Constellium Se · NYSE:CSTM

Constellium — Investor Day (March 2017)

73 slides from Constellium's investor day presentation, Mar 22, 2017

  1. Slide 1: Welcome

    WELCOME

  2. 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

  3. 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, Free Cash Flow and Net Debt. These measures are presented because management uses this information to monitor and evaluate financial resu

  4. Slide 4: Opening remarks

    Opening remarks J E A N - M A R C G E R M A I N

  5. Slide 5: 2016 Was a Pivotal Year for Constellium

    2016 WAS A PIVOTAL YEAR FOR CONSTELLIUM  STABILIZED BUSINESS FOLLOWING WISE ACQUISITION ▶ Adjusted EBITDA increased by 10% at €377m with stable volumes ▶ Significant operational improvements at Muscle Shoals  ADVANCED OUR STRATEGIC INITIATIVES ▶ Major investments in rolling completed with producti

  6. Slide 6: Strong Positions in Attractive End-Markets Provide a Platform for Success

    STRONG POSITIONS IN ATTRACTIVE END-MARKETS PROVIDE A PLATFORM FOR SUCCESS Constellium is a global aluminium rolling and extrusions company focused on three core markets, with additional niche products to optimize asset utilization PACKAGING AEROSPACE AUTOMOTIVE Can Body Stock: Aerospace Plates: #1 W

  7. Slide 7: Three Attractive End Markets

    THREE ATTRACTIVE END MARKETS NORTH AMERICA EUROPE HIGHLIGHTS CAGR kt kt CAGR 1.000 +19% 1.000  Lightweighting trend is expected +12% to continue AUTOMOTIVE 500 500  Increased focus on safety features 0 0 and crash absorption capacities 2016 2021 2016 2021 CAGR CAGR kt kt  Secular growth in air tr

  8. Slide 8: Specific Focus on Automotive: Drivers

    SPECIFIC FOCUS ON AUTOMOTIVE Global trend favoring aluminium solutions is expected to continue DRIVERS  Air quality becoming a national/local issue ▶ Strengthening nation-wide regulations for decreasing CO2 emissions (EU, NA, CN, Japan,…) ▶ Cities/States regulating polluting vehicles ▶ Growing subs

  9. Slide 9: Specific Focus on Automotive: Solutions

    SPECIFIC FOCUS ON AUTOMOTIVE Global trend favoring aluminium solutions is expected to continue DRIVERS SOLUTIONS  Air quality becoming a national/local issue  Engine optimization or electrification ▶ Strengthening nation-wide regulations for  Aerodynamic improvements decreasing CO2 emissions (EU,

  10. Slide 10: Share of High Value-Added Product Is Steadily Increasing

    SHARE OF HIGH VALUE-ADDED PRODUCT IS STEADILY INCREASING PERCENTAGE OF CONSTELLIUM REVENUES BY END-MARKET EXAMPLES OF HIGH VALUE-ADDED PRODUCTS 24.6% 22.5% Specialties  Bright sheet  Wide coils (transportation)  Auto Body Sheet / Body structures 18% Automotive  Battery boxes 15.9%  Crash Manage

  11. Slide 11: Value-Added Manufacturing Capabilities Are Hard to Replicate

    VALUE-ADDED MANUFACTURING CAPABILITIES ARE HARD TO REPLICATE 22 production facilities, R&T centers: substantial asset value Valais, Switzerland Legend Plymouth, MI Van Buren, MI  Plate shop for general Legend  Automotive hub  Advanced and highly productive engineering products P&ARP  R&T center

  12. Slide 12: Constellium Has a Compelling Strategy in Place

    CONSTELLIUM HAS A COMPELLING STRATEGY IN PLACE  HIGH VALUE-ADDED PRODUCT FOCUS  CUSTOMER CONNECTIVITY  OPTIMIZE MARGINS AND ASSET UTILIZATION THROUGH PRODUCT PORTFOLIO MANAGEMENT  HARVEST RECENT INVESTMENTS  STRICT COST CONTROL / CONTINUOUS IMPROVEMENT  INCREASED FINANCIAL FLEXIBILITY 8

