Constellium Se · NYSE:CSTM
Constellium — Q3 2016 Earnings Presentation
30 slides from Constellium's earnings presentation, Nov 10, 2016
Slide 1: Third Quarter 2016 Earnings Call
Third Quarter 2016 Earnings Call November 10, 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: Q3 2016 Highlights (Q3 2016 vs Q3 2015)
Q3 2016 Highlights (Q3 2016 vs Q3 2015) ► Shipments of 377k metric tons, in-line with prior year ► Revenue of €1.2 billion, down 5% on a product mix shift ► Net Income of €15 million compared to a net loss of (€45 million) ► Adjusted EBITDA of €97 million, up 23% Strong operational improvement in
Slide 6: First 100 days
First 100 days ► Visited most of our locations and developed a firm grasp on our assets and capabilities ► Met with many of our customers, investors and analysts; completed investor perception study ► Reshaped new senior management team ► Initiated work on a long-term operational, strategic and fina
Slide 7: Corinne Fornara, Interim Chief Financial Officer
Corinne Fornara Interim Chief Financial Officer
Slide 8: Adjusted EBITDA (Q3 2016 vs Q3 2015)
Adjusted EBITDA (Q3 2016 vs Q3 2015) € millions Solid growth in Adjusted EBITDA driven by improvement in P&ARP and solid execution in AS&I Third Quarter 2016 – Earnings Call 8
Slide 9: Packaging and Automotive Rolled Products Segment
Packaging and Automotive Rolled Products Segment Q3 Segment Performance Highlights Q3 Adjusted EBITDA (€m) Segment shipments up 1% to 265 kt in Q3 2016 60 ► Stable packaging demand Q3/Q3 40 ► Automotive rolled product shipments up 33% Q3 15 Q3 16 Shipments: 262kt 265kt 1% Per ton: €153 €226 48% P&AR
Slide 10: Aerospace and Transportation Segment
Aerospace and Transportation Segment Q3 Segment Performance Highlights Q3 Adjusted EBITDA (€m) Segment shipments flat at 59 kt, transportation 0% increase offsets seasonal aerospace decrease 20 20 Solid European aerospace market demand; good aerospace plate production performance Q3 15 Q3 16 Shipmen
Slide 11: Automotive Structures and Industry Segment
Automotive Structures and Industry Segment Q3 Segment Performance Highlights Q3 Adjusted EBITDA (€m) Segment shipments of 53 kt, up 4% +13% 25 Strong demand in automotive structures, improved 22 demand in soft alloys Continuous operational improvement Q3 15 Q3 16 Shipments: 51kt 53kt 4% Per ton: €42
Slide 12: Adjusted Free Cash Flow
Adjusted Free Cash Flow Three months Three months ended ended € millions September 30, September 30, 2015 2016 Cash flows from operating activities 80 67 Capital expenditures (85) (74) Adjusted free cash flow (5) (7) Adjusted free cash flow reflects high levels of capital expenditures as we continue
Slide 13: Strong Liquidity
Strong Liquidity € millions December 31, 2015 June 30, 2016 September 30, 2016 Total Debt (*) 2,175 2,450 2,482 Cash and Cash 472 622 618 Equivalents (**) Net Debt 1,703 1,828 1,864 Liquidity (***) 733 792 791 Ample and stable liquidity (*) Including fair value of cross currency interest swap and ca
Slide 14: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 15: Key Takeaways From Investor Perception Outreach
Key Takeaways From Investor Perception Outreach Investment appeals Investment concerns ► Balanced business mix ► Limited transparency ► Attractive end markets ► Debt-heavy balance sheet ► Earnings growth potential ► Inconsistent execution ► Manufacturing excellence ► Strategic uncertainty ► New mana
Slide 16: Our Path Forward
Our Path Forward ► Focus on operational excellence, ensure disciplined capital deployment and build financial flexibility ► Enhance our dialogue with customers, investors and analysts ► Finalize our long-term operational, strategic and financial plan with a communication planned in March 2017 post e
Slide 17: Official Launch at Neuf-Brisach and Bowling Green
Official Launch at Neuf-Brisach and Bowling Green ► In October 2016, opened new auto body sheet 100k metric ton finishing line at Neuf- Brisach, France; ► New finishing line in the final stage of the qualification phase and has begun commercial production ► In September 2016, opened new auto body sh
