Constellium Se · NYSE:CSTM
Constellium — Q4 2021 Earnings Presentation
23 slides from Constellium's earnings presentation, Feb 23, 2022
Slide 1: Fourth Quarter and Full Year 2021 Earnings Call
Fourth Quarter and Full Year 2021 Earnings Call February 23, 2022
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, Free Cash Flow and Net debt. These measures are presented because management uses this information to monitor and evaluate financial resu
Slide 4: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 5: Q4 2021 Highlights
Q4 2021 Highlights Ø Shipments: 385kt (+3% YoY) Ø Revenue: €1.7 billion (+37% YoY) Ø Net income: €7 million Ø Adj. EBITDA: €147 million (+33% YoY) Ø Cash from Operations: €118 million Ø Free Cash Flow: €14 million Ø Redeemed $200 million of 5.875% Senior Notes due 2026 Adjusted EBITDA and Free Cash
Slide 6: FY 2021 Highlights
FY 2021 Highlights Ø Safety: Delivered best in class safety Adjusted EBITDA Exceeded 2019 Levels performance; recordable case rate(1) of 1.9 in 2021 € millions Ø Shipments: 1.6 million tons (+10% YoY) Ø Revenue: €6.2 billion (+26% YoY) Ø Net income: €262 million Ø Adj. EBITDA: €581 million (+25% YoY
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Q4 2021 vs. Q4 2020 € millions +33% FY 2021 vs. FY 2020 +25% € millions Fourth Quarter 2021 – Earnings Call 8
Slide 9: Packaging & Automotive Rolled Products
Packaging & Automotive Rolled Products Q4 2021 Performance Q4 Q4 Ø Adjusted EBITDA of €88 million 2021 2020 Var. Ø Weaker mix with higher packaging and Shipments (kt) 272 271 —% lower automotive shipments Revenue (€m) 1,037 745 39% Ø Solid cost control as favorable metal costs offset higher operatin
Slide 10: Aerospace & Transportation
Aerospace & Transportation Q4 2021 Performance Q4 Q4 Ø Adjusted EBITDA of €30 million 2021 2020 Var. Ø Higher TID shipments; aerospace Shipments (kt) 53 43 24% shipments flat YoY Revenue (€m) 321 214 50% Ø Improved price and mix Ø Higher operating costs Adj. EBITDA (€m) 30 13 142% Ø Favorable FX tra
Slide 11: Automotive Structures & Industry
Automotive Structures & Industry Q4 2021 Performance Q4 Q4 Ø Adjusted EBITDA of €31 million 2021 2020 Var. Ø Higher industry shipments, largely offset Shipments (kt) 60 60 1% by lower automotive shipments Revenue (€m) 362 299 21% Ø Improved price and mix Ø Higher operating costs Adj. EBITDA (€m) 31
Slide 12: Continuing Our Focus on Cost Control in Current Inflationary Environment
Continuing Our Focus on Cost Control in Current Inflationary Environment Q4 Impacts Looking Forward - 2022 ▪ Experienced more significant inflationary ▪ Expect inflationary pressures to increase in pressures in Q4 than prior quarters the near-term ▪ Cost of alloying elements like magnesium ▪ Metal s
Slide 13: Free Cash Flow
Free Cash Flow FY 2021 FY 2020 2021 Free Cash Flow Highlights Net cash flows from Ø Free Cash Flow of €135 million 357 334 operating activities Ø Despite both significant working Purchases of property, plant capital build as shipments rebounded (222) (177) and higher capex and equipment, net of gran
Slide 14: Net Debt and Liquidity
Net Debt and Liquidity Net Debt and Leverage Debt / Liquidity Highlights € in millions Ø Leverage at 3.4x, a multi-year low Ø Redeemed $200 million of 5.875% Senior Notes due 2026 Ø 2021 actions reduced cash interest run- rate by ~€38 million annually Ø No near-term bond maturities Ø Gradually reduc
Slide 15: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 16: End Market Updates
End Market Updates Market Commentary % of Revenue • Strong market in North America and in Europe • Focus on sustainability driving increased demand for aluminium cans Packaging 43% • Mid-single digit annual demand growth supported by can-maker capacity additions in both North America and Europe • Li
Slide 17: Key Messages and Guidance
Key Messages and Guidance Strong performance in 2021 – Record Adj. EBITDA that surpassed 2019 level despite a number of challenges – Solid operational performance, strong cost control, and consistent Free Cash Flow generation Targets – Leverage of 3.4x at year-end, a multi-year low 2022 Adjusted EBI
Slide 18: Appendix
Appendix Fourth Quarter 2021 – Earnings Call 18
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months ended Year ended December 31, December 31, (in millions of Euros) 2021 2020 2021 2020 Net income / (loss) 7 26 262 (17) Income tax expense / (benefit) 2 (5) 55 (17) Income / (loss) before tax 9 21 317 (34) Finance costs - net 41 35 167 159
Slide 20: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Three months ended Year ended December 31, December 31, 2021 2020 2021 2020 (in millions of Euros) Net cash flows from operating activities 118 71 357 334 Purchases of property, plant and equipment (104) (44) (232) (182) Property, plant and equipment grants received — 1
Slide 21: Net Debt Reconciliation
Net Debt Reconciliation December 31, September 30, June 30, March 31, December 31, 2021 2021 2021 2021 2020 (in millions of Euros) Borrowings 2,129 2,282 2,257 2,325 2,391 Fair value of net debt (1) 5 9 25 42 derivatives, net of margin calls Cash and cash equivalents (147) (323) (290) (342) (439) Ne
Slide 22: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Twelve months ended December 31, September 30, June 30, March 31, December 31, (in millions of Euros) 2021 2021 2021 2021 2020 Net income / (loss) 262 281 202 62 (17) Income tax expense / (benefit) 55 48 35 2 (17) Income / (loss) before tax 317 329 237
Slide 23: Borrowings Table
Borrowings Table At December 31, At December 31, 2021 2020 Nominal Nominal Value in Nominal Value in (Arrangement Accrued Carrying Carrying (in millions of Euros) Currency Rate Euros fees) Interests Value Value Secured Pan-U.S. ABL (due 2026) $ — Floating — — — — — Secured U.S. DDTL (expired in 2021