Constellium Se · NYSE:CSTM
Constellium — FY2016 Earnings Presentation
28 slides from Constellium's earnings presentation, Mar 9, 2017
Slide 1: Fourth Quarter and Full Year 2016 Earnings Call
Fourth Quarter and Full Year 2016 Earnings Call March 9, 2017 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: Financial Highlights
Shipments of 1.5 million kt in 2016, in-line with prior year Q4 Shipments of 344 kt, up 2% Revenue of €4.7 billion in 2016, down 8%, primarily due to lower metal prices; Q4 2016 revenue of €1.2 billion, up 3% Net loss of €4 million in 2016 compared to a net loss of €552 million including asset impai
Slide 6: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 7: 2016 Adjusted EBITDA vs 2015
2016 Adjusted EBITDA vs 2015 343 377 YoY Increase of 10% - Strong growth in P&ARP and AS&I, A&T stable 76 81 Q4 2016 Increase of 8% with a strong performance in P&ARP € millions
Slide 8: Packaging and Automotive Rolled Products Segment
Strong operational momentum continues at Muscle Shoals Improved price and mix benefited European operations in Q4 2016 Ramping up production of new ABS finishing lines at Neuf-Brisach, France and Bowling Green, Kentucky 2016 Performance Highlights Recent Developments Shipments decreased 2% to 1,013
Slide 9: Aerospace and Transportation Segment
Shipments of 243 kt increased 5% Aerospace shipments increased 2% Transportation shipments increased 9% Higher shipments and improved costs offset weaker mix Adjusted EBITDA unchanged as compared to 2015 Excess inventory in aerospace supply chain temporarily impacting orders Higher transportation sh
Slide 10: Automotive Structures and Industry Segment
Automotive Structures and Industry Segment Shipments of 217 kt, up 3% on solid demand in core end markets Adjusted EBITDA increased to a record €102 million, up 27% Improved price and mix with solid cost performance Continuing solid execution across products and facilities Projects on schedule inclu
Slide 11: Wise Secured Notes Refinancing Enhances Flexibility
Wise Secured Notes Refinancing Enhances Flexibility Allows CSTM to fully integrate the Wise assets, lowering costs and increasing financial flexibility within the Group Reduces interest expense by €27 million per annum (including Wise PIK/Toggle Notes) Extends the 2018 debt maturity to 2025 – our ne
Slide 12: Net Debt and Liquidity
Net Debt and Liquidity € millions December 31, 2016 December 31, 2015 Borrowings 2,468 2,233 Fair value of cross currency interest rate swaps (77) (47) Cash and cash equivalents (347) (472) Cash pledged for issuance of guarantees (9) (11) Net Debt 2,035 1,703 Cash and cash equivalents 347 472 Availa
Slide 13: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 14: End-Market Commentary
End-Market Commentary North America Europe Highlights Automotive Strong Growth Strong Growth Light-weighting is expected to continue, new capacity ramping in Europe and USA AS&I has built a leading position in extrusions Aerospace Moderate Growth Moderate Growth Secular growth in air traffic to cont
Slide 15: Strategic Update
Strategic Update Management team in place Long term operational, strategic and financial plan finalized Our growth investments on track and should begin to generate returns Capital spending has peaked – new, disciplined capital deployment processes instituted to govern future spending Taking steps t
Slide 16: Update on Key Projects
Update on Key Projects Bowling Green, KentuckyP&ARP100kt ABS/BiW finishing line Neuf-Brisach, FranceP&ARP100kt ABS/BiW finishing line White, GeorgiaAS&I Extrusion Press San Luis Potosí, MexicoAS&IExtrusion Press
Slide 17: Financial Guidance
Financial Guidance Expect high single-digit growth in Adjusted EBITDA annually over the next three years 2017 capital spending target €275 million Formulating new initiatives to improve cash flow generation Targeting positive free cash flow in 2019
Slide 18: Key Takeaways
Solid 2016 results with Adjusted EBITDA performance of €377 million, up 10%; Q4 €81 million, up 8% Strong operational performance in P&ARP and AS&I, stable performance in A&T Improved our balance sheet and financial flexibility with refinancing of Wise Senior Secured Notes Remain highly focused on c
Slide 19: Appendix
Appendix ¢ Constellium Fourth Quarter 2016 - Earnings Call 19
Slide 20: Shipments by Product Line (FY 2016)
Shipments by Product Line (000’s metric tons) FY 2016 FY 2015 Packaging rolled products 856 880 Automotive rolled products 113 88 Specialty and other thin-rolled products 44 67 Aerospace rolled products 118 116 Transportation, industry, and other rolled products 125 115 Automotive extruded products
Slide 21: Shipments by Product Line (Q4 2016)
Shipments by Product Line (000’s metric tons) Three months December 31, 2016 Three months December 31, 2015 Packaging rolled products 198 202 Automotive rolled products 28 23 Specialty and other thin-rolled products 10 14 Aerospace rolled products 30 27 Transportation, industry, and other rolled pro
Slide 22: IFRS – FY 2016 Income Statement
IFRS – FY 2016 Income Statement Year ended December 31, 2016 Year ended December 31, 2015 Revenue 4,743 5,153 Income / (loss) from operations 246 (426) Finance costs – net (167) (155) Share of loss of joint-ventures (14) (3) Income / (loss) before income taxes 65 (584) Income tax (expense) / benefit
Slide 23: IFRS – Q4 2016 Income Statement
IFRS – Q4 2016 Income Statement Three months ended December 31, 2016 Three months ended December 31, 2015 Revenue 1,161 1,122 Income / (loss) from operations 29 (418) Finance costs – net (37) (36) Share of loss of joint-ventures (6) (1) Loss before income taxes (14) (455) Income tax expense (6) 26 N
Slide 24: IFRS – Statement of Financial Position
IFRS – Statement of Financial Position At December 31, 2016 At December 31, 2015 Current assets 1,410 1,449 Non-current assets 2,377 2,166 Assets held for sale - 13 Total Assets 3,787 3,628 Current liabilities 1,035 1,193 Non-current liabilities 3,322 2,962 Liabilities held for sale - 13 Equity (570
Slide 25: Net Debt Reconciliation
Net Debt Reconciliation December 31, 2016 December 31, 2015 Borrowings 2,468 2,233 Fair value of cross currency interest rate swaps (77) (47) Cash and cash equivalents (347) (472) Cash pledged for issuance of guarantees (9) (11) Net Debt 2,035 1,703 € millions
Slide 26: Liquidity Position
Liquidity Position Availability as of 12/31/2016 Commentary Cash and cash equivalents 347 Excludes €9 million restricted cash Ravenswood ABL 29 Matures October 2018 Wise ABL(1) 121 Matures September 2020 Factoring facilities 33 Wise: matures January 2018 French: matures December 2018 German/Swiss fa
Slide 27: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months ended December 31, 2016 Three months ended December 31, 2015 Year ended December 31, 2016 Year ended December 31, 2015 Net loss (20) (429) (4) (552) Income tax expense / (benefit) 6 (26) 69 (32) Income / (loss) before income tax
Slide 28: Borrowings Table
Borrowings Table € millions December 31, 2016 December 31, 2015 Redemption Value Nominal Rate Effective Rate Face Value (Arrangement fees) / step-up Accrued Interests Carrying Value Carrying Value Secured ABL Ravenswood (due 2018) $48 Floating 3.08% 46 — — 46 23 Muscle Shoals (due 2018) — Floating —