Slide 18: Expansion and Growth at AS&I
Expansion and Growth at AS&I ► New $20 million manufacturing facility in White, Georgia to produce aluminium automotive structural components on schedule for completion; ► Production expected to begin in 2017 ► New $10 million manufacturing facility in San Luis Potosí, Mexico to produce aluminium au
Slide 19: Key Takeaways
Key Takeaways ► Improved results in P&ARP segment, solid execution in AS&I, and stable performance in A&T ► Solid Q3 Adjusted EBITDA performance of €97 million, up 23% quarter-over-quarter, and up 11% year-over-year; typical seasonal softness in Q4; solid foundation for 2017 ► New management team in
Slide 20: Q&A
Q&A Third Quarter 2016 – Earnings Call 20
Slide 21: Appendix
Appendix Third Quarter 2016 – Earnings Call 21
Slide 22: Shipments by Product Line (000's metric tons)
Shipments by Product Line (000’s metric tons) k metric tons Three months Three months September 30, September 30, 2015 2016 Packaging rolled products 224 226 Automotive rolled products 21 28 Specialty and other thin-rolled products 17 11 Aerospace rolled products 30 27 Transportation, industry, and
Slide 23: Shipments by Product Line (000's metric tons)
Shipments by Product Line (000’s metric tons) k metric tons Nine months Nine months September 30, September 30, 2015 2016 Packaging rolled products 678 658 Automotive rolled products 65 85 Specialty and other thin-rolled products 53 34 Aerospace rolled products 89 88 Transportation, industry, and ot
Slide 24: IFRS – Q3 2016 Income Statement
IFRS – Q3 2016 Income Statement € millions Three months ended Three months ended September 30, 2015 September 30, 2016 Revenue 1,259 1,199 Income / (loss) from operations (1) 84 Finance costs – net (40) (45) Share of loss of joint-ventures (1) (6) Income / (loss) before income taxes (42) 33 Income t
Slide 25: IFRS – YTD 2016 Income Statement
IFRS – YTD 2016 Income Statement € millions Nine months ended Nine months ended September 30, 2015 September 30, 2016 Revenue 4,031 3,582 Income / (loss) from operations (8) 217 Finance costs – net (119) (130) Share of loss of joint-ventures (2) (8) Income / (loss) before income taxes (129) 79 Incom
Slide 26: IFRS – Statement of Financial Position
IFRS – Statement of Financial Position € millions At December 31, At September 30, 2015 2016 Non-current assets 2,166 2,218 Current assets 1,449 1,698 Assets held for sale 13 - Total Assets 3,628 3,916 Equity (540) (596) Non-current liabilities 2,962 3,410 Current liabilities 1,193 1,102 Liabilities
Slide 27: Net Debt Reconciliation
Net Debt Reconciliation € millions December 31, June 30, September 30, 2015 2016 2016 Borrowings 2,233 2,498 2,522 Fair value of cross currency interest rate swap (47) (39) (31) Cash and cash equivalents (472) (622) (618) Cash pledged for issuance of guarantees (11) (9) (9) Net Debt 1,703 1,828 1,86
Slide 28: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months Three months Nine months Nine months ended ended ended ended € millions September September September September 30, 2015 30, 2016 30, 2015 30, 2016 Net income / (income) (45) 15 (123) 16 Income tax expense / (benefit) 3 18 (6) 63 Income /
Slide 29: Liquidity Details
Liquidity Details € millions Availability at Availability at June 30, 2016 September 30, 2016 Ravenswood ABL 35 28 Wise ABL 95 101 Factoring 33 37 Other 7 7 Total 170 173 Cash and cash equivalents 622 618 Total Liquidity 792 791 Third Quarter 2016 – Earnings Call 29
Slide 30: Borrowings Table
Borrowings Table € millions At December 31, 2015 At September 30, 2016 Amount Type of Nominal Effective Amount Type of Nominal Effective rate rate rate rate rate rate Senior Notes Constellium N.V. In U.S. Dollar (due 2024) 365 Fixed 5.75% 6.26% 361 Fixed 5.75% 6.26% In Euro (due 2021) 297 Fixed 4.63