Constellium Se · NYSE:CSTM
Constellium — Q2 2019 Earnings Presentation
21 slides from Constellium's earnings presentation, Jul 24, 2019
Slide 1: Second Quarter 2019 Earnings Call
Second Quarter 2019 Earnings Call July 24, 2019
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: Q2 2019 Highlights
Q2 2019 Highlights ► Total Shipments up 4% YoY to 413 thousand metric tons ► Revenue increased 4% YoY to €1.5 billion ► Net income of €17 million compared to net income of €55 million in Q2 2018 ► Adjusted EBITDA of €167 million increased 8% YoY; H1 2019 increased 10% YoY ► Cash from Operations of €
Slide 6: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 7: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Q2 2019 vs. Q2 2018 +8% € millions H1 2019 vs. H1 2018 +10% € millions Second Quarter 2019 – Earnings Call 7
Slide 8: Packaging and Automotive Rolled Products
Packaging and Automotive Rolled Products Q2 2019 Performance Highlights Q2 Q2 Adjusted EBITDA of €79 million 2019 2018 Var. Higher automotive and packaging Shipments (kt) 284 266 7% shipments Favorable metal costs offset by costs Revenues (€m) 821 801 2% from the ramp up of automotive programs
Slide 9: Aerospace and Transportation
Aerospace and Transportation Q2 2019 Performance Highlights Q2 Q2 Adjusted EBITDA of €64 million 2019 2018 Var. Increased Aerospace shipments offset Shipments (kt) 63 65 (2)% by lower TID shipments Improved price and mix, primarily on Revenues (€m) 383 356 8% TID shipments Solid operational
Slide 10: Automotive Structures and Industry
Automotive Structures and Industry Q2 2019 Performance Highlights Q2 Q2 Adjusted EBITDA of €30 million 2019 2018 Var. Higher Automotive shipments Shipments (kt) 66 66 1% Higher costs largely related to new product launches and footprint Revenues (€m) 347 327 6% expansion Adj. EBITDA (€m) 30 39
Slide 11: Project 2019
Project 2019 €68 million of annual run rate cost savings achieved as of June 30, 2019 Cost Reduction Target of €75 million of annual run-rate cost savings by December 31, 2019 Strong working capital performance on back of solid operating performance and increased discipline Working Continue
Slide 12: Net Debt and Liquidity
Net Debt and Liquidity Net Debt and Leverage Debt / Liquidity Highlights € in millions Strong Cash from Operations and Free Cash Flow generation in Q2 2019 Announced €100 million redemption of 2021 bonds in July 2019 Remain committed to deleveraging Expect leverage below 3.8x by the end of 2
Slide 13: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 14: End Market Updates
End Market Updates Automotive: Aerospace: ► North America: Market SAAR expected to ► Sustained OEM build rates decline in 2019 ► OEM backlogs remain healthy ► Europe: Market expected to decline slightly in 2019 ► Near-term demand remains strong ► Demand for luxury cars, light trucks, and SUVs remain
Slide 15: Financial Guidance and Outlook
Financial Guidance and Outlook Targets for 2019 : ► Adjusted EBITDA growth of 13% to 15% ► Free Cash Flow of €125 million to €175 million ► Net Debt / Adjusted EBITDA below 3.8x Targets for 2022: ► Adjusted EBITDA of over €700 million ► Net Debt / Adjusted EBITDA of 2.5x Focused on delivering on our
Slide 16: Q&A
Q&A Second Quarter 2019 – Earnings Call 16
Slide 17: Appendix
Appendix Second Quarter 2019 – Earnings Call 17
Slide 18: Net Debt Reconciliation
Net Debt Reconciliation December September June 30, March 31, June 30, 31, 30, € millions 2019 2019 2018 2018 2018 Borrowings 2,378 2,421 2,151 2,103 2,184 Fair value of cross currency basis swaps, net of margin 8 2 9 25 20 calls Cash and cash equivalents (213) (222) (164) (279) (166) Cash pledged f
Slide 19: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three Three Six months Six months months months € millions ended ended ended ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Net income 17 55 41 31 Income tax expense 9 25 24 29 Income before income tax 26 80 65 60 Finance costs – net 43
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Twelve Twelve Twelve Twelve Twelve months months months months months € millions ended ended ended ended ended June 30, March 31, December September June 30, 2019 2019 31, 2018 30, 2018 2018 Net income / (loss) 200 238 190 168 (28) Income tax expense 2
Slide 21: Borrowings Table
Borrowings Table € millions June 30, December 31, 2019 2018 Nominal Nominal Nominal Effective (Arrangement Accrued Carrying Carrying Value in Value in Rate Rate fees) Interests Value Value Currency Euros Secured Pan U.S. ABL (due 2022) $106 Floating 4.43% 93 — — 93 — Secured Inventory Based Facility