Constellium Se · NYSE:CSTM
Constellium — Investor Day (April 2022)
78 slides from Constellium's investor day presentation, Apr 6, 2022
Slide 1: Analyst Day
ANALYST DAY Muscle Shoals, AL April 6, 2022 2022 1 Analyst Day
Slide 2: Important Information
Important Information 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 busi
Slide 3: Agenda
Agenda Topic Presenter Start Time Introduction/ Jean-Marc Germain 8:00AM Sustainability CEO Peter Basten* P&ARP 8:40AM BU President Philippe Hoffmann* AS&I 9:05AM BU President Break 9:30AM Ingrid Joerg* A&T 9:45AM BU President Peter Matt Finance 10:10AM EVP and CFO Jean-Marc Germain + Q&A 10:35AM Pe
Slide 4: Introduction
INTRODUCTION J E A N - M A R C G E R M A I N 2022 4 Analyst Day
Slide 5: Today's Key Messages
Today’s Key Messages Diversified portfolio with durable, sustainability-driven 1 secular growth trends Compelling strategy with a track record of successful 2 execution Leverage closing in on 2.5x target, capital allocation 3 priorities pivoting to growth and shareholder returns; significant opportu
Slide 6: Safety is Our Top Priority
Safety is Our Top Priority Constellium Group Muscle Shoals, AL Recordable Case Rate Recordable Case Rate 14.0 4.3 8.5 U.S. (2021) 1.6 3.3 3.2 European 2.9 2.3 2.4 (2019) 1.8 1.9 2015 2016 2017 2018 2019 2020 2021 Peers* 2015 2021 ▪ Best-in-class safety performance ▪ Significant improvement since 201
Slide 7: Potential 2022 Impacts from the Russia/Ukraine Conflict
Potential 2022 Impacts from the Russia/Ukraine Conflict ▪ De minimis sales in Russia or the Ukraine ▪ Supplier impacts limited thus far, though monitoring situation closely Small amount of metal input (~4% from Russian suppliers); potential for lost sales, some offset from higher metal prices Mo
Slide 8: Constellium: A Diversified Fabricator of Value Added Aluminium Products
Constellium: A Diversified Fabricator of Value Added Aluminium Products ~12K 29 3 Employees Facilities Business Units 1.6M €6.2B €581M Tons Shipped Revenue Adjusted EBITDA 25.7% €135M 3.4x Adj. EBITDA / VAR Free Cash Flow Leverage Note: All financial and tonnage figures are for FY2021. Adjusted EBIT
Slide 9: A Global Leader with Three Strong, Well-Positioned Business Units
A Global Leader with Three Strong, Well-Positioned Business Units Packaging & Automotive Automotive Structures & Aerospace & Rolled Products Industry Transportation €3.7B €1.4B €1.1B Revenue Revenue Revenue Sheet products Extrusions and Plate and sheet structural products products Note: All revenue
Slide 10: Focused on Diversified End Markets Benefiting from Secular Growth Trends
Focused on Diversified End Markets Benefiting from Sustainability-Driven Secular Growth Trends Packaging Automotive Aerospace Other Specialties CSTM % of 2021 Revenue 43% 26% 6% 25% Forecasted Aluminium Sheet/Plate Growth 4% to 5% 11% to 15% 13% to 15% 3% to 5% (CAGR) through 2025(1) Lightweighting,
Slide 11: Aluminium is the Growth Catalyst Given Its Sustainable Attributes
Aluminium is the Growth Catalyst Given Its Sustainable Attributes Infinitely Strong Lightweight Recyclable ▪ Despite density 1/3rd ▪ Provides a ~40% ▪ Does not lose properties 13 that of steel weight reduction when recycled compared to similar ▪ Shaped component ▪ Recycling aluminium steel structure
Slide 12: Substantial Opportunities for Aluminium in Packaging and Automotive
Substantial Opportunities for Aluminium in Packaging and Automotive Packaging Automotive ▪ Consumer preference for sustainable packaging is ▪ Lightweighting is driving secular growth opportunity driving secular growth opportunity Reduce emissions in ICEs ▪ Can makers are investing in new capacity;
Slide 13: We Remain Committed to Our Business Strategy
We Remain Committed to Our Business Strategy - A Critical Driver of Our Success… Focus on Growing in High Value-Added and Responsible Products Increase Customer Connectivity Our Optimize Margins and Asset Utilization Strategic Pillars Strictly Control Costs, Manage Resources Responsibly Demonstrate
