EX-99.2 3 d926056dex992.htm EX-99.2 EX-99.2
First Quarter 2015
Earnings Conference Call
May 14, 2015
Exhibit
99.2

First Quarter 2015 –
Earnings Call
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,
the
ability
of
Constellium
and
Wise
to
achieve
expected
synergies
and
the
timing
thereof;
the
risk
that
the
businesses
will
not
be
integrated
successfully
or
such
integration
may
be
more
difficult,
time-
consuming
or
costly
than
expected;
Constellium’s
increased
levels
of
indebtedness
as
a
result
of
the
transaction,
which
could
limit
Constellium’s
operating
flexibility
and
opportunities;
the
potential
failure
to
retain
key
employees
as
a
result
of
the
transaction
or
during
the
integration
of
the
business,
the
loss
of
customers,
suppliers
and
other
business
relationships
as
a
result
of
the
transaction;
disruptions
to
business
operations
resulting
from
the
transaction;
slower
or
lower
than
expected
growth
in
the
North
American
market
for
Body-in-White
aluminum
rolled
products
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
publicly
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
2

First Quarter 2015 –
Earnings Call
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.
3

Pierre Vareille
Chief Executive Officer

First Quarter 2015 –
Earnings Call
Shipments of 381 thousand metric tons, up 41%
Revenue of €1.4 billion, up 58%
Adjusted EBITDA of €95 million, up 34%
P&ARP revenue more than doubles due to Muscle Shoals consolidation
Automotive rolled product shipments up 19%; automotive extruded product
shipments up 12%
Automotive expansion projects on track
Foreign exchange positively impacted Q1 2015 Adjusted EBITDA partially
offset by negative effect of slightly higher metal premiums quarter over quarter
Q1
2015
Highlights,
including
Wise
Metals
(%
change
vs
Q1
2014)
5

First Quarter 2015 –
Earnings Call
Packaging and Automotive Rolled Products Segment 
Significant growth in all key metrics as a result of Muscle Shoals acquisition
Strong volume in U.S., slightly lower volume in Europe due to soft market
conditions in closures and foilstock
Body-in-White projects in Neuf-Brisach and Bowling Green
on schedule for 2016
Strong customer demand drove decision to add second finishing line in the U.S.
Positive foreign exchange impact on Adjusted EBITDA of €4 million, partially offset by €1 million
of unfavorable metal premiums 
Segment Outlook/Mix
Constellium Recent Developments
Shipments of 266 kt in Q1 2015, up 71% from 156 kt in Q1 2014  
Automotive rolled products shipments of 21 kt, up 19% from Q1 2014
6

First Quarter 2015 –
Earnings Call
Aerospace and Transportation Segment
Solid
demand
in
aerospace
market
with
majority
of
business
under
long
term
contracts
Softer transportation and industry markets
Q1 2015 shipments of 59 kt, down 3% from 61 kt in Q1 2014
Improved operational performance (particularly on-time deliveries)
Recovery plan proceeding as anticipated, new pusher furnace capacity
in Ravenswood on schedule for 2016   
Q1 2015 Adjusted EBITDA positively impacted by €12 foreign exchange gain, partially offset
by unfavorable impact from higher metal premiums of €2 million 
Segment Outlook/Mix
Constellium Recent Developments
7

First Quarter 2015 –
Earnings Call
Segment Mix/Outlook
Automotive Structures and Industry Segment  
Automotive Structures market demand remains strong, Industry market remains competitive  
Q1 2015 shipments of 56 kt, up 5% from 53 kt in Q1 2014; Automotive extrusions volume up 12%
Plant expansion in Van Buren, Michigan complete,
expansion plans in Gottmadingen, Germany and
China on track
One of the largest suppliers of high-strength
structural parts for the Ford F-150
Q1 2015 Adjusted EBITDA negatively impacted by
€1 million due to Swiss Franc revaluation and €2
million from higher billet premiums
Constellium Recent Developments
8

