Constellium Se · NYSE:CSTM
Constellium — Investor Day (April 2014)
49 slides from Constellium's investor day presentation, Apr 9, 2014
Slide 1: Exhibit 99.1 F O U R S E A S O N S H
Exhibit 99.1 F O U R S E A S O N S H O T E L
Slide 2: Introduction
Head of US Investor Relations Paul BLALOCK INTRODUCTION
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains “forward-looking statements” with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify certain forward-looking statements because they co
Slide 4: Management Participants
Prior to joining Constellium, served as Executive Vice President, Chief Financial Officer and Information Technology Director at Plastic Omnium, a worldwide leading auto parts manufacturer listed on Euronext Paris. Prior to joining Constellium in September 2013, Mr. Figueroa served as Vice President
Slide 5: F O U R S E A S O N S H O T
F O U R S E A S O N S H O T E L
Slide 6: Chief Executive Officer
Chief Executive Officer Pierre VAREILLE
Slide 7: Continuing Our Evolution by Expanding Our Free Float
Shares Of Constellium (In Millions) Free float Rio Tinto Bpifrance Management KG Apollo Rio Tinto / Management Secondary Rio Tinto Secondary (1) Apollo Secondary Apollo Secondary (1) (1) = 105.0 = 105.0 = 105.0 = 105.0 = 105.0 39% 51% 10% 20.3 (19.3%) 28.9 (27.5%) 37.6 (35.8%) 12.8 (12.2%) 19.3 9.6
Slide 8: Business positioned to generate strong cash flows with low leverage
Business positioned to generate strong cash flows with low leverage Executed on-going cost reduction initiatives 26% Adjusted EBITDA growth for the year ended December 31, 2013, compared with the same period last year Actively managed asset portfolio, divesting non-strategic assets to focus on high
Slide 9: Constellium's Product Focus
Global Aluminum 66 Mt 42 Mt Can Body & End Stock Aero plates & sheets Auto Body Sheet & Automotive Structures Brazing sheet Speciality Extrusions Bright, closures, other specialty Constellium Active Constellium Not Active Product Segment 12.5 Mt Global aluminum fabrication market by production techn
Slide 10: Constellium at a Glance
Aerospace Market Growth Forecast: 8% Automotive Market Growth Forecast: 18% Packaging Market Growth Forecast: 3% Aerospace Plates: #1 Worldwide Crash Management Systems: #2 Worldwide Major European Player in Auto Body Sheet Can Body Stock: #1 Europe Closures: #1 Worldwide 2013 Sales by Operating Seg
Slide 11: Our customers' businesses are driven by attractive secular trends
growth rate for aluminum demand for automotive growth rate in European can stock consumption growth rate for aerospace Europe 38% 22% 18% 22% 42% 22% 21% 15% Asia Pacific Other Europe North America Our customers’ businesses are driven by attractive secular trends Key driver: Substitution driven by r
Slide 12: Strategies and Priorities for Our Unique Portfolio of Businesses
productivity, efficiency, and safety Lean transformation for continuous improvement Sustainability is integrated into our practices and procedures the business to increase FCF, Adjusted EBITDA and Adjusted EBITDA per Ton on high value add products, customers and markets 2. Increase 3. Operate 1. Foc
Slide 13: Broad Range of Automotive Products
SURFALEX ® SECURALEX ® STRONGALEX ® FORMALEX ® SURFACE EXCELLENCE HIGH FORMABILITY CRASH STRENGTH BROAD RANGE OF AUTOMOTIVE PRODUCTS TO SERVE OUR CUSTOMERS IN BOTH THE US AND EUROPE FOR EXTRUSIONS AND BiW
Slide 14: We Are Well-Positioned to Capture BiW Growth Opportunities
Europe (+13%) US (+38%) CAGR ’12-‘20 China (+39%) GLOBAL ALUMINIUM BiW MARKET FORECAST (Kt) CONSTELLIUM WELL-POSITIONED TO CAPITALIZE 6x 70 500 1000 30 2012 2015 2020 Europe US China We are joining forces with UACJ to supply auto body sheet to the North American auto industry with initial target cap
Slide 15: Global Leader in Automotive Structures
Europe NA Europe North America China Plants on 3 continents to capture global growth: China, Europe and U.S. 2012 2015 2020 2025 14 32 45 125 2010 2015 2020 3 2 6 3.5 7.5 5 Aluminum CMS market ( M units ) Aluminum Body Structure market (k tons) 35% pa Source: Automotive Structures CMS Data base (201
Slide 16: Leading Position in European Packaging
