UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of April 2019

Commission File Number: 001-35931

 

 

Constellium N.V.

(Translation of registrant’s name into English)

 

 

Tupolevlaan 41-61,

1119 NW Schiphol-Rijk

The Netherlands

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F ☑ Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): Yes  ☐ No  ☑

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): Yes  ☐ No  ☑

 

 

 


INFORMATION CONTAINED IN THIS FORM 6-K REPORT

Attached hereto as Exhibit 99.1 is a copy of the press release of Constellium N.V. (the “Company”), dated April 24, 2019, announcing its financial results for the first quarter ended March 31, 2019.

Attached hereto as Exhibit 99.2 is a copy of a presentation of the Company, dated April 24, 2019, summarizing its financial results for the first quarter ended March 31, 2019.

Exhibit Index

 

  No.  

  

Description

99.1    Press Release issued by Constellium N.V. on April 24, 2019.
99.2    Presentation posted by Constellium N.V. on April 24, 2019.

The information contained in Exhibit 99.1 of this Form 6-K is incorporated by reference into any offering circular or registration statement (or into any prospectus that forms a part thereof) filed by Constellium N.V. with the Securities and Exchange Commission.

 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

   

CONSTELLIUM N.V.

(Registrant)

   

April 24, 2019

   

By:

 

/s/ Peter R. Matt

   

Name:

 

Peter R. Matt

   

Title:

 

Chief Financial Officer

 

EX-99.1

Exhibit 99.1

 

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Constellium Reports First Quarter 2019 Results

Amsterdam – April 24, 2019 – Constellium N.V. (NYSE: CSTM) today reported results for the first quarter ended March 31, 2019.

First quarter 2019 highlights:

 

   

Shipments of 413 thousand metric tons increased 6% compared to Q1 2018

 

   

Revenue of €1.5 billion, up 11% compared to Q1 2018

 

   

Net income of €24 million compared to net loss of €24 million in Q1 2018

 

   

Adjusted EBITDA of €135 million, up 12% from Q1 2018

 

   

Positive Cash from Operations and Free Cash Flow in Q1 2019

 

   

Project 2019 run rate savings of €60 million as of March 31, 2019

 

   

Completed acquisition of partner’s interest in Bowling Green joint venture

Jean-Marc Germain, Constellium’s Chief Executive Officer said, “Constellium delivered strong results in the first quarter of 2019. Adjusted EBITDA was a first quarter record and a 12% improvement over last year’s first quarter. Aerospace & Transportation had an exceptionally strong quarter, benefiting from strong end market demand and solid operational performance. Packaging & Automotive Rolled Products continues to execute on the ramp up of our automotive lines, with Bowling Green making notable strides. Automotive Structures & Industry results continue to be affected by costs related to the planned build out of our footprint. I am especially proud of our positive Free Cash Flow generation during the quarter. Our first quarter performance leaves me optimistic about our prospects for the remainder of 2019.”

Mr. Germain continued, “We are maintaining our guidance of Adjusted EBITDA growth of 8% to 10% and Free Cash Flow in excess of €50 million in 2019. Our focus is on executing our strategy and delivering our 2022 targets of Adjusted EBITDA over €700 million and leverage of 2.5x. We are committed to increasing shareholder value.”

 

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Group Summary

 

     Q1
2019
     Q1
2018
    Var.  

Shipments (k metric tons)

     413        388       6

Revenue (€ millions)

     1,536        1,386       11

Net income / (loss) (€ millions)

     24        (24     n.m.  

Adjusted EBITDA (€ millions)

     135        121       12

Adjusted EBITDA per metric ton (€)

     329        312       5

The difference between the sum of reported segment revenue and total group revenue includes revenue from certain non-core activities and inter-segment eliminations. The difference between the sum of reported segment Adjusted EBITDA and the Group Adjusted EBITDA is related to Holdings and Corporate.

For the first quarter of 2019, shipments of 413 thousand metric tons increased 6% compared to the first quarter of last year primarily due to the Packaging and Automotive Rolled Product segment. Revenue of €1.5 billion increased 11% compared to the first quarter of last year primarily due to the consolidation of Bowling Green and improved price and mix, partially offset by lower metal prices. Net income of €24 million improved compared to a net loss of €24 million in the first quarter of 2018 due largely to a favorable change in the value of unrealized derivatives and higher Adjusted EBITDA, partially offset by an unfavorable effect from metal lag. Adjusted EBITDA of €135 million increased 12% from the first quarter of last year primarily due to improved results in the Aerospace and Transportation and Packaging and Automotive Rolled Products segments, partially offset by weaker results in the Automotive Structures and Industry segment. The application of IFRS 16 in the first quarter of 2019 resulted in an increase of Adjusted EBITDA by €5 million compared to the first quarter of 2018.

