Investments Accounted for Under Equity Method (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Investments Accounted for Under Equity Method

The Group investments accounted for under the Equity method are Constellium-UACJ ABS LLC and Rhenaroll S.A.


*(in millions of Euros)*	Year ended December 31, 2018			Year ended December 31, 2017
At January 1,		1			16
Group share in loss		(33	)		(29	)
Additions		—			—
Reclassified to non-current other financial assets		33			14
Effects of changes in foreign exchange rates		—			—

At December 31		1			1

Summary of Share of Joint Ventures


				Group share of joint venture’s net assets						Group share of joint venture’s profit / (loss)
*(in millions of Euros)*	% interest			At December 31, 2018			At December 31, 2017			At December 31, 2018			At December 31, 2017
Constellium-UACJ ABS LLC^(A)		51.00	%		(49	)		(14	)		(33	)		(29	)
Rhenaroll S.A.^(B)		49.85	%		1			1			—			—

Group share					(48	)		(13	)		(33	)		(29	)

Reclassified to non-current other financial assets					49			14			—			—

Investment in joint venture					1			1			(33	)		(29	)

Constellium-UACJ ABS LLC and Rhenaroll S.A. are private companies with no quoted market prices available for their shares.

(A)

Constellium-UACJ ABS LLC, a joint venture in which Constellium holds a 51% interest, was created in 2014. This joint venture operates a facility located in Bowling Green, Kentucky and supplies aluminium sheet to the North American automotive industry. The joint venture started its operations in 2016. We have determined that, under the terms of the joint venture agreement, we do not control Constellium- UACJ ABS LLC because our existing rights associated with the decision-making process do not give us the ability to direct the relevant activities of the joint venture unilaterally and as a result, Constellium does not have power over the joint venture as of December 31, 2018.

(B)	The Group also holds a 49.85% interest in a joint venture named Rhenaroll S.A. (located in Biesheim, France), specialized in the chrome-plating, grinding and repairing of rolling mills’ roll and rollers.

Summary of Amounts Included in Consolidated Financial Statements in Accordance with Group Accounting Principles

The information presented hereafter reflects the amounts included in the Consolidated Financial Statements of the relevant entity in accordance with Group accounting principles and not the Company’s share of those amounts.


*(in millions of Euros)*	At December 31, 2018			At December 31, 2017
Current assets
Cash and cash equivalents		8			5
Trade receivables and other		49			35
Inventories		68			57
Non-current assets
Property, plant and equipment		166			161
Intangible assets		—			1

Total Assets		291			259

Current liabilities
Trade payables and other		79			34
Borrowings^(A)		36			206
Non-current liabilities
Borrowings^(A)		271			47
Equity		(95	)		(28	)

Total Equity and Liabilities		291			259

(A)	In February 2018, the shareholders agreed to modify the terms of their loan to Constellium-UACJ ABS LLC by reducing the interest rate and extending the maturity to March 31, 2023.


*(in millions of Euros)*	Year ended December 31, 2018			Year ended December 31, 2017
Revenue		262			123
Cost of sales		(309	)		(151	)
Selling and administrative expenses		(10	)		(14	)

Loss from operations		(57	)		(42	)

Finance costs^(A)		(7	)		(15	)

Net loss		(64	)		(57	)

(A)	Finance costs include a €11 million gain related to the shareholders’ loan modification for the year ended December 31, 2018.

Constellium subsidiaries’ intercompany balances with Constellium-UACJ ABS LLC

The transactions during the years and the year-end balances between Group companies that are fully consolidated and Constellium-UACJ ABS LLC are included in the Group’s Consolidated Income Statement and Consolidated Statement of Financial Position and are detailed below:

(A)

Other financial assets correspond to the loan to Constellium-UACJ ABS LLC as of December 31, 2018 and 2017. As of December 31, 2018, the carrying value of the loan is €118 million (€97 million at December 31, 2017). The carrying value is presented net of €49 million of Constellium’s share of losses of joint venture (€ 14 million at December 31, 2017).


*(in millions of Euros)*	Year ended December 31, 2018			Year ended December 31, 2017
Revenue		169			59
Cost of sales		(19	)		—
Fees and recharges^(A)		4			3
Finance income		4			6

(A)	Fees and recharges are presented in Cost of sales or Selling and administrative expenses depending on their nature.

Summary of Guarantees and Commitments

Guarantees and commitments given to Constellium-UACJ ABS LLC by the Group are:


*(in millions of euros)*	Year ended December 31, 2018		Year ended December 31, 2017
Financial guarantees		11		11
Loan facility commitment		3		—
Supplier guarantees		3		3

(in millions of Euros)

At December 31, 2018

At December 31, 2017

Trades receivables and other—current

Other financial assets ^(A)