Constellium Se · NYSE:CSTM
Constellium — Q3 2020 Earnings Presentation
22 slides from Constellium's earnings presentation, Oct 27, 2020
Slide 1: Third Quarter 2020 Earnings Call
Third Quarter 2020 Earnings Call October 27, 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: Q3 2020 Highlights
} Shipments of 354 thousand tons, down 11% compared to Q3 2019 } Revenue decreased 20% YoY to €1.2 billion } Net income of €20 million compared to net income of €1 million in Q3 2019 } Adjusted EBITDA of €126 million decreased 9% YoY } Adjusted EBITDA of €354 million in YTD 2020, down 20% YoY } Cash
Slide 6: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 7: Adjusted EBITDA Bridges YTD and Q3 2020
Adjusted EBITDA Bridges YTD 2020 vs. YTD 2019 Q3 2020 vs. Q3 2019 € millions (9)% (20)% € millions
Slide 8: Packaging and Automotive Rolled Products
Q3 2020 Q3 2019 Var. Shipments (kt) 258 277 (7)% Revenues (€m) 672 789 (15)% Adj. EBITDA (€m) 85 72 20% Adj. EBITDA (€ / t) 332 259 28% } Adjusted EBITDA of €85 million } Lower packaging shipments in Europe due to temporary COVID-19 conditions } Strong cost control, notably improved recovery and low
Slide 9: Aerospace and Transportation
Q3 2020 Q3 2019 Var. Shipments (kt) 36 57 (37)% Revenues (€m) 202 351 (43)% Adj. EBITDA (€m) 10 43 (77)% Adj. EBITDA (€ / t) 275 740 (63)% Q3 2020 Commentary } Adjusted EBITDA of €10 million } Lower shipments of aerospace and TID products } Slightly improved price and mix } Strong cost control, nota
Slide 10: Automotive Structures and Industry
Q32020 Q32019 Var. Shipments (kt) 60 61 (3)% Revenues (€m) 304 336 (9)% Adj. EBITDA (€m) 33 26 25% Adj. EBITDA (€ / t) 551 428 29% Q3 2020 Commentary Adjusted EBITDA Bridge € in millions } Adjusted EBITDA of €33 million } Lower industry shipments } Slightly improved price and mix } Strong cost contr
Slide 11: Cost Performance
Q32020 Q32019 Var. Revenues (€m) 1,172 1,461 (20)% Costs (€m) 1,046 1,322 (21)% Adj. EBITDA (€m) 126 139 (9)% Cost Highlights Cost Flex* Performance in Q3 Horizon 2022 Target: €75 million annualized cost savings * Represents change in costs over change in revenue for Q3 2020 compared to Q3 2019. See
Slide 12: Net Debt and Liquidity
Ø Committed to deleveraging Ø FCF generation of €75 million in Q3 2020 Ø YTD 2020: €129 million Ø Liquidity of €1.0 billion Ø No near term bond maturities € in millions Net Debt and Leverage Maturity Profile Liquidity Significant liquidity with no near term bond maturities € in millions € in million
Slide 13: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 14: End Market Updates
End Market Updates Diversified portfolio of end market exposures Market Highlights % LTMRevenue Packaging } Market strong in North America; stable in Europe } Recession resilient } Focus on sustainability driving secular growth in demand for aluminium cans } Conversion from steel to aluminium contin
Slide 15: Q&A
Q&A @ constellium “This Quarter 2020 Earnings Cal 15
Slide 16: Appendix
Appendix @ constellium “hid Quarter 2020 Eaings Cal 16
Slide 17: Net Debt Reconciliation
September 30, 2020 June 30, 2020 March 31, 2020 December 31, 2019 September 30, 2019 Borrowings 2,456 2,536 2,399 2,361 2,370 Fair value of cross currency basis swaps, net of margin calls 26 5 1 6 (5) Cash and cash equivalents (432) (378) (270) (184) (152) Cash pledged for issuance of guarantees — —
Slide 18: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months ended September 30, Nine months ended September 30, € millions 2020 2019 2020 2019 Net income / (loss) 20 1 (43) 42 Income tax expense / (benefit) 7 4 (12) 28 Income / (loss) before income tax 27 5 (55) 70 Finance costs - net 37 46 124 135
Slide 19: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended September 30,2020 Twelve months ended June 30,2020 Twelve months ended March 31,2020 Twelve months ended December 31,2019 Twelve months ended September 30,2019 Net (loss) / income (21) (40) 8 64 (16) Income tax (benefit)
Slide 20: Borrowings Table
Borrowings Table At September 30, 2020 At December 31, 2019 € millions Nominal Value in Currency NominalRate Effective Rate Nominal Value in Euros (Arrangement fees) Accrued Interests CarryingValue CarryingValue Secured Pan US ABL (due 2022) $ — Floating 3.45 % — — — — 127 Secured US DDTL (due 2022)
Slide 21: Liquidity
Liquidity € millions AtSeptember 30, 2020 Cash and cash equivalents 432 Factoring Facilities 49 Inventory Based Facility 75 Pan-U.S. ABL 255 Delayed Draw Term loan 142 Other 65 Total Liquidity 1,018
Slide 22: Cost Flex Reconciliation
y | Cost Flex Reconciliation STM (€m) Q3 2020 Q32019 Var. P&ARP (€m) Q3 2020 Q32019 Var. Revenues 1,172 1,461 (289) Revenues 672 789 (117) Costs (incl. metal) 1,046 1,322 (276) Costs (incl. metal) 587 7 (130) Adj. EBITDA 126 139 (13) Adj. EBITDA 85 72 13 A Cost / A Revenue 96% 4 Cost / A Revenue 111