Constellium Se · NYSE:CSTM
Constellium — Investor Day (December 2018)
79 slides from Constellium's investor day presentation, Dec 13, 2018
Slide 1: Analyst Day NYC, December 13, 2018
Slide 2: Important Information: Forward-Looking Statements
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: Important Information: Non-GAAP Measures
IMPORTANT INFORMATION Non-GAAP Measures This presentation includes information regarding certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA per metric ton, Free Cash Flow and Net debt. These measures are presented because management uses this information to monitor and e
Slide 4: Today's Program
TODAY’S PROGRAM Topic Presenter Introduction Jean-Marc Germain CEO President, Packaging & Automotive Rolled P&ARP Peter Basten Products A&T Ingrid Joerg President, Aerospace & Transportation Break AS&I Paul Warton President, Automotive Structures & Industry Finance Peter Matt CFO Jean-Marc Germain Q
Slide 5: Introduction
INTRODUCTION J E A N - M A R C G E R M A I N
Slide 6: Today's Highlights
TODAY’S HIGHLIGHTS • Three Well-Positioned Businesses • Delivering on Our Commitments • Executing Our Strategy • Growth Profile Remains Attractive • Focusing on Free Cash Flow • New Financial Guidance 6
Slide 7: Constellium at a Glance
CONSTELLIUM AT A GLANCE ~12K Employees 3 Strong 3 Core Markets Business Units €5.5B Revenue* €498M Adj. EBITDA* 1.5M Tons Shipped* * LTM September 30, 2018 7
Slide 8: A Global Leader with Three Strong Business Units
A GLOBAL LEADER WITH THREE STRONG BUSINESS UNITS Packaging Aerospace Automotive Structures & Automotive Rolled & Transportation & Industry Products LTM REVENUE LTM REVENUE LTM REVENUE € 3.0B € 1.4B € 1.2B 8
Slide 9: Delivering on Our Commitments
DELIVERING ON OUR COMMITMENTS REMEMBER THE OBJECTIVES FROM OUR MARCH 2017 ANALYST DAY High Single Digit Adj. EBITDA Growth ü 2017: Delivered 14% 2018: On track for 11% to 13% Adj. EBITDA > €500M in 2020 ü On track for 2019 Leverage 4.0 - 4.5x ü Below 4.0x Positive FCF in 2019 ü On track 9
Slide 10: Clear Business Strategy
CLEAR BUSINESS STRATEGY • Focus on High Value Products • Grow Customer Connectivity • Optimize Asset Utilization through Portfolio Management • Harvest Returns from Investments • Strict Cost Control and Continuous Improvement • Increase Financial Flexibility DISCIPLINED EXECUTION TO DRIVE INCREASED
Slide 11: Targeting High Value-Added, Attractive End Markets
TARGETING HIGH VALUE-ADDED, ATTRACTIVE END MARKETS Other Automotive Aerospace Packaging Specialties SECULAR SECULAR RECESSION DIVERSIFIED GROWTH GROWTH RESILIENT CYCLES Drivers: Drivers: Drivers: Drivers: • Lightweighting • Growth in air traffic • Automotive conversions • Diversified end markets • S
Slide 12: Automotive: A Secular Growth Market for Aluminium and Constellium
AUTOMOTIVE: A SECULAR GROWTH MARKET FOR ALUMINIUM AND CONSTELLIUM • Forecasted demand growth driven by increased CSTM Automotive Shipments aluminium intensity, not SAAR growth 4 00 175% % Change from 2013: ▸ EVs to drive further intensity gains; potentially CSTM Auto Shipments transformational deman
Slide 13: Bowling Green Transaction Offers a Strong Value Proposition
BOWLING GREEN TRANSACTION OFFERS A STRONG VALUE PROPOSITION Transaction Terms Rationale for Acquisition • Signed binding agreement • Targets the attractive North American Auto Body • Transaction price $100M plus the assumption of Sheet market 49% of approximately $80M of third party debt at • Suppor
Slide 14: Significant Adj. EBITDA Growth with More to Come
SIGNIFICANT ADJ. EBITDA GROWTH WITH MORE TO COME LTM Adj. EBITDA More to Come • Harvesting the gains of our past €M ~14% 498 investments CAGR ▸ Complete ramp-up of CALP lines 398 at Neuf-Brisach and Bowling Green ▸ Increase Auto Body Sheet cold coil shipments at Muscle Shoals ▸ Deliver on AS&I inves
