q&A @ constettium Third Quarter 2018 - Eamings Call 17
Slide 18: Appendix
Appendix @ constellium Third Quarter 2018 -Eamings Call 18
Slide 19: Net Debt Reconciliation
Net Debt Reconciliation September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 Borrowings 2,103 2,184 2,093 2,127 2,257 Fair value of cross currency basis swaps, net of margin calls 25 20 46 32 31 Cash and cash equivalents (279) (166) (211) (269) (300) Cash pledged for
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months ended September 30, 2018 Three months ended September 30, 2017 Nine months ended September 30, 2018 Nine months ended September 30, 2017 Net income 217 21 248 49 Income tax expense 1 17 30 56 Income before income tax 218 38 278
Slide 21: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended September 30, 2018 Twelve months ended June 30, 2018 Twelve months ended March 31, 2018 Twelve months ended December 31, 2017 Twelve months ended September 30, 2017 Net income / (loss) 168 (28) (68) (31) 29 Income tax exp
Slide 22: Borrowings Table
Borrowings Table € millions September 30, 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 4.39% — — — — 65 Secured Inventory Based Facility