  13. Slide 13: A Highly Experienced Team of Business Unit Leaders

    A HIGHLY EXPERIENCED TEAM OF BUSINESS UNIT LEADERS  Arnaud JOURON – President, Packaging & Automotive Rolled Products (since Dec. 2015) ▶ 11 years of experience in the metal industry with Constellium and ArcelorMittal ▶ Worked 12 years in various consulting firms (McKinsey, Arthur D. Little and Bos

  14. Slide 14: Deploying Our Strategy Across Our Business

    DEPLOYING OUR STRATEGY ACROSS OUR BUSINESS  Grow ABS businesses in the US and Europe; complete ramp-up PACKAGING of new CALP lines & AUTOMOTIVE ROLLED  Optimize capacity utilization between canstock and Auto Body Sheet; PRODUCTS debottleneck rolling capacity in Europe  Continue rigorous cost and

  15. Slide 15: Adding It Up – Future Constellium

    ADDING IT UP – FUTURE CONSTELLIUM  High single digit Adj. EBITDA growth ▶ Execute and harvest our current investment plan: OBJECTIVES ▶ Neuf Brisach and Bowling Green CALP lines fully deployed by 2019 ▶ White, Georgia and San Luis Potosi Automotive Structures plants running by 2019  Positive Free

  16. Slide 16: Packaging & Automotive Rolled Products

    Packaging & Automotive Rolled Products A R N A U D J O U R O N

  17. Slide 17: A Global Leader in Can Stock, with Growing Presence in Auto Body Sheet

    A GLOBAL LEADER IN CAN STOCK, WITH A GROWING PRESENCE IN AUTO BODY SHEET 2016 FIGURES BY END MARKETS Shipments: 1,013kt Sales: €2,498m Other Other 4% Automotive 7% Automotive 11% 13% Packaging Packaging 85% 80% KEY PRODUCTS AND END MARKETS BLUE CHIP CUSTOMERS PACKAGING AUTOMOTIVE SPECIALTIES  Can B

  18. Slide 18: Record Adjusted EBITDA in 2016 with Turnaround of Muscle Shoals

    RECORD ADJUSTED EBITDA IN 2016 WITH TURNAROUND OF MUSCLE SHOALS SHIPMENTS IN KT 1,035 1,013  Record adjusted EBITDA in FY16 driven by Specialties/Other significant cost reduction efforts in Muscle Shoals Automotive 620 and productivity improvements 606 595 Packaging  2016 Automotive rolled product

  19. Slide 19: North American and European Operations Function as One System

    NORTH AMERICAN AND EUROPEAN OPERATIONS FUNCTION AS ONE SYSTEM SUPPORTED BY LOCAL R&T CENTERS Singen, Germany  230kt rolling mill focused on specialties Legend Legend Bowling Green, KY  ABS capacity of 20kt  ABS CALP JV with UACJ  Integrated hot-cold rolling line allows P&ARP Corporation unique m

  20. Slide 20: Canstock Market: Stable in North America; Growth in Europe

    CANSTOCK MARKET: A STABLE OUTLOOK IN NORTH AMERICA; CONTINUED GROWTH FORECAST IN EUROPE NORTH AMERICA (KT) EUROPE (KT) CAGR CAGR 0% +3% 2 000 1 000 1 500 1 000 500 500 0 0 2011 2016 2021 2011 2016 2021 EUROPEAN DEMAND DRIVEN BY FURTHER SUBSTITUTION FROM STEEL TO ALUMINIUM AND ECONOMIC GROWTH IN EAST

  21. Slide 21: Canstock: Recession Resilient

    CANSTOCK: RECESSION RESILIENT RESILIENCE OF CANSTOCK DURING LAST DOWNTURN OUR PERSPECTIVES ON CANSTOCK IN NORTH AMERICA 110% Total North American Flat Rolled Products Volumes North American Canstock Volumes  Can sheet demand is highly resilient 100% across economic cycles 90%  Competitive dynamics