Slide 15: Business Model Provides Stability and Underwrites Our Growth
BUSINESS MODEL PROVIDES STABILITY AND UNDERWRITES OUR GROWTH Pass through business model ü Not a commodity aluminium company (LME + Regional Premium) Long-term contracts ü Visibility and stability with blue chip customers Diversified end markets ü Balanced portfolio and geographies Attractive compet
Slide 16: Free Cash Flow Is a Priority
FREE CASH FLOW IS A PRIORITY Creating a Cash Culture • Business Units and Corporate Function must own FCF generation Our business model • Focus in every Business Review and strategy supports • Management incentives aligned a strong FCF generation profile in 2019 and beyond Doing what we need to do •
Slide 17: What to Expect in 2018 and 2019
WHAT TO EXPECT IN 2018 AND 2019 2018 • Updating Adjusted EBITDA guidance to €495M to €500M* • Adjusted EBITDA growth of 8% to 10% 2019 • Free Cash Flow in excess of €50M Note: Guidance includes changes to Pension and IFRS 16 * Comparable to 11.4% to 12.5% growth prior to Pension Accounting change 17
Slide 18: Establishing 2022 Targets
ESTABLISHING 2022 TARGETS Adj. EBITDA Leverage >700 €M CA GR 3.7x % >8 498 2.5x LTM 2022 LTM 2022 Leverage = Net Debt / LTM Adjusted EBITDA DISCIPLINED EXECUTION TO DRIVE INCREASED VALUE 18
Slide 19: Today's Presenters
TODAY’S PRESENTERS PETER BASTEN INGRID JOERG PRESIDENT, PACKAGING PRESIDENT, AEROSPACE & AUTOMOTIVE ROLLED & TRANSPORTATION PRODUCTS PAUL WARTON PETER MATT PRESIDENT, AUTOMOTIVE CHIEF FINANCIAL OFFICER STRUCTURES & INDUSTRY 19
Slide 20: Q&A
QA &
Slide 21: Packaging & Automotive Rolled Products
PACKAGING & AUTOMOTIVE ROLLED PRODUCTS P E T E R B A S T E N
Slide 22: P&ARP: A Global Leader in Packaging; A Growing Presence in Automotive
P&ARP: A GLOBAL LEADER IN PACKAGING; A GROWING PRESENCE IN AUTOMOTIVE END MARKETS* PACKAGING AUTOMOTIVE LTM REVENUE LTM REVENUE 74 % 20 % GERMANY BEVERAGE CANS P&ARP Plant Bowling Green FRANCE Research & Technology Center CLOSURES AUTOMOTIVE 4 PLANTS WORLDWIDE € 3.0B 1.0MT LTM REVENUE LTM SHIPMENTS
Slide 23: Improved Performance Has Been Encouraging with More to Do
IMPROVED PERFORMANCE HAS BEEN ENCOURAGING WITH MORE TO DO Strategy Adjusted EBITDA €M 204 204 232 • Maintain leadership position in can stock 186 122 • Deliver profitable growth in Auto Body Sheet ▸ Completing ramp-up of automotive facilities in 2014 2015 2016 2017 LTM Europe and North America Acqui
Slide 24: Auto Body Sheet Is an Attractive Growth Market
AUTO BODY SHEET IS AN ATTRACTIVE GROWTH MARKET KT Europe ABS Demand Market Dynamics 1 500 10% • Automotive remains an attractive growth R CAG market for aluminium in both Europe 1 000 and North America 500 ▸ Secular growth driven by lightweighting 0 ▸ Greater adoption of aluminium Auto Body Sheet 20
Slide 25: Successfully Executing on Strategy of Increasing Automotive Shipments
SUCCESSFULLY EXECUTING ON OUR STRATEGY OF INCREASING SHIPMENTS TO THE AUTOMOTIVE MARKET LTM Automotive Rolled Neuf-Brisach, France Shipments* • Ramp-up of 100kt CALP line on track ~300 Singen, Germany KT • Expect to increase automotive shipment capacity by 20% to 30 kt in 2019 191 CAGR ~ 35% Muscle
Slide 26: Bowling Green Is a Strategic Asset on the Right Path
BOWLING GREEN IS A STRATEGIC ASSET ON THE RIGHT PATH Progress on Key KPIs +64% Throughput +64% YoY improvement ü Gross throughput has increased as downtime has fallen Recovery +7% YoY improvement ü Recovery continues to improve Uptime +28% YoY improvement ü First major maintenance outage completed ü
Slide 27: Can Stock Continues to Grow in Europe and Remains Stable in North America
CAN STOCK CONTINUES TO GROW IN EUROPE AND REMAINS STABLE IN NORTH AMERICA KT Europe Can Stock Demand Market Dynamics 2 000 • European can stock demand expected to CAGR 3% increase: 1 000 ▸ Conversion of can lines from steel to aluminium ▸ General increase of per capita can consumption 0 ▸ Sustainabi
