Constellium Se · NYSE:CSTM
Constellium — Q1 2018 Earnings Presentation
25 slides from Constellium's earnings presentation, Apr 26, 2018
Slide 1: First Quarter 2018 Earnings Call
First Quarter 2018 Earnings Call April 26, 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: Q1 2018 Highlights
Q1 2018 Highlights Total Shipments up 4% compared to Q1 2017 Automotive shipments increased 24% Revenue increased 4% YoY to €1.4 billion on higher shipments and higher metal prices Net Loss of €24 million compared to net income of €13 million in Q1 2017 Adjusted EBITDA of €117 million increased 26%
Slide 6: Q1 2018 Segment Highlights
A&T Adjusted EBITDA of €34 million Continued progress in developing TID end markets Transportation, Industry and Other rolled product shipments up 15% YoY Q1 2018 Segment Highlights P&ARP Adjusted EBITDA of €51 million Automotive rolled product shipments increased 39% YoY FT3 ramp up in Neuf-Brisach
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Q1 2018 vs. Q1 2017 Adjusted EBITDA Bridges
Q1 2018 vs. Q1 2017 Adjusted EBITDA Bridges € millions +26%
Slide 9: Packaging and Automotive Rolled Products Q1 2018 Performance Highlights
Q1 2018 Performance Highlights Adjusted EBITDA of €51 million Higher automotive shipments Improved price and mix due to higher automotive shipments and favorable metal costs Incremental costs from the ramp up of automotive programs Unfavorable FX translation Packaging and Automotive Rolled Products
Slide 10: Aerospace and Transportation Q1 2018 Performance Highlights
Q1 2018 Performance Highlights Adjusted EBITDA of €34 million Higher Transportation, Defense and Other shipments, partially offset by lower Aerospace shipments Improved price and mix Solid operating cost performance Unfavorable FX translation Aerospace and Transportation Adjusted EBITDA Bridge € in
Slide 11: Automotive Structures and Industry Q1 2018 Performance Highlights
Q1 2018 Performance Highlights Automotive Structures and Industry Adjusted EBITDA Bridge € in millions Adjusted EBITDA of €36 million Higher shipments of both Automotive and Other extruded products on strong market demand Improved price and mix Solid cost performance Q1 2018 Q1 2017 Var. Shipments (
Slide 12: Project 2019 Three Pillars
Project 2019 Three Pillars Cost Reduction €25 million of annual run rate cost savings achieved as of March 31, 2018 Wide range of additional cost reduction initiatives underway Working Capital Improvement Committed to further improvement of working capital turns Expect working capital investments re
Slide 13: Net Debt and Liquidity
Net Debt and Liquidity € in millions Net Debt and Leverage Maturity Profile Liquidity Debt / Liquidity Highlights Deleveraging continues Q1 2018 leverage of 4.2x down from 5.5x YoY No bond maturities until 2021 Ample liquidity of over €500 million Reduced leverage, ample liquidity and no bond maturi
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 weaker YoY in Q1 Europe: Market grew slightly in Q1 Demand for luxury cars, light trucks, and SUVs remains strong Aerospace: Sustained OEM build rates OEM backlogs remain near record highs Packaging: Market remains stable ABS conversions expected to
Slide 16: 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 17: Q&A
Q&A @ constettium First Quarter 2018 -Eamnings Call 17
Slide 18: Appendix
Appendix @ constellium Fist Quarter 2018 -Eamings Cal 18
Slide 19: Shipments by Product Line
Shipments by Product Line (000’s metric tons) Three months ended March 31, 2018 Three months ended March 31, 2017 Packaging rolled products 199 208 Automotive rolled products 48 34 Specialty and other thin-rolled products 12 12 Aerospace rolled products 27 28 Transportation, industry, and other roll
Slide 20: IFRS – Income Statement
IFRS – Income Statement Three months ended March 31, 2018 Three months ended March 31, 2017 Revenue 1,386 1,328 Income from operations 17 100 Finance costs – net (34) (54) Share of loss of joint-ventures (3) (6) (Loss) / Income before income tax (20) 40 Income tax expense (4) (27) Net (loss) / incom
Slide 21: IFRS – Statement of Financial Position
IFRS – Statement of Financial Position At March 31, 2018 At December 31, 2017 Current assets 1,493 1,400 Non-current assets 2,260 2,311 Total Assets 3,753 3,711 Current liabilities 1,212 1,110 Non-current liabilities 2,859 2,920 Equity (318) (319) Total Equity and Liabilities 3,753 3,711 € millions
Slide 22: Net Debt Reconciliation
Net Debt Reconciliation March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017 March 31, 2017 Borrowings 2,093 2,127 2,257 2,326 2,433 Fair value of cross currency basis swaps, net of margin calls 46 32 31 11 (38) Cash and cash equivalents (211) (269) (300) (286) (309) Cash pledged for is
Slide 23: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months ended March 31, 2018 Three months ended March 31, 2017 Net (loss) / income (24) 13 Income tax expense 4 27 (Loss) / Income before income tax (20) 40 Finance costs – net 34 54 Share of loss of joint-ventures 3 6 Income from opera
Slide 24: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended March 31, 2018 Twelve months ended December 31, 2017 Twelve months ended September 30, 2017 Twelve months ended June 30, 2017 Twelve months ended March 31, 2017 Net (loss) / income (68) (31) 29 23 17 Income tax expense 57
Slide 25: Borrowings Table
Borrowings Table € millions March 31, 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) $86 Floating 3.96% 70 — — 70 65 Secured Inventory Based Facility