We are a major player in European can body stock Making us the supplier of choice to blue-chip customers CAGR 2012-2017E Closure stock: #1 Worldwide Can body stock: #1 Europe Strong relationships with leading customers % Breakdown of Cans Sold Can Stock Consumption (kt) Resulting In Increased Alumin
Slide 17: Canstock Strategy to Maintain Leadership Position
Technology leader, quality focus, strong technical and commercial support European beverage market to expand from 78% aluminum to 85% in 2016 Work with can customers in conversion opportunities Solid cash generation and good economic resiliency CANSTOCK STRATEGY TO MAINTAIN LEADERSHIP POSITION PURSU
Slide 18: Aerospace: Constellium Is a Critical Supplier
Attractive long term growth outlook in aerospace plates; one of two suppliers with dual continent footprint Strong track record to meet complex challenges, focus on highest value add products Leader in Aluminum Lithium technology through AIRWARE ® uniquely suited for higher volumes through new casti
Slide 19: FOUR SEASONS HOTEL
FOUR SEASONS HOTEL
Slide 20: Chief Financial Officer
Chief Financial Officer Didier FONTAINE
Slide 21: Strong Segment Performance Improvement
Adjusted EBITDA ( €) per metric ton Adjusted EBITDA ( €m)* % Source: Company earnings reports STRONG SEGMENT PERFORMANCE IMPROVEMENT *May not sum to consolidated figures due to corporate allocations
Slide 22: Automotive and Aerospace Product Mix
Adjusted EBITDA 58% 21% 32% 2018 Estimated 2018 Estimated € 300+ for 2018 Estimated 15% 12% AUTOMOTIVE AND AEROSPACE PRODUCT MIX Volume Group Adjusted EBITDA per metric ton € 145 for 2011 € 273 for 2013 42%
Slide 23: Investments and Capital Spending Roadmap
BiW Europe €200 million 2014 thru 2018 AIRWARE Europe €70 million 1 2014 thru 2018 BiW US $50-100m 2 2015 thru 2018 BiW US JV 51% of $150 million 3 2014 thru 2018 INVESTMENTS AND CAPITAL SPENDING ROADMAP Total Growth Projects €380 million 2014 thru 2018 Existing Operations €145 million annually 2013
Slide 24: Investments and Capital Spending Plan
2013A 2014E 2015E 2016E 2017E 2018E INVESTMENTS AND CAPITAL SPENDING PLAN (€m) Existing Operations Growth Projects € € € € € € € €
Slide 25: Strong Balance Sheet with No Near Term Maturities
2013 STRONG BALANCE SHEET WITH NO NEAR TERM MATURITIES (*) Liquidity measured as the sum of Cash and Cash Equivalents and availability under long-term facilities € millions Total Debt Cash and Cash Equivalents Net Debt Net Debt/ LTM Adjusted EBITDA 0.5x Leverage on EBITDAP 1.5x Liquidity (*) Average
Slide 26: Value-added leader in converting aluminum into profitable products
We are a value-added leader in converting aluminum into highly profitable products Focus on selected high-end products and high-growth markets Secure our business with long term contracts We seek to maximize adjusted EBITDA and cash flow over the long run A portion of our business (P&ARP) is highly
Slide 27: FOUR SEASONS HOTEL
FOUR SEASONS HOTEL
Slide 28: Focus on Aerospace
President, Aerospace & Transportation FOCUS ON AEROSPACE Jean - Christophe FIGUEROA
Slide 29: The Highest Backlogs in History
20,930 – 59% 5,960 Airbus Boeing Backlog values mid 2013 [2013 $bn] CONTINUOUS GROWTH AHEAD 35,280 14,350 – 41% Source: TEAL Group, & Boeing THE HIGHEST BACKLOGS IN HISTORY SUSTAINED DEMAND ENSURED FOR AT LEAST TWO DECADES
Slide 30: Strong Aerospace Growth Trends
Deliveries of Airware intensive planes pick up in 2014 2015 2014 2013 2012 2017 2016 AIRWARE ® Intensive Planes* Other 2012-2017 Jet Airplanes deliveries * 1700 1580 1403 1317 1940 1820 Demand is driven by: Replacement of aging fleets Increasing global passenger air traffic (particularly in emerging
Slide 31: Product Strategy at Airbus and Boeing Favoring Aluminum
Major OEMs Airbus and Boeing have opted for derivatives of their successful models to quickly provide more efficient aircrafts to airlines Looking for fast and low-risk R&D, this choice locks the material technology (aluminum vs. composites) while leaving room for added-value aluminum alloys Single-
Slide 32: The Aluminum Industry Is Well Positioned to Respond to Aerospace Needs
The aluminum supply chain is perfectly suited to meet the industry’s forecasted ramp-up Manufacturing plants are spread throughout the world and close to the main aerospace OEMs, in Europe and North America The aluminum technologies have tremendously evolved from the ones that were used decades ago.