Didier Fontaine
Chief Financial Officer

First Quarter 2015 –
Earnings Call
71
Adjusted
EBITDA 2014
26
P&ARP
A&T
3
AS&I
(2)
H&C
(3)
95
Adjusted
EBITDA 2015
Q1 2015 Adjusted EBITDA vs Q1 2014
10
€
millions

First Quarter 2015 –
Earnings Call
Q1
2015
Adjusted
EBITDA
vs
Q1
2014
–
Foreign
Exchange
and
Premium Effect
11
Slightly higher Q1 premiums negatively impacted Adjusted EBITDA by (€5) million, foreign
exchange impacted Q1 Adjusted EBITDA by €15 million
€
millions
71
Adjusted
EBITDA 2014
23
P&ARP
(7)
A&T
AS&I
1
H&C
(3)
95
Adjusted
EBITDA 2015
FX impact
Premium
increase
(5)
15
(7)

First Quarter 2015 –
Earnings Call
Q1 2015 Segment Performance vs Q1 2014
12
Segment Adjusted EBITDA (€m)
Adjusted EBITDA per ton (€)
Shipments: 
53kt
56kt
+5%
Shipments: 
61kt
59kt
(3)%
Shipments:  156kt
266kt
+71%

First Quarter 2015 –
Earnings Call
Adjusted Free Cash Flow
€
millions
Three months
ended
March 31, 2015
Three months 
ended
March 31, 2014
Cash flow from operating activities
12
(4)
Margin calls included in cash flow from operating activities
-
(11)
Cash flow from operating activities excluding margin calls
12
(15)
Capital expenditures
(84)
(33)
Adjusted Free Cash Flow
(72)
(48)
13
Improved
cash
flow
from
operating
activities
more
than
offset
by
the
planned
increase
in
capital expenditures from our growth initiatives

First Quarter 2015 –
Earnings Call
Wise Metals Acquisition Resets Trade Working Capital
14
Consolidation of Wise Metals provides room for future improvement
29 days
37 days
381
470
514
463
289
401
373
320
221
285
295
298
204
571
Q4 11
Q1 12
Q2 12
Q3 12
Q4 12
Q1 13
Q2 13
Q3 13
Q4 13
Q1 14
Q2 14
Q3 14
Q4 14
Q1 15

Fourth Quarter 2014 –
Earnings Call
€
millions
March 31, 2015
Total Debt
(*)
2,168
Cash and Cash Equivalents
352
Net Debt
1,816
Liquidity
(**)
700
(*)  
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 committed facilities
Strong Liquidity Provides Flexibility 
15
Net debt and leverage increased due to consolidation of Wise Metals debt,
including a non-cash foreign exchange translation impact of €100 million

First Quarter 2015 –
Earnings Call
Key Takeaways
Q1 2015 Shipments, Revenues and Adjusted EBITDA, +41%, +58% and +34%
respectively, compared to Q1 2014
P&ARP shipments, revenues, and Adjusted EBITDA +71%, +115% and +98%
respectively, due to Muscle Shoals consolidation
Automotive expansion projects progressing on track
A&T results better but still expected to be lower in 2015 vs 2014. Recovery
plans continue to progress
Muscle Shoals acquisition resets trade working capital and provides headroom
for future improvements
16

First Quarter 2015 –
Earnings Call
Q & A
17

First Quarter 2015 –
Earnings Call
Appendix
18

First Quarter 2015 –
Earnings Call
IFRS –
Income Statement 
€
millions
Three months ended
March 31, 2015
Three months ended
March 31, 2014
Revenue
1,393
883
(Loss) / income from operations
(4)
56
Other expenses
-
(1)
Finance costs –
net
(43)
(9)
Share of loss of joint-ventures
(1)
-
(Loss) / income before income taxes
(48)
46
Income tax benefit / (expense)
17
(16)
Net (loss) / income
(31)
30
19

First Quarter 2015 –
Earnings Call
IFