Constellium Se · NYSE:CSTM
Constellium — Q3 2014 Earnings Presentation
24 slides from Constellium's earnings presentation, Nov 19, 2014
Slide 1: Third Quarter 2014 Earnings Conference Call
Third Quarter 2014 Earnings Conference Call November 19, 2014
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 fin
Slide 4: Pierre Vareille, Chief Executive Officer
Pierre Vareille Chief Executive Officer
Slide 5: Q3 2014 Highlights
Q3 2014 Highlights (% change Q3 2014 vs Q3 2013) § Adjusted EBITDA of €72 million, up 13% § Shipments of 266k metric tons, up 4% § Revenues: €927 million, up 8% (on a like-for-like* basis up 3%) § Continued strong performance in P&ARP and AS&I § A&T results below expectations due to operational
Slide 6: Packaging and Automotive Rolled Products Segment
Packaging and Automotive Rolled Products Segment Segment Outlook/Mix Solid shipments of 158 kt in Q3 2014 up 4% from 152 kt in Q3 2013 Continued strong growth in Body-in-White demand in Europe and U.S. Constellium Recent Developments Excellent operational performance at Neuf-Brisach Continued solid
Slide 7: Aerospace and Transportation Segment
Aerospace and Transportation Segment Segment Outlook/Mix Solid demand in aerospace market with majority of business under long term contracts Q3 Segment shipments of 60 kt in Q3 2014 down 3% from 62 kt in 3Q 2014 Constellium Recent Developments Reported Q3 results similar to last year; lower when no
Slide 8: Automotive Structures and Industry Segment
Automotive Structures and Industry Segment Segment Mix/Outlook Automotive Structures market demand remains strong Industry market demand stable Total shipments of 50 kt in Q3 2014 up from 45 kt in Q3 2013 Constellium Recent Developments Automotive Structures volume increased 23% compared to Q3 2013
Slide 9: Didier Fontaine, Chief Financial Officer
Didier Fontaine Chief Financial Officer
Slide 10: Q3 2014 Segment Performance
Q3 2014 Segment Performance Adjusted EBITDA (€m) Adjusted EBITDA per ton (1)% (1)% A&T 8% 10% P&ARP (4)% 12% AS&I Third Quarter 2014 – Earnings Call 10
Slide 11: Strong Cash Flow From Operating Activities Partially Offset by Higher Capital Expenditures
Strong Cash Flow From Operating Activities Partially Offset by Higher Capital Expenditures Nine months Nine months € millions ended ended Sept 30, 2014 Sept 30, 2013 Cash flow from operating activities 122 79 Margin calls included in cash flow from operating activities (11) (4) Cash flow from operat
Slide 12: Improving Trade Working Capital Despite Higher LME and Premiums
Improving Trade Working Capital Despite Higher LME and Premiums 33 days €(22)M 29 days DSOs decreased by 4 days Third Quarter 2014 – Earnings Call 12
Slide 13: Strong Balance Sheet with Enhanced Liquidity
Strong Balance Sheet with Enhanced Liquidity € millions September 30, 2014 Total Debt (*) 634 Cash and Cash Equivalents 426 Net Debt 208 Net Debt / LTM Adjusted EBITDA 0.7x Liquidity (**) 746 (*) Including fair value of cross currency interest swap and cash pledged for issuance of guarantees (**) Li
Slide 14: Wise Metals Acquisition Update
Wise Metals Acquisition Update § Significantly accelerates Constellium’s 2013 Pro forma Sales by Geography involvement in the explosive growth of the North American BiW market § Globalizes Constellium’s portfolio / pro forma 2013 North American sales increase from 14% to 30% 30% § Expected return
Slide 15: Key Takeaways
Key Takeaways § Q3 2014 Shipments, Revenues and Adjusted EBITDA, up 4%, 8% and 13% respectively, compared to the prior year § Continued strong performance in P&ARP and AS&I § A&T results below expectations due to operational challenges and capacity constraints; customer program delays may impact
Slide 16: Q&A
Q&A Third Quarter 2014 – Earnings Call 16
Slide 17: IFRS Statements
IFRS Statements Third Quarter 2014 – Earnings Call 17
Slide 18: IFRS – Income Statement
IFRS – Income Statement Three months Three months € millions ended ended Sept 30, 2014 Sept 30, 2013 Revenue 927 862 Income from operations 34 69 Other expenses - - Finance costs – net (10) (10) Share of profit of joint-ventures - 3 Income before income taxes 24 62 Net Income from discontinued opera
Slide 19: IFRS – Statement of Financial Position
IFRS – Statement of Financial Position € millions September 30, 2014 December 31, 2013 Non-current assets 846 674 Current assets 1,425 1,069 Assets held for sale 14 21 Total Assets 2,285 1,764 Equity 43 36 Non-current liabilities 1,312 970 Current liabilities 921 749 Liabilities held for sale 9 9 To
Slide 20: Non-GAAP Measures Reconciliations
Non-GAAP Measures Reconciliations Third Quarter 2014 – Earnings Call 20
Slide 21: Net Debt Reconciliation
Net Debt Reconciliation € millions September 30, 2014 December 31, 2013 Borrowings 663 348 Fair value of cross currency interest rate swap (20) 26 Cash and cash equivalents (426) (233) Cash pledged for issuance of guarantees (9) (9) Net Debt 208 132 Third Quarter 2014 – Earnings Call 21
Slide 22: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Three months Three months € millions ended Sept 30, 2014 ended Sept 30, 2013 Cash flow from operating activities 76 80 Margin calls included in cash flow from - (2) operating activities Cash flow from operating activities 76 78 excluding margin calls Capital ex
Slide 23: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Nine months ended Nine months ended € millions September 30, 2014 September 30, 2013 Cash flow from operating activities 122 79 Margin calls included in cash flow from (11) (4) operating activities Cash flow from operating activities 111 75 excluding margin cal
Slide 24: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation € millions Q3 2014 Q3 2013 Net income 12 45 Income tax expense 12 21 Net Income from discontinued operations - (4) Income before income tax 24 62 Finance costs - net 10 10 Share of results of joint-ventures - (3) Income from operations 34 69 Depreciation and impairment