Constellium Se · NYSE:CSTM
Constellium — Investor Day (October 2015)
62 slides from Constellium's investor day presentation, Oct 1, 2015
Slide 1: Constellium
Constellium OCTOBER 1, 2015 CLE SHOALS | ALAB
Slide 2: Introduction
INTRODUCTION Paul BLALOCK Constellium
Slide 3: Agenda
Agenda 8:05 – 8:35 AM Automotive market perspectives & Constellium’s offering P. BASTEN 8:35 – 8:55 AM Increasing our BiW production capacity (US/Europe) S. LADDYCHUK 8:55 – 9:15 AM Plant presentation W. OBERHOLZER 9:15 – 9:45 AM Q&A
Slide 4: Forward-looking statements
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 opera
Slide 5: Constellium
Constellium OCTOBER 1, 2015 CLE SHOALS | ALAB
Slide 6: Automotive Market Perspectives & Constellium's Offering
AUTOMOTIVE MARKET PERSPECTIVES & CONSTELLIUM’S OFFERING PETER BASTEN
Slide 7: Contents
Contents Automotive market perspectives Market outlook Sheet based solutions Extrusion based solutions BiW market North America Europe Constellium’s offering
Slide 8: Automotive Market Perspectives
AUTOMOTIVE MARKET PERSPECTIVES
Slide 9: Driven by regulation and OEM geographical expansion
Driven by regulation and OEM geographical expansion… Europe, the US, China, Japan are all setting ambitious CO2 emissions targets within legislation Comparison of global CO2 regulations for new passenger cars Same product quality everywhere! Source: Icct, Constellium internal analysis
Slide 10: Aluminium for automotive will grow: Sheet-based solutions
…Aluminium for automotive will grow leveraging on its unique properties: Sheet-based solutions fold Increase in global BiW market expected Global FRP AI-BiW market forecast act. 2012 – 2020 (kt) We believe aluminium has an unrivaled “benefit/cost” position Potential Ease of Material Cost weight savi
Slide 11: Aluminium for automotive will grow: Extrusion-based solutions
…Aluminium for automotive will grow leveraging on its unique properties: Extrusion-based solutions Aluminium Body Structure market (kt) Aluminium CMS market (M units) Plants on 3 continents to capture global growth: Europe, U.S. and China Source: Automotive Structures CMS Data base (2014)
Slide 12: BiW NA market: 3% aluminium growth over the next decade
BiW NA market: 3% aluminium growth for North American manufactured light vehicles over the next decade Aluminium net pounds per North American light vehicle Net pounds per vehicle for select product forms* Net pounds per vehicle Net pounds per vehicle Source: Ducker Worldwide, 2015 North American Li
Slide 13: NA market: aluminium share increasing from 6% in 2015 to 26% by 2025
NA market: aluminium market share based on parts increasing from 6% in 2015 to 26% by 2025 Light vehicle body and closure parts volume share by material Mild and HSLA AHSS/UHSS Aluminium Sheet Aluminium Extrusions Aluminium VD Castings Market forecast AI BiW FRP, North America 2012-2025 (kt) Source:
Slide 14: BiW EU market: strong growth to >700 kt by 2020
BiW EU market: strong growth to >700 kt by 2020 Market forecast BiW demand Europe (kt) *Outlook excluding any major shift for a new high volume model Source: Constellium internal analysis
Slide 15: Constellium's Offering
CONSTELLIUM’S OFFERING Constellium
Slide 16: Aluminium goes beyond light-weighting
Aluminium goes beyond light-weighting. No compromise on Aesthetics! No compromise on Strength! No compromise on Design! Roping Paint bake response Strength Hemming Corrosion Character resistance lines LIGHTWEIGHTING Energy Work absorption hardening Thermal Isotropy stability Elongation Ductility No
Slide 17: Our BIW portfolio today
Our BIW portfolio today: original products and latest generation of alloys SURFALEX® Perfect surface with stringent hemming SURFALEX® HF Perfect surface with High Formability SURFALEX® HS Perfect surface with High Strength STAYBRIGHT ® A long-lasting, brilliant aluminium product used in decorative t
Slide 18: Our Crash Management System extrusion portfolio today
Our Crash Management System (CMS) extrusion portfolio today Unmatched alloy portfolio Ultimate 6xxx Strength 500 capability? (Mpa) 450 UTS New High Strength 400 6xxx Alloys – HSA6 Strength 7003 Shape Complexity/Strength 350 Compromise Conventional High Strength 6xxx Alloys Alloy composition/process
Slide 19: Working on tomorrow's portfolio with a strong R&T commitment
Working on tomorrow’s portfolio with a strong R&T commitment Pushing the limits of aluminium Ultra High Strength Ultra High Formability More Crash properties Higher Stiffness Metallurgy, corrosion, Surface treatment Expertise Providing solutions For better integration with other materials For better
Slide 20: Our technical development offer
Our technical development offer R&T Center “C-TEC” Strong R&T competencies and full scale manufacturing capabilities in our R&T center in Voreppe, France Prototyping & testing Alloy development Laboratory casting at all scales Hot and cold rolling Heat treatment and quenching Surface treatment & lub
Slide 21: Constellium's automotive ambitions
Constellium’s automotive ambitions Product Current Position Strategic Target Automotive BiW Sheet Major European Player Major Global Position (Rolled Products) Automotive Structures #1 Player in Europe & US #1 Global Position (Extruded Products)
