Constellium Se · NYSE:CSTM
Constellium — Q2 2021 Earnings Presentation
25 slides from Constellium's earnings presentation, Jul 28, 2021
Slide 1: Second Quarter 2021 Earnings Call
Second Quarter 2021 Earnings Call July 28, 2021 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: Q2 2021 Highlights; increasing 2021 guidance
Strong results; increasing 2021 Adjusted EBITDA guidance to €545-560 million and FCF guidance to >€125 million Q2 2021 Highlights Ø Shipments: 406kt (+31% YoY) Ø Revenue increased 47% YoY to €1.5 billion Ø Net income: €108 million Ø Record Adj. EBITDA of €170 million (+110% YoY; +2% vs. 2019) Ø Reco
Slide 6: H1 2021 Highlights — ESG
H1 2021 Highlights — ESG Recordable Case Rate* * Measures the number of fatalities, serious injuries, lost-time injuries, restricted work injuries, or medical treatments per one million hours worked. Safety remains our top priority Ø Prioritized the safety of our employees Ø Recordable Case Rate* si
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges H1 2021 vs. H1 2020 Q2 2021 vs. Q2 2020 € millions +27% € millions +110%
Slide 9: Q2 2021 Performance: Packaging and Automotive Rolled Products
Q2 2021 Performance Ø Adjusted EBITDA of €94 million Ø Higher packaging, automotive, and specialty shipments Ø Improved price and mix Ø Higher costs due to increased activity, notably maintenance, freight, and labor Ø Unfavorable FX translation Packaging and Automotive Rolled Products Q2 2021 Q2 202
Slide 10: Q2 2021 Performance: Aerospace and Transportation
Q2 2021 Performance Aerospace and Transportation Q2 2021 Q2 2020 Var. Shipments (kt) 53 45 16% Revenue (€m) 287 250 15% Adj. EBITDA (€m) 42 31 34% Adj. EBITDA (€ / t) 794 691 15% Ø Adjusted EBITDA of €42 million Ø Higher TID shipments, partially offset by lower aerospace shipments Ø Weaker price and
Slide 11: Q2 2021 Performance: Automotive Structures and Industry
Q2 2021 Performance Automotive Structures and Industry Q2 Adjusted EBITDA Bridge € in millions Q2 2021 Q2 2020 Var. Shipments (kt) 69 44 56% Revenue (€m) 345 222 55% Adj. EBITDA (€m) 41 (1) n.m. Adj. EBITDA (€ / t) 587 (31) n.m. Ø Adjusted EBITDA of €41 million Ø Higher automotive and industry shipm
Slide 12: Q2 2021 Adjusted EBITDA Bridges (vs. 2019)
Q2 2021 Adjusted EBITDA Bridges (vs. 2019) € in millions € in millions Adjusted EBITDA by Segment Strong cost performance with substantial earnings leverage to an aerospace recovery Adjusted EBITDA by Driver
Slide 13: Cost Control Remains a High Priority
Cost increases trailing revenue recovery Q2 2021 Adj. EBITDA more than doubled YoY on a 31% increase in shipments and a 47% increase in revenue Each segment is contributing P&ARP — solid recovery and fixed cost performance with favorable metal costs A&T — improved metal result and strong fixed cost
Slide 14: Free Cash Flow
H1 2021 H1 2020 Net cash flows from operating activities 148 152 Purchases of property, plant and equipment, net of grants (67) (98) Other investing activities — — Free Cash Flow 81 54 Free Cash Flow Ø Free Cash Flow: >€125 million Ø Capex: ~€225 million Ø Cash interest: ~€125-130 million Ø Cash tax
Slide 15: Committed to deleveraging
Committed to deleveraging with year end leverage expected to be at or below 3.5x Ø Leverage of 3.7x down nearly a full turn from the peak Ø No near term bond maturities Ø Successful H1 2021 refinancings Ø Expected to reduce annualized cash interest by ~€30 million Ø >€150 million deployed to gross d
Slide 16: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 17: Secular Growth Trends Create Opportunity Across Our Portfolio
Secular Growth Trends Create Opportunity Across Our Portfolio Circular economy — aluminum is infinitely recyclable and inherently sustainable Aluminum cans — the preferred beverage container Lightweighting in transportation Electrification of the automotive fleet A Balanced Portfolio Delivering on t
Slide 18: End Market Updates
End Market Updates Market Commentary Near-term Outlook Packaging Strong market in North America and in Europe Focus on sustainability driving increased demand for aluminium cans Mid-single digit annual demand growth supported by can-making capacity additions in both North America and Europe Automoti
Slide 19: Key Messages and Guidance
Strong performance in Q2 2021 Adjusted EBITDA surpassed 2019 levels with a much lower contribution from aerospace Continued Free Cash Flow generation and gross debt paydown Significant deleveraging Delivering in 2021 Solid operational performance, strong cost control, and consistent Free Cash Flow g
Slide 20: Appendix
Appendix @ constellium ‘Second Quater 2021 -Eamings Cal 20
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months ended June 30, Six months ended June 30, (in millions of Euros) 2021 2020 2021 2020 Net income / (loss) 108 (32) 156 (63) Income tax expense / (benefit) 22 (11) 33 (19) Income / (loss) before tax 130 (43) 189 (82) Finance costs - net 37 42
Slide 22: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (in millions of Euros) Three months ended June 30, Six months ended June 30, 2021 2020 2021 2020 Net cash flows from operating activities 73 8 148 152 Purchases of property, plant and equipment (42) (43) (74) (100) Property, plant and equipment grants received 4 2 7 2 F
Slide 23: Net Debt Reconciliation
(in millions of Euros) June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 Borrowings 2,257 2,325 2,391 2,456 2,536 Fair value of net debt derivatives, net of margin calls 9 25 42 26 5 Cash and cash equivalents (290) (342) (439) (432) (378) Net Debt 1,976 2,008 1,994 2,05
Slide 24: Reconciliation of Net Income to Adjusted EBITDA (Twelve months)
Reconciliation of Net Income to Adjusted EBITDA Twelve months ended (in millions of Euros) June 30, 2021 March 31, 2021 December 31, 2020 September 30, 2020 June 30, 2020 Net income / (loss) 202 62 (17) (21) (40) Income tax expense / (benefit) 35 2 (17) (22) (25) Income / (loss) before tax 237 64 (3
Slide 25: Borrowings Table
Borrowings Table At June 30, At December 31, 2021 2020 (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) $ — Floating — — — — — Secured U.S. DDTL (expired in 2021) $