Slide 1: Fourth Quarter and Full Year 2023 Earnings Call
Fourth Quarter and Full Year 2023 Earnings Call February 21, 2024 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 VAR, Adjusted EBITDA, Adjusted EBITDA per metric ton, Free Cash Flow, Adjusted NOPAT, Invested Capital, Adjusted ROIC and Net debt. These measures are presented because management uses t
Slide 4: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 5: Safety is Our Top Priority
Delivered best-in-class safety performance in 2023 with a recordable case rate of 1.95; focus on safety is never ending, targeting 1.5 recordable case rate by 2025 Safety is Our Top Priority (1) Recordable case rate measures the number of fatalities, serious injuries, lost-time injuries, restricted
Slide 6: Q4 2023 Highlights
+15% Adjusted EBITDA Bridge Ø Shipments: 336 thousand tons (-9% YoY) Ø Revenue: €1.6 billion (-13% YoY) Ø Value-Added Revenue (VAR): €681 million (-2% YoY) Ø Net income: €11 million Ø Adjusted EBITDA: €171 million (+15% YoY) Ø Cash from Operations: €185 million Ø Free Cash Flow: €58 million € in mil
Slide 7: FY 2023 Highlights
Ø Shipments: 1.5 million tons (-6% YoY) Ø Revenue: €7.2 billion (-11% YoY) Ø VAR: €2.9 billion (+7% YoY) Ø Net income: €129 million Ø Adjusted EBITDA: €713 million (+6% YoY) Ø Record Adjusted EBITDA in A&T Ø Cash from Operations: €506 million Ø Free Cash Flow: €170 million Ø Adjusted ROIC: 11.3% (up
Slide 8: Jack Guo, Chief Financial Officer
Jack Guo Chief Financial Officer
Slide 9: Value-Added Revenue Bridge
Value-Added Revenue Bridge Q4 2023 vs. Q4 2022 € millions -2% FY 2023 vs. FY 2022 € millions +7%
Slide 10: Packaging & Automotive Rolled Products
Packaging & Automotive Rolled Products Q4 2023 Q4 2022 %r Shipments (kt) 238 254 (6)% Revenue (€m) 865 1,008 (14)% Adj. EBITDA (€m) 82 71 16% Adj. EBITDA (€ / t) 345 278 24% Q4 2023 Performance Ø Adjusted EBITDA of €82 million Ø Higher automotive shipments; lower packaging and specialty shipments Ø
Slide 11: Aerospace & Transportation
Aerospace & Transportation Q4 2023 Q4 2022 %r Shipments (kt) 48 53 (9)% Revenue (€m) 408 422 (3)% Adj. EBITDA (€m) 76 56 36% Adj. EBITDA (€ / t) 1,583 1,079 47% Ø Adjusted EBITDA of €76 million Ø Higher aerospace shipments; lower TID shipments Ø Improved price and mix Ø Higher operating costs Ø Favo
Slide 12: Automotive Structures & Industry
Q4 2023 Performance Automotive Structures & Industry Q4 2023 Q4 2022 %r Shipments (kt) 50 61 (17)% Revenue (€m) 334 428 (22)% Adj. EBITDA (€m) 25 31 (22)% Adj. EBITDA (€ / t) 500 514 (3)% Ø Adjusted EBITDA of €25 million Ø Automotive shipments stable; lower industry shipments Ø Improved price and mi
Slide 13: Addressing Inflationary Pressures
Broad based and significant inflationary pressures continued throughout most of 2023, although pressure began to ease in some categories in Q4 2023 Inflationary pressures expected to continue in 2024 though at more moderated levels Labor and other non-metal costs higher 2024 energy largely secured a
Slide 14: Free Cash Flow
Free Cash Flow FY 2023 FY 2022 2023 Free Cash Flow Highlights Ø Solid Free Cash Flow of €170 million Ø Strong Adjusted EBITDA Ø Higher capital expenditures Ø Higher cash taxes and cash interest Ø €820 million of Free Cash Flow generated over the last 5 years Net cash flows from operating activities
Slide 15: Net Debt and Liquidity
Ø Leverage at 2.3x, a multi-year low Ø Target leverage range of 1.5x to 2.5x Ø Continued to reduce gross debt in 2023 Ø Redeemed $50 million of 2026 bonds Ø Reduced short-term borrowings Ø No near-term bond maturities Ø Strong liquidity position € in millions Net Debt and Leverage Maturity Profile(1
Slide 16: Changes to the Presentation of Certain Non-GAAP Financial Measures