  22. Slide 22: Auto Body Sheet: Growth Forecast in North America and Europe

    AUTO BODY SHEET: GROWTH FORECAST IN NORTH AMERICA AND EUROPE NORTH AMERICA (KT) EUROPE (KT) CAGR CAGR 1 200 +19% 1 000 +12% 1 000 800 600 500 400 200 0 0 2012 2016 2021 2012 2016 2021 ABS GROWTH IN NORTH AMERICA AND EUROPE DRIVEN BY INCREASED ALUMINIUM INTENSITY Source: Constellium internal analysis

  23. Slide 23: Operations Europe: Increase in ABS Production

    OPERATIONS EUROPE: INCREASE IN ABS PRODUCTION FUELED BY RECENT GROWTH INVESTMENT; RAMP-UP OF NEW EQUIPMENT ON TRACK NEUF-BRISACH, FRANCE SINGEN, GERMANY  New 100kt CALP line commissioned in 2016 ahead  New Continuous Furnace commissioned in 2015 of schedule  ABS total capacity of 20kt  Ramp-up o

  24. Slide 24: Operations North America: Muscle Shoals Revamp and ABS Finishing

    OPERATIONS NORTH AMERICA: REVAMP OF MUSCLE SHOALS AND A STATE OF THE ART ABS FINISHING FACILITY MUSCLE SHOALS, ALABAMA BOWLING GREEN, KENTUCKY (JV)  450kt rolling mill currently focused on can sheet,  New 100kt integrated CALP; production started expected to supply ABS substrate on-time in 2016 

  25. Slide 25: Product Innovations for Automotive and Packaging Markets

    PRODUCT INNOVATIONS: LATEST DEVELOPMENTS FOR AUTOMOTIVE AND PACKAGING MARKETS PRODUCT INNOVATION END MARKET DESCRIPTION  6xxx series designed to provide energy absorption and high strength Securalex® HS Automotive  Used for specific parts in the vehicle’s sensitive areas such as seating, tank and

  26. Slide 26: P&ARP Has Passed the Peak Investment Period

    P&ARP HAS PASSED THE PEAK INVESTMENT PERIOD AND IS FOCUSED ON GENERATING CASH  OUR MAJOR INVESTMENTS ARE EITHER COMPLETED OR CLOSE TO COMPLETION: ▶ New automotive finishing line in Neuf-Brisach, France, SOP July 2016 ▶ New automotive finishing line in Bowling Green, Kentucky, SOP September 2016 ▶ H

  27. Slide 27: Adding It Up – Future P&ARP

    ADDING IT UP – FUTURE P&ARP  GROW ABS BUSINESS IN THE U.S. AND EUROPE  OPTIMIZE CAPACITY UTILIZATION  CONTINUE RIGOROUS COST, WORKING CAPITAL AND CAPEX DISCIPLINE 23

  28. Slide 28: Q&A

    QA &

  29. Slide 29: Aerospace & Transportation

    Aerospace & Transportation I N G R I D J O E R G

  30. Slide 30: A Global Leader in Aerospace, Transportation, Industry and Defense

    A GLOBAL LEADER IN AEROSPACE, TRANSPORTATION, INDUSTRY AND DEFENSE 2016 FIGURES BY END-MARKETS Shipments: 243kt Sales: €1,302m 51% Transportation, 49% 39% Industry & Aerospace Transportation, 61% Defense Industry & Aerospace Defense KEY PRODUCTS AND MARKETS BLUE CHIP CUSTOMERS  Global leader in the

  31. Slide 31: A&T Has Offset Aerospace Headwinds

    A&T HAS OFFSET AEROSPACE HEADWINDS WITH INCREASED SHIPMENTS AND IMPROVED OPERATIONAL PERFORMANCE SHIPMENTS IN KT (2012-2016)  Higher shipments and improving 244 238 231 243 operational performance produced stable 224 Transportation, financial results in 2016 Industry & Defense Aerospace ▶ Shipment

