Constellium Se · NYSE:CSTM
Constellium — Q2 2015 Earnings Presentation
26 slides from Constellium's earnings presentation, Aug 5, 2015
Slide 1: Second Quarter 2015 Earnings Conference Call
Second Quarter 2015 Earnings Conference Call August 5, 2015
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, Adjusted Free Cash Flow and Net Debt. These measures are presented because management uses this information to monitor and evaluate finan
Slide 4: Pierre Vareille, Chief Executive Officer
Pierre Vareille Chief Executive Officer
Slide 5: Q2 2015 Highlights
Q2 2015 Highlights ► Shipments of 386 thousand metric tons, up 38% ► Revenue of €1.375 billion, up 49% ► Adjusted EBITDA of €93 million, including €19 million from Muscle Shoals adjusted for Midwest premiums ► Record Adjusted EBITDA in AS&I, better than anticipated results in A&T, and record shipmen
Slide 6: Update on Muscle Shoals
Update on Muscle Shoals Q2 Shipments of 111 kt; 231 kt YTD Q2 Revenue of €308 million; €667 million YTD Q2 Adjusted EBITDA of €19 million; €44 million YTD Operational integration progressing well, still working through metal management issues Generating cash ahead of plan, Q2 inventory reduction of
Slide 7: Muscle Shoals Outlook
Muscle Shoals Outlook Shipment volumes on track for approximately 450 kt for 2015, up 12% from 2014 shipments of 401 kt Second half of 2015 volume slightly softer than first half due to the benefit of competitor outage in January 2015 Also expect a less favorable product mix to negatively impact sec
Slide 8: Packaging and Automotive Rolled Products Segment
Packaging and Automotive Rolled Products Segment Segment Outlook/Mix Shipments of 268 kt in Q2 2015, up 62% from 165 kt in Q2 2014, including Muscle Shoals Automotive rolled products shipments up 18% for Q2 and up 19% for the first half of 2015 Constellium Recent Developments Customer demand in BiW
Slide 9: Aerospace and Transportation Segment
Aerospace and Transportation Segment Segment Outlook/Mix Solid demand in aerospace market with majority of business under long term contracts Stable transportation and industry markets Q2 2015 shipments of 63 kt, up slightly from 62 kt in Q2 2014 Constellium Recent Developments Marked improvement in
Slide 10: Automotive Structures and Industry Segment
Automotive Structures and Industry Segment Segment Mix/Outlook Automotive Structures market demand remains strong, Industry market remains competitive Q2 2015 shipments of 57 kt, up 7% from 53 kt in Q2 2014 Automotive extruded products volume up 16% Constellium Recent Developments Record segment per
Slide 11: Didier Fontaine, Chief Financial Officer
Didier Fontaine Chief Financial Officer
Slide 12: Q2 2015 Adjusted EBITDA vs Q2 2014
Q2 2015 Adjusted EBITDA vs Q2 2014 € millions (1) 2 (6) 17 93 81 Adjusted P&ARP A&T AS&I H&C* Adjusted EBITDA 2014 EBITDA 2015 (*) Holdings and Corporate Second Quarter 2015 – Earnings Call 12
Slide 13: Q2 2015 Segment Performance vs Q2 2014
Q2 2015 Segment Performance vs Q2 2014 Segment Adjusted EBITDA (€m) Adjusted EBITDA per ton (€) P&ARP Shipments: 165kt 268kt +62% A&T Shipments: 62kt 63kt +1% AS&I Shipments: 53kt 57kt +7% Second Quarter 2015 – Earnings Call 13
Slide 14: Strong Adjusted Free Cash Flow
Strong Adjusted Free Cash Flow Three months Three months € millions ended ended June 30, 2015 June 30, 2014 Cash flow from operating activities 152 50 Margin calls included in cash flow from operating activities (1) - Cash flow from operating activities excluding margin calls 151 50 Capital expendit