Slide 14: …And to a Strong ESG Profile
…And to a Strong ESG Profile Environmental Social Governance ▪ External targets: reduce GHG ▪ Safety record among the best ▪ Chairman / CEO role split intensity, increase recycled in the industry input ▪ Diverse Board: >40% women ▪ Focused on training and ▪ Broader set of internal targets: developme
Slide 15: Digital Technologies Bring Opportunities to Enhance Safety, Efficiency, Profitability
Digital Technologies Bring Opportunities to Enhance the Safety, Efficiency and Profitability of Our Business Organization and Investments Results and Benefits ▪ Dedicated global and local teams ▪ Digital tools to enhance plant safety ▪ Digital Innovation Fund ▪ Predictive maintenance and machine ▪ B
Slide 16: Strong Track Record of Successful Execution
Strong Track Record of Successful Execution Steady Adjusted EBITDA Growth: Strong Free Cash Flow Generation: ~8% CAGR >€460M Since 2019 € millions € millions 175 157 581 135 562 498 448 465 398 -10 363 Grow Generate -134 Adjusted Strong Free -225 EBITDA Cash Flow -293 2015 2016 2017 2018 2019 2020 2
Slide 17: Earnings Growth Opportunities on the Horizon
Exciting Earnings Growth Opportunities on the Horizon for Constellium 1 2 3 4 End Market Harvest Prior Continuous Incremental Recovery Investments Improvement Growth Investments ▪ Aerospace ▪ TID ▪ Recycling ▪ Packaging ▪ Automotive ▪ Industry extrusion ▪ Run-rate Horizon 2022 ▪ Automotive presses ▪
Slide 18: Capital Allocation Priorities Will Broaden
As Leverage Closes in on 2.5x, Our Capital Allocation Priorities Will Broaden ▪ Gross debt reduction Achieve Near / leverage ▪ Increase growth capex to ~€150M per year Medium-Term target of (~2x historical rate) through 2025 Priorities 2.5x ▪ Highly selective M&A Consistent Free Cash Flow Generation
Slide 19: Establishing Our Public Sustainability Targets
Establishing Our Public Sustainability Targets Provide a Safe Achieve a best-in-class 1.5 Recordable Case Rate (RCR) in 2025 (vs. ~2 in 2021) and Diverse Increase the percentage of women in professional and management roles at Environment Constellium to 25% in 2025 (vs ~21% in 2021) Reduce our scope
Slide 20: Establishing Our Long-Term Financial Guidance
Establishing Our Long-Term Financial Guidance 2022 ▪ Adjusted EBITDA of €600M to €620M ▪ Free Cash Flow > €150M 2025 ▪ Adjusted EBITDA > € 800M Note: Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. See Appendix for definitions of non-GAAP financial measures. 2022 20 Analyst Day
Slide 21: Today's Presenters
Today’s Presenters PETER BASTEN PHILIPPE HOFFMANN PRESIDENT, PACKAGING & AUTOMOTIVE ROLLED PRESIDENT, AUTOMOTIVE PRODUCTS STRUCTURES & INDUSTRY INGRID JOERG PETER MATT PRESIDENT, AEROSPACE EVP & CHIEF FINANCIAL & TRANSPORTATION OFFICER 2022 21 Analyst Day
Slide 22: Packaging & Automotive Rolled Products
PACKAGING & AUTOMOTIVE ROLLED PRODUCTS P E T E R B A S T E N 2022 22 Analyst Day
Slide 23: P&ARP: A Global Leader in Packaging and Automotive Rolled Products
P&ARP: A Global Leader in Packaging and Automotive Rolled Products End Markets Beverage Cans Automotive Closures Bowling Green Singen Cosmetics Foilstock Muscle Shoals Neuf-Brisach 2021 Figures Customers 4 PLANTS WORLDWIDE Sheet PRODUCTS 3,900 EMPLOYEES 1.1MT SHIPMENTS € 3.7B REVENUE € 344M ADJUSTED
Slide 24: Strong Results on Successful Ramp-Up of NA Operations
Strong Results on Successful Ramp-Up of NA Operations; Significant Growth Opportunities on Both Sides of the Atlantic Shipments (kt) Strategic Priorities 1,097 1,104 1,008 1,039 1,019 4% ▪ Grow our recycling and casting footprint 21% Execute Neuf-Brisach investment Developing solutions for Muscl
Slide 25: North America Update: Solid Execution and Strong Adjusted EBITDA Contribution
North America Update: Solid Execution and Strong Adjusted EBITDA Contribution Case Study: P&ARP North America ▪ North America achievements: New leadership bringing solid industry experience Strong Growth in Adjusted EBITDA Built a strong safety and quality culture (MS + BG) Enhanced maintenanc
