Constellium Se · NYSE:CSTM
Constellium — Q1 2020 Earnings Presentation
22 slides from Constellium's earnings presentation, Apr 29, 2020
Slide 1: First Quarter 2020 Earnings Call
First Quarter 2020 Earnings Call April 29, 2020
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: COVID-19 Update
COVID-19 Update } Health and safety of our employees is our first priority } Increased cleaning, sanitation, and social distancing at our manufacturing and other facilities } Strict visitor policies } Business travel bans } Work-from-home policy for employees, where possible } Focused on meeting the
Slide 6: Actions taken to limit financial impact of COVID-19
Actions taken to limit financial impact of COVID-19 } Temporary reduction of executive management salaries and the annual cash retainer payable to Board members } Aggressively reducing spending, including flexing variable costs to better match production levels } Implementation of a reduction in the
Slide 7: Q1 2020 Highlights
Q1 2020 Highlights } Total Shipments of 393 thousand tons, down 5% compared to Q1 2019 } Revenue decreased 6% YoY to €1.4 billion } Net loss of €31 million compared to net income of €24 million in Q1 2019 } Adjusted EBITDA of €147 million increased 9% YoY } Cash from Operations of €144 million in Q1
Slide 8: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 9: Adjusted EBITDA Bridge
Adjusted EBITDA Bridge Q1 2020 vs. Q1 2019 € millions 9% First Quarter 2020 – Earnings Call 9
Slide 10: Packaging and Automotive Rolled Products
Packaging and Automotive Rolled Products Q1 2020 Highlights Q1 Q1 2020 2019 Var. } Adjusted EBITDA of €66 million Shipments (kt) 269 281 (4)% } Lower shipments on reduced demand in Europe primarily due to COVID-19 Revenues (€m) 752 828 (9)% } Stronger price and mix Adj. EBITDA (€m) 66 59 12% } Solid
Slide 11: Aerospace and Transportation
Aerospace and Transportation Q1 2020 Highlights Q1 Q1 2020 2019 Var. } Adjusted EBITDA of €52 million Shipments (kt) 59 66 (10)% } Lower shipments on continued weak TID demand Revenues (€m) 359 378 (5)% } Improved price and mix in aerospace Adj. EBITDA (€m) 52 52 0% } Higher raw material costs Adj.
Slide 12: Automotive Structures and Industry
Automotive Structures and Industry Q1 2020 Highlights Q1 Q1 2020 2019 Var. } Adjusted EBITDA of €34 million Shipments (kt) 65 66 (1)% } Higher Automotive shipments offset by lower Industry shipments Revenues (€m) 342 344 0% } Improved price and mix Adj. EBITDA (€m) 34 29 17% } Solid cost control des
Slide 13: Net Debt and Liquidity
Net Debt and Liquidity Net Debt and Leverage Debt / Liquidity Highlights € in millions Committed to deleveraging Leverage at 3.7x in Q1 2020 Strong FCF generation of €87 million in Q1 2020 Liquidity of €616 million at March 31, 2020 Closed $166 million Delayed Draw Term loan in April Lever
Slide 14: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 15: End Market Updates
End Market Updates % LTM Market Highlights Revenue } Market strong in North America and in Europe } Recession resilient Packaging } Focus on sustainability driving increased demand for aluminium cans 37% } Conversion from steel to aluminium continues in Europe } Conversions to ABS to help North Amer
Slide 16: Q&A
Q&A First Quarter 2020 – Earnings Call 16
Slide 17: Appendix
Appendix First Quarter 2020 – Earnings Call 17
Slide 18: Net Debt Reconciliation
Net Debt Reconciliation December 31, September 30, June 30, March 31, March 31, 2020 2019 2019 2019 2019 € millions Borrowings 2,399 2,361 2,370 2,378 2,421 Fair value of cross currency basis 1 6 (5) 8 2 swaps, net of margin calls Cash and cash equivalents (270) (184) (152) (213) (222) Cash pledged
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months Three months ended ended € millions March 31, 2020 March 31, 2019 Net (loss) / income (31) 24 Tax (income) / expense (8) 15 (Loss) / income before income tax (39) 39 Finance costs - net 45 46 Share of (income) / loss of joint-ventures — (5
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Twelve Twelve Twelve Twelve Twelve months ended months ended months ended months ended months ended December 31, September 30, March 31, 2020 June 30, 2019 March 31, 2019 € millions 2019 2019 Net income / (loss) 8 64 (16) 200 238 Income tax expense (4)
Slide 21: Borrowings Table
Borrowings Table At December 31, At March 31, 2020 2019 Nominal Nominal Value in Nominal Effective Value in (Arrangement Accrued Carrying Carrying € millions Currency Rate Rate Euros fees) Interests Value Value Secured Pan US ABL (due 2022) $145 Floating 3.39% 133 — — 133 127 Secured Inventory Based
Slide 22: Liquidity
Liquidity Three months ended € millions March 31, 2020 Cash and cash equivalents 270 Factoring Facilities 41 Inventory Based Facility 82 Pan-U.S. ABL 212 Other 11 Total Liquidity 616 First Quarter 2020 – Earnings Call 22