Constellium Se · NYSE:CSTM
Constellium — Q3 2019 Earnings Presentation
21 slides from Constellium's earnings presentation, Oct 24, 2019
Slide 1: Third Quarter 2019 Earnings Call
Third Quarter 2019 Earnings Call October 23, 2019 Exhibit 99.2
Slide 2: Forward-looking statements
Certain statements contained in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This presentation may contain “forward-looking statements” with respect to our business, results of operations and financial conditi
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 2019 Highlights
Q3 2019 Highlights Total Shipments up 4% YoY to 395 thousand metric tons Revenue increased 2% YoY to €1.5 billion Net income of €1 million Adjusted EBITDA of €139 million increased 18% YoY; YTD 2019 increased 12% YoY Cash from Operations of €80 million in Q3 2019 and €340 million in YTD 2019 Free Ca
Slide 6: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 7: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges YTD 2019 vs. YTD 2018 Q3 2019 vs. Q3 2018 € millions +18% +12% € millions
Slide 8: Q3 2019 Performance: Packaging and Automotive Rolled Products
Q3 2019 Performance Adjusted EBITDA of €72 million Higher automotive and packaging shipments Weaker price and mix Favorable metal costs offset by costs from the ramp up of automotive programs Packaging and Automotive Rolled Products Adjusted EBITDA Bridge € in millions Q3 2019 Q3 2018 Var. Shipments
Slide 9: Q3 2019 Performance: Aerospace and Transportation
Q3 2019 Performance Adjusted EBITDA of €43 million Increased Aerospace shipments offset by lower TID shipments Improved price and mix from both TID and Aerospace Higher costs on metal input mix and labor costs Aerospace and Transportation Adjusted EBITDA Bridge € in millions Q3 2019 Q3 2018 Var. Shi
Slide 10: Q3 2019 Performance: Automotive Structures and Industry
Q3 2019 Performance Automotive Structures and Industry Adjusted EBITDA Bridge € in millions Adjusted EBITDA of €26 million Higher Automotive shipments offset by lower Industry shipments Higher costs related to our footprint expansion and operational challenges on some of our newer automotive program
Slide 11: Project 2019 Three Pillars
Project 2019 Three Pillars Cost Reduction €73 million of annual run rate cost savings achieved as of September 30, 2019 Target of €75 million of annual run-rate cost savings by December 31, 2019 Working Capital Improvement Strong working capital performance on solid operating performance and increas
Slide 12: Net Debt and Liquidity
Net Debt and Liquidity € in millions Net Debt and Leverage Maturity Profile Liquidity Debt / Liquidity Highlights Strong Cash from Operations and Free Cash Flow generation YTD 2019 Completed €100 million partial redemption of 2021 bonds in August 2019 Remain committed to deleveraging Ample liquidity
Slide 13: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 14: End Market Updates
End Market Updates Diversified end market exposure; primarily targets secular growth markets Market Highlights % LTM Revenue Packaging Market remains stable Conversions to ABS to help North American market over the medium to long term Conversion from steel to aluminium driving growth in Europe Focus
Slide 15: Financial Guidance and Outlook
Financial Guidance and Outlook Focused on delivering on our strategy and increasing shareholder value Targets for 2019 : Adjusted EBITDA growth of 12% to 14% Free Cash Flow of €125 million to €175 million Targets for 2022: Adjusted EBITDA of over €700 million Net Debt / Adjusted EBITDA of 2.5x
Slide 16: Q&A
Q&A @ constellium Td Quarter 2019 Earnings Call 16
Slide 17: Appendix
Appendix @ constettium Third Quarter 2019 Eamings Call 17
Slide 18: Net Debt Reconciliation
September 30, 2019 June 30, 2019 March 31, 2019 December 31, 2018 September 30, 2018 Borrowings 2,370 2,378 2,421 2,151 2,103 Fair value of cross currency basis swaps, net of margin calls (5) 8 2 9 25 Cash and cash equivalents (152) (213) (222) (164) (279) Cash pledged for issuance of guarantees — —
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months ended September 30, 2019 Three months ended September 30, 2018 Nine months ended September 30, 2019 Nine months ended September 30, 2018 Net income 1 217 42 248 Income tax expense 4 1 28 30 Income before income tax 5 218 70 278
Slide 20: Reconciliation of Net Income to Adjusted EBITDA (Twelve Months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended September 30, 2019 Twelve months ended June 30, 2019 Twelve months ended March 31, 2019 Twelve months ended December 31, 2018 Twelve months ended September 30, 2018 Net income / (loss) -16 200 238 190 168 Income tax expen
Slide 21: Borrowings Table
Borrowings Table € millions September 30, 2019 December 31, 2018 Nominal Value in Currency Nominal Rate Effective Rate Nominal Value in Euros (Arrangement fees) Accrued Interests Carrying Value Carrying Value Secured Pan U.S. ABL (due 2022) $121 Floating 4.36% 111 — — 111 — Secured Inventory Based F