 

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Results by Segment

 

   

Packaging & Automotive Rolled Products (P&ARP)

 

     Q1
2019
     Q1
2018
     Var.  

Shipments (k metric tons)

     281        259        9

Revenue (€ millions)

     828        738        12

Adjusted EBITDA (€ millions)

     59        52        14

Adjusted EBITDA per metric ton (€)

     210        200        5

First quarter Adjusted EBITDA increased compared to the first quarter of 2018 due to higher shipments and favorable metal costs, partially offset by weaker price and mix and incremental costs from maintenance and the ramp up of our automotive programs.

For the first quarter of 2019, shipments of 281 thousand metric tons increased 9% from the first quarter of last year due to higher shipments of Packaging rolled products and Automotive rolled products, which now include Bowling Green shipments. Revenue of €828 million increased 12% compared to the first quarter of 2018 primarily due to the consolidation of Bowling Green revenues.

 

   

Aerospace & Transportation (A&T)

 

     Q1
2019
     Q1
2018
     Var.  

Shipments (k metric tons)

     66        64        2

Revenue (€ millions)

     378        343        10

Adjusted EBITDA (€ millions)

     52        36        44

Adjusted EBITDA per metric ton (€)

     797        564        41

First quarter Adjusted EBITDA increased compared to the first quarter of 2018 due to improved price and mix and higher shipments on solid operational performance.

For the first quarter of 2019, shipments of 66 thousand metric tons increased 2% compared to the first quarter of last year on higher shipments of Aerospace rolled products. Revenue of €378 million increased 10% compared to the first quarter of 2018 primarily due to improved price and mix.

 

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Automotive Structures & Industry (AS&I)

 

     Q1
2019
     Q1
2018
     Var.  

Shipments (k metric tons)

     66        65        1

Revenue (€ millions)

     344        317        8

Adjusted EBITDA (€ millions)

     29        36        (19 )% 

Adjusted EBITDA per metric ton (€)

     448        558        (20 )% 

First quarter Adjusted EBITDA decreased compared to the first quarter of 2018 primarily due to higher costs largely related to new product launches and our footprint expansion, partially offset by higher shipments.

For the first quarter of 2019, shipments of 66 thousand metric tons increased 1% compared to the first quarter of last year on higher Automotive extruded product shipments. Revenue of €344 million increased 8% compared to the first quarter of 2018 primarily due to improved price and mix.

 

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Net Income

For the first quarter of 2019, net income of €24 million compared to a net loss of €24 million in the first quarter of last year. The change in net income is primarily attributable to a favorable change in the value of unrealized derivatives and higher Adjusted EBITDA, partially offset by an unfavorable effect from metal lag.

 

 

Cash Flow and Liquidity

Free Cash Flow was an inflow of €73 million for the first quarter of 2019 compared to an outflow of €68 million in the same period in the prior year. The change was primarily due to improved working capital.

Cash flows from operating activities were €132 million for the first quarter of 2019 compared to cash flows used in operating activities of €24 million in the same period of the prior year. Constellium increased factored receivables by €24 million in the first quarter of 2019 compared to an increase of €8 million in the same period of the prior year.

Cash flows used in investing activities were €142 million for the first quarter of 2019 compared to cash flows used in investing activities of €44 million in the same period of the prior year. The first quarter of 2019 cash flows used in investing activities includes a net €83 million outflow related to the acquisition of our partner’s 49% interest in the Bowling Green joint venture.

Cash flows from financing activities were €66 million for the first quarter of 2019 compared to cash flows from financing activities of €10 million in the same period of the prior year.

Liquidity at March 31, 2019 was €539 million, comprised of €222 million of cash and cash equivalents and €317 million available under our committed lending facilities and factoring arrangements. Liquidity at December 31, 2018 was €669 million.

Net debt was €2,201 million at March 31, 2019 compared to €1,996 million at December 31, 2018. The increase in net debt includes €102 million related to the initial application of IFRS 16 on January 1, 2019.

 

 

Outlook

We expect Adjusted EBITDA growth in a range of 8% to 10% in 2019 and expect over €700 million of Adjusted EBITDA in 2022. This guidance reflects the effect of the application of IFRS 16 and the consolidation of Bowling Green, both of which began in the first quarter of 2019.

