EX-99.2 3 d782448dex992.htm EX-99.2

EX-99.2

Second Quarter 2014

Earnings Conference Call

August 28, 2014 

Exhibit 99.2

Second Quarter 2014 –

Earnings Call

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 operations and financial condition, and our expectations or

beliefs concerning future events and conditions. You can identify certain forward-looking statements because

they contain words such as, but not limited to, “believes”, “expects”, “may”, “should”, “approximately”,

“anticipates”, “estimates”, “intends”, “plans”, “targets”, “likely”, “will”, “would”, “could” and similar expressions (or

the negative of these terminologies or expressions). All forward-looking statements involve risks and

uncertainties. Many risks and uncertainties are inherent in our industry and markets. Others are more specific to

our business and operations. These risks and uncertainties include, but are not limited to, those set forth under

the heading “Risk Factors” in our Annual Report on Form 20F, and described from time to time in subsequent

reports, filed with the U.S. Securities and Exchange Commission, and include risks relating to the finalization of

our U.S. Body-in-White joint venture, including the failure to receive required regulatory approvals. The

occurrence of the events described and the achievement of the expected results depend on many events, some

or all of which are not predictable or within our control. Consequently, actual results may differ materially from

the forward-looking statements contained in this press release. We undertake no obligation to publicly update or

revise any forward-looking statement as a result of new information, future events or otherwise, except as

required by law.

2

Second Quarter 2014 –

Earnings Call

3

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 financial

results and trends and believes this information to also be useful for investors. Adjusted EBITDA

measures are frequently used by securities analysts, investors and other interested parties in their

evaluation of Constellium and in comparison to other companies, many of which present an adjusted

EBITDA-related performance measure when reporting their results. Adjusted EBITDA, Adjusted EBITDA

per Metric Ton, Adjusted Free Cash Flow and Net Debt are not presentations made in accordance with

IFRS and may not be comparable to similarly titled measures of other companies. These non-GAAP

financial measures supplement our IFRS disclosures and should not be considered an alternative to the

IFRS measures. This presentation provides a reconciliation of non-GAAP financial measures to the most

directly comparable GAAP financial measures.

Pierre Vareille

Chief Executive Officer

Second Quarter 2014 –

Earnings Call

5

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 segment leading to significant EBITDA and EBITDA

per ton improvement as compared with first quarter 2014    

Automotive structures and BiW exhibiting strong growth

Continued improvement in net trade working capital and days sales

outstanding (8 days reduction from Q2 2013)

Body-in-White finishing plant breaks ground in Bowling Green, Kentucky

Hosted two Analyst Days in NYC and in Singen, Germany

Successfully completed bond offerings of €590 million in May 2014 

Q2

2014

Highlights

(%

changes

Q2

2014

vs

Q2

2013)

Second Quarter 2014 –

Earnings Call

6

Aerospace Market: positive long term outlook

Slightly improving supply chain conditions

Most aerospace business under long term contracts; low spot market exposure

Considerable

recovery

in

Aerospace

EBITDA

and

EBITDA

per

ton

from

Q1

2014

Continued impact of higher metal premiums

Held first Analyst Day in NYC in April highlighting Aerospace business

Q2 2014 A&T results below Q2 2013 

Market context

Constellium recent developments

Second Quarter 2014 –

Earnings Call

7

Packaging Market: maintained good performance 

Strong shipments, improved demand

Excellent operational performance

Record shipments in Neuf-Brisach

Market context

Constellium recent developments

Improvement due to healthy European market demand in Q2

Continued positive long term outlook   

Second Quarter 2014 –

Earnings Call

8

Automotive Rolled Market: Body-in-White exhibiting strong growth 

Body-in-White volume increased +47% from Q2 2013 

Body-in-White capacity expansion in Europe proceeding according to plan

Body-in-White finishing plant breaks ground in Bowling Green, KY

Heat exchangers business performing well as new products enter the market

Market context

Constellium recent developments

Global forecasts continue to move higher for automotive body sheet demand

North American opportunity is large and market growth forecasts continue to increase