  32. Slide 32: A&T Manufacturing Sites Well Located to Serve Global Customers

    A&T MANUFACTURING SITES WELL LOCATED TO SERVE ITS GLOBAL CUSTOMER BASE Montreuil-Juigné, France  Products: extrusions Ravenswood, WV  Products: plates, coils and sheets Valais, Switzerland  Products: plates Ussel, France  Products: cast parts Issoire, France  Products: plates, coils, sheets, pr

  33. Slide 33: Aerospace Remains a Very Attractive End Market

    AEROSPACE REMAINS A VERY ATTRACTIVE END MARKET MARKET DYNAMICS OUTLOOK  Passenger traffic forecast to grow at 4% per annum  Growth rate projected at 2% per annum for plate market  Order book amounts to 7-8 years of production for at current aircraft mix single-aisle aircraft  Next-generation air

  34. Slide 34: A&T's Contracts with Key Aerospace OEMs

    A&T’S CONTRACTS WITH KEY AEROSPACE OEMS CONFIRM SHARE IN EXPECTED FUTURE GROWTH DIVERSIFIED CUSTOMER PORTFOLIO LONG-TERM CONTRACTS WITH BLUE CHIP CUSTOMERS Multi-year contract with Boeing Several regional and business OEM aircraft OEM contracts contracts Multi-year contract with Airbus 2014 2015 201

  35. Slide 35: Broad Aerospace Portfolio with Over 300 Patents, Airware Leadership

    BROAD AEROSPACE PORTFOLIO WITH OVER 300 PATENTS, UNDISPUTED LEADERSHIP IN AL LITHIUM TECHNOLOGY AIRWARE® Airware® at early stage of product lifecycle, new range Airware® – high performance technology fully of Airware® products under development industrialized +46% Corrosion  Proven technology on ra

  36. Slide 36: A&T Growing Share of High Value-Add Aerospace Products

    A&T IS GROWING SHARE OF HIGH VALUE-ADD AEROSPACE PRODUCTS THROUGH UNIQUE MANUFACTURING CAPABILITIES AND ALLOY PORTFOLIO Global coverage with a portfolio Focus on growth in high value-add products of world-class manufacturing capabilities and supply chain integration Tier 1  Airware® players  Fusel

  37. Slide 37: Growth Potential in Transportation, Industry and Defense

    A&T HAS STRONG GROWTH POTENTIAL WITH DIFFERENTIATED, TAILOR-MADE SOLUTIONS FOR CUSTOMERS IN THE TRANSPORTATION, INDUSTRY AND DEFENSE MARKETS TRANSPORTATION  Strong, differentiated capabilities: ▶ Thick plates ▶ Wide coils Xtral® GripsterTM Sealium® (for truck floors) ▶ Low-residual stress Herkal® p

  38. Slide 38: Pusher Furnace Investment in Ravenswood

    PUSHER FURNACE INVESTMENT IN RAVENSWOOD TO PROVIDE EXCELLENT BASE FOR FUTURE GROWTH AND ACCESS TO NEW MARKETS PUSHER FURNACE OVERVIEW  $35 million investment  Very tight temperature control for superior product and process quality  Productivity gains and better energy efficiency of heating cycles

  39. Slide 39: Operational Improvements and Manufacturing Excellence Roadmap

    RECENT OPERATIONAL IMPROVEMENTS EXPECTED TO CONTINUE THROUGH EXECUTION OF A&T’S MANUFACTURING EXCELLENCE ROADMAP AND COST SAVINGS INITIATIVES  Airware® cast houses fully ramped-up and technology industrialized The combination  Achieve metal cost reduction through increased of these projects is rec

  40. Slide 40: Adding It Up – Future A&T

    ADDING IT UP – FUTURE A&T  Increase share of value-add products in aerospace, further develop downstream activities to improve customer intimacy  Grow in transportation, industry and defense through market penetration, new market segments and specialty applications in niches  Leverage existing te

