Constellium Se · NYSE:CSTM
Constellium — Q2 2018 Earnings Presentation
22 slides from Constellium's earnings presentation, Jul 24, 2018
Slide 1: Second Quarter 2018 Earnings Call
Second Quarter 2018 Earnings Call July 24, 2018
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 2018 Highlights
Q2 2018 Highlights ► Total Shipments up 4% compared to Q2 2017 ► Successfully executing on our automotive strategy with shipments up 20% ► Revenue increased 7% YoY to €1.5 billion on higher metal prices and higher shipments ► Net income of €55 million compared to net income of €15 million in Q2 2017
Slide 6: Q2 2018 Segment Highlights
Q2 2018 Segment Highlights P&ARP A&T ► Adjusted EBITDA of €75 million ► Adjusted EBITDA of €43 million ► Automotive rolled product shipments ► Continued focus on developing TID end increased 27% YoY markets ► FT3 ramp up in Neuf-Brisach on track ► Transportation, Industry and Other rolled product sh
Slide 7: Peter Matt, Chief Financial Officer
Peter Matt Chief Financial Officer
Slide 8: Adjusted EBITDA Bridges
Adjusted EBITDA Bridges Q2 2018 vs. Q2 2017 +19% € millions YTD 2018 vs. YTD 2017 +22% € millions Second Quarter 2018 – Earnings Call 8
Slide 9: Packaging and Automotive Rolled Products
Packaging and Automotive Rolled Products Q2 2018 Performance Highlights Q2 Q2 Adjusted EBITDA of €75 million 2018 2017 Var. Higher automotive shipments Shipments (kt) 266 258 3% Improved price & mix due to higher auto shipments and favorable metal costs Revenues (€m) 801 736 9% Good cost con
Slide 10: Aerospace and Transportation
Aerospace and Transportation Q2 2018 Performance Highlights Q2 Q2 Adjusted EBITDA of €43 million 2018 2017 Var. Higher Aerospace rolled product Shipments (kt) 65 63 1% shipments Weaker price and mix and unfavorable Revenues (€m) 356 366 (3)% metal costs Solid operating cost performance Adj.
Slide 11: Automotive Structures and Industry
Automotive Structures and Industry Q2 2018 Performance Highlights Q2 Q2 Adjusted EBITDA of €39 million 2018 2017 Var. Higher shipments of both Automotive Shipments (kt) 66 62 7% and Other extruded products Improved price and mix Revenues (€m) 327 288 13% Slightly higher costs Adj. EBITDA (€m
Slide 12: Project 2019
Project 2019 €32 million of annual run rate cost savings achieved as of June 30, 2018 Cost Wide range of additional cost reduction initiatives Reduction underway Committed to further improvement of working capital turns Working Three Capital Expect working capital investments related to the
Slide 13: Net Debt and Liquidity
Net Debt and Liquidity Net Debt and Leverage Debt / Liquidity Highlights € in millions Committed to deleveraging Q2 2018 leverage of 4.3x down from 5.1x YoY No bond maturities until 2021 Ample liquidity of over €500 million Leverage: Net Debt / LTM Adjusted EBITDA Sierre asset sale proceed
Slide 14: Jean-Marc Germain, Chief Executive Officer
Jean-Marc Germain Chief Executive Officer
Slide 15: End Market Updates
End Market Updates Automotive: Aerospace: ► North America: SAAR stronger YoY in Q2 ► Sustained OEM build rates ► Europe: Market continued to grow YoY in Q2 ► OEM backlogs remain near record highs ► Demand for luxury cars, light trucks, and SUVs remains strong ► Global trade uncertainty Other Markets
Slide 16: Financial Guidance and Outlook
Financial Guidance and Outlook ► Based on our current outlook, we expect: ► 11% to 13% Adjusted EBITDA growth in 2018 ► High single digit Adjusted EBITDA growth in 2019 ► Adjusted EBITDA of over €500 million in 2019 ► Targeting positive Free Cash Flow in 2019 ► Net Debt / Adjusted EBITDA target of b
Slide 17: Q&A
Q&A Second Quarter 2018 – Earnings Call 17
Slide 18: Appendix
Appendix Second Quarter 2018 – Earnings Call 18
Slide 19: Net Debt Reconciliation
Net Debt Reconciliation € millions December June 30, March 31, September June 30, 31, 2018 2018 30, 2017 2017 2017 Borrowings 2,184 2,093 2,127 2,257 2,326 Fair value of cross currency 20 46 32 31 11 basis swaps, net of margin calls Cash and cash equivalents (166) (211) (269) (300) (286) Cash pledge
Slide 20: 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 June ended June 30, 2018 June 30, 2017 30, 2018 June 30, 2017 Net income 55 15 31 28 Income tax expense 25 12 29 39 Income before income tax 80 27 60 67 Finance costs – net 36
Slide 21: 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, 2018 2018 31, 2017 30, 2017 2017 Net (loss) / income (28) (68) (31) 29 23 Income tax expense 7
Slide 22: Borrowings Table
Borrowings Table € millions June 30, December 31, 2018 2017 Nominal Nominal Nominal Effective (Arrangement Accrued Carrying Carrying Value in Value in Rate Rate fees) Interests Value Value Currency Euros Secured Pan US ABL (due 2022) $90 Floating 4.32% 77 — — 77 65 Secured Inventory Based Facility (