Constellium Se · NYSE:CSTM
Constellium — Q2 2014 Earnings Presentation
25 slides from Constellium's earnings presentation, Aug 28, 2014
Slide 1: Second Quarter 2014 Earnings Conference Call
Second Quarter 2014 Earnings Conference Call August 28, 2014
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, Adjusted Free Cash Flow and Net Debt. These measures are presented because management uses this information to monitor and evaluate fin
Slide 4: Pierre Vareille, Chief Executive Officer
Pierre Vareille Chief Executive Officer
Slide 5: Q2 2014 Highlights
Q2 2014 Highlights (% changes Q2 2014 vs Q2 2013) § Adjusted EBITDA of €81 million § Shipments of 279k metric tons, up 2% § Revenues: €920 million, up 3% on a like-for-like basis § Record shipments and EBITDA performance in P&ARP § Continued strong performance in AS&I § Partial recovery in A&T
Slide 6: Aerospace Market: positive long term outlook
Aerospace Market: positive long term outlook Market context Slightly improving supply chain conditions Most aerospace business under long term contracts; low spot market exposure Constellium recent developments Considerable recovery in Aerospace EBITDA and EBITDA per ton from Q1 2014 Continued impac
Slide 7: Packaging Market: maintained good performance
Packaging Market: maintained good performance Market context Improvement due to healthy European market demand in Q2 Continued positive long term outlook Constellium recent developments Strong shipments, improved demand Excellent operational performance Record shipments in Neuf-Brisach Second Quarte
Slide 8: Automotive Rolled Market: Body-in-White exhibiting strong growth
Automotive Rolled Market: Body-in-White exhibiting strong growth Market context Global forecasts continue to move higher for automotive body sheet demand North American opportunity is large and market growth forecasts continue to increase Constellium recent developments Body-in-White volume increase
Slide 9: Automotive Extrusions: strong position in a growing market
Automotive Extrusions: strong position in a growing market Market context Strong long term global demand for more aluminum in automotive structures, crash management systems and chassis due to lightweighting and regulatory requirements Constellium recent developments Automotive Structures volume inc
Slide 10: Didier Fontaine, Chief Financial Officer
Didier Fontaine Chief Financial Officer
Slide 11: Q2 Segment Performance Compared with Q2
Q2 14 Segment Performance Compared with Q2 13 Segment Adjusted EBITDA (€m) Adjusted EBITDA per ton (€/T) (16)% (17)% 37 A&T 31 Shipments (kt) 63 62 (1)% 23% 20% P&ARP 36 219 29 181 Shipments (kt) 161 165 +2% 0% 10% 372 373 AS&I 20 18 Shipments (kt) 48 53 +10% Second Quarter 2014 – Earnings Call 11
Slide 12: Q2 Segment Performance Compared with Q1
Q2 14 Segment Performance Compared with Q1 14 Segment Adjusted EBITDA (€m) Adjusted EBITDA per ton (€/T) +28% +26% 497 395 A&T Shipments (kt) 61 62 +1% +35% +2 8 % P&ARP 36 219 27 171 Shipments (kt) 156 165 +6 % +2% +2% 366 373 AS&I 20 20 Shipments (kt) 53 53 (0)% Second Quarter 2014 – Earnings Call
Slide 13: Significant Improvement in Adjusted Free Cash Flow
Significant Improvement in Adjusted Free Cash Flow Six months Six months € millions ended ended June 30, 2014 June 30, 2013 Cash flow from operating activities 46 (1) Margin calls included in cash flow from operating activities (11) (2) Cash flow from operating activities excluding margin calls 35 (
Slide 14: Improving Trade Working Capital Trend
Improving Trade Working Capital Trend FY11 FY12 FY13 FY14 514 470 463 37 days 401 381 373 €(78)m 29 days 320 289 286 295 +€84m 32 days 222 +€73m 25 days Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Second Quarter 2014 – Earnings Call 14
Slide 15: Strong balance sheet with enhanced liquidity
Strong balance sheet with enhanced liquidity € millions June 30, 2014 Total Debt(*) 604 Cash and Cash Equivalents 403 Net Debt 201 Net Debt / LTM Adjusted EBITDA 0.7 Liquidity(**) 746 (*) Including fair value of cross currency interest swap and cash pledged for issuance of guarantees (**) Liquidity
Slide 16: Key Takeaways
Key Takeaways § Record performance in P&ARP § Strong performance in AS&I § Partial recovery in A&T leading to considerable improvement from Q1 2014 § New Body-in-White projects progressing well in Europe and in the U.S. § Expanding global automotive structures capacity § Completed bond offerin
Slide 17: Q&A
Q&A Second Quarter 2014 – Earnings Call 17
Slide 18: IFRS Statements
IFRS Statements Second Quarter 2014 – Earnings Call 18
Slide 19: IFRS – Income Statement
IFRS – Income Statement Three months Three months € millions ended ended June 30, 2014 June 30, 2013 Revenue 920 916 Income from operations 70 73 Other expenses - (24) Finance costs – net (27) (9) Income before income taxes 43 40 Income tax expense (15) (16) Net Income / (loss) 28 24 Second Quarter
Slide 20: IFRS – Statement of financial position
IFRS – Statement of financial position € millions June 30, 2014 June 30, 2013 Non-current assets 725 674 Current assets 1,384 1,069 Assets held for sale 16 21 Total Assets 2,125 1,764 Equity 60 36 Non-current liabilities 1,224 970 Current liabilities 831 749 Liabilities held for sale 10 9 Total Equi
Slide 21: Non-GAAP Measures Reconciliations
Non-GAAP Measures Reconciliations Second Quarter 2014 – Earnings Call 21
Slide 22: Net Debt Reconciliation
Net Debt Reconciliation € millions June 30, 2014 December 31, 2013 Borrowings 613 348 Fair value of cross currency interest swap - 26 Cash and cash equivalents (403) (233) Cash pledged for issuance of guarantees (9) (9) Net Debt 201 132 Second Quarter 2014 – Earnings Call 22
Slide 23: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Three months Three months € millions ended June 30, 2014 ended June 30, 2013 Cash flow from operating activities 50 46 Margin calls included in cash flow from - (2) operating activities Cash flow from operating activities 50 44 excluding margin calls Capital ex
Slide 24: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Six months ended Six months ended € millions June 30, 2014 June 30, 2013 Cash flow from operating activities 46 (1) Margin calls included in cash flow from (11) (2) operating activities Cash flow from operating activities 35 (3) excluding margin calls Capital e
Slide 25: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation € millions Q2 2014 Q2 2013 Net income / (loss) 28 24 Income tax expense 15 16 Income before income tax 43 40 Finance costs - net 27 9 Other expenses / share of results of joint-ventures - 24 Income from operations 70 73 Depreciation and impairment 11 5 Unrealized (gain