Constellium Se · NYSE:CSTM
Constellium — FY2019 Earnings Presentation
23 slides from Constellium's earnings presentation, Feb 20, 2020
Slide 1: Fourth Quarter and Full Year 2019 Earnings Call
Fourth Quarter and Full Year 2019 Earnings Call February 20, 2020 Exhibit 99.2
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, 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: FY 2019 Highlights
} Total Shipments of 1.6 million tons, up 4% YoY } Revenue increased 4% YoY to €5.9 billion } Net income of €64 million compared to net income of €190 million in 2018 } Adjusted EBITDA of €562 million increased 13% YoY } Cash from Operations of €447 million in 2019 } Free Cash Flow of €175 million i
Slide 6: Q4 2019 Highlights
} Total Shipments of 368 thousand tons, comparable to Q4 2018 } Revenue decreased 2% YoY to €1.4 billion } Net income of €22 million compared to net loss of €57 million in Q4 2018 } Adjusted EBITDA of €121 million increased 15% YoY } Cash from Operations of €107 million in Q4 2019 } Free Cash Flow o
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges FY 2019 vs. FY 2018 and Q4 2019 vs. Q4 2018
Adjusted EBITDA Bridges FY 2019 vs. FY 2018 Q4 2019 vs. Q4 2018 € millions +15% +13% € millions
Slide 9: Packaging and Automotive Rolled Products
Q4 2019 Performance Ø Adjusted EBITDA of €63 million Ø Higher automotive shipments offset by lower packaging shipments Ø Improved price and mix Ø Favorable metal costs, partially offset by higher costs from the ramp up of automotive programs Packaging and Automotive Rolled Products Q4 Adjusted EBITD
Slide 10: Aerospace and Transportation
Q4 2019 Performance Ø Adjusted EBITDA of €45 million Ø Lower TID shipments partially offset by higher Aerospace shipments Ø Improved price and mix from both TID and Aerospace Ø Higher costs, primarily labor and energy Aerospace and Transportation Q4 Adjusted EBITDA Bridge € in millions Q4 2019 Q4201
Slide 11: Automotive Structures and Industry
Q4 2019 Performance Ø Adjusted EBITDA of €21 million Ø Executing on growth plan with higher Automotive shipments, offset by lower Industry shipments Ø Continued elevated costs related to our footprint expansion and operational challenges on some of our newer automotive programs Automotive Structures
Slide 12: Project 2019 Three Pillars
Project 2019 Three Pillars Cost Reduction } €78 million of annual run rate cost savings achieved as of December 31, 2019 } Exceeded €75 million Project 2019 target } Confident in ability to realize further cost savings over time Working Capital Improvement } Strong working capital performance on imp
Slide 13: Free Cash Flow
Free Cash Flow Ø Free Cash Flow: €125-175 million Ø Capex: €250 million Ø Cash interest: €140-150 million Ø Cash taxes: €10-20 million 2019 Free Cash Flow Highlights Ø Free Cash Flow generation of €175 million in 2019 Ø Significant improvement from 2018 Ø Four consecutive quarters of FCF Ø Strong tr
Slide 14: Net Debt and Liquidity
Ø Committed to deleveraging Ø Leverage at 3.9x at year end Ø Repaid leases at Bowling Green in Q1 and €100 million of 2021 notes in Q3 Ø Ample liquidity of over €500 million Net Debt and Liquidity € in millions Net Debt and Leverage Maturity Profile Liquidity Reduced leverage, ample liquidity and no
Slide 15: Jean-Marc Germain, Chief Executive Officer
Jean-Marc GermainChief Executive Officer
Slide 16: End Market Updates
End Market Updates Diversified end market exposure; primarily targets secular growth markets Market Highlights % LTMRevenue Packaging } Market strong in North America and in Europe } Focus on sustainability driving increased demand for aluminium cans } Conversions to ABS to help North American marke
Slide 17: Financial Guidance and Outlook
Financial Guidance and Outlook Focused on delivering on our strategy and increasing shareholder value Targets for 2020 : u Adjusted EBITDA growth of 6% to 9% u Free Cash Flow of €125 million to €175 million Targets for 2022: u Adjusted EBITDA of over €700 million u Net Debt / Adjusted EBITDA of 2.5x
Slide 18: Q&A
Q&A ¢ Constellium Fourth Quarter 2019 - Eamings Call 18
Slide 19: Appendix
Appendix ¢ Constellium Fourth Quarter 2019 - Earnings Call 19
Slide 20: Net Debt Reconciliation
December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 Borrowings 2,361 2,370 2,378 2,421 2,151 Fair value of cross currency basis swaps, net of margin calls 6 (5 ) 8 2 9 Cash and cash equivalents (184 ) (152 ) (213 ) (222 ) (164 ) Cash pledged for issuance of guarantees
Slide 21: Reconciliation of Net Income to Adjusted EBITDA (Quarter)
Reconciliation of Net Income to Adjusted EBITDA € millions Three months endedDecember 31, 2019 Three months endedDecember 31, 2018 Net income / (loss) 22 (57 ) Income tax expense (10 ) 2 Income before income tax 12 (55 ) Finance costs – net 40 32 Share of loss / (income) of joint-ventures 3 10 Incom
Slide 22: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended December 31, 2019 Twelve months ended September 30, 2019 Twelve months ended June 30, 2019 Twelve months ended March 31, 2019 Twelve months ended December 31, 2018 Net income / (loss) 64 (16 ) 200 238 190 Income tax expen
Slide 23: Borrowings Table
Borrowings Table December 31, 2019 December 31, 2018 € millions Nominal Value in Currency NominalRate Effective Rate Nominal Value in Euros (Arrangement fees) Accrued Interests CarryingValue CarryingValue Secured Pan US ABL (due 2022) $142 Floating 4.2 % 127 — — 127 — Secured Inventory Based Facilit