Constellium Se · NYSE:CSTM
Constellium — Debt Investor Presentation (March 2016)
19 slides from Constellium's debt investor presentation, Mar 16, 2016
Slide 1: 2015 Year-End Bondholder Conference Call
Wise Metals Group and Wise Metals Intermediate Holdings 2015 Year-End Bondholder Conference Call March 16, 2016 Exhibit 99.2
Slide 2: Frederic Dunod, Investor Relations
Frederic Dunod Investor Relations
Slide 3: Forward-looking statements
This presentation contains forward-looking statements. All statements other than statements of historical facts contained in this presentation, including statements regarding our future results of operations and financial position, business strategy and plans and our objectives for future operations
Slide 4: Forward-looking statements (continued)
• our ability to develop new products and enter into new markets; • the outcome of legal or regulatory proceedings to which we are or may become a party; • increases in our product liability or warranty costs; •our relationships with employees and labor unions; • changes in the value of our pension
Slide 5: Non-GAAP Financial Measure
Non-GAAP Financial Measure This presentation includes a non-GAAP financial measure, Adjusted EBITDA. The non-GAAP financial measure presented herein and discussed on this call is not a measure presented in accordance with U.S. generally accepted accounting principles (“GAAP”), because it is adjusted
Slide 6: Wes Oberholzer, President
Wes Oberholzer President Wise Metals Group
Slide 7: Full Year 2015 Update
Full Year 2015 Update Record shipments – 982.4 million pounds for 2015, an increase of 13.5% over 2014 Revenues up 1% – negatively impacted by the ongoing depression of the Mid-West Transaction Price (“MWTP”), which averaged 88 cents per pound in 2015 compared to $1.05 per pound in 2014 Market condi
Slide 8: Full Year 2015 Update – Continued
Full Year 2015 Update – Continued Entered into a new labor contract with the United Steelworkers through November 2020 Amended our Factoring Facility, with first sales of receivables in October 2015 Announced election to pay the June 2016 WMIH PIK Toggle Note coupon in-kind
Slide 9: Delivering the Highest-Quality Products On Time
Color Scheme 255 153 51 0 176 240 204 51 0 231 223 235 191 215 37 94 47 127 Delivering the Highest-Quality Products On Time 99% on-time shipment deliveries while maintaining best-in-class safety standards
Slide 10: Our Goal is to be The Safest Company in Our Industry
Our Goal is to be “The Safest Company in Our Industry” Safety Statistics *Recordable Incident Rate **Source: The Bureau of Labor Statistics. 2015 industry data not yet available. .
Slide 11: 2016 Developments
2016 Developments Received $47.9 million in cash, in exchange for a restrictive covenant agreement under which we agreed, for a period of five years, not to manufacture trailer roof coil products, allowing Wise to better optimize capacity for its core business Amended certain terms in our sales cont
Slide 12: Yves Monette, Chief Financial Officer
Yves Monette Chief Financial Officer Wise Metals Group
Slide 13: 2015 Operating Highlights
Color Scheme 255 153 51 0 176 240 204 51 0 231 223 235 191 215 37 94 47 127 2015 Operating Highlights Shipments were 13.5% higher than 2014. 32 million pounds of the increase is attributable to our ability to cover a competitor’s shortfall during Q1 due to a mill outage. Revenue increased slightly b
Slide 14: Adjusted EBITDA Bridge – 2014 to 2015
Color Scheme 255 153 51 0 176 240 204 51 0 231 223 235 191 215 37 94 47 127 *Adjusted EBITDA Bridge – 2014 to 2015
Slide 15: Free Cash Flow & Liquidity – 2015 and 2014
Color Scheme 255 153 51 0 176 240 204 51 0 231 223 235 191 215 37 94 47 127 Free Cash Flow & Liquidity – 2015 and 2014 Free Cash Flow equals Adjusted EBITDA less Capital Expenditures ABL balance of $108 million at year-end 2015 compared to $326 million at 2014 ABL availability of $24.5 million at ye
Slide 16: Wes Oberholzer, President
Wes Oberholzer President Wise Metals Group
Slide 17: Key Takeaways
Key Takeaways Record shipments of 982.4 million pounds in 2015 Addressed the majority of our metal management issues and risks associated with Mid-West Premiums – through renegotiation of customer contracts and through implementation of Constellium’s hedging policies Ceased trailer roof coil product
Slide 18: Appendix
Appendix ¢ Constellium 2015 Year-End Bondholder Conference Cal 18
Slide 19: Adjusted EBITDA Reconciliation
*Adjusted EBITDA Reconciliation Color Scheme 255 153 51 0 176 240 204 51 0 231 223 235 191 215 37 94 47 127 (a) We use the LIFO method of accounting to value our manufacturing inventory. Under this method of inventory accounting, inventory is recorded at current costs and then revalued based on the
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