Slide 26: Can Stock is Our Largest End Market
Can Stock is Our Largest End Market and Growing at a Mid-Single-Digit Rate Projected NA Can Stock Demand (kt) Market Trends 3,000 CAGR ▪ Consumers and brand owners increasingly prefer 2,500 +5% aluminium cans for packaging 2,000 More recyclable than plastic and glass 1,500 ~70% of new 1,000 Bett
Slide 27: Can Sheet Demand Growth Underwritten by Can Maker Capacity Additions
Can Sheet Demand Growth Underwritten by Can Maker Capacity Additions Announced New Can Plants / Lines ▪ Several new can plants / lines have been announced in the U.S. and Europe (representing over €3 billion North America of investment) ~40 billion cans or ~600kt can sheet demand ~15-20% more th
Slide 28: ABS Underlying Demand Remains Strong
ABS Underlying Demand Remains Strong, Especially for Premium Vehicles and SUVs Projected NA ABS Demand (kt) Market Trends 2,000 ▪ Production of light vehicles is expected to increase 1,500 CAGR in both regions +13% 1,000 ▪ Share of SUVs is increasing in both regions; SUVs typically have above averag
Slide 29: P&ARP is Well-Positioned for the EV Transition
P&ARP is Well-Positioned for the EV Transition P&ARP ABS sales are rapidly shifting towards P&ARP is actively developing new products to electrified platforms where lightweighting is critical remain a frontrunner in the EV transition to extend range P&ARP ABS projected sales by type of Body-in-White
Slide 30: Expanding Recycling Brings Powerful Strategic and Financial Advantages
Expanding Recycling Brings Powerful Strategic and Financial Advantages Neuf-Brisach Recycling Investment Highlights Neuf-Brisach Recycling Slab Demand ▪ Estimated capital investment of ~€130M Before Investment After Investment ▪ Provides ~130kt of slab capacity, reducing reliance 24% on external sup
Slide 31: P&ARP's Roadmap for Future Growth
P&ARP’s Roadmap for Future Growth Growing Can Sheet The Path Forward for P&ARP - Mt in the U.S. and Europe ▪ Substantial opportunities to unleash capacity Capacity Growth (Mt) in both the U.S. and Europe ~140kt ~1.5Mt ~200kt ~1.3Mt Phase 1: ~200kt in place by 2025 with ~1.1Mt investment of €175-20
Slide 32: P&ARP Takeaways
P&ARP Takeaways Well-positioned to benefit from powerful sustainability- 1 1 driven growth trends; these trends are strengthening our competitive advantage Debottlenecking investments across the portfolio 2 2 expected to create significant additional capacity to meet growing market needs Neuf-Brisac
Slide 33: Q&A
Q&A 2022 33 Analyst Day
Slide 34: Automotive Structures & Industry
AUTOMOTIVE STRUCTURES & INDUSTRY P H I L I P P E H O F F M A N N 2022 34 Analyst Day
Slide 35: AS&I: Leader in Advanced Extrusion-Based Products
AS&I: Leader in Advanced Extrusion-Based Products End Markets Automotive Transport Rail Building Gottmadingen Singen Van Buren Brunel UTC Industrial Solar Other Decin Sierre 2021 Figures : Automotive Customers 19 PLANTS WORLDWIDE Structures + Extrusions PRODUCTS 4,600 EMPLOYEES 261KT SHIPMENTS € 1.4
Slide 36: Solid Recovery from COVID Leading to Record Profitability in AS&I
Solid Recovery from COVID Leading to Record Profitability in AS&I Shipments (kt) Strategic Priorities 261 236 249 250 229 ▪ Further improve Automotive Structures return profile ▪ Fully utilize new press investments to strengthen leadership position in advanced extrusion-based products 2017 2018 2019
Slide 37: Robust Automotive Demand for Aluminium Extrusions
Robust Automotive Demand for Aluminium Extrusions Projected NA Auto Extruded Demand ▪ Lightweighting is driving the value proposition (kt) 600 ▪ Generational shift to BEVs (including battery CAGR enclosures) has a multiplier effect 400 +11% ▪ Vertical integration creates synergy 200 opportunities an
Slide 38: Auto Structures - A Strong Platform Focused on Maximizing Returns
