Constellium Se · NYSE:CSTM
Constellium — Q2 2020 Earnings Presentation
24 slides from Constellium's earnings presentation, Jul 22, 2020
Slide 1: Second Quarter 2020 Earnings Call
Second Quarter 2020 Earnings Call July 22, 2020
Slide 2: Forward-looking statements
Forward-looking statements Certain statements contained in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may contain “forward-looking statements” with respect to our business, results of ope
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: COVID-19 Update
COVID-19 Update } Health and safety of our employees is our first priority } Precautions in place } ~0.5% of employees with COVID-19 cases; all have recovered or are recovering } All plants operating well; closely monitoring COVID-19 hot spots } Demand returning in some end markets, but visibility g
Slide 6: Q2 2020 Highlights
Q2 2020 Highlights } Shipments of 310 thousand tons, down 25% compared to Q2 2019 } Revenue decreased 33% YoY to €1.0 billion } Net loss of €32 million compared to net income of €17 million in Q2 2019 } Adjusted EBITDA of €81 million decreased 51% YoY } Adjusted EBITDA of €228 million in H1 2020, do
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Q2 2020 vs. Q2 2019 (51)% € millions H1 2020 vs. H1 2019 (24)% € millions Second Quarter 2020 – Earnings Call 8
Slide 9: Packaging and Automotive Rolled Products
Packaging and Automotive Rolled Products Q2 2020 Commentary Q2 Q2 2020 2019 Var. } Adjusted EBITDA of €58 million } Lower shipments of packaging, Shipments (kt) 221 284 (23)% automotive and specialty products Revenues (€m) 565 821 (31)% } Weaker price and mix } Strong cost control Adj. EBITDA (€m) 5
Slide 10: Aerospace and Transportation
Aerospace and Transportation Q2 2020 Commentary Q2 Q2 2020 2019 Var. } Adjusted EBITDA of €31 million } Lower shipments of aerospace and TID Shipments (kt) 45 63 (28)% products Revenues (€m) 250 383 (35)% } Weaker price and mix } Strong cost control Adj. EBITDA (€m) 31 64 (51)% Adj. EBITDA (€ / t) 6
Slide 11: Automotive Structures and Industry
Automotive Structures and Industry Q2 2020 Commentary Q2 Q2 2020 2019 Var. } Adjusted EBITDA of €(1) million } Lower shipments of automotive and Shipments (kt) 44 66 (33)% industry products Revenues (€m) 222 347 (36)% } Weaker price and mix } Strong cost control Adj. EBITDA (€m) (1) 30 n.m. Adj. EBI
Slide 12: Cost Performance
Cost Performance Cost Highlights (€m) Q2 2020 Q2 2019 Var. ~€100 million of cost reductions compared to Q2 2019, excluding metal and depreciation Revenues 1,031 1,538 (33)% Includes benefits from European COVID-19 state aid Costs (incl. metal) 950 1,371 (31)% 17% decremental Adj. EBITDA margin
Slide 13: Net Debt and Liquidity
Net Debt and Liquidity Net Debt and Leverage Debt / Liquidity Highlights € in millions Committed to deleveraging FCF generation of €54 million in H1 2020 Liquidity of €949 million Closed German credit facilities in July for €50 million of additional liquidity Refinanced 2021 Senior Notes L
Slide 14: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 15: Sustainability
Sustainability 2019 Business and Sustainability Report: 2019 Highlights: } Recordable injury rate decreased to 2.40 in 2019 from 3.31 in 2016 } Improved energy efficiency by 6.4%* – the equivalent of 100k mt of CO2 savings } Recycled >560k mt of externally sourced aluminium scrap } Set a target to r
Slide 16: End Market Updates
End Market Updates % LTM Market Highlights Revenue } Market strong in North America; stable in Europe } Recession resilient Packaging } Focus on sustainability driving increased demand for aluminium cans 38% } Conversion from steel to aluminium continues in Europe } Conversions to ABS to help North
Slide 17: Q&A
Q&A Second Quarter 2020 – Earnings Call 17
Slide 18: Appendix
Appendix Second Quarter 2020 – Earnings Call 18
Slide 19: Net Debt Reconciliation
Net Debt Reconciliation September 30, June 30, 2020 March 31, 2020 December 31, 2019 June 30, 2019 2019 € millions Borrowings 2,536 2,399 2,361 2,370 2,378 Fair value of cross currency basis 5 1 6 (5) 8 swaps, net of margin calls Cash and cash equivalents (378) (270) (184) (152) (213) Cash pledged f
Slide 20: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months Three months Six months Six months ended ended ended ended € millions June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net (loss) / income (32) 17 (63) 41 Income tax (benefit) / expense (11) 9 (19) 24 (Loss) / income before income t
Slide 21: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Twelve Twelve Twelve Twelve Twelve months ended months ended months ended months ended months ended June 30, March 31, December 31, September 30, June 30, € millions 2020 2020 2019 2019 2019 Net (loss) / income (40) 8 64 (16) 200 Income tax expense (25
Slide 22: Borrowings Table
Borrowings Table At June 30, At December 31, 2020 2019 Nominal Nominal Value in Nominal Effective Value in (Arrangement Accrued Carrying Carrying € millions Currency Rate Rate Euros fees) Interests Value Value Secured Pan US ABL (due 2022) $ — Floating 3.43% — — — — 127 Secured US DDTL (due 2022) $
Slide 23: Liquidity
Liquidity Six months ended June 30, 2020 € millions Cash and cash equivalents 378 Factoring Facilities 48 Inventory Based Facility 78 Pan-U.S. ABL 280 Delayed Draw Term loan 148 Other 17 Total Liquidity 949 Second Quarter 2020 – Earnings Call 23
Slide 24: Cost Flex Reconciliation
Cost Flex Reconciliation CSTM (€m) Q2 2020 Q2 2019 Var. P&ARP (€m) Q2 2020 Q2 2019 Var. Revenues 1,031 1,538 (507) Revenues 565 821 (256) Costs (incl. metal) 950 1,371 (421) Costs (incl. metal) 507 742 (235) Adj. EBITDA 81 167 (86) Adj. EBITDA 58 79 (21) ∆ Cost / ∆ Revenue 83% ∆ Cost / ∆ Revenue 92%