Constellium Se · NYSE:CSTM
Constellium — Q1 2017 Earnings Presentation
23 slides from Constellium's earnings presentation, Apr 28, 2017
Slide 1: Quarter 2017
Quarter 2017 April 27, 2017 Exhibit 99.2
Slide 2: 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 operations and financial conditi
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: Q1 2017 Financial Highlights
Q1 2017 Financial Highlights Shipments of 375 kt Increased 4% compared to Q1 2016 Higher Automotive and Packaging shipments Net income of €13 million Improved from a net loss of €8 million in Q1 2016 Adjusted EBITDA of €93 million Record Adjusted EBITDA at AS&I A&T and P&ARP delivered solid results
Slide 6: Q1 2017 Business Highlights
Launched Project 2019 – Cash Improvement Initiative A&T Aerospace demand exceeded expectations despite destocking Transportation, Industry, and Defense shipments increased 3% Q1 2017 Business Highlights P&ARP Automotive rolled product shipments increased 28% Muscle Shoals on track to produce ABS sub
Slide 7: Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Q1 2017 Adjusted EBITDA Bridge
93 92 Q1 2017 Adjusted EBITDA Bridge € millions
Slide 9: Packaging and Automotive Rolled Products Q1 2017 Performance
Q1 2017 Performance Highlights Shipments of 254 kt increased 4% YoY Automotive rolled product shipments up 28% Adjusted EBITDA of €41 million Maintenance and other costs related to Muscle Shoals automotive readiness Higher shipments and improved mix Packaging and Automotive Rolled Products Adjusted
Slide 10: Aerospace and Transportation Q1 2017 Performance
Q1 2017 Performance Highlights Shipments decreased 3% YoY Excess inventory in the aerospace supply chain Adjusted EBITDA of €28 million Lower shipments and transition to new customer contracts Improved aerospace mix and solid cost control Aerospace and Transportation Adjusted EBITDA / ton (€) Adjust
Slide 11: Automotive Structures and Industry Q1 2017 Performance
Q1 2017 Performance Highlights Shipments of 60kt increased 7% YoY Automotive extrusion shipments increased 10% Record Adjusted EBITDA of €31 million Higher shipments on strong market demand Solid cost performance Automotive Structures and Industry Adjusted EBITDA / ton (€) Adjusted EBITDA (€m) Shipm
Slide 12: Borrowings and Net Debt, Liquidity
Borrowings and Net Debt Liquidity Ample liquidity with no bond maturities prior to 2021 Net Debt and Liquidity € millions € millions
Slide 13: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 14: End-market Updates
Automotive: Lightweighting trend expected to continue U.S. automotive production of programs we are on increased in Q1 2017 YoY Greater exposure to light trucks, SUVs and luxury cars, which have a greater need for lightweighting Packaging: Stable market BiW/ABS conversions should help North American
Slide 15: Financial Guidance
Financial Guidance Expect high single-digit growth in Adjusted EBITDA annually over the next three years, leading to over €500 million in 2020 Capital spending of €275 million in 2017 Targeting positive Free Cash Flow in 2019 Net Debt / Adjusted EBITDA target range of 4.0x - 4.5x
Slide 16: Constellium
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Slide 17: Constellium
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Slide 18: Shipments by Product Line
Three months ended March 31, 2017 Three months ended March 31, 2016 Shipments by Product Line (000’s metric tons) k metric tons Packaging rolled products Automotive rolled products Specialty and other thin-rolled products Aerospace rolled products Transportation, industry, and other rolled products
Slide 19: Q1 2017 Income Statement
Three months ended March 31, 2017 (unaudited) Three months ended March 31, 2016 (unaudited) IFRS – Q1 2017 Income Statement Revenue 1,328 1,150 Income from operations Finance costs – net (54) (41) Share of loss of joint-ventures (6) (1) Income before income tax Income tax expense (27) (19) Net Incom
Slide 20: Statement of Financial Position
At March 31, 2017 (unaudited) At December 31, 2016 IFRS – Statement of Financial Position Current assets 1,522 1,410 Non-current assets 2,340 2,377 Total Assets 3,862 3,787 Current liabilities 1,167 1,035 Non-current liabilities 3,242 3,322 Equity (547) (570) Total Equity and Liabilities 3,862 3,787
Slide 21: Net Debt Reconciliation
March 31, 2017 December 31, 2016 Net Debt Reconciliation Borrowings 2,433 2,468 Fair value of cross currency basis swaps (38) (77) Cash and cash equivalents (309) (347) Cash pledged for issuance of guarantees (9) (9) Net Debt 2,077 2,035 € millions
Slide 22: Reconciliation of Net Income to Adjusted EBITDA
Three months ended March 31, 2017 Three months ended March 31, 2016 Reconciliation of Net Income to Adjusted EBITDA € millions Net income / (loss) (8) Income tax expense Income before income tax Finance costs – net Share of loss of joint-ventures Income from operations Depreciation and amortization
Slide 23: Borrowings Table
Borrowings Table € millions March 31, December 31, Redemption Value Nominal Rate Effective Rate Face Value (Arrangement fees) Accrued Interests Carrying Value Carrying Value Secured ABL Ravenswood (due 2018) $51 Floating 3.18% — — Muscle Shoals (due 2020) — Floating — — — — — — Senior Secured Notes