Changes to the Presentation of Certain Non-GAAP Financial Measures Ø Changes are based on discussions with staff of the SEC and will be reflected when we report first quarter 2024 results Ø The Company will no longer report Value-Added Revenue Ø The Company will revise its definition of Adjusted EBI
Slide 17: Reconciliation of Net Income to Adjusted EBITDA (Annual)
Year ended December 31, (in millions of Euros) 2023 2022 2021 2020 2019 Net income 129 308 262 (17) 64 Income tax expense / (benefit) 67 (105) 55 (17) 18 Income before tax 196 203 317 (34) 82 Finance costs - net 141 131 167 159 175 Share of income of joint-ventures — — — — (2) Income from operations
Slide 18: Reconciliation of Net Income to Adjusted EBITDA (Quarterly)
Three months ended (in millions of Euros) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Net income 11 64 32 22 Income tax expense / (benefit) 32 18 12 5 Income before tax 43 82 44 27 Finance costs - net 35 36 35 35 Income from operations 78 118 79 62 Depreciation and amortization
Slide 19: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 20: Market Commentary
Market Commentary Packaging Canstock inventory adjustments appear largely behind us in both North America and Europe Demand has stabilized in recent quarters though still relatively low given inflationary environment and lack of promotional activity; expecting growth to return in 2024 Long-term tren
Slide 21: Targets
Targets Strong performance in 2023 Record Adjusted EBITDA and strong Free Cash Flow despite a number of challenges including significant inflationary pressures and demand headwinds in several end markets Strong operational performance and cost control Leverage at 2.3x, a multi-year low Exciting futu
Slide 22: Appendix
Appendix constellium Fourth Quarter 2023 Eamings Cal 22
Slide 23: VAR Reconciliation
Three months ended December 31, Year ended December 31, (in millions of Euros) 2023 2022 2023 2022 Revenue 1,613 1,844 7,239 8,120 Hedged cost of alloyed metal (939) (1,212) (4,374) (5,403) Revenue from incidental activities (7) (5) (27) (21) Metal price lag 14 69 86 29 VAR 681 696 2,924 2,725 Adjus
Slide 24: Reconciliation of Net Income to Adjusted EBITDA
Three months ended December 31, Year ended December 31, (in millions of Euros) 2023 2022 2023 2022 Net income 11 30 129 308 Income tax expense / (benefit) 32 (3) 67 (105) Income before tax 43 27 196 203 Finance costs - net 35 33 141 131 Income from operations 78 60 337 334 Depreciation and amortizat
Slide 25: Free Cash Flow Reconciliation
(in millions of Euros) Three months ended December 31, Year ended December 31, 2023 2022 2023 2022 Net cash flows from operating activities 185 128 506 451 Purchases of property, plant and equipment, net of grants received (127) (106) (336) (269) Free Cash Flow 58 22 170 182 (in millions of Euros) H
Slide 26: Net Debt Reconciliation
(in millions of Euros) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Borrowings 1,868 1,909 2,028 2,099 2,056 Fair value of net debt derivatives, net of margin calls (2) — — 1 1 Cash and cash equivalents (202) (159) (178) (193) (166) Net Debt 1,664 1,750 1,850 1
Slide 27: Reconciliation of Net Income to Adjusted EBITDA (LTM)
Twelve months ended (in millions of Euros) December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 December 31, 2022 Net income 129 148 215 151 308 Income tax expense / (benefit) 67 32 (123) (139) (105) Income before tax 196 180 92 12 203 Finance costs - net 141 139 139 136 131 Income from
Slide 28: Adjusted NOPAT and Invested Capital
Year ended December 31, (in millions of Euros) 2023 2022 Net income 129 308 Income tax expense / (benefit) 67 (105) Income before tax 196 203 Finance costs - net 141 131 Income from operations 337 334 Unrealized losses on derivatives 3 46 Unrealized exchange losses from the remeasurement of monetary
Slide 29: Borrowings Table
At December 31, At December 31, 2023 2022 (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 — — — — 81 Senior Unsecured Notes Issued November 2017 and due