Slide 22: Summary
Summary Aluminium for automotive expected to experience strong growth in the following years BiW market: 1,200 kt in North America and 700 kt in Europe by 2020 Extrusion market for Body Structures: 120 kt in North America and Europe in 2020 Constellium offers Full range of automotive patented produc
Slide 23: Constellium
Constellium OCTOBER 1, 2015 CLE SHOALS | ALAB
Slide 24: Constellium's Body-in-White Footprint
CONSTELLIUM’S BODY-IN-WHITE FOOTPRINT SIMON LADDYCHUK
Slide 25: Constellium invests heavily into its global BiW footprint
Constellium invests heavily into its global BiW footprint—Focus on the US and EU January 15, 2014: Announcement of €200m investment in order to develop and expand BiW capacity in Neuf-Brisach and Singen January 23, 2014: Announcement of $150m investment project into new CALP line in cooperation with
Slide 26: Comprehensive asset portfolio to support BiW growth in US and Europe
Comprehensive asset portfolio to support BiW growth in the US and in Europe Expansion in Europe Europe Neuf-Brisach, France 1 450 kt rolling mill focused on packaging and automotive Current BiW capacity of c. 60 kt to be expanded to 160 kt by mid 2016 Initial supply of BiW cold coils to Bowling Gree
Slide 27: European BiW Footprint
CONSTELLIUM’S EUROPEAN BiW FOOTPRINT
Slide 28: Europe – Two world-class integrated production sites
Europe – Two world-class integrated production sites backed by strong R&T capabilities Ideally positioned in Europe’s industrial heartland Sites Neuf-Brisach (France) Singen (Germany) C-TEC (France) Distinctive Assets Most highly integrated rolling mill in Europe, from recycling to coating World cla
Slide 29: Neuf-Brisach offers a full product portfolio
Neuf-Brisach offers a full product portfolio – BiW capacity of 160 kt, on track to meet mid-2016 SOP target Neuf-Brisach – BiW highlights Current capacity of c. 60 kt Comprehensive product mix, inners/outers, 5xxx and 6xxx alloys Diversified customer portfolio with German premium manufacturers and F
Slide 30: Neuf-Brisach – Investment in new CALP line
Neuf-Brisach – Investment in new CALP line Hall 4 CALP line Entry area (uncoiler 1 & 2) Hall 4 CALP line Degreasing area Hall 4 CALP line Furnace area Hall 4 CALP line Quench area
Slide 31: Neuf-Brisach – Investment in new CALP line
Neuf-Brisach – Investment in new CALP line Hall 4 CALP line Entry area (uncoiler 1 & 2) Hall 4 CALP line Degreasing area Chemcoater Hall 5 Steel structure of the surface treatment area
Slide 32: Singen entered BiW market in 2015
Singen entered BiW market in 2015 focusing on structural parts Singen – BiW highlights Singen has entered BiW market by upgrading existing equipment BiW production currently in ramp-up Full capacity of c. 20 kt in 2016 Focus - inners & structures - 5xxx and 6xxx alloys - thickness capability of up t
Slide 33: US BiW Footprint
CONSTELLIUM’S US BiW FOOTPRINT
Slide 34: Constellium-UACJ JV in Bowling Green on track for mid-2016
y | Constellium-UACJ JV in Bowling Green on track to meet mid-2016 SOP target [— Project status. —————___ = Greenfield 100 kt integrated continuous | heat treatment and pre-treatment line in JV with UACJ supplied by cold coils from Partners’ rolling mills CAPEX c. $150m, ® Full S:ox and 6x automotiv
Slide 35: Bowling Green—Plant capabilities
Bowling Green—Plant capabilities Dimensions Maximum width: 2200 mm Thickness: 0.8 – 3.2 mm Surface condition EDT or mill finish Chemical conversion coatings/passivation Lubrication Stamping oils Protection oils Hot melt dry lubricants
Slide 36: Investing in new BiW capacity in the US
Investing in new BiW capacity in the US Overall BiW expansion CAPEX reduced to $620m by 2022, vs. $750m initially forecasted, and cash out phasing reviewed Transfer of non-packaging products to Ravenswood Optimize timing of projects Increase accuracy of project specifications Utilize global cold mil
Slide 37: Constellium in Muscle Shoals – Comprehensive investment project started
Constellium in Muscle Shoals – Comprehensive investment project started Muscle Shoals 450 kt rolling mill focused on can sheet Hot and current cold rolling with capacity reserves – expansion up to c. 700 kt Widest hot mill in the US One of the last “available” capacity reserves in the US for BiW Exc
Slide 38: Finishing lines to be supplied by Constellium and UACJ
Finishing lines to be supplied by Constellium’s global rolling mill system and UACJ Rolling mills – Constellium Pre-heating Hot rolling Cold rolling 300 kt Continuous annealing and pre-treatment line (“finishing”) finishing lines (incl. 1 line with UACJ) Rolling mill – UACJ (Logan) Pre-heating Hot r
Slide 39: We are making it happen…
We are making it happen… Strong automotive heritage demonstrated in Europe Full global commitment to the Body-in-White sector Set-up of Bowling Green finishing facility with UACJ Extensive CAPEX program to support automotive growth in US and in Europe Successful implementation track record to date U
Slide 40: Constellium
Constellium OCTOBER 1, 2015 CLE SHOALS | ALAB
Slide 41: Muscle Shoals Plant
MUSCLE SHOALS PLANT WES OBERHOLZER
Slide 42: From the outside...