Slide 28: Can Stock: Stable Demand Across Economic Cycles
CAN STOCK: STABLE DEMAND ACROSS ECONOMIC CYCLES U.S. and Europe Metal • Can stock remains the base load for our Beverage Can Consumption plants, despite the increase in automotive 150 volumes P&ARP Shipments 100 Billion units Other Packaging 50 Products 77% 23% - 2006 2007 2008 2009 2010 2011 • Can
Slide 29: Recycling Is a Core Competency in P&ARP
RECYCLING IS A CORE COMPETENCY IN P&ARP • Aluminium cans provide a sustainable alternative to plastics in beverage packaging ▸ Infinitely recyclable ▸ Keeps same properties after recycling ▸ Value pays for recycling Muscle Shoals ▸ Recycling UBCs* saves 95% energy compared to using primary metals •
Slide 30: Significant Opportunities Remain at Muscle Shoals
SIGNIFICANT OPPORTUNITIES REMAIN AT MUSCLE SHOALS Recent achievements Medium-term opportunities • Successfully ramping up production of Auto • Focus on recovery improvement and Body Sheet cold coils automotive readiness ▸ Increase reliability and quality • Improved hot mill reliability ▸ Substantial
Slide 31: The Road Ahead for P&ARP
THE ROAD AHEAD FOR P&ARP • Maintain leadership position in can stock • Complete ramp-up of automotive facilities in Europe and North America and successfully integrate Bowling Green • Deliver on improvements at Muscle Shoals • Continue to focus on and deliver operational excellence, productivity and
Slide 32: Q&A
QA &
Slide 33: Aerospace & Transportation
AEROSPACE & TRANSPORTATION I N G R I D J O E R G
Slide 34: A&T: A Global Leader in Aerospace; Growing in Transportation, Industry and Defense
A&T: A GLOBAL LEADER IN AEROSPACE; GROWING IN TRANSPORTATION, INDUSTRY AND DEFENSE END MARKETS AEROSPACE TID* LTM REVENUE LTM REVENUE 55 % 45 % COMMERCIAL AIRCRAFT A&T Plant Research & Technology Center SWITZERLAND FRANCE TRANSPORTATION BUSINESS & REGIONAL JET 5 PLANTS WORLDWIDE € 1.4B 243KT LTM REV
Slide 35: Successful Execution of Strategy Shows in Results
SUCCESSFUL EXECUTION OF STRATEGY SHOWS IN RESULTS Strategy Adjusted EBITDA €M • Maintain leadership position in aerospace 146 151 with a strong presence at all major OEMs 104 118 118 ▸ Increase value-added content of aerospace shipments • Expand presence in TID 2014 2015 2016 2017 LTM ▸ Continue to
Slide 36: Aerospace Remains an Attractive Market
AEROSPACE REMAINS AN ATTRACTIVE MARKET KT Global Aerospace Demand Market Dynamics 500 CAGR 2% • Passenger traffic forecasted to grow at 3.5% p.a. through 2025 • Record global aircraft deliveries in 2017 250 ▸ 7th consecutive year of higher deliveries ▸ Boeing and Airbus delivered 1,481 planes in 201
Slide 37: Integrated Service Offer Drives Value for Aerospace Customers
INTEGRATED SERVICE OFFER DRIVES VALUE FOR AEROSPACE CUSTOMERS SINGLE AISLE COCKPIT FRAME • Crucial development partner for customers due to outstanding R&D capabilities ▸ More than 300 aerospace patents ▸ State-of-the-art R&D center • Creating value by vertically integrating aerospace supply chain,
Slide 38: Aerospace Business Secured by Long-Term Contracts
AEROSPACE BUSINESS SECURED BY LONG-TERM CONTRACTS Typical contracts are market share based with a length of 5 to 7 years Multi-year contract – Airbus Framework agreement – Pilatus OEM contract Contract – Dassault renewals Contract – Bombardier Multi-year contract – Boeing Contract extension – BRJ Cu
Slide 39: A Global Leader in Aluminium Lithium Technology
A GLOBAL LEADER IN ALUMINIUM LITHIUM TECHNOLOGY Our proprietary AIRWARE ® product is a proven metallic alternative to composites with seven different alloys flying today Commercial Aircraft Space • Proven technology on ramping programs of • Began in 2002 with the NASA Space Shuttle several aerospace
