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 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: 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 demand of our c
Slide 6: 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 workforce, including the use of partial time unempl
Slide 7: 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 2020 } Free Cash F
Slide 8: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 9: Adjusted EBITDA Bridge Q1 2020 vs. Q1 2019
Adjusted EBITDA Bridge Q1 2020 vs. Q1 2019 € millions 9%
Slide 10: Packaging and Automotive Rolled Products
Q12020 Q12019 Var. Shipments (kt) 269 281 (4 )% Revenues (€m) 752 828 (9 )% Adj. EBITDA (€m) 66 59 12 % Adj. EBITDA (€ / t) 245 210 17 % } Adjusted EBITDA of €66 million } Lower shipments on reduced demand in Europe primarily due to COVID-19 } Stronger price and mix } Solid cost control Q1 2020 High
Slide 11: Aerospace and Transportation
Q1 2020 Q1 2019 Var. Shipments (kt) 59 66 (10 )% Revenues (€m) 359 378 (5 )% Adj. EBITDA (€m) 52 52 0 % Adj. EBITDA (€ / t) 887 797 11 % } Adjusted EBITDA of €52 million } Lower shipments on continued weak TID demand } Improved price and mix in aerospace } Higher raw material costs Aerospace and Tra
Slide 12: Automotive Structures and Industry
Q12020 Q12019 Var. Shipments (kt) 65 66 (1 )% Revenues (€m) 342 344 0 % Adj. EBITDA (€m) 34 29 17 % Adj. EBITDA (€ / t) 529 448 18 % } Adjusted EBITDA of €34 million } Higher Automotive shipments offset by lower Industry shipments } Improved price and mix } Solid cost control despite COVID-19 cost h
Slide 13: Reduced leverage with significant liquidity
Ø Committed to deleveraging Ø Leverage at 3.7x in Q1 2020 Ø Strong FCF generation of €87 million in Q1 2020 Ø Liquidity of €616 million at March 31, 2020 Ø Closed $166 million Delayed Draw Term loan in April Net Debt and Liquidity € in millions Net Debt and Leverage Maturity Profile Liquidity Reduce
Slide 14: Jean-Marc Germain, Chief Executive Officer
Jean-Marc GermainChief Executive Officer
Slide 15: End Market Updates
End Market Updates Diversified portfolio of end market exposures Market Highlights % LTMRevenue Packaging } Market strong in North America and in Europe } Recession resilient } Focus on sustainability driving increased demand for aluminium cans } Conversion from steel to aluminium continues in Europ
Slide 16: Q&A
Q&A ¢ Constellium First Quarter 2020 - Eamings Call 16
Slide 17: Appendix
Appendix ¢ Constellium First Quarter 2020 - Eamings Call 17
Slide 18: Net Debt Reconciliation
€ millions March 31, 2020 December 31, 2019 September 30, 2019 June 30, 2019 March 31, 2019 Borrowings 2,399 2,361 2,370 2,378 2,421 Fair value of cross currency basis swaps, net of margin calls 1 6 (5 ) 8 2 Cash and cash equivalents (270 ) (184 ) (152 ) (213 ) (222 ) Cash pledged for issuance of gu
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months endedMarch 31, 2020 Three months endedMarch 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 — (
Slide 20: Reconciliation of Net Income to Adjusted EBITDA (twelve months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended March 31, 2020 Twelve months ended December 31, 2019 Twelve months ended September 30, 2019 Twelve months ended June 30, 2019 Twelve months ended March 31, 2019 Net income / (loss) 8 64 (16 ) 200 238 Income tax expense (4
Slide 21: Borrowings Table
Borrowings Table At March 31, 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) $145 Floating 3.39 % 133 — — 133 127 Secured Inventory Based F
Slide 22: Liquidity
Liquidity € millions Three months endedMarch 31, 2020 Cash and cash equivalents 270 Factoring Facilities 41 Inventory Based Facility 82 Pan-U.S. ABL 212 Other 11 Total Liquidity 616