We are not able to provide a reconciliation of this Adjusted EBITDA guidance to net income, the comparable GAAP measure, because certain items that are excluded from Adjusted EBITDA cannot be reasonably predicted or are not in our control. In particular, we are unable to forecast the timing or magnitude of realized and unrealized gains and losses on derivative instruments, metal lag, impairment or restructuring charges, or taxes without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, net income in the future.

 

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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 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, economic downturn, the loss of key customers, suppliers or other business relationships; disruption to business operations; the inability to meet customer quality requirements; delayed readiness for the North American Auto Body Sheet market, the capacity and effectiveness of our hedging policy activities, failure to retain key employees, and other risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. 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 update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

 

 

About Constellium

Constellium (NYSE: CSTM) is a global sector leader that develops innovative, value added aluminium products for a broad scope of markets and applications, including aerospace, automotive and packaging. Constellium generated €5.7 billion of revenue in 2018.

Constellium’s earnings materials for the first quarter ended March 31, 2019, are also available on the company’s website (www.constellium.com).

 

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CONSOLIDATED INCOME STATEMENT (UNAUDITED)

 

(in millions of Euros)

   Three months ended
March 31, 2019
    Three months ended
March 31, 2018
 

Revenue

     1,536       1,386  

Cost of sales

     (1,392     (1,249
  

 

 

   

 

 

 

Gross profit

     144       137  
  

 

 

   

 

 

 

Selling and administrative expenses

     (68     (58

Research and development expenses

     (12     (11

Other gains / (losses) - net

     16       (47
  

 

 

   

 

 

 

Income from operations

     80       21  
  

 

 

   

 

 

 

Finance costs - net

     (46     (38

Share of income / (loss) of joint-ventures

     5       (3
  

 

 

   

 

 

 

Income / (loss) before income tax

     39       (20
  

 

 

   

 

 

 

Income tax expense

     (15     (4
  

 

 

   

 

 

 

Net income / (loss)

     24       (24
  

 

 

   

 

 

 

Net income / (loss) attributable to:

    

Equity holders of Constellium

     23       (24

Non-controlling interests

     1       —    
  

 

 

   

 

 

 

Net income / (loss)

     24       (24
  

 

 

   

 

 

 

Earnings per share attributable to the equity holders of Constellium, in euros per share

    

Basic

     0.17       (0.18

Diluted

     0.17       (0.18

Weighted average shares, in thousands

    

Basic

     135,984       134,473  

Diluted

     138,912       134,473  

 

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME / (LOSS) (UNAUDITED)

 

(in millions of Euros)

   Three months ended
March 31, 2019
    Three months ended
March 31, 2018
 

Net income / (loss)

     24       (24
  

 

 

   

 

 

 

Other comprehensive income / (loss)

    

Items that will not be reclassified subsequently to the consolidated income statement

    

Remeasurement on post-employment benefit obligations

     (28     25  

Income tax on remeasurement on post-employment benefit obligations

     7       (6

Items that may be reclassified subsequently to the consolidated income statement

    

Cash flow hedge

     (7     9  

Net investment hedges

     (1     —    

Income tax on cash flow hedge

     2       (3

Currency translation differences

     5       (3
  

 

 

   

 

 

 

Other comprehensive (loss) / income

     (22     22  
  

 

 

   

 

 

 

Total comprehensive income / (loss)

     2       (2
  

 

 

   

 

 

 

Attributable to:

    

Equity holders of Constellium

     1       (2

Non-controlling interests

     1       —    
  

 

 

   

 

 

 

Total comprehensive income / (loss)

     2       (2
  

 

 

   

 

 

 

 

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)

 

(in millions of Euros)

   At March 31,
2019
    At December 31,
2018
 

Assets

    

Current assets

    

Cash and cash equivalents

     222       164  

Trade receivables and other

     682       587  

Inventories

     708       660  

Other financial assets

     30       30  
  

 

 

   

 

 

 
     1,642       1,441  
  

 

 

   

 

 

 

Non-current assets

    

Property, plant and equipment

     1,961       1,666  

Goodwill

     453       422  

Intangible assets

     70       70  

Investments accounted for under the equity method

     1       1  

Deferred income tax assets

     153       163  

Trade receivables and other

     63       64  

Other financial assets

     9       74  
  

 

 

   

 

 

 
     2,710       2,460  
  

 

 

   

 

 

 

Total Assets

     4,352       3,901  
  

 

 

   

 

 

 

Liabilities

    

Current liabilities

    