Slide 40: Further Share Gain Opportunities in TID Markets
FURTHER SHARE GAIN OPPORTUNITIES IN TID MARKETS KT TID Demand Market Dynamics 1 000 CAGR 2% • TID markets overall expected to grow in line with GDP 500 • Vehicle light-weighting driving higher aluminium content demand 0 • U.S. transportation market demand 2017 2021e 2025e currently robust * Market d
Slide 41: Industry and Defense: Targeting High-Value Niches
INDUSTRY AND DEFENSE: TARGETING HIGH-VALUE NICHES Healthy Portfolio of Recognized Products Differentiated Industrial Plate Capabilities • Thick plates AlplanTM Beyond Precision Dokima® Unidal® Alumold® • Low-residual stress products • Tight dimensional tolerances Defense Plate Growth • Aluminium is
Slide 42: Transportation: Maintain Strong Presence and Enter New Markets
TRANSPORTATION: MAINTAIN STRONG PRESENCE IN CURRENT NICHES AND ENTER NEW MARKETS North America TID Market Significant Runway to Grow Defense • Limited current exposure to Vehicle Components and Heavy Truck Industry Other • North American customer support due to Pleasure Boat preference for domestic
Slide 43: The Road Ahead for A&T
THE ROAD AHEAD FOR A&T • Increase share of value-add products in Aerospace • Grow in Transportation, Industry and Defense through niche specialty applications and penetrating new market segments • Leverage technology advantage to keep A&T ahead of the competitors • Continue to focus on and deliver o
Slide 44: Q&A
QA &
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Slide 46: Automotive Structures & Industry
AUTOMOTIVE STRUCTURES & INDUSTRY PA U L WA R T O N
Slide 47: AS&I: A Global Leader in Aluminium Extruded Solutions
AS&I: A GLOBAL LEADER IN ALUMINIUM EXTRUDED SOLUTIONS END MARKETS AUTOMOTIVE OTHER LTM REVENUE LTM REVENUE 55 % 45 % UNITED KINGDOM GERMANY CZECH REPUBLIC Automotive Structures Plant SLOVAKIA FRANCE SWITZERLAND Industry Plant Research & Technology Center TRANSPORTATION 16 PLANTS WORLDWIDE € 1.2B 248
Slide 48: A Proven Track Record of Execution
A PROVEN TRACK RECORD OF EXECUTION Strategy Adjusted EBITDA €M 120 132 • Maintain leadership positions in 104 Automotive Structures and European 81 Extrusions 75 • Target attractive markets experiencing secular growth 2014 2015 2016 2017 LTM • Invest to support the customers leading the aluminium tr
Slide 49: Investing in AS&I's Global Footprint
INVESTING IN AS&I’S GLOBAL FOOTPRINT VAN BUREN, MICHIGAN WHITE, GEORGIA ASTREX, CANADA SAN LUIS POTOSÍ, MEXICO • Significant expansions in • Grand opening in May 2017 • Opened in 2017 recent years • Launched new product in • Production start in 2018 • Producing Constellium • Expanding prototype 2018
Slide 50: Customer Orientation & Focus on Technology
CUSTOMER ORIENTATION & FOCUS ON TECHNOLOGY Customer orientation • Develop engineered Brunel University London solutions adapted to • Dedicated R&D engineers and project managers to translate technology from the lab to customer needs new customer programs and to our plants for production • Provide op
Slide 51: Strong Growth Profile in Automotive
STRONG GROWTH PROFILE IN AUTOMOTIVE Aluminium Extrusion Crash management systems Demand in Selected Automotive Applications • Core market with global presence and full service supplier offering KT • ~40% market share 1 000 10 % Body structures ~ R • Long-term market with strong substitution C AG pot
Slide 52: Executing on Our Automotive Growth
EXECUTING ON OUR AUTOMOTIVE GROWTH CSTM Automotive Extrusion Automotive Nominations Revenue €M > 1 000 2016 €1.2BN €1.1BN 614 677 544 537 2017 413 YTD 2018 €1.3BN 2021 • A Nomination represents the expected 14 15 16 17 M 20 20 20 20 LT Target lifetime revenue from the platform AS&I Automotive Growth
Slide 53: Examples of Recent Nominations
