Constellium Se · NYSE:CSTM

Constellium — Q2 2024 Earnings Presentation

23 slides from Constellium's earnings presentation, Jul 23, 2024

  1. Slide 1: Second Quarter 2024 Earnings Call

    Second Quarter 2024 Earnings Call July 23, 2024 Exhibit 99.2

  2. Slide 2: Forward-Looking Statements

    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 opera

  3. Slide 3: Non-GAAP Measures

    Non-GAAP Measures This presentation includes information regarding certain non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow and Net debt. These measures are presented because management uses this information to monitor and evaluate financial results and trends and believes this

  4. Slide 4: Jean-Marc Germain, Chief Executive Officer

    Jean-Marc Germain Chief Executive Officer

  5. Slide 5: Q2 2024 Highlights

    Q2 2024 Highlights Safety: Recordable case rate (RCR)(1) of ~1.9 per million hours worked in Q2 2024; YTD RCR of ~2.1 per million hours worked Shipments: 378 thousand tons (-5% YoY) Revenue: €1.8 billion (-8% YoY) Net income: €71 million Cash from Operations: €152 million Free Cash Flow: €75 million

  6. Slide 6: Jack Guo, Chief Financial Officer

    Jack Guo Chief Financial Officer

  7. Slide 7: Packaging & Automotive Rolled Products Q2 2024 Performance

    Segment Adjusted EBITDA of €64 million Lower packaging and automotive shipments Unfavorable price and mix Operating challenges at Muscle Shoals Unfavorable metal costs Q2 2024 Performance Packaging & Automotive Rolled Products Q2 2024 Segment Adjusted EBITDA Bridge Q2 2024 Q2 2023 % △ Shipments (kt)

  8. Slide 8: Aerospace & Transportation Q2 2024 Performance

    Aerospace & Transportation Q2 2024 Segment Adjusted EBITDA Bridge Q2 2024 Q2 2023 % △ Shipments (kt) 60 60 —% Revenue (€m) 452 464 (3)% Segment Adj. EBITDA (€m) 83 96 (14)% Segment Adj. EBITDA (€ / t) 1,395 1,613 (14)% Segment Adjusted EBITDA of €83 million Stable aerospace and TID shipments Unfavor

  9. Slide 9: Automotive Structures & Industry Q2 2024 Performance

    Automotive Structures & Industry Q2 2024 Segment Adjusted EBITDA Bridge Q2 2024 Q2 2023 % △ Shipments (kt) 56 66 (15)% Revenue (€m) 357 443 (19)% Segment Adj. EBITDA (€m) 32 39 (19)% Segment Adj. EBITDA (€ / t) 573 597 (4)% Segment Adjusted EBITDA of €32 million Lower automotive and industry shipmen

  10. Slide 10: Free Cash Flow

    Free Cash Flow of €67 million; compared to H1 2023: Lower working capital Lower cash interest Lower Segment Adjusted EBITDA Higher capital expenditures Higher cash taxes Repurchased 1.89 million shares for $39.4 million Free Cash Flow Track Record of Free Cash Flow Generation in € millions in € mill

  11. Slide 11: Debt / Liquidity Highlights

    Leverage of 2.5x at quarter-end Target leverage range of 1.5x to 2.5x No near-term bond maturities Strong liquidity position Debt / Liquidity Highlights Net Debt and Liquidity Maturity Profile(1) in € millions Liquidity in € millions Net Debt and Leverage in € millions Strong balance sheet and impro

  12. Slide 12: Jean-Marc Germain, Chief Executive Officer

    Jean-Marc Germain Chief Executive Officer

  13. Slide 13: End Market Demand Trends

    Transportation, Industry and Defense (Rolled): Demand remains weak Industry (Europe Extrusions): Demand remains weak across industrial markets and visibility is low Other Specialties (Rolled) Demand remains weak Production of light vehicles near pre-COVID levels in North America; remains well below

  14. Slide 14: Continuing to Plant Seeds Today for Future Growth and Profitability

    Rebuilding Muscle Shoals Direct Chill casting center with a grant from the Department of Defense (DoD) Continuing to Plant Seeds Today for Future Growth and Profitability Total investment of ~$65 million, supported by a DoD grant of $23 million Increase annual casting capacity by up to 300 million p

  15. Slide 15: Update on Flooding Situation in the Valais

    Update on Flooding Situation in the Valais Unprecedented flooding in the Valais region of Switzerland in late June, devastating the region, including industrial activities at Constellium and elsewhere Constellium’s plate and extrusion shops in Sierre and casthouse in Chippis severely flooded; operat

  16. Slide 16: Currently Expected Valais Impact and Outlook

    Currently expected Valais impact We are working closely with our insurance company and the latest insurance estimates have a gross damage assessment of approximately €135 million Includes estimated damages, cleaning costs and business interruption expenses The gross damage assessment is before consi

  17. Slide 17: Solid Performance in Q2 2024

    Solid performance in Q2 2024 Solid 2Q results despite mixed end market demand and two large planned maintenance outages Strong Free Cash Flow in the quarter of €75 million Increased share repurchases in Q2; H1 2024 repurchased 1.89 million shares for $39.4 million Operations in the Valais region in

  18. Slide 18: Appendix

    SN Appendix + Constellium

  19. Slide 19: Reconciliation of Net Income to Adjusted EBITDA

    Reconciliation of Net Income to Adjusted EBITDA ≥130 Three months ended June 30, Six months ended June 30, (in millions of Euros) 2024 2023 2024 2023 Net income 71 32 88 54 Income tax expense 24 12 32 17 Income before tax 95 44 120 71 Finance costs - net 32 35 65 70 Income from operations 127 79 185

  20. Slide 20: Free Cash Flow Reconciliation

    Free Cash Flow Reconciliation Three months ended June 30, Six months ended June 30, (in millions of Euros) 2024 2023 2024 2023 Net cash flows from operating activities 152 133 206 167 Purchases of property, plant and equipment, net of grants received (77) (65) (139) (133) Free Cash Flow 75 68 67 34

  21. Slide 21: Net Debt Reconciliation

    Net Debt Reconciliation ≥130 (in millions of Euros) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 Borrowings 1,895 1,883 1,868 1,909 2,028 Fair value of net debt derivatives, net of margin calls — 1 (2) — — Cash and cash equivalents (213) (180) (202) (159) (178) Net

  22. Slide 22: Reconciliation of LTM Segment Adjusted EBITDA to Net Income

    Reconciliation of LTM Segment Adjusted EBITDA to Net Income ≥130 Twelve months ended (in millions of Euros) June 30, 2024 March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 P&ARP 256 271 283 272 283 A&T 318 331 324 304 270 AS&I 116 123 133 139 148 H&C (29) (28) (27) (25) (19) Segment

  23. Slide 23: Borrowings Table

    Borrowings Table ≥130 At June 30, At December 31, 2024 2023 (in millions of Euros) Nominal Value in Currency Nominal Rate Nominal Value in Euros (Arrangement fees) Accrued Interests Carrying Value Carrying Value Secured Pan-U.S. ABL (due 2026) $— Floating — — — — — Senior Unsecured Notes Issued Nove

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