Slide 1: First Quarter 2014 Earnings Conference Call
First Quarter 2014 Earnings Conference Call May 16, 2014
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, Adjusted Free Cash Flow and Net Debt. These measures are presented because management uses this information to monitor and evaluate fin
Slide 4: Pierre Vareille, Chief Executive Officer
Pierre Vareille Chief Executive Officer
Slide 5: Q1 2014 Highlights
Q1 2014 Highlights (% changes Q1 2014 vs Q1 2013) Adjusted EBITDA of €71 million Strong automotive business drives 60% growth in Adjusted EBITDA in AS&I and solid performance in P&ARP AS&I achieves record Adjusted EBITDA of €20 million A&T results impacted by 5-day outage in the hotline at Ravenswoo
Slide 6: Q1 Highlights
Q1 Highlights Ratings upgraded one notch by (Moody’s) to ‘Ba3’ and two notches by (Standard &Poor’s) to ‘BB-’ Successfully completed bond offerings of $400 million and €300 million Selected Neuf Brisach, France facility for 100k metric ton body-in-white expansion Signed joint venture agreement with
Slide 7: Aerospace Market: strong long term outlook
Aerospace Market: strong long term outlook Market context High inventory levels in the downstream supply chain, demand stabilizing Most aerospace business under long term contracts; low spot market exposure Constellium recent developments 5-day hotline outage in Ravenswood Impacted by higher LME pre
Slide 8: Automotive Rolled Market: investing in new BiW capacity in Europe and in the U.S.
Automotive Rolled Market: investing in new BiW capacity in Europe and in the U.S. Market context European BiW demand increasing as aluminum goes into new models and more parts per vehicle US BiW demand a true “game changer” Constellium recent developments Q1 2014 BiW volume increased +41% over Q1 20
Slide 9: Automotive Extrusions – strong position in a growing market
Automotive Extrusions – strong position in a growing market Market context Strong long term global demand for more aluminum in automotive structures, crash management systems and chassis due to lightweighting and regulatory requirements Constellium recent developments Q1 2014 Automotive Structures v
Slide 10: Packaging Market: maintained good performance
Packaging Market: maintained good performance Market context European market is 78% aluminum, compared with 100% in U.S., long term conversion opportunities European demand beginning to improve due to good weather Constellium recent developments Packaging volume stable Fully completed revamp of cast
Slide 11: Didier Fontaine, Chief Financial Officer
Didier Fontaine Chief Financial Officer
Slide 12: Q1 Segment Performance
Q1 14 Segment Performance Segment Adjusted EBITDA (€m) A&T 35 (30)% 24 Q1 2013 26 27 Q1 2014 Q1 2013 Q1 2014 Q1 2013 Q1 2014 584 (32)% P&ARP AS&I (1)% 230 366 59% Adjusted EBITDA per ton Shipments (kt) 59 61 + 3 % Shipments (kt) 151 156 + 3 % Shipments (kt) 53 53 + 1 % Adjusted EBITDA per ton and %
Slide 13: Significant improvement in Adjusted Free Cash Flow
Significant improvement in Adjusted Free Cash Flow Three Months ended Three Months ended € millions March 31, 2014 March 31, 2013 Cash flow from operating activities (4) (47) Margin calls included in cash flow from (11)— operating activities Cash flow from operating activities (15) (47) excluding ma
Slide 14: Continued progress in reducing net trade working capital
Continued progress in reducing net trade working capital Q1 2012 43 DSOs +€89m 381 470 Q1 2013 39 DSOs Q1 2014 29 DSOs +€65m +€111 m Q4 2011 Q4 2012 Q4 2013
Slide 15: Strong balance sheet with enhanced liquidity
Strong balance sheet with enhanced liquidity € millions March 31, 2014 Total Debt(*) 360 Cash and Cash Equivalents 179 Net Debt 181 Net Debt / LTM Adjusted EBITDA 0.7x Liquidity(**) 360 Liquidity—Pro forma after new refinancing 720 (*) Including fair value of cross currency interest swap and cash pl
Slide 16: Refinancing strongly improves debt profile
Refinancing strongly improves debt profile Issuance of $400 million and €300 million in private placement bonds and €120 million revolving credit facility (all on an unsecured basis) Terms and conditions significantly improved Ratings upgraded to Ba3 (Moody’s) and BB- (Standard & Poor’s) Enhanced li
Slide 17: Key Takeaways
Key Takeaways Strong performance in automotive business drove Q1 results New BiW projects progressing well in Europe and in the U.S. Signed U.S. joint venture agreement with UACJ, pending regulatory approval AIRWARE® demand stronger than expected, launched investment in new capacity Completed refina
Slide 18: Q & A
Q & A First Quarter 2014 – Earnings Call
Slide 19: IFRS Statements
IFRS Statements First Quarter 2014 – Earnings Call 19
Slide 20: IFRS – Income Statement
IFRS – Income Statement Three Months Three Months € millions ended March 31, ended March 31, 2014 2013 Revenue 883 911 Income from operations 56 29 Other expenses (1)— Finance costs – net (9) (25) Income before income taxes 46 4 Income tax expense (16) (6) Net Income / (loss) 30 (2) First Quarter 20
Slide 21: IFRS – Statement of financial position
IFRS – Statement of financial position € millions March 31, 2014 December 31, 2013 Non-current assets 686 674 Current assets 1,106 1,069 Assets held for sale 21 21 Total Assets 1,813 1,764 Equity 45 36 Non-current liabilities 975 970 Current liabilities 783 749 Liabilities held for sale 10 9 Total L
Slide 22: Non-GAAP Measures Reconciliations
Non-GAAP Measures Reconciliations First Quarter 2014 – Earnings Call 22
Slide 23: Net Debt Reconciliation
Net Debt Reconciliation € millions March 31, 2014 December 31, 2013 Borrowings 348 348 Fair value of cross currency interest swap 21 26 Cash and cash equivalents (179) (233) Cash pledged for issuance of guarantees (9) (9) Net Debt 181 132
Slide 24: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Three Months Three Months € millions ended March 31, ended March 31, 2014 2013 Cash flow from operating activities (4) (47) Margin calls included in cash flow from (11)— operating activities Cash flow from operating activities (15) (47) excluding margin calls C
Slide 25: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation € millions Q1 2014 Q1 2013 Net income / (loss) 30 (2) Income tax expense 16 6 Income before income tax 46 4 Finance costs—net 9 25 Other expenses / share of results of joint-ventures 1 - Income from operations 56 29 Depreciation and impairment 9 4 Unrealized losses/(ga