Second Quarter 2014 –

Earnings Call

Market context

9

Automotive Extrusions: strong position in a growing market 

Strong long term global demand for more aluminum in automotive structures, crash management

systems and chassis due to lightweighting and regulatory requirements

Automotive Structures volume increased +27%

compared to Q2 2013

Strong visibility in orders with over 6 years of

production at current rates

Expanding our auto structures plants in Europe, the

U.S. and China due to continued strong customer

demand

New casthouse and extrusion line now operational in

Decin, Czech Republic to serve the automotive

market

Held Analyst Field Trip in Singen, Germany  in June

Constellium recent developments

Didier Fontaine

Chief Financial Officer

Second Quarter 2014 –

Earnings Call

Q2 14 Segment Performance Compared with Q2 13

Segment Adjusted EBITDA (€m)

Adjusted EBITDA per ton (€/T)

Shipments (kt)   

63

62

(1)%

Shipments (kt)      161                        

165

Shipments (kt)  

48                                 53

37

37

31

31

29

29

36

36

18

18

20

20

372

372

373

+2%

+10%

181

181

219

219

11

Q2 14 Segment Performance Compared with Q1 14

27

27

36

36

20

20

20

20

Segment Adjusted EBITDA (€m)

Adjusted EBITDA per ton (€/T)

395

395

497

497

Shipments (kt)       61

62         +1%

Shipments (kt)      156                               165      

+6 %

Shipments (kt)      53                                    53   

(0)%

171

171

219

219

366

366

373

373

12

Second Quarter 2014 –

Earnings Call

Second Quarter 2014 –

Earnings Call

Significant Improvement in Adjusted Free Cash Flow

€

millions

Six months

ended

June 30, 2014

Six months

ended

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

(3)

Capital expenditure

(70)

(55)

Adjusted Free Cash Flow

(35)

(58)

13

Second Quarter 2014 –

Earnings Call

Improving Trade Working Capital Trend

Q4 2011

Q1 2012

Q2 2012

Q3 2012

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Q1 2014

Q2 2014

+€73m

€(78)m

+€84m

37 days

29 days

32 days

25 days

FY11

FY12

FY13

FY14

381

470

514

463

289

401

373

320

222

286

295

14

Second Quarter 2014 –

Earnings Call

€

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 measured as the sum of Cash and Cash Equivalents and availability under long-term facilities

Strong balance sheet with enhanced liquidity

15

Second Quarter 2014 –

Earnings Call

16

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 offerings enhancing total liquidity

Q & A

17

Second Quarter 2014 –

Earnings Call

IFRS Statements

18

Second Quarter 2014 –

Earnings Call

Second Quarter 2014 –

Earnings Call

19

IFRS –

Income Statement

€

millions

Three months

ended

June 30, 2014

Three months

ended

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 2014 –

Earnings Call

20

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 Equity and Liabilities

2,125

1,764

Second Quarter 2014 –

Earnings Call

Non-GAAP Measures Reconciliations

21

Second Quarter 2014 –

Earnings Call

22

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

23

Adjusted Free Cash Flow Reconciliation

€

millions

Three months

ended June 30, 2014

Three months

ended June 30, 2013

Cash flow from operating activities

50

46

Margin calls included in cash flow from

operating activities

-

(2)

Cash flow from operating activities

excluding margin calls

50

44

Capital expenditure

(37)

(32)

Adjusted Free Cash Flow

13

12

Second Quarter 2014 –

Earnings Call

24

Adjusted Free Cash Flow Reconciliation

€

millions

Six months ended

June 30, 2014

Six months ended

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

(3)

Capital expenditure

(70)

(55)

Adjusted Free Cash Flow

(35)

(58)

Second Quarter 2014 –

Earnings Call

25

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 (gains)/losses from remeasurement of monetary assets and

liabilities

(2)

1

Unrealized gains on derivatives

(7)

(2)

Restructuring costs

2

-

Start-up and development costs

2

-

Gain on Ravenswood OPEB plan amendment

(1)

(11)

Metal lag

(2)

10

Other

8

9

Adjusted EBITDA

81

85