Slide 15: Fast Inventory Reduction at Muscle Shoals Drives Greater Cash Generation
Fast Inventory Reduction at Muscle Shoals Drives Greater Cash Generation 37 days 28 days 29 days Strong reduction in Days of Sales Outstanding of 9 days from Q1 2015 Second Quarter 2015 – Earnings Call 15
Slide 16: Strong Liquidity Provides Ample Flexibility
Strong Liquidity Provides Ample Flexibility € millions June 30, 2015 March 31, 2015 Total Debt (*) 2,107 2,168 Cash and Cash Equivalents 369 352 Net Debt 1,738 1,816 Liquidity (**) 690 700 Net debt and leverage slightly improved due to an increase in cash and positive foreign exchange (*) Including
Slide 17: Key Takeaways - Constellium
Key Takeaways - Constellium ► Q2 2015 Shipments, Revenue and Adjusted EBITDA, +38%, +49% and +15% respectively, compared to Q2 2014 ► Record performance in AS&I, better than anticipated results in A&T, and record shipments and Adjusted EBITDA in P&ARP ► Demand remains strong in all targeted markets
Slide 18: Q&A
Q&A Second Quarter 2015 – Earnings Call 18
Slide 19: Appendix
Appendix Second Quarter 2015 – Earnings Call 19
Slide 20: IFRS – Q2 2015 Income Statement
IFRS – Q2 2015 Income Statement Three months ended Three months ended € millions June 30, 2015 June 30, 2014 Revenue 1,375 920 (Loss) / income from operations (3) 70 Finance costs – net (36) (27) (Loss) / income before income taxes (39) 43 Income tax expense (8) (15) Net (loss) / income (47) 28 Seco
Slide 21: IFRS – First Half 2015 Income Statement
IFRS – First Half 2015 Income Statement Six months ended Six months ended € millions June 30, 2015 June 30, 2014 Revenue 2,768 1,803 (Loss) / income from operations (7) 126 Other expenses - (1) Finance costs – net (79) (36) Share of loss of joint-ventures (1) - (Loss) / income before income taxes (8
Slide 22: IFRS – Statement of Financial Position
IFRS – Statement of Financial Position € millions At June 30, 2015 At December 31, 2014 Non-current assets 2,307 952 Current assets 1,833 2,046 Assets held for sale 14 14 Total Assets 4,154 3,012 Equity (87) (37) Non-current liabilities 2,890 1,991 Current liabilities 1,337 1,050 Liabilities held fo
Slide 23: Net Debt Reconciliation
Net Debt Reconciliation € millions June 30, 2015 December 31, 2014 Borrowings 2,178 1,252 Fair value of cross currency interest rate swap (59) (29) Cash and cash equivalents (369) (989) Cash pledged for issuance of guarantees (12) (10) Net Debt 1,738 224 Second Quarter 2015 – Earnings Call 23
Slide 24: Reconciliation of Net Income to Adjusted EBITDA
Reconciliation of Net Income to Adjusted EBITDA Three months Three months ended Six months ended Six months ended € millions ended June 30, 2015 June 30, 2015 June 30, 2014 June 30, 2014 Net (loss) / income (47) 28 (78) 58 Income tax expense / (benefit) 8 15 (9) 31 (Loss) / income before income tax
Slide 25: Reconciliation Adjusted EBITDA to Net Income – Muscle Shoals
Reconciliation Adjusted EBITDA to Net Income – Muscle Shoals (IFRS) Three months ended Six months ended € millions June 30, 2015 June 30, 2015 Adjusted EBITDA 19 44 Metal price lag 3 9 Start-up and development costs (4) (4) Wise acquisition and integration costs 2 (2) Wise Mid-West premium losses (1
Slide 26: Liquidity Details
Liquidity Details € millions Availability Ravenswood ABL 69 Wise ABL 60 Factoring 182 Revolving Credit Facility * - Other 10 Total 321 Cash and cash equivalents 369 Total Liquidity 690 * The €145 million Revolving Credit Facility is undrawn but is not considered available as our leverage is higher t