Trade payables and other

     1,153       968  

Borrowings

     211       57  

Other financial liabilities

     44       60  

Income tax payable

     13       8  

Provisions

     24       46  
  

 

 

   

 

 

 
     1,445       1,139  
  

 

 

   

 

 

 

Non-current liabilities

    

Trade payables and other

     24       27  

Borrowings

     2,210       2,094  

Other financial liabilities

     25       29  

Pension and other post-employment benefit obligations

     641       610  

Provisions

     94       94  

Deferred income tax liabilities

     22       22  
  

 

 

   

 

 

 
     3,016       2,876  
  

 

 

   

 

 

 

Total Liabilities

     4,461       4,015  
  

 

 

   

 

 

 

Equity

    

Share capital

     3       3  

Share premium

     420       420  

Retained deficit and other reserves

     (541     (545
  

 

 

   

 

 

 

Equity attributable to equity holders of Constellium

     (118     (122

Non-controlling interests

     9       8  
  

 

 

   

 

 

 

Total Equity

     (109     (114
  

 

 

   

 

 

 

Total Equity and Liabilities

     4,352       3,901  
  

 

 

   

 

 

 

 

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)

 

(in millions of Euros)

  Share
Capital
    Share
Premium
    Remeasure-
ment
    Cash flow
hedges
    Foreign
Currency
Translation
reserve
    Other
reserves
    Retained
losses
    Total Equity
holders of
Constellium
    Non-
controlling
interests
    Total
equity
 

At January 1, 2019

    3       420       (129     (8     3       37       (448     (122     8       (114

Net income

    —         —         —         —         —         —         23       23       1       24  

Other comprehensive (loss) / income

    —         —         (21     (6     5       —         —         (22     —         (22
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive (loss) / income

    —         —         (21     (6     5       —         23       1       1       2  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Transactions with equity holders

                   

Share-based compensation

    —         —         —         —         —         3       —         3       —         3  

Transactions with non-controlling interests

    —         —         —         —         —         —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

At March 31, 2019

    3       420       (150     (14     8       40       (425     (118     9       (109
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

(in millions of Euros)

  Share
Capital
    Share
Premium
    Remeasure-
ment
    Cash flow
hedges
    Foreign
Currency
Translation
reserve
    Other
reserves
    Retained
losses
    Total Equity
holders of
Constellium
    Non-
controlling
interests
    Total
equity
 

At January 1, 2018

    3       420       (147     13       (7     25       (634     (327     8       (319

Change in accounting policies

    —         —         —         —         —         —         (2     (2     —         (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

At January 1, 2018 restated

    3       420       (147     13       (7     25       (636     (329     8       (321

Net loss

    —         —         —         —         —         —         (24     (24     —         (24

Other comprehensive income / (loss)

    —         —         19       6       (3     —         —         22       —         22  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income / (loss)

    —         —         19       6       (3     —         (24     (2     —         (2
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Transactions with equity holders

                   

Share-based compensation

    —         —         —         —         —         3       —         3       —         3  

Transactions with non-controlling interests

    —         —         —         —         —         —         —         —         —         —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

At March 31, 2018

    3       420       (128     19       (10     28       (660     (328     8       (320
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

 

(in millions of Euros)

   Three months ended
March 31, 2019
    Three months ended
March 31, 2018
 

Net income / (loss)

     24       (24

Adjustments

    

Depreciation and amortization

     57       44  

Finance costs – net

     46       38  

Income tax expense

     15       4  

Share of (income) / loss of joint-ventures

     (5     3  

Unrealized (gains) / losses on derivatives - net and from remeasurement of monetary assets and liabilities - net

     (32     53  

Losses on disposal

     1       1  

Other – net

     2       2  

Interest paid

     (52     (36

Income tax paid

     (6     (1

Change in trade working capital

    

Inventories

     33       (31

Trade receivables

     (75     (141

Trade payables

     113       82  

Margin calls

     5       —    

Change in provisions and pension obligations

     (11     (5

Other working capital

     17       (13
  

 

 

   

 

 

 

Net cash flows from / (used in) operating activities

     132       (24
  

 

 

   

 

 

 

Purchases of property, plant and equipment

     (59     (47

Acquisition of subsidiaries net of cash acquired

     (83     —    

Other investing activities

     —         3  
  

 

 

   

 

 

 

Net cash flows used in investing activities

     (142     (44
  

 

 

   

 

 

 

Proceeds from revolving credit facilities and other loans

     131       6  

Payment of lease liabilities

     (63     (4

Transactions with non-controlling interests

     (2     —    

Other financing activities

     —         8  
  

 

 

   

 

 

 

Net cash flows from financing activities

     66       10  
  

 

 

   

 

 

 

Net increase / (decrease) in cash and cash equivalents

     56       (58

Cash and cash equivalents - beginning of period

     164       269  

Effect of exchange rate changes on cash and cash equivalents

     2       —    
  

 

 

   

 

 

 

Cash and cash equivalents - end of period

     222       211  
  

 

 

   

 

 

 

 

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SEGMENT ADJUSTED EBITDA

 

(in millions of Euros)

   Three months ended
March 31, 2019
     Three months ended
March 31, 2018
 

P&ARP

     59        52  

A&T

     52        36  

AS&I

     29        36  

Holdings and Corporate

     (5      (3
  

 

 

    

 

 

 

Total

     135        121  
  

 

 

    

 

 

 

SHIPMENTS AND REVENUE BY PRODUCT LINE

 

(in k metric tons)

   Three months ended
March 31, 2019
     Three months ended
March 31, 2018
 

Packaging rolled products

     207        199  

Automotive rolled products

     61        48  

Specialty and other thin-rolled products

     13        12  

Aerospace rolled products

     30        27  

Transportation, industry and other rolled products

     36        37  

Automotive extruded products

     30        29  

Other extruded products

     36        36  
  

 

 

    

 

 

 

Total shipments

     413        388  
  

 

 

    

 

 

 

(in millions of Euros)

             

Packaging rolled products

     548        536  

Automotive rolled products

     230        155  

Specialty and other thin-rolled products

     50        47  

Aerospace rolled products

     205        179  

Transportation, industry and other rolled products

     173        164  

Automotive extruded products

     188        169  

Other extruded products

     155        148  

Other and inter-segment eliminations

     (13      (12
  

 

 

    

 

 

 

Total revenue

     1,536        1,386  
  

 

 

    

 

 

 

 

12


LOGO

 

NON-GAAP MEASURES

Reconciliation of net income to Adjusted EBITDA (a non-GAAP measure)

 

(in millions of Euros)

   Three months ended
March 31, 2019
     Three months ended
March 31, 2018
 

Net income / (loss)

     24        (24

Income tax expense

     15        4  
  

 

 

    

 

 

 

Income / (Loss) before income tax

     39        (20

Finance costs - net

     46        38  

Share of (income) / loss of joint-ventures

     (5      3  
  

 

 

    

 

 

 

Income from operations

     80        21  

Depreciation and amortization

     57        44  

Unrealized (gains) / losses on derivatives

     (31      54  

Unrealized exchange gains from remeasurement of monetary assets and liabilities - net

     (1      (1

Share based compensation

     3        3  

Metal price lag (A)

     18        (4

Start-up and development costs (B)

     2        4  

Losses on disposals

     1        —    

Bowling Green one-time costs related to the acquisition (C)

     6        —    
  

 

 

    

 

 

 

Adjusted EBITDA

     135        121  
  

 

 

    

 

 

 

 

(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 three months ended March 31, 2019 and 2018, start-up and development costs include €2 million and €4 million, respectively, related to new projects in our AS&I operating segment.

(C)

For the three-months ended March 31, 2019, Bowling Green one-time costs related to the acquisition include the non-cash reversal of the inventory step up.

 

13


LOGO

 

Reconciliation of net cash flows from operating activities to Free Cash Flow (a non-GAAP measure)

 

(in millions of Euros)

   Three months ended
March 31, 2019
     Three months ended
March 31, 2018
 

Net cash flows from / (used in) operating activities

     132        (24

Purchases of property, plant and equipment

     (59      (47

Equity contributions and loans to joint-ventures

     —          —    

Other investing activities

     —          3  
  

 

 

    

 

 

 

Free Cash Flow

     73        (68
  

 

 

    

 

 

 

Reconciliation of borrowings to Net debt (a non-GAAP measure)

 

(in millions of Euros)

   At March 31, 2019      At December 31, 2018  

Borrowings

     2,421        2,151  

Fair value of cross currency basis swaps, net of margin calls

     2        9  

Cash and cash equivalents

     (222      (164

Cash pledged for issuance of guarantees

     —          —    
  

 

 

    

 

 

 

Net debt

     2,201        1,996  
  

 

 

    

 

 

 

 

14


LOGO

 