  41. Slide 41: Q&A

    QA &

  42. Slide 42: Automotive Structures & Industry

    Automotive Structures & Industry P A U L W A R T O N

  43. Slide 43: Global Leader in Aluminium Extruded Solutions to OEMs

    GLOBAL LEADER IN ALUMINIUM EXTRUDED SOLUTIONS TO OEMs, STRONGLY POSITIONED IN ELECTRIC VEHICLE MARKET 2016 FIGURES BY END-MARKETS SHIPMENTS: 217kt REVENUE: €1,002m 43% 27% Automotive Automotive Structures Structures 55% Other 46% Automotive Other market: 54% 18% Extrusions for 11% Automotive Extrusi

  44. Slide 44: Adjusted EBITDA Has Doubled in Last 5 Years

    ADJUSTED EBITDA HAS DOUBLED IN LAST 5 YEARS SHIPMENTS IN KT (2012-2016) KEY IMPROVEMENT DRIVERS 300  Transitioning from products to designed solutions 206 208 212 217 200 191  Turnaround of loss making entities 100  Divestitures, business segment exits 0 2012 2013 2014 2015 2016  Productivity im

  45. Slide 45: Global Partner with Worldwide Production Units and Engineering Centers

    GLOBAL PARTNER WITH WORLDWIDE PRESENCE OF PRODUCTION UNITS AND ENGINEERING CENTERS 15 PLANTS WORLDWIDE AND R&T CENTERS IN EUROPE AND U.S. Dahenfeld and University Gottmadingen, JV Astrex, Technology Center Germany Ontario, Canada incl. Brunel, UK Van Buren, Engineering center Michigan incl. Engineer

  46. Slide 46: Automotive Structures: Significant Growth Expected in All Product Lines

    AUTOMOTIVE STRUCTURES: SIGNIFICANT GROWTH EXPECTED IN ALL PRODUCT LINES Market growth of North America extruded aluminium CMS, body structures, chassis & battery boxes CAGR CRASH MANAGEMENT SYSTEMS (in kt) ~250 2015-2025 Crash Management  Our market share estimate: ~35% ~180 Systems 4%  Growth mai

  47. Slide 47: Automotive Structures: Diversified Customer Portfolio

    AUTOMOTIVE STRUCTURES: DIVERSIFIED CUSTOMER PORTFOLIO WITH 5 MAJOR OEM CUSTOMERS Expected growth of Automotive Structures sales per key customer CRASH MANAGEMENT SYSTEMS  OEMs targeting high volume steel substitution on global mid-size auto platforms CAGR +9% BODY STRUCTURES  Significant growth ex

  48. Slide 48: Why Is Constellium the Preferred Supplier?

    AUTOMOTIVE STRUCTURES: WHY IS CONSTELLIUM THE PREFERRED SUPPLIER? Skilled and reactive engineering team Global supplier to Understanding global customers customer needs FULLY INTEGRATED OFFER Ability to provide the same Propose innovative solutions in Europe, and cost efficient North America and Chi

  49. Slide 49: Delivering Complete Systems by Mastering the Whole Value Chain

    AUTOMOTIVE STRUCTURES: DELIVERING COMPLETE SYSTEMS BY MASTERING THE WHOLE VALUE CHAIN Alloying R&T elements CASTING Al (ingots or recycling) Melt Billet Homogenization furnace casting furnace Billet Billet heater Extruding Quenching Water ENGINEERING EXTRUSION Stretching folding-CB folding-shearing-

  50. Slide 50: Typical Project Lifecycle Is 5 to 7 Years

    AUTOMOTIVE STRUCTURES: TYPICAL PROJECT LIFECYCLE IS 7 TO 11 YEARS CUSTOMER CONSTELLIUM Typical Automotive Structures Lifecycle Contacts between Customer and Constellium SOP TENDERING PROCESS ANSWERS TO CUSTOMER 12-24 months INCLUDING  Design ideas Peak  RFI (Request for Information)  Quotation ba

  51. Slide 51: Recent Nominations in Value of > €1.2 Billion

    AUTOMOTIVE STRUCTURES: RECENT NOMINATIONS IN VALUE OF > €1.2 BILLION 87% LINKED TO GROWTH PROJECTS, 13% TO RENEWAL PROJECTS; 57% NOMINATED FOR EUROPE, 43% NOMINATED FOR AMERICA NA OEM – SUV (Longitudinals, CMS) German OEM – Sports Vehicle (Body structure parts)  Lifetime revenue: ~€300m  Lifetime

