Constellium Se · NYSE:CSTM
Constellium — FY2013 Earnings Presentation
23 slides from Constellium's earnings presentation, Mar 20, 2014
Slide 1: Fourth Quarter and Full Year 2013 – Earnings Call
Fourth Quarter and Full Year 2013 – Earnings Call March 20, 2014
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 Management Adjusted EBITDA, Adjusted EBITDA, Adjusted EBITDA per metric ton, Adjusted Free Cash Flow and Net Debt. These measures are presented because management uses this information t
Slide 4: 2013 highlights: strong performance in all business segments
2013 highlights: strong performance in all business segments 2013 was a transformational year for Constellium Adjusted EBITDA: €280m, up €57 million (+26% YoY), driven by new business in Aerospace and Automotive markets Adjusted EBITDA per metric ton: €273, up €57 (+26% YoY) reflecting a riche
Slide 5: Continuing our Evolution by Expanding Our Free Float
Continuing our Evolution by Expanding Our Free Float Shares of Constellium (in millions) ∑= 105.0 ∑= 105.0 ∑= 105.0 ∑= 105.0 ∑= 105.0 Rio Tinto / Management Rio Tinto Secondary Secondary Apollo Secondary Apollo Secondary (1) (1) (1) Rio Tinto Free float Apollo Bpifrance Management KG (1) From time t
Slide 6: 2013 Segment Performance
2013 Segment Performance Adjusted EBITDA (€m) Adjusted EBITDA per metric ton A&T Volume (kt) 224 244 P&ARP Volume (kt) 606 595 Source: Company earnings reports AS&I Volume (kt) 206 191 Fourth Quarter 2013 – Earnings Call 6
Slide 7: Aerospace Market: Strong Long Term Outlook
Aerospace Market: Strong Long Term Outlook Market context Implemented new 5 year contract with Airbus consolidating #1 global aerospace plate position Constellium is increasing market share High Inventory levels in the downstream supply chain However, 90% of our aerospace business under long term co
Slide 8: Automotive Rolled Market: investing in new BiW Capacity in Europe and in the U.S.
Automotive Rolled Market: investing in new BiW Capacity in Europe and in the U.S. Market context European BiW demand increasing as aluminum goes into new models and more parts per vehicle US BiW demand a true “game changer”; production capacity below projected long term demand Constellium recent dev
Slide 9: Automotive Extrusions Market: Constellium is a leader in new Crash Management Systems
Automotive Extrusions Market: Constellium is a leader in new Crash Management Systems (CMS) Market context Automotive Structures volume has increased +17% Strong visibility into orders with over 6 years of production at current rates Constellium recent developments In February 2014 we launched a new
Slide 10: Packaging Market: Maintained good performance at slightly lower volumes
Packaging Market: Maintained good performance at slightly lower volumes Market context Can body stock; #1 in Europe Closure stock; #1 worldwide European market is 78% aluminum, compared with 100% in U.S. Lower growth in 2013 due to adverse weather Some customers adjusted production and inventory lev
Slide 11: Consistent Year Over Year Improvement
Consistent Year Over Year Improvement Adjusted EBITDA (€mm) Q1 Q2 Q3 Q4 FY Adjusted EBITDA / Ton (€ / t) Source: Company earnings reports Q1 Q2 Q3 Q4 FY Strong performance and consistent improvement in every quarter Fourth Quarter 2013 – Earnings Call 11
Slide 12: Q4 2013 Segment Performance
Q4 2013 Segment Performance Adjusted EBITDA (€m) Adjusted EBITDA per metric ton A&T Volume (kt) 53 61 P&ARP Volume (kt) 137 131 Source: Company earnings reports AS&I Volume (kt) 46 45 Fourth Quarter 2013 – Earnings Call 12
Slide 13: Adjusted Free Cash Flow – Continuing Improvement in Trade Working Capital
Adjusted Free Cash Flow – Continuing Improvement in Trade Working Capital December December € millions Change Insight Operating Trade Working Capital (€ millions) 31, 2013 31, 2012 IPO fees (27) Decrease in Cash flow from 184 246 (62) TWC operating activities 514 Improvement 470 463 (25) 373 Margin
Slide 14: Strong balance sheet with no near term maturities
Strong balance sheet with no near term maturities € millions December 31, 2013 Total Debt(*) 365 Cash and Cash Equivalents 233 Net Debt 132 Net Debt/ 0.5x LTM Adjusted EBITDA Liquidity(**) 392 Average Debt Life - 5 Years (*) Including fair value of cross currency interest swap and cash pledged for i
Slide 15: Key Takeaways
Key Takeaways Strong Year Over Year performance across all reporting segments Strong cash flow from Packaging activities Solid performance in Aerospace and Automotive markets New investments in the European and U.S. BiW Public float now over 84% Fourth Quarter 2013 – Earnings Call 15
Slide 16: Q&A
Q&A Fourth Quarter 2013 – Earnings Call 16
Slide 17: IFRS Statements
IFRS Statements Fourth Quarter 2013 – Earnings Call 17
Slide 18: IFRS – Balance Sheet
IFRS – Balance Sheet € millions December 31, 2013 December 31, 2012 Non-current assets 674 594 Current assets 1 069 1 037 Assets held for sale 21 Total Assets 1 764 1 631 Equity 36 (37) Non-current liabilities 970 923 Current liabilities 749 745 Liabilities held for sale 9 Total Liabilities 1 764 1
Slide 19: IFRS – Income Statement
IFRS – Income Statement Year ended Year ended € millions December 31, 2013 December 31, 2012 Revenue 3 495 3 610 Income from operations 209 263 Other expenses (27) (3) Finance costs – net (50) (60) Share of profit (loss) of joint-ventures 3 (5) Income before income taxes 135 195 Income tax expense (
Slide 20: Non-GAAP Measures Reconciliations
Non-GAAP Measures Reconciliations Fourth Quarter 2013 – Earnings Call 20
Slide 21: Net Debt
Net Debt € millions As Dec 31, 2013 As Dec 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 132 17 Fourth Quarter 2013 – Earnings Call 21
Slide 22: Adjusted Free Cash Flow
Adjusted Free Cash Flow Year ended Year ended € millions December 31, 2013 December 31, 2012 Cash flow from operating activities 184 246 Margin calls included in cash flow from (4) (7) operating activities Cash flow from operating activities 180 239 excluding margin calls Capital expenditure (144) (
Slide 23: Adjusted EBITDA
Adjusted EBITDA Year ended Year ended € millions December 31, 2013 December 31, 2012 Shipments 1 025 1033 Revenue 3 495 3 610 Net income from continuing operations 96 149 Income tax expense 39 46 Income before income tax 135 195 Finance costs - net 50 60 Other expenses/share of results of joint-vent