FINANCE COSTS - NET (Tables)

12 Months Ended

Dec. 31, 2024


	Year ended December 31,
(in millions of U.S. dollar)	2024	2023	2022
Interest expense on borrowings (A)	(99)	(101)	(96)
Interest expense on finance leases	(1)	(2)	(3)
Interest cost on pension and other long-term benefits	(9)	(8)	(1)
Net loss on settlement of debt (B)	(3)	—	—
Realized and unrealized gains on debt derivatives at fair value (C)	11	7	1
Realized and unrealized exchange (losses) / gains on financing activities - net (C)	(10)	(5)	—
Other finance expenses	(6)	(6)	(5)
Capitalized borrowing costs (D)	6	4	1
Finance expenses	(111)	(111)	(103)
Finance costs - net	(111)	(111)	(103)

(A)For the year ended December 31, 2024, interest expense on borrowings included $86 million of interest and $4 million of amortization

of arrangement fees related to Constellium SE Senior Notes. For the year ended December 31, 2023, it included $81 million of interest

and $4 million of amortization of arrangement fees related to Constellium SE Senior Notes. For the year ended December 31, 2022, it

included $83 million of interest and $4 million of amortization of arrangement fees related to Constellium SE Senior Notes.

(B)In August 2024, Constellium SE redeemed $250 million 5.875% Senior Notes due 2026 and the €400 million 4.250% Senior Notes due

2026. The net loss on the settlement of debt included the write‐off of the outstanding balance of deferred arrangement fees at the date of

redemption for $3 million.

(C) The Group hedges the dollar exposure, relating to the principal of its Constellium SE U.S. dollar Senior Notes, for the portion that has

not been used to finance directly or indirectly U.S. dollar functional currency entities. Changes in the fair value of these hedging

derivatives are recognized within Finance costs – net in the Consolidated Income Statement.

(D) Borrowing costs directly attributable to the construction of assets are capitalized. The capitalization rate was 5% for the years ended

December 31, 2024, 2023 and 2022.