  52. Slide 52: Investment Projects on Time and Budget

    AUTOMOTIVE STRUCTURES: INVESTMENT PROJECTS ON TIME AND BUDGET VAN BUREN, MICHIGAN WHITE, GEORGIA SAN LUIS POTOSÍ, MEXICO NORTH AMERICA –  Level of sales expected  Grand opening in May 2017  Production start in 2018 to increase by 37% driven  To expand OEM customer  CMS Global platform FOLLOW GL

  53. Slide 53: Industry: Investment Projects to Support Automotive Structures

    INDUSTRY: CURRENT INVESTMENT PROJECTS TO SUPPORT AUTOMOTIVE STRUCTURES FULLY-OWNED SOFT ALLOYS EXTRUSIONS PLANTS (GERMANY, FRANCE, SLOVAKIA) EUROPE –  Upgrade existing Soft alloys extrusions plants to follow the growth of Automotive Structures UPGRADE  Protect IP of proprietary alloys & processes

  54. Slide 54: Industry: Decin and Levice Investment Project

    INDUSTRY: EXAMPLE OF CURRENT INVESTMENT PROJECT TO GROW AND DIVERSIFY OUR PORTFOLIO OF EXTRUDED-BASED SOLUTIONS FOR THE AUTOMOTIVE MARKET DECIN (CZECH REPUBLIC) AND LEVICE (SLOVAKIA) DECIN  Expansion on a new site, a few kilometers away from the historic site: ▶ A new casthouse (40kt of hard alloys

  55. Slide 55: Adding It Up – Future AS&I

    ADDING IT UP – FUTURE AS&I AS&I OPERATES IN HIGHLY ATTRACTIVE MARKETS THAT ARE EXPECTED TO GROW...  CLEAR STRATEGIC OBJECTIVES ▶ Retain leadership position in extrusion-based solutions for structural automotive parts (worldwide) and in the EU hard alloy extrusions market  CUSTOMER ORIENTED ▶ A par

  56. Slide 56: Q&A

    QA &

  57. Slide 57: Finance

    Finance PETER MATT + Constellium

  58. Slide 58: Finance Priorities

    FINANCE PRIORITIES  Reduce costs FOCUS ON FREE CASH FLOW  Lower trade working capital - PROJECT 2019  Reduce capital spending RIGOROUS CAPITAL  Optimize existing assets DISCIPLINE  IRR/payback metrics for growth and cost savings projects  Sustainable Adjusted EBITDA growth STRENGTHEN BALANCE 

  59. Slide 59: Full Year 2016 Results

    FULL YEAR 2016 RESULTS FINANCIAL SUMMARY 2016 PERFORMANCE HIGHLIGHTS Shipments 1,478 1,470 (kt)  Adjusted EBITDA up 10%; +10% Adjusted EBITDA per ton up 11% 377 343 ▶ P&ARP up 10% to €201m Adjusted EBITDA ▶ A&T flat at €103m (€m) ▶ AS&I up 27% to €102m 2015 2016  Shipments of 1.5MT Revenues  Conc

  60. Slide 60: Confidence in 2017

    CONFIDENCE IN 2017  Over 90% of Packaging shipments secured under firm contracts P&ARP  Continued system wide cost reduction and productivity gains  ~90% of Aerospace and ~45% of TID shipments secured under firm contracts A&T  Q1 2017 weaker product mix with transition to new aerospace contracts

  61. Slide 61: Focus on Free Cash Flow – Project 2019

    FOCUS ON FREE CASH FLOW – PROJECT 2019  Demonstrated cost reduction capability across segments COST REDUCTION  Cost base of over €2 billion (excluding metal) provides significant opportunity  TWC at year end 2016 of 61 days (excl. factoring) WORKING CAPITAL  1 day equals €13m in 2016 MANAGEMENT