Auto Structures - A Strong Platform Focused on Maximizing Returns ▪ Fully integrating world-class R&D capabilities in Modularization in Vigo, Spain nomination process ▪ Produces parts for ▪ Increasing asset modularity to maximize returns up to 3 vehicles Able to be used for multiple platforms ▪ Re
Slide 39: Industry Delivering Strong Performance
Industry Delivering Strong Performance Best in Class Operational Excellence: ▪ Extrusions demand expected to grow at GDP, with pockets of higher growth (i.e. rail and solar) Technical Downtime % ▪ Active portfolio optimization and operational 6% excellence efforts have resulted in a mix of 4% innova
Slide 40: Capitalizing on World-Class R&D to Create Future Opportunities
Capitalizing on World-Class R&D to Create Future Opportunities Strong Innovation Portfolio Helps Nurture Tomorrow’s Growth Modular Battery Box Development ▪ Dedicated AS&I R&D center at Brunel University with strong links to broader Constellium R&D team and OEM research teams ▪ Using proprietary rec
Slide 41: AS&I is Well-Positioned with Attractive Growth Potential
AS&I is Well-Positioned with Attractive Growth Potential Near-term: harvesting the benefits of substantial recent investments; medium-term opportunities for incremental investment across the platform Deliver Profitable Growth in Opportunistically Grow in Automotive Structures Industry ▪ Capture reco
Slide 42: AS&I Takeaways
AS&I Takeaways Well-positioned to capture benefits of a near-term 1 1 automotive rebound and the longer-term vehicle electrification trend Technically advanced extrusion expertise and new press 2 investments in Industry position us to capture high margin 2 growth on incremental tons Our proprietary
Slide 43: Q&A
Q&A 2022 43 Analyst Day
Slide 44: Analyst Day
ANALYST DAY Muscle Shoals, AL April 6, 2022 2022 44 Analyst Day
Slide 45: Aerospace & Transportation
AEROSPACE & TRANSPORTATION I N G R I D J O E R G 2022 45 Analyst Day
Slide 46: A&T: A Global Leader in Aerospace; Solid Position in TID
A&T: A Global Leader in Aerospace; Solid Position in Transportation, Industry & Defense (TID) End Markets Aviation Space Defense Montreuil- Sierre Juigné Ravenswood Industry Truck / Trailer Leisure boats Ussel Issoire 2021 Figures : Customers 6 PLANTS WORLDWIDE (1) Plate, Sheet, Extrusions PRODUCTS
Slide 47: Aerospace Heavily Impacted by COVID-19, Offset by Strong Growth in TID
Aerospace Heavily Impacted by COVID-19 Pandemic, Offset by Strong Growth in TID Shipments (kt) Strategic Priorities 238 246 242 ▪ Maintain leadership position in aerospace with a 206 strong presence at all major OEMs 183 ▪ Strengthen TID position through aerospace recovery, especially in North Ameri
Slide 48: Battle-Tested by Last Two Years and Passed
Battle-Tested by Last Two Years and Passed Diversified in 2017-2019 Managed COVID crisis in 2020-2021 ▪ Strengthened aerospace OEM relationships with ▪ Aggressively cut costs to counter weak aerospace materially improved quality and service demand Signed several commercial OEM contracts ▪ Took adv
Slide 49: Aerospace Markets Return to Growth
Aerospace Markets Return to Growth Projected Global Aerospace Market Trends Plate and Sheet Demand (kt) ▪ Passenger traffic improving but still down 400 (1) approximately 50% vs. 2019 Recovery of domestic travel driving strong demand for single aisle aircraft, build rates CAGR 300 increasing +14%
Slide 50: Why We Like Our Aerospace Business
Why We Like Our Aerospace Business ▪ Attractive long-term demand growth CSTM Aerospace Portfolio ▪ Competitive advantage - challenging to make Commercial Aircraft products and difficult to replicate asset base Business / Regional Jets ▪ Compelling margins - earns the best margins Defense across our
Slide 51: Expecting Steady Growth in Transportation, Industry and Defense
Expecting Steady Growth in Transportation, Industry and Defense Projected NA TID Demand (kt) Market Trends 1,500 ▪ Demand is expected to grow with GDP CAGR +5% Diverse end markets, largely tied to transportation 1,000 and capital goods 500 ▪ Strong short-term demand profile Onshoring of supply c