EXAMPLES OF RECENT NOMINATIONS European OEM – EV European OEM – Luxury Sedan CMS Front & Rear + Sill Member CMS Front Lifetime revenue: ~€175M Lifetime revenue: ~€195M SOP: Q2 2021 SOP: Q4 2020 Growth Growth European OEM – Mid-size U.S. OEM – SUV CMS Front & Rear Longitudinals Lifetime revenue: ~€10
Slide 54: Significant Opportunity in Electric Vehicles
SIGNIFICANT OPPORTUNITY IN ELECTRIC VEHICLES The battery enclosure market could become the largest market for extrusion applications in cars by 2025 • Battery enclosures have significant volume and margin potential ▸ Could represent 50% to 100% of the combined CMS, Body Structures and Chassis market
Slide 55: Industry: A Key Contributor and Driver of Growth
INDUSTRY: A KEY CONTRIBUTOR AND DRIVER OF GROWTH CSTM Industry Shipments The Importance of Industry by Sub-Sector • Material development partner Other, • Speed to market: prototyping and serial ~10% Hard Alloy Bars & Profiles, production Rail, 25-30% 5-10% • Optimizes supply chain • Diversified end
Slide 56: Examples of Industry Applications
EXAMPLES OF INDUSTRY APPLICATIONS • Global leader with significant market share Rail • Expertise ranging from subways to high-speed trains Bus • Solutions for commercial Coextruded conductor rail for metro and subway system vehicles and buses Transportation • Anti-lock Braking Systems requiring besp
Slide 57: The Road Ahead for AS&I
THE ROAD AHEAD FOR AS&I • Maintain leadership positions in Automotive Structures and European Extrusions and deliver on profitable growth • Target highly attractive markets that are expected to experience secular growth • Ramp up our recent investments • Continue to expand footprint to support our c
Slide 58: Q&A
QA &
Slide 59: Finance
FINANCE PETER MATT + Constellium
Slide 60: Key Accounting Considerations
KEY ACCOUNTING CONSIDERATIONS Pension Adjustment Leases (IFRS 16) Rationale Rationale • Change to increase comparability to • Required by new accounting guidance US GAAP peers (IFRS 16) Impacts Impacts • Interest costs reclassified from Adjusted • Operating leases treated as finance leases EBITDA to
Slide 61: Finance Priorities
FINANCE PRIORITIES • Push Finance Priorities Throughout the Organization • Deliver on Project 2019 • Rigorous Capital Discipline • Improve the Balance Sheet • Drive Free Cash Flow Generation 61
Slide 62: Push Finance Priorities Throughout the Organization
PUSH FINANCE PRIORITIES THROUGHOUT THE ORGANIZATION Holding Ourselves Accountable Every Employee Can Make a Difference Measuring Performance to Drive Improvement Finance Priorities Partner with Our • Reduce Costs Business Units • Capital Discipline • Financial Flexibility 62
Slide 63: Project 2019: Reduce Costs
PROJECT 2019: REDUCE COSTS Run Rate Cost Savings 75 €M • Driving a cost reduction culture 32 38 22 25 ▸ Over 250 initiatives in progress 10 15 • €38M of run rate cost savings Target achieved 17 17 17 18 18 18 2Q 3Q 4Q 1Q 2Q 3Q ▸ Savings from a wide range of sources Cost Savings by Type As of Septemb
Slide 64: Project 2019: Improve Working Capital
PROJECT 2019: IMPROVE WORKING CAPITAL Trade Working Capital Days 70 • Working capital investment expected to grow in line with the growth of our business and increased product 60 complexity 50 • Working capital is a significant medium-term opportunity 40 ▸ Inventory built to address trade uncertaint
Slide 65: Project 2019: Disciplined Capital Spending
PROJECT 2019: DISCIPLINED CAPITAL SPENDING Capital Expenditures • Using Project 2019 lens to drive €M capital discipline 350 355 • Plan to bring capital spending down 276 275 to €265M in 2019 265 ▸ Maintenance capital spending remains at €150- 175M • Hurdle rate of 15% IRR for growth projects ▸ We a
Slide 66: Good Steward of Capital