  62. Slide 62: Demonstrated Focus on Cost Reduction

    DEMONSTRATED FOCUS ON COST REDUCTION MUSCLE SHOALS CASE STUDY PROJECT 2019 – COST INITIATIVES ~€24m Run Rate Savings Achieved to Date  No stone unturned – we will look at Other everything ▶ Corporate, SG&A Manufacturing ▶ Manufacturing (Yields, Productivity, Maintenance) ▶ Procurement (Metal, Energ

  63. Slide 63: Rigorous Capital Discipline

    RIGOROUS CAPITAL DISCIPLINE CAPITAL SPENDING PEAKED IN 2015-2016 DISCIPLINED CAPITAL SPENDING  ABS Europe  ABS Europe  Transform  Transform  Project 2019 focused on sharpening capital  Airware®  A&T upgrades spending lens  A&T upgrades ▶ Optimizing existing assets where possible ▶ Increased

  64. Slide 64: Optimizing Existing Assets to Drive Returns

    OPTIMIZING EXISTING ASSETS TO DRIVE RETURNS P&ARP - SINGEN AS&I – CMS RENEWAL Description: Description:  Upgrade of hot and cold rolling  OEM renewal project on front  Enable production of ABS substrate, and rear CMS for new compact car specialties, and other products platform Key financial drive

  65. Slide 65: Harvesting the Benefits of Our Investments

    HARVESTING THE BENEFITS OF OUR INVESTMENTS CALP LINE  100kt CALP line IN NEUF-BRISACH, FRANCE  Currently in ramp up; full production expected in 2019  100kt CALP line; 51% owned by Constellium CALP LINE IN BOWLING GREEN, KENTUCKY  Currently in ramp up; full production expected in 2018  Not incl

  66. Slide 66: Strengthening the Balance Sheet and Liquidity

    STRENGTHENING THE BALANCE SHEET AND LIQUIDITY CAPITALIZATION SNAPSHOT (€m) ACTIVE CAPITAL STRUCTURE MANAGEMENT 2016PF*  $650m Senior notes issuance at 6.625% Secured debt 447 ▶ Reduces interest expense Unsecured debt 1,913 ▶ Nearest debt maturity 2021 Other ** (6) ▶ Redeemed Wise Senior Secured Not

  67. Slide 67: Reiterating Financial Guidance

    REITERATING FINANCIAL GUIDANCE  High single digit Adjusted EBITDA growth annually over the next three years, leading to over €500m in Adjusted EBITDA in 2020  Capital Spending of €275m in 2017  Targeting positive Free Cash Flow in 2019  Net Debt / Adjusted EBITDA target range of 4.0x - 4.5x 60

  68. Slide 68: Q&A

    QA &

  69. Slide 69: Key Takeaways

    KEY TAKEAWAYS STRONG MARKET POSITIONS IN ATTRACTIVE END-MARKETS PROVIDE PLATFORM FOR SUCCESS  A COMPELLING STRATEGY IN PLACE WITH STRONG LEADERSHIP TEAM TO EXECUTE FOCUSED ON COST REDUCTION AND CAPITAL DISCIPLINE WELL POSITIONED TO DELIVER ON HIGH SINGLE DIGIT ADJUSTED EBITDA GROWTH TARGET TARGETIN

  70. Slide 70: Appendix

    Appendix + Constellium

  71. Slide 71: Net Debt Reconciliation

    Net Debt Reconciliation € millions December 31, 2016 December 31, 2015 Borrowings 2,468 2,233 Fair value of cross currency interest rate swaps (77) (47) Cash and cash equivalents (347) (472) Cash pledged for issuance of guarantees (9) (11) Net Debt 2,035 1,703 71

  72. Slide 72: Reconciliation of Net Income to Adjusted EBITDA

    Reconciliation of Net Income to Adjusted EBITDA Year ended Year ended € millions December 31, December 31, 2016 2015 Net loss (4) (552) Income tax expense / (benefit) 69 (32) Income / (loss) before income tax 65 (584) Finance costs - net 167 155 Share of loss of joint-ventures 14 3 Income / (loss) f

  73. Slide 73: Slide 73

Constellium — Investor Day (March 2017) on 6ix