Slide 33: Constellium Is a Leader in Flat Rolled Products for Aerospace
Plates Sheets Tubes Profiles Bars Billets Capability for extra thick plates to cover all machined applications Sheet shop that enables very thin fuselage skins A large panel of extruded products CONSTELLIUM IS A LEADER IN FLAT ROLLED PRODUCTS FOR AEROSPACE KEY LEADERSHIP POSITIONS A COMPLETE OFFER F
Slide 34: Our Manufacturing Network Is Located Where Our Clients Need Us
Two main customers Located in both Europe and North America Close to main customers’ supply chain networks Unique knowledge in serving a complex network of customers/Tier-1s and Tier-2s, Developed a strong sales network in Asia Constellium’s main Aerospace plants Constellium’s Asian sales network OU
Slide 35: Strategy to Increase Profits Based on Strong Differentiation
STRATEGY TO INCREASE PROFITS BASED ON STRONG DIFFERENTIATION ENABLE INDUSTRIAL RAMP-UP Investing in AIRWARE ® expansion GAIN EFFICIENCY & IMPROVE SERVICE Delivery OTIF Strong patent portfolio partner labs worldwide Focus sales on Speciality alloys More profit per Ton Propose added- value to OEMs STR
Slide 36: AIRWARE, a Game Changer for Aerostructures and Our Business Model
Our AIRWARE ® solutions have already been selected and fly on the following programs: Bombardier CSeries: in September 2013 Airbus A350: in June 2013 With AIRWARE ® expected to take a greater space in our product mix in the upcoming years, we will increasingly generate customers and Constellium Cons
Slide 37: Our Business Model Is Built on Long Term Contracts
2009 2014 2012 Multi-year contract with Boeing $2bn contract with Airbus for all its programs AIRWARE ® selected by Airbus for the A350 XWB AIRWARE ® selected by Bombardier for its new CSeries 2010 2020 OUR BUSINESS MODEL IS BUILT ON LONG TERM CONTRACTS MAJOR CONTRACTS BUSINESS VISIBILITY 90% of Con
Slide 38: Key Take Aways
KEY TAKE AWAYS 1. Aerospace market will show sustainable growth in the long run 2. Aluminum is the predominant material for airframes 3. Constellium is an aerospace technology leader with a set of proprietary technologies and unique and global manufacturing capabilities 4. AIRWARE®, Constellium’s la
Slide 39: Questions & Answers
Questions & Answers
Slide 40: Constellium
$ Constellium
Slide 41: FOUR SEASONS HOTEL
FOUR SEASONS HOTEL
Slide 42: IFRS Statements
IFRS Statements
Slide 43: IFRS—Balance Sheet
€ millions December 31, 2013 December 31, 2012 Non-current assets 674 594 Current assets 1069 1037 Assets held for sale 21 € millions December 31, 2013 December 31, 2012 Equity 36 (37) Non-current assets 970 923 Current assets 749 745 Liabilities held for sale 9 IFRS—BALANCE SHEET Fourth Quarter 201
Slide 44: IFRS—Income Statement
€ millions Year ended December 31, 2013 Year ended December 31, 2012 Revenue 3495 3610 Other expenses (27) (3) Finance costs—net (50) (60) Share of profit (loss) of joint-ventures 3 (5) Income tax expense (39) (46) Net Income (loss) from discontinued operations 4 (8) IFRS—INCOME STATEMENT Fourth Qua
Slide 45: Non-GAAP Measures Reconciliations
Non-GAAP Measures Reconciliations
Slide 46: Net Debt
€ millions As December 31, 2013 As December 31, 2012 Borrowings 348 158 Fair value of cross currency interest swap 26 14 Cash and cash equivalents (233) (142) Cash pledged for issuance of guarantees (9) (13) NET DEBT Fourth Quarter 2013—Earnings Call Net Debt
Slide 47: Adjusted Free Cash Flow
€ millions Year Ended December 31, 2013 Year Ended December 31, 2012 Cash flow from operating activities 184 246 Margin calls included in cash flow from operating activities (4) (7) Cash flow from operating activities excluding margin calls 180 239 Capital expenditure (144) (126) ADJUSTED FREE CASH
Slide 48: Adjusted EBITDA
€ millions Year ended December 31, 2013 Year ended December 31, 2012 Income tax expense 39 46 Finance costs—net 50 60 Other expenses/share of results of joint-ventures 24 8 Ravenswood OPEB plans amendment (11) (58) Swiss pension plan settlement - 8 Ravenswood CBA renegotiation - 7 Restructuring cost
Slide 49: FOUR SEASONS HOTEL
FOUR SEASONS HOTEL