Constellium Se · NYSE:CSTM
Constellium — Q1 2019 Earnings Presentation
21 slides from Constellium's earnings presentation, Apr 24, 2019
Slide 1: First Quarter 2019 Earnings Call
First Quarter 2019 Earnings Call April 24, 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: Q1 2019 Highlights
Q1 2019 Highlights Total Shipments of 413 thousand tons up 6% compared to Q1 2018 Successfully executing on our automotive strategy with shipments up 18% YoY Revenue increased 11% YoY to €1.5 billion on the consolidation of Bowling Green and improved price and mix Net income of €24 million compared
Slide 6: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 7: Adjusted EBITDA Bridge Q1 2019 vs. Q1 2018
Adjusted EBITDA Bridge Q1 2019 vs. Q1 2018 € millions +12% Q1 2018 Q1 2019
Slide 8: Packaging and Automotive Rolled Products Q1 2019 Highlights
Q1 2019 Highlights Adjusted EBITDA of €59 million Increased Automotive and Packaging shipments Favorable metal costs and FX translation offset by higher costs from the ramp up of automotive programs Ramp up of FT3 in Neuf-Brisach and Bowling Green on track Packaging and Automotive Rolled Products Q1
Slide 9: Aerospace and Transportation Q1 2019 Highlights
Q1 2019 Highlights Adjusted EBITDA of €52 million Increased Aerospace shipments Improved price and mix, largely on TID shipments Solid operational performance Favorable FX translation Aerospace and Transportation Q1 2019 Q1 2018 Var. Shipments (kt) 66 64 2% Revenues (€m) 378 343 10% Adj. EBITDA (€m)
Slide 10: Automotive Structures and Industry Q1 2019 Highlights
Q1 2019 Highlights Automotive Structures and Industry Adjusted EBITDA of €29 million Higher Automotive shipments Higher costs related to new product launches and footprint expansion Q1 2019 Q1 2018 Var. Shipments (kt) 66 65 1% Revenues (€m) 344 317 8% Adj. EBITDA (€m) 29 36 (19)% Adj. EBITDA (€ / t)
Slide 11: Project 2019 Three Pillars
Project 2019 Three Pillars Cost Reduction €60 million of annual run-rate cost savings achieved as of March 31, 2019 Target of €75 million of annual run-rate cost savings by December 31, 2019 Working Capital Improvement Committed to improvement of working capital turns Expect working capital investme
Slide 12: Net Debt and Liquidity
Net Debt and Liquidity € in millions Net Debt and Leverage Maturity Profile Liquidity Debt / Liquidity Highlights Remain committed to deleveraging The increase in leverage due to acquisition of Bowling Green and application of IFRS 16 was ~0.5x Expect leverage below 4.0x by the end of 2019 Strong Ca
Slide 13: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 14: End Market Updates
End Market Updates Automotive: North America: Market SAAR expected to decline slightly in 2019 Europe: Market expected to remain flat in 2019 Demand for luxury cars, light trucks, and SUVs remains strong Penetration driving increased demand for rolled and extruded aluminium products Aerospace: Susta
Slide 15: Financial Guidance and Outlook
Financial Guidance and Outlook Targets for 2019 : Adjusted EBITDA growth of 8% to 10% Free Cash Flow in excess of €50 million Targets for 2022: Adjusted EBITDA of over €700 million Net Debt / Adjusted EBITDA of 2.5x Focused on delivering on our strategy and increasing shareholder value
Slide 16: Q&A
Q&A @ constellium Fist Quarter 2019 -Eamings Call 16
Slide 17: Appendix
Appendix @ constettium First Quarter 2019 - Earnings Cal 17
Slide 18: Net Debt Reconciliation
Net Debt Reconciliation March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Borrowings 2,421 2,151 2,103 2,184 2,093 Fair value of cross currency basis swaps, net of margin calls 2 9 25 20 46 Cash and cash equivalents (222) (164) (279) (166) (211) Cash pledged for issuan
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA € millions Three months ended March 31, 2019 Three months ended March 31, 2018 Net income / (loss) 24 (24) Income tax expense 15 4 Income / (loss) before income tax 39 (20) Finance costs – net 46 38 Share of (income) / loss of joint-ventures (5) 3 Inco
Slide 20: Reconciliation of Net Income to Adjusted EBITDA (Twelve months)
Reconciliation of Net Income to Adjusted EBITDA € millions Twelve months ended March 31, 2019 Twelve months ended December 31, 2018 Twelve months ended September 30, 2018 Twelve months ended June 30, 2018 Twelve months ended March 31, 2018 Net income / (loss) 239 190 168 (28) (68) Income tax expense
Slide 21: Borrowings Table
Borrowings Table € millions March 31, 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 US ABL (due 2022) — Floating 4.22% 155 — — 155 — Secured Inventory Based Facility (