Non-GAAP measures

In addition to the results reported in accordance with International Financial Reporting Standards (“IFRS”), this press release includes information regarding certain financial measures which are not prepared in accordance with IFRS (“non-GAAP measures”). The non-GAAP measures used in this press release are: Adjusted EBITDA, Adjusted EBITDA per metric ton, Free Cash Flow and Net debt. Reconciliations to the most directly comparable IFRS financial measures are presented in the schedules to this press release. We believe these non-GAAP measures are important supplemental measures of our operating and financial performance. By providing these measures, together with the reconciliations, we believe we are enhancing investors’ understanding of our business, our results of operations and our financial position, as well as assisting investors in evaluating the extent to which we are executing our strategic initiatives. However, these non-GAAP financial measures supplement our IFRS disclosures and should not be considered an alternative to the IFRS measures and may not be comparable to similarly titled measures of other companies.

In considering the financial performance of the business, management and our chief operational decision maker, as defined by IFRS, analyze the primary financial performance measure of Adjusted EBITDA in all of our business segments. The most directly comparable IFRS measure to Adjusted EBITDA is our net income or loss for the period. We believe Adjusted EBITDA, as defined below, is useful to investors and is used by our management for measuring profitability because it excludes the impact of certain non-cash charges, such as depreciation, amortization, impairment and unrealized gains and losses on derivatives as well as items that do not impact the day-to-day operations and that management in many cases does not directly control or influence. Therefore, such adjustments eliminate items which have less bearing on our core operating performance.

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 is defined as income / (loss) from continuing operations before income taxes, results from joint ventures, net finance costs, other expenses and depreciation and amortization as adjusted to exclude restructuring costs, impairment charges, unrealized gains or losses on derivatives and on foreign exchange differences on transactions which do not qualify for hedge accounting, metal price lag, share based compensation expense, effects of certain purchase accounting adjustments, start-up and development costs or acquisition, integration and separation costs, certain incremental costs and other exceptional, unusual or generally non-recurring items.

Adjusted EBITDA is the measure of performance used by management in evaluating our operating performance, in preparing internal forecasts and budgets necessary for managing our business and, specifically in relation to the exclusion of the effect of favorable or unfavorable metal price lag, this measure allows management and the investor to assess operating results and trends without the impact of our accounting for inventories. We use the weighted average cost method in accordance with IFRS which leads to the purchase price paid for metal impacting our cost of goods sold and therefore profitability in the period subsequent to when the related sales price impacts our revenues. Management believes this measure also provides additional information used by our lending facilities providers with respect to the ongoing performance of our underlying business activities. Historically, we have used Adjusted EBITDA in calculating our compliance with financial covenants under certain of our loan facilities.

 

15


LOGO

 

Adjusted EBITDA is not a presentation made in accordance with IFRS, is not a measure of financial condition, liquidity or profitability and should not be considered as an alternative to profit or loss for the period, revenues or operating cash flows determined in accordance with IFRS.

Free Cash Flow is defined as net cash flow from operating activities less capital expenditure, equity contributions and loans to joint ventures and other investing activities. Management believes that Free Cash Flow is a useful measure of the net cash flow generated or used by the business as it takes into account both the cash generated or consumed by operating activities, including working capital, and the capital expenditure requirements of the business. However, Free Cash Flow is not a presentation made in accordance with IFRS and should not be considered as an alternative to operating cash flows determined in accordance with IFRS. Free Cash Flow has certain inherent limitations, including the fact that it does not represent residual cash flows available for discretionary spending, notably because it does not reflect payments required for debt service or lease obligations.

Net debt is defined as borrowings plus or minus the fair value of cross currency basis swaps net of margin calls less cash and cash equivalents and cash pledged for the issuance of guarantees. Management believes that Net debt is a useful measure of indebtedness because it takes into account the cash and cash equivalent balances held by the Company as well as the total external debt of the Company. Net debt is not a presentation made in accordance with IFRS, and should not be considered as an alternative to borrowings determined in accordance with IFRS.

 

16

EX-99.2

Slide 1

First Quarter 2019 Earnings Call April 24, 2019 Exhibit 99.2


Slide 2

Certain statements contained in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This presentation 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 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, economic downturn, the loss of key customers, suppliers or other business relationships; disruption to business operations; the inability to meet customer quality requirements; delayed readiness for the North American Auto Body Sheet market, the capacity and effectiveness of our hedging policy activities, failure to retain key employees, and other risk factors set forth under the heading “Risk Factors” in our Annual Report on Form 20-F and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. 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 presentation. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law. Forward-looking statements


Slide 3

Non-GAAP measures This presentation includes information regarding certain non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA per metric ton, 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, 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. We are not able to provide a reconciliation of Adjusted EBITDA guidance to net income, the comparable GAAP measure, because certain items that are excluded from Adjusted EBITDA cannot be reasonably predicted or are not in our control. In particular, we are unable to forecast the timing or magnitude of realized and unrealized gains and losses on derivative instruments, metal lag, impairment or restructuring charges, or taxes without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, our net income in the future.