GOOD STEWARD OF CAPITAL Our growth capital is discretionary capital – and is deployed at attractive risk-adjusted returns A Typical Automotive Structures Derisking our AS&I Growth Investment Profile* Investments • Utilize conservative vehicle sales Capital Spending €10-25M assumptions Trade Working
Slide 67: Materially Reduced Financial Risk
MATERIALLY REDUCED FINANCIAL RISK Leverage • Leverage under 4.0x** from peak of 5.2x 5.2x 4.0x* 3.7x • Reduced interest expense from over 2.5x €200M per annum • Pension and OPEB obligations and cash requirements reduced 16 17 17 17 17 18 18 18 * 2022 18 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 3Q Target Leverage = N
Slide 68: Debt Profile and Liquidity Improved
DEBT PROFILE AND LIQUIDITY IMPROVED Debt Maturity Profile At September 30, 2018 • Eliminated term secured debt €M 1000 • No near-term maturities 750 ▸ Average maturity of >5.75 years* 500 ▸ 2021 bond 0.6x LTM* Adj. EBITDA 250 • Liquidity strong at >€700M* 0 17 18 19 20 21 22 23 24 25 26 20 20 20 20
Slide 69: Drive Free Cash Flow Generation
DRIVE FREE CASH FLOW GENERATION Maintain Improve Capital Working Discipline Reduce Capital Interest Increase Expense Adjusted EBITDA UTILIZE PROJECT 2019 TO DRIVE ACCOUNTABILITY THROUGHOUT CONSTELLIUM 69
Slide 70: Confident in Our Adj. EBITDA Guidance of Over €700M in 2022
CONFIDENT IN OUR ADJ. EBITDA GUIDANCE OF OVER €700M IN 2022 OPERATIONAL IMPROVEMENTS AND COST OTHER >€700M HARVEST PRIOR INVESTMENTS IFRS 16 END MARKET Operational improvements at €498M GROWTH Muscle Shoals, FT3 CALP Line Ravenswood, ~2% Growth Issoire Bowling Green CALP Line Further Project 2019 Sa
Slide 71: Significant Cash Flow Available for Capital Allocation
SIGNIFICANT CASH FLOW AVAILABLE FOR CAPITAL ALLOCATION 2019 Required to maintain the business in 2019 MIDPOINT OF MAINTENANCE GUIDANCE CAPEX ~€540 M 150-175 ~€ M CASH INTEREST ~€ 140-150M AVAILABLE CASH TAXES FOR CAPITAL TWC ALLOCATION ~€ 15-20M ~€ 25-45M OTHER ~€ 125-185M ~€ 25M 71
Slide 72: Capital Allocation Framework
CAPITAL ALLOCATION FRAMEWORK CASH FLOW AVAILABLE FOR CAPITAL ALLOCATION Near-Term Priorities Medium-Term Priority SHAREHOLDER GROWTH CAPEX DELEVERAGE RETURNS • Pursue accretive • Improve our capital • Dividend growth at attractive structure • Share buy-backs returns • Reach target leverage and credi
Slide 73: Our Financial Guidance
OUR FINANCIAL GUIDANCE 2018 • Updating Adjusted EBITDA guidance to €495M to €500M* • Adjusted EBITDA growth of 8% to 10% 2019 • Free Cash Flow > €50M ▸ Cash interest: ~€140-150M ▸ Cash taxes: ~€15-20M ▸ Capex: €265M • Adjusted EBITDA > €700M 2022 • Leverage 2.5x Note: Guidance includes accounting ch
Slide 74: Q&A
QA &
Slide 75: Investor Contact
Investor Contact Ryan Wentling +1 (443) 988 0600 [email protected]
Slide 76: Appendix: Reconciliation of Net Income to Adjusted EBITDA
APPENDIX: RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA Twelve months ended Twelve months ended Twelve months ended Twelve months ended Twelve months ended € millions September 30, 2018 December 31, 2017 December 31, 2016 December 31, 2015 December 31, 2014 Net income / (loss) 168 (31) (4) (552) 5
Slide 77: Appendix: Reconciliation of Net Income to Adjusted EBITDA
APPENDIX: RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA Three months ended Three months ended Three months ended Three months ended Three months ended Three months ended Three months ended € millions September 30, 2018 June 30, 2018 March 31, 2018 December 31, 2017 September 30, 2017 June 30, 2017
Slide 78: Appendix: Reconciliation of Net Debt and Leverage
APPENDIX: RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA September 30, September 30, June 30, March 31, December 31, December 31, 2018* 2018 2018 2018 2017 2016 Borrowings 2,173 2,103 2,184 2,093 2,127 2,468 Fair value of cross currency basis 25 25 20 46 32 (77) swaps, net of margin calls Cash and
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