Slide 52: TID: A Critical Piece of the Diversification Story
TID: A Critical Piece of the Diversification Story TID End Market Breakout Case Study: Ravenswood, WV Commercial Transportion Industry Defense ▪ Built a leadership position in core transportation markets ▪ Main TID customers are OEMs in commercial Substantially improved visibility and profitabilit
Slide 53: Significant Earnings Power; Outsized Adjusted EBITDA Growth Through 2025
Significant Earnings Power; Well-Positioned to Deliver Outsized Adjusted EBITDA Growth Through 2025 Growth Drivers Stepping stones in place to return to >€200M of Adjusted EBITDA ▪ Increase shipments to >275kt by 2025 with a modest level of growth investments Adjusted Adjusted EBITDA/ Recovery of
Slide 54: A&T Takeaways
A&T Takeaways 1 Substantial earnings leverage in an 1 aerospace recovery Aerospace demand trends remain 2 2 favorable over the near, medium and long term 3 3 Continue to grow the TID business 4 4 Strong focus on people, costs, operational excellence and capital discipline 2022 54 Analyst Day
Slide 55: Q&A
Q&A 2022 55 Analyst Day
Slide 56: Finance
FINANCE P E T E R M A T T 2022 56 Analyst Day
Slide 57: Finance Priorities
Finance Priorities 1 Rigorous cost & capital discipline Optimize margins and 2 improve returns Drive Shareholder 3 Generate free cash flow Value Creation 4 Maintain financial flexibility 5 Grow topline 2022 57 Analyst Day
Slide 58: Introducing VAR and ROIC
Introducing VAR and ROIC Value Added Revenue (VAR) Return on Invested Capital (ROIC) VAR = Revenue - Cost of metal ROIC = NOPAT(t) / Invested Capital (t-1) Where: Where: Cost of metal = cost of aluminium NOPAT(t) = (Adjusted EBITDA - DA) - Tax Impact + Freight out costs Invested Capital (t-1) = NWC
Slide 59: Executing on Drivers of Shareholder Value Creation
Executing on Drivers of Shareholder Value Creation VAR (€M) Adjusted EBITDA (€M) Adjusted EBITDA / VAR ~3% CAGR 2,394 ~8% CAGR +700 bps 25.7% 581 562 2,261 23.1% 23.5% 22.6% 2,152 498 21.9% 465 20.3% 2,048 2,062 448 18.7% 1,941 1,957 398 363 2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 201
Slide 60: Our Balance Sheet is an Emerging Strength
Our Balance Sheet is an Emerging Strength Leverage ▪ Much improved balance sheet 4.3x 3.9x Reduced leverage 3.4x 2.5x No near-term debt maturities, substantial liquidity Excellent access to capital 2019 2020 2021 Target ▪ Sustainability-linked bonds align our capital Debt Maturity Schedule (€M
Slide 61: Well-Prepared to Face Current Cost Challenges
Well-Prepared to Face Current Cost Challenges Demonstrated ability to flex costs down during COVID and to manage their increase in recovery ▪ Cost control remains a core focus ▪ Horizon 2022 / Vision ‘25 opportunities in operating efficiency, metal optimization, energy, and fixed costs €50M+ oppor
Slide 62: Sustainability Megatrends Will Strengthen Our Financial Performance
Sustainability Megatrends Will Strengthen Our Financial Performance GHG Intensity (t CO2e / t of production) ▪ Strong demand across most end markets ~3x Scope 1,2,3(1) Growth ▪ Customer value proposition leading to improved x contract pricing and terms Global Avg. CSTM (Primary Aluminium) ▪ Environm
Slide 63: Near-Term We Expect to Increase Investment in Our Business
Near-Term We Expect to Increase Investment in Our Business ▪ Businesses have identified highly strategic, high return What Do These Investments Look Like? growth opportunities Neuf-Brisach Recycling Investment Opportunity is now given investment lead times and current market demand Capital €125-13
Slide 64: Confident in Our Adjusted EBITDA Guidance of Over €800M in 2025
Confident in Our Adjusted EBITDA Guidance of Over €800M in 2025 STRUCTURAL COST REDUCTION AND OPERATIONAL MARKET GROWTH AND GROWTH IMPROVEMENTS (NET) PRICING (NET) >€800M INVESTMENTS END MARKET ▪ Contractual Pricing RECOVERY ▪ EU Recycling ▪ Inflation ▪ Horizon 22/ Vision €581M ▪ Market Growth ‘25:
Slide 65: Pivot to Growth is Increasing Our Focus on ROIC
Pivot to Growth is Increasing Our Focus on ROIC Return on Invested Capital ▪ Determined to drive compelling investment 12-15% returns Potential in our current operations Growth / return seeking capital opportunity 10.0% ▪ Each business has substantial opportunities to 9.8% 8.8% 9.2% improve its
Slide 66: Strong Free Cash Flow Profile is Core to Our Plan
Strong Free Cash Flow Profile is Core to Our Plan Free Cash Flow per Year (€M) ▪ Business strategy supports consistent “through the (Including Growth Capital Spending) cycle” FCF generation ~€300 >€460 million of FCF since 2019, despite COVID ▪ Free Cash Flow profile supported by: Durable and gr
Slide 67: Long-Term Capital Allocation Priorities
Long-Term Capital Allocation Priorities #1 Maintain a strong Leverage between balance sheet 1.5x and 2.5x #2 Invest in growth at €75-150 million annual growth capex invested at attractive IRRs >15% IRRs; highly selective M&A #3 Return capital to Dividends and shareholders Share Repurchases 2022 67 A
Slide 68: CSTM is a Compelling Investment
CSTM is a Compelling Investment Our Financial Guidance 1 1 Diversified portfolio with durable, sustainability- driven secular growth trends 2022 ▪ Adjusted EBITDA of €600M to €620M 2 2 >8% Adjusted EBITDA growth CAGR through continued execution and organic investments ▪ Free Cash Flow > €150M Cape
Slide 69: Q&A
Q&A 2022 69 Analyst Day
Slide 70: Investor Contact
Investor Contact Jason Hershiser +1 (443) 988 0600 [email protected] ANALYST DAY Muscle Shoals, AL April 6, 2022 2022 70 Analyst Day
Slide 71: Appendix
APPENDIX 2022 71 Analyst Day
Slide 72: Non-GAAP Measures
Non-GAAP Measures In addition to the results reported in accordance with International Financial Reporting Standards (“IFRS”), this presentation includes information regarding certain financial measures which are not prepared in accordance with IFRS (“non-GAAP measures”). The non-GAAP measures used
Slide 73: Non-GAAP Measures
Non-GAAP Measures Free Cash Flow is defined as net cash flow from operating activities less capital expenditure, equity contributions and loans to joint ventures and other investing activities. Management believes that Free Cash Flow is a useful measure of the net cash flow generated or used by the
Slide 74: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Year ended December 31, (in millions of Euros) 2021 2020 2019 2018 2017 2016 2015 Net income / (loss) 262 (17) 64 190 (31) (4) (552) Income tax expense / (benefit) 55 (17) 18 32 80 69 (32) Income / (loss) before tax 317 (34) 82 222 49 65 (584) Finance
Slide 75: VAR Reconciliation
VAR Reconciliation As of December 31, 2021 2020 2019 2018 2017 2016 2015 (in millions of Euros) Revenue 6,152 4,883 5,907 5,686 5,237 4,743 5,153 Hedged cost of alloyed metal (3,685) (2,810) (3,541) (3,517) (3,149) (2,781) (3,215) Revenue from incidental activities (20) (20) (20) (17) (18) (21) (31)
Slide 76: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Year ended December 31, 2021 2020 2019 2018 2017 2016 2015 (in millions of Euros) Net cash flows from operating activities 357 334 447 66 160 88 368 Purchases of property, plant and (232) (182) (271) (277) (276) (355) (350) equipment Property, plant and equipment grants
Slide 77: Net Debt Reconciliation
Net Debt Reconciliation As of December 31, 2021 2020 2019 2018 2017 2016 2015 (in millions of Euros) Borrowings 2,129 2,391 2,361 2,151 2,127 2,468 2,233 Fair value of net debt derivatives, (1) 42 6 9 32 (77) (47) net of margin calls Cash and cash equivalents (147) (439) (184) (164) (269) (347) (472
Slide 78: Reconciliation of Net Income to NOPAT and ROIC
Reconciliation of Net Income to NOPAT and ROIC Year ended December 31, (in millions of Euros) 2021 2020 2019 2018 2017 Net income / (loss) 262 (17) 64 190 (31) Income tax expense / (benefit) 55 (17) 18 32 80 Finance costs - net 167 159 175 149 260 Share of (income) / loss of joint ventures - - (2) 3