Constellium Se · NYSE:CSTM
Constellium — Q2 2016 Earnings Presentation
25 slides from Constellium's earnings presentation, Aug 2, 2016
Slide 1: Second Quarter 2016 Earnings Call
Second Quarter 2016 Earnings Call August 2, 2016
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
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, Adjusted Free Cash Flow and Net Debt. These measures are presented because management uses this information to monitor and evaluate finan
Slide 4: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 5: Initial Priorities
Initial Priorities ► Continue to improve our safety performance ► Sharpen our strategic and commercial focus ► Execute on our growth initiatives ► Deliver consistent and sustainable operational and financial performance ► Optimize return on capital investments Second Quarter 2016 – Earnings Call 5
Slide 6: Didier Fontaine, Chief Financial Officer
Didier Fontaine Chief Financial Officer
Slide 7: Q2 2016 Highlights (Q2 2016 vs Q2 2015)
Q2 2016 Highlights (Q2 2016 vs Q2 2015) ► Record Adjusted EBITDA of €107 million, up 15%, driven by a strong record performance in the AS&I segment, improved results in both the A&T and P&ARP segments ► Shipments of 387k metric tons, in-line with last year ► Revenue of €1.2 billion, down 10%, mainly
Slide 8: Adjusted EBITDA (Q2 2016 vs Q2 2015)
Adjusted EBITDA (Q2 2016 vs Q2 2015) € millions Record Adjusted EBITDA driven by outstanding performance in AS&I and improvement in A&T and P&ARP Second Quarter 2016 – Earnings Call 8
Slide 9: Packaging and Automotive Rolled Products Segment
Packaging and Automotive Rolled Products Segment Segment Outlook/Mix Adjusted EBITDA (€m) Segment shipments flat at 268 kt in Q2 2016 Automotive rolled product shipments up 30% Lower demand for specialty and other thin-rolled products Constellium Recent Developments Update on Muscle Shoals Adjusted
Slide 10: Aerospace and Transportation Segment
Aerospace and Transportation Segment Segment Outlook/Mix Adjusted EBITDA (€m) +6% Segment shipments flat at 62 kt North American end demand stable, slight H1 softness in European orders; H2 outlook stable Constellium Recent Developments Continued operational improvements Adjusted EBITDA per ton (€)
Slide 11: Automotive Structures and Industry Segment
Automotive Structures and Industry Segment Segment Outlook/Mix Adjusted EBITDA (€m) Segment shipments of 58 kt, up 4% +34% Strong demand in automotive structures applications and increasing global market share Constellium Recent Developments Record quarterly performance in Adjusted EBITDA Adjusted E
Slide 12: Adjusted Free Cash Flow
Adjusted Free Cash Flow Three months Three months € millions ended ended June 30, 2016 June 30, 2015 Cash flows from operating activities 182 152 Capital expenditures (78) (79) Adjusted free cash flow 104 73 Improved Adjusted free cash flow reflecting higher cash flows from operating activities and
Slide 13: Strong Liquidity
Strong Liquidity € millions June 30, 2016 December 31, 2015 Total Debt (*) 2,450 2,175 Cash and Cash Equivalents 622 472 Net Debt 1,828 1,703 Liquidity (**) 792 733 Ample liquidity to fund growth initiatives (*) Including fair value of cross currency interest swap and cash pledged for issuance of gu
Slide 14: Key Takeaways
Key Takeaways ► Record results and performance in AS&I ► Improved results in A&T and P&ARP segments, particularly in North American packaging ► Record Adjusted EBITDA of €107 million ► Cash Flows from Operating Activities of €182 million; Adjusted Free Cash Flow of €104 million ► Seasonally strong E
Slide 15: Vision for Unlocking Shareholder Value
Vision for Unlocking Shareholder Value ► Continue to improve safety and operational performance in all segments ► Focus on product sales and profitability within each segment ► Maximize free cash flow ► De-risk our growth investments ► De-lever the balance sheet ► Focus on shareholder communication
Slide 16: Q&A
Q&A Second Quarter 2016 – Earnings Call 16
Slide 17: Appendix
Appendix Second Quarter 2016 – Earnings Call 17
Slide 18: Shipments by Product Line (000's metric tons)
Shipments by Product Line (000’s metric tons) k metric tons Six months Six months Change June 30, 2016 June 30, 2015 Packaging rolled products 432 454 (5%) Automotive rolled products 57 44 30% Specialty and other thin-rolled products 23 36 (36%) Aerospace rolled products 61 58 5% Transportation, ind
Slide 19: IFRS – Q2 2016 Income Statement
IFRS – Q2 2016 Income Statement Three months ended Three months ended € millions June 30, 2016 June 30, 2015 Revenue 1,233 1,375 Income / (loss) from operations 80 (3) Finance costs – net (44) (36) Share of loss of joint-ventures (1) Income / (loss) before income taxes 35 (39) Income / (loss) before
Slide 20: IFRS – First Half 2016 Income Statement
IFRS – First Half 2016 Income Statement Six months ended Six months ended € millions June 30, 2016 June 30, 2015 Revenue 2,383 2,768 Income / (loss) from operations 133 (7) Finance costs – net (85) (79) Share of loss of joint-ventures (2) (1) Income / (loss) before income taxes 46 (87) Income tax (e
Slide 21: IFRS – Statement of Financial Position
IFRS – Statement of Financial Position € millions At June 30, 2016 At December 31, 2015 Non-current assets 2,217 2,166 Current assets 1,666 1,449 Assets held for sale - 13 Total Assets 3,883 3,628 Equity (609) (540) Non-current liabilities 3,408 2,962 Current liabilities 1,084 1,193 Liabilities held
Slide 22: Net Debt Reconciliation
Net Debt Reconciliation € millions June 30, 2016 December 31, 2015 Borrowings 2,498 2,233 Fair value of cross currency interest rate swap (39) (47) Cash and cash equivalents (622) (472) Cash pledged for issuance of guarantees (9) (11) Net Debt 1,828 1,703 Second Quarter 2016 – Earnings Call 22
Slide 23: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months ended Three months ended Six months ended Six months ended € millions June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Net income / (income) 9 (47) 1 (78) Income tax expense / (benefit) 26 8 45 (9) Income / (loss) before income tax
Slide 24: Liquidity Details
Liquidity Details € millions Availability at June 30, 2016 Ravenswood ABL 35 Wise ABL 95 Factoring 33 Other 7 Total 170 Cash and cash equivalents 622 Total Liquidity 792 Second Quarter 2016 – Earnings Call 24
Slide 25: Borrowings Table
Borrowings Table At June 30, 2016 At December 31, 2015 Type of Nominal Effective Type of Nominal Effective Amount Amount (in millions of Euros) rate rate rate rate rate rate Senior Notes Constellium N.V. In U.S. Dollar (due 2024) 358 Fixed 5.75% 6.26% 365 Fixed 5.75% 6.26% In Euro (due 2021) 297 Fix