Slide 1: Third Quarter 2022 Earnings Call
Third Quarter 2022 Earnings Call October 26, 2022 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 VAR, 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
Slide 4: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 5: Q3 2022 Highlights
Ø Safety: YTD recordable case rate(1) of 1.8 Ø Shipments: 387kt (-2% YoY) Ø Revenue: €2.0 billion (+27% YoY) Ø Value-Added Revenue (VAR): €673 million (+21% YoY) Ø Net income: €131 million(2) Ø Record Q3 Adj. EBITDA: €160 million (+12% YoY) Ø Record Q3 Adj. EBITDA in A&T and AS&I Ø Cash from Operati
Slide 6: Navigating a Challenging Environment in Europe
Navigating a Challenging Environment in Europe European energy market in disarray Ukraine war, Russian gas cut – risk on availability remains Gas and electricity prices significantly above historic levels Knock-on effects in other markets: Smelter shutdowns impact aluminium and alloy availability Ge
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: VAR Bridge Q3 2022 vs. Q3 2021
VAR Bridge Q3 2022 vs. Q3 2021 € millions +21%
Slide 9: Q3 2022 Performance: Packaging & Automotive Rolled Products
Q3 2022 Performance Packaging & Automotive Rolled Products Q3 2022 Q3 2021 Var. Shipments (kt) 267 281 (5)% Revenue (€m) 1,140 988 15% Adj. EBITDA (€m) 78 94 (17)% Adj. EBITDA (€ / t) 291 335 (13)% Q3 Adjusted EBITDA Bridge € in millions Ø Adjusted EBITDA of €78 million Ø Higher automotive shipments
Slide 10: Q3 2022 Performance: Aerospace & Transportation
Q3 2022 Performance Aerospace & Transportation Q3 2022 Q3 2021 Var. Shipments (kt) 55 52 6% Revenue (€m) 432 289 50% Adj. EBITDA (€m) 45 20 136% Adj. EBITDA (€ / t) 807 362 123% Ø Adjusted EBITDA of €45 million Ø Higher aerospace shipments; lower TID shipments Ø Improved price and mix Ø Higher opera
Slide 11: Q3 2022 Performance: Automotive Structures & Industry
Q3 2022 Performance Automotive Structures & Industry Q3 2022 Q3 2021 Var. Shipments (kt) 65 62 4% Revenue (€m) 473 326 45% Adj. EBITDA (€m) 35 32 7% Adj. EBITDA (€ / t) 544 528 3% Ø Adjusted EBITDA of €35 million Ø Higher automotive shipments Ø Improved price and mix Ø Higher operating costs mainly
Slide 12: Addressing Inflationary Pressures
Significant inflationary pressures in Q3 Metal supply remains tight Higher costs for alloying elements like magnesium and lithium Labor and other non-metal costs higher, particularly European energy A number of tools working to offset inflation: Solid cost control by businesses; Vision '25 initiativ
Slide 13: Consistent Free Cash Flow Generation
YTD 2022 YTD 2021 Net cash flows from operating activities 323 239 Purchases of property, plant and equipment, net of grants (163) (118) Free Cash Flow 160 121 € in millions YTD Free Cash Flow Highlights Consistent Free Cash Flow Generation Ø Free Cash Flow of €160 million YTD 2022, with strong perf
Slide 14: Net Debt and Liquidity
Ø Leverage at 3.0x, a multi-year low Ø Despite ~€160 million FX impact on debt Ø Expect leverage to continue to decline Ø No near-term bond maturities Ø Strong liquidity position Committed to deleveraging with year end leverage expected to be at or below 3.0x € in millions Net Debt and Leverage Matu
Slide 15: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 16: Market Commentary
Market Commentary Packaging Strong market in North America and Europe; some short term inventory adjustments in North America; supply remains tight Focus on sustainability driving increased demand for aluminium cans Mid-single digit annual demand growth supported by can-maker capacity additions in b
Slide 17: Key Messages and Guidance
Targets Strong performance in 3Q 2022 Record Q3 Adjusted EBITDA despite significant inflationary pressures Free Cash Flow of €74 million in Q3; YTD €160 million Low end of our guidance points to a strong 2022 performance Demonstrated pricing power helping to mitigate inflationary pressures; strong f
Slide 18: Appendix
Appendix @ constellium “Third Quarter 2022 Earrings Cal 18
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months ended September 30, Nine months ended September 30, (in millions of Euros) 2022 2021 2022 2021 Net income 131 99 278 255 Income tax (benefit) / expense (137) 20 (102) 53 (Loss) / income before tax (6) 119 176 308 Finance costs - net 36 34
Slide 20: VAR Reconciliation
Three months ended September 30, Nine months ended September 30, (in millions of Euros) 2022 2021 2022 2021 Revenue 2,022 1,587 6,276 4,446 Hedged cost of alloyed metal (1,414) (966) (4,191) (2,617) Revenue from incidental activities (5) (4) (16) (15) Metal time lag 70 (59) (40) (144) VAR 673 558 2,
Slide 21: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (in millions of Euros) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Net cash flows from operating activities 154 91 323 239 Purchases of property, plant and equipment (80) (54) (164) (128) Property, plant and equipment grants rece
Slide 22: Net Debt Reconciliation
(in millions of Euros) September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Borrowings 2,169 2,158 2,138 2,129 2,282 Fair value of net debt derivatives, net of margin calls (1) (5) (1) (1) 5 Cash and cash equivalents (171) (156) (160) (147) (323) Net Debt 1,997 1,997
Slide 23: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA Twelve months ended (in millions of Euros) September 30, 2022 June 30, 2022 March 31, 2022 December 31, 2021 September 30, 2021 Net income 285 253 393 262 281 Income tax (benefit) / expense (100) 57 83 55 48 Income before tax 185 310 476 317 329 Financ
Slide 24: Borrowings Table
Borrowings Table At September 30, At December 31, 2022 2021 (in millions of Euros) Nominal Value in Currency Nominal Rate Nominal Value in Euros (Arrangement fees) Accrued Interests Carrying Value Carrying Value Secured Pan-U.S. ABL(due 2026) $85 Floating 87 — 2 89 — Secured PGE French Facility (rep