y | From the outside... Constellium
Slide 43: From the inside…
From the inside… The third largest supplier of the can market in North America Strategically located to supply automotive sheet to US market Produce coils to supply the demand for beverage can stock (and trailer roof) Current Headcount: 1,338 employees Surface: 110 acres of covered surface Annual Pr
Slide 44: Key figures
Key figures Can Body Stock 75% Trailer Roof 5% Production Split Can End/Tab 20% Turnover Production Headcount 250 M$ 384 kT 306 employees 45 temporary workers 353 M$ 398 kT 285 employees 42 temporary workers
Slide 45: Trust-based and long-term relationship with key customers and partners
Trust-based and long-term relationship with a large panel of key customers and partners BEVERAGE
Slide 46: Process at Muscle Shoals
Process at Muscle Shoals Element 13 5 Stand HSCCL Pusher Packing/ Cast House Hot Line Furnace Shipping 3 Stand Finishing Realise 116’’ Mill
Slide 47: $ Constellium
$ Constellium
Slide 48: Element (continued)
Element 13 (continued) EL 13 reclaims UBC, class scrap, and other common alloy scrap into molten aluminium
Slide 49: Element (continued)
Element 13 (continued) Crucibles transfer molten aluminium to Alloys Casting Operation
Slide 50: Casting
Casting Molten aluminium is then cast using Electromagnetic Casting Technology (EMC) to produce non-scalp ingots (95% non-scalp rate)
Slide 51: Pusher Furnace
Pusher Furnace After Casting, ingots are sent to the Pusher Furnace for preheating, and homogenized for hot rolling
Slide 52: Hot Rolling
Hot Rolling Aluminium ingots are reduced to coil form through a series of mill operations at the hot line
Slide 53: 3-Stand
3-Stand After being processed at the hot line, 3104 alloy is then sent to the 3-Stand for rolling to customer specified gauge
Slide 54: Sheet Finishing
Sheet Finishing After the 3-Stand, coils are then sent to the Slitters The coils are slit to the final width, post-lubed, and inspected
Slide 55: 5-Stand
5-Stand After being processed at the hot line, 5000 series alloys are then sent to the 5-Stand for cold rolling to finish gauge
Slide 56: High Speed Cleaning and Coating Line
High Speed Cleaning and Coating Line After being processed at the 5-Stand the coils are leveled, cleaned, treated, coated, waxed, and trimmed to width Our HSCCL is considered the fastest coil coating line in the world!
Slide 57: High Speed Cleaning and Coating Line
High Speed Cleaning and Coating Line At our Packing and Shipping department we do a final inspection of the material, and verify the proper identification and staging prior to shipment on truck or rail
Slide 58: Constellium
Constellium OCTOBER 1, 2015 CLE SHOALS | ALAB
Slide 59: Conclusion
CONCLUSION PIERRE VAREILLE Constellium
Slide 60: Recent Developments
Recent Developments Negotiated improved terms of our revolving credit facility, which is expected to increase Q4 liquidity by €145m Resolved a recent scalper outage at Neuf-Brisach, accelerated scheduled October maintenance, expect Adjusted EBITDA to shift from Q3 to Q4 with limited H2 impact Establ
Slide 61: Key Takeaways
Key Takeaways Solid plans to reduce total CAPEX by €150m from 2015 thru 2017 with no change in scheduled launch of the first 100 kt BiW line scheduled for 2018 Total Constellium CAPEX 2015 2016 2017 2018 Initial forecast €400m €450m €350m €265m Revised forecast €350m €400m €300m €300m
Slide 62: October 1, 2015
OCTOBER 1, 2015 wose wa Constellium