Slide 4

Jean-Marc Germain Chief Executive Officer


Slide 5

Q1 2019 Highlights Total Shipments of 413 thousand tons up 6% compared to Q1 2018 Successfully executing on our automotive strategy with shipments up 18% YoY Revenue increased 11% YoY to €1.5 billion on the consolidation of Bowling Green and improved price and mix Net income of €24 million compared to net loss of €24 million in Q1 2018 Adjusted EBITDA of €135 million increased 12% YoY Cash from Operations of €132 million and Free Cash Flow of €73 million in Q1 2019 Project 2019 run rate cost savings of €60 million Maintaining 2019 Adjusted EBITDA and Free Cash Flow guidance


Slide 6

Peter Matt Chief Financial Officer


Slide 7

Adjusted EBITDA Bridge Q1 2019 vs. Q1 2018 € millions +12% Q1 2018 Q1 2019


Slide 8

Q1 2019 Highlights Adjusted EBITDA of €59 million Increased Automotive and Packaging shipments Favorable metal costs and FX translation offset by higher costs from the ramp up of automotive programs Ramp up of FT3 in Neuf-Brisach and Bowling Green on track Packaging and Automotive Rolled Products Q1 2019 Q1 2018 Var. Shipments (kt) 281 259 9% Revenues (€m) 828 738 12% Adj. EBITDA (€m) 59 52 14% Adj. EBITDA (€ / t) 210 200 5% Adjusted EBITDA Bridge € in millions Q1 2018 Q1 2019


Slide 9

Q1 2019 Highlights Adjusted EBITDA of €52 million Increased Aerospace shipments Improved price and mix, largely on TID shipments Solid operational performance Favorable FX translation Aerospace and Transportation Q1 2019 Q1 2018 Var. Shipments (kt) 66 64 2% Revenues (€m) 378 343 10% Adj. EBITDA (€m) 52 36 44% Adj. EBITDA (€ / t) 797 564 41% € in millions Adjusted EBITDA Bridge Q1 2018 Q1 2019 –


Slide 10

Q1 2019 Highlights Automotive Structures and Industry Adjusted EBITDA of €29 million Higher Automotive shipments Higher costs related to new product launches and footprint expansion Q1 2019 Q1 2018 Var. Shipments (kt) 66 65 1% Revenues (€m) 344 317 8% Adj. EBITDA (€m) 29 36 (19)% Adj. EBITDA (€ / t) 448 558 (20)% € in millions Adjusted EBITDA Bridge Q1 2018 Q1 2019 –


Slide 11

Project 2019 Three Pillars Cost Reduction €60 million of annual run-rate cost savings achieved as of March 31, 2019 Target of €75 million of annual run-rate cost savings by December 31, 2019 Working Capital Improvement Committed to improvement of working capital turns Expect working capital investments related to the ramp up of growth projects Capital Discipline Capex guidance of €265 million for 2019 Maintenance spending of €150-175 million 80 Project 2019 continuing to provide benefits


Slide 12

Net Debt and Liquidity € in millions Net Debt and Leverage Maturity Profile Liquidity Debt / Liquidity Highlights Remain committed to deleveraging The increase in leverage due to acquisition of Bowling Green and application of IFRS 16 was ~0.5x Expect leverage below 4.0x by the end of 2019 Strong Cash from Operations and Free Cash Flow generation in Q1 2019 Ample liquidity of over €500 million € in millions € in millions Leverage: Net Debt / LTM Adjusted EBITDA


Slide 13

Jean-Marc Germain Chief Executive Officer


Slide 14

End Market Updates Automotive: North America: Market SAAR expected to decline slightly in 2019 Europe: Market expected to remain flat in 2019 Demand for luxury cars, light trucks, and SUVs remains strong Penetration driving increased demand for rolled and extruded aluminium products Aerospace: Sustained OEM build rates OEM backlogs remain near record highs Packaging: Market remains stable ABS conversions expected to help North American market balance over the medium to long term Conversion from steel to aluminium driving growth in Europe Focus on sustainability expected to increase demand for aluminium cans Other Markets Transportation, Industry and Defense North America: Strong defense market; stable transportation and industry markets Europe: Strong defense market; stable industry market Industry (Extrusions) Europe: Strong demand across end markets


