Operating Segment Information (Tables)

6 Months Ended

Jun. 30, 2018

Summary of Operating Segment Information

4.1 Segment Revenue


	Three months ended June 30, 2018							Three months ended June 30, 2017							Six months ended June 30, 2018							Six months ended June 30, 2017
(in millions of Euros)	Segment revenue		Inter segment elimination			External revenue		Segment revenue		Inter segment elimination			External revenue		Segment revenue		Inter segment elimination			External revenue		Segment revenue		Inter segment elimination			External revenue
P&ARP		801		(2	)		799		736		(2	)		734		1,539		(4	)		1,535		1,441		(4	)		1,437
A&T		356		(11	)		345		366		(8	)		358		699		(23	)		676		709		(14	)		695
AS&I		327		(1	)		326		288		(1	)		287		644		(1	)		643		574		(3	)		571
Holdings &
Corporate^(A)		4		—			4		3		—			3		6		—			6		7		—			7

Total		1,488		(14	)		1,474		1,393		(11	)		1,382		2,888		(28	)		2,860		2,731		(21	)		2,710

(A)	Holdings & Corporate segment includes revenues from supplying metal to third parties.

Summary of Revenue by Product Line

4.2 Segment Adjusted EBITDA and reconciliation of Adjusted EBITDA to Net Income


(in millions of Euros)	Notes		Three months ended June 30, 2018			Three months ended June 30, 2017			Six months ended June 30, 2018			Six months ended June 30, 2017
P&ARP				75			57			126			98
A&T				43			41			77			69
AS&I				39			33			75			64
Holdings & Corporate				(6	)		(4	)		(10	)		(11	)

Adjusted EBITDA				151			127			268			220

Metal price lag^(A)				20			7			24			20
Start-up and development costs^(B)				(5	)		(5	)		(9	)		(10	)
Manufacturing system and process transformation costs				—			(1	)		—			(1	)
Share-based compensation costs				(3	)		(1	)		(6	)		(3	)
Gains on pension plan amendments^(C)				—			—			—			22
Depreciation and amortization		13, 14		(46	)		(41	)		(90	)		(84	)
Restructuring costs				—			—			—			(2	)
Unrealized gains / (losses) on derivatives		5		11			(10	)		(43	)		18
Unrealized exchange (losses) / gains from the remeasurement of monetary assets and liabilities - net		5		—			(1	)		1			(5	)
Losses on disposals				(3	)		(1	)		(4	)		(2	)
Other				—			(1	)		1			—

Income from operations				125			73			142			173

Finance costs - net		7		(36	)		(39	)		(70	)		(93	)

Share of loss of joint-ventures				(9	)		(7	)		(12	)		(13	)

Income before income tax				80			27			60			67

Income tax expense				(25	)		(12	)		(29	)		(39	)

Net income				55			15			31			28

(A)

Metal price lag represents the financial impact of the timing difference between when aluminium prices included within Constellium revenues are established and when aluminium purchase prices included in Cost of sales are established. The Group accounts for inventory using a weighted average price basis and this adjustment aims to remove the effect of volatility in LME prices. The calculation of the Group metal price lag adjustment is based on an internal standardized methodology calculated at each of Constellium’s manufacturing sites and is primarily calculated as the average value of product recorded in inventory, which approximates the spot price in the market, less the average value transferred out of inventory, which is the weighted average of the metal element of cost of sales, based on the quantity sold in the period.

(B)

For the six months ended June 30, 2018, start-up and development costs include €9 million related to new projects in our AS&I operating segment. For the six months ended June 30, 2017, start-up costs and development costs include €7 million related to new sites in our AS&I operating segment and €3 million to Auto Body Sheet growth projects both in Europe and the U.S.

(C)	For the six months ended June 30, 2017, amendments to certain Swiss pension plan, US pension plan and OPEB resulted in a €22 million gain.

Summary of Segment Capital Expenditures

4.3 Segment capital expenditures


(in millions of Euros)	Three months ended June 30, 2018			Three months ended June 30, 2017			Six months ended June 30, 2018			Six months ended June 30, 2017
P&ARP		(17	)		(24	)		(30	)		(48	)
A&T		(10	)		(18	)		(23	)		(34	)
AS&I		(22	)		(17	)		(42	)		(36	)
Holdings & Corporate		(1	)		(1	)		(2	)		(2	)

Capital expenditures		(50	)		(60	)		(97	)		(120	)