Slide 15

Financial Guidance and Outlook Targets for 2019 : Adjusted EBITDA growth of 8% to 10% Free Cash Flow in excess of €50 million Targets for 2022: Adjusted EBITDA of over €700 million Net Debt / Adjusted EBITDA of 2.5x Focused on delivering on our strategy and increasing shareholder value


Slide 16

Q&A


Slide 17

Appendix


Slide 18

Net Debt Reconciliation March 31, 2019 December 31, 2018 September 30, 2018 June 30, 2018 March 31, 2018 Borrowings 2,421 2,151 2,103 2,184 2,093 Fair value of cross currency basis swaps, net of margin calls 2 9 25 20 46 Cash and cash equivalents (222) (164) (279) (166) (211) Cash pledged for issuance of guarantees — — — — (1) Net Debt 2,201 1,996 1,849 2,038 1,927 LTM Adjusted EBITDA 512 498 498 495 471 Leverage 4.3x 4.0x 3.7x 4.1x 4.1x € millions


Slide 19

Reconciliation of Net Income to Adjusted EBITDA  € millions Three months ended March 31, 2019 Three months ended March 31, 2018 Net income / (loss) 24 (24) Income tax expense 15 4 Income / (loss) before income tax 39 (20) Finance costs – net 46 38 Share of (income) / loss of joint-ventures (5) 3 Income from operations 80 21 Depreciation and amortization 57 44 Unrealized (gains) / losses on derivatives (31) 54 Unrealized exchange gains from remeasurement of monetary assets and liabilities – net (1) (1) Share based compensation costs 3 3 Metal price lag 18 (4) Start-up and development costs 2 4 Losses on disposals 1 — Bowling Green one-time costs related to the acquisition 6 — Adjusted EBITDA 135 121


Slide 20

Reconciliation of Net Income to Adjusted EBITDA  € millions Twelve months ended March 31, 2019 Twelve months ended December 31, 2018 Twelve months ended September 30, 2018 Twelve months ended June 30, 2018 Twelve months ended March 31, 2018 Net income / (loss) 239 190 168 (28) (68) Income tax expense 43 32 54 70 57 Income / (loss) before income tax 282 222 222 42 (11) Finance costs – net 157 149 237 236 239 Share of loss of joint-ventures 24 33 30 28 26 Income from operations 463 404 489 306 254 Depreciation and amortization 210 197 187 177 172 Restructuring costs 1 1 2 2 2 Unrealized losses / (gains) on derivatives (1) 84 36 4 25 Unrealized exchange losses / (gains) from remeasurement of monetary assets and liabilities – net — — 1 (2) (1) (Gain) / loss on pension plan amendments (36) (36) (39) 2 2 Share based compensation costs 12 12 11 11 9 Metal price lag 22 — (19) (26) (13) Start-up and development costs 19 21 19 16 16 Manufacturing system and process transformation costs — — 1 1 2 (Gains) / losses on disposals (185) (186) (190) 5 2 Bowling Green one-time costs related to the acquisition 6 — — — — Other 1 1 — (1) 1 Adjusted EBITDA 512 498 498 495 471


Slide 21

Borrowings Table € millions March 31, 2019 December 31, 2018   Nominal Value in Currency Nominal Rate Effective Rate Nominal Value in Euros (Arrangement fees) Accrued Interests Carrying Value Carrying Value Secured Pan US ABL           (due 2022) — Floating 4.22% 155 — — 155 —         Secured Inventory Based Facility (due 2019) — Floating — — — — — — Senior Unsecured Notes Constellium N.V. (Issued May 2014, due 2024) $400 5.75% 6.26% 356 (4) 8 360 348 Constellium N.V. (Issued May 2014, due 2021) €300 4.63% 5.16% 300 (2) 5 303 300 Constellium N.V. (Issued February 2017, due 2025) $650 6.63% 7.13% 579 (11) 3 571 568 Constellium N.V. (Issued November 2017, due 2026) $500 5.88% 6.26% 445 (7) 3 441 440 Constellium N.V. (Issued November 2017, due 2026) €400 4.25% 4.57% 400 (6) 2 396 399 Unsecured Revolving Credit Facility (due 2021) — Floating — — — — — — Lease liabilities  — — — 174 — — 174 73 Other loans  — — — 21 — — 21 23 Total Borrowings       2,430 (30) 21 2,421 2,151 Of which non-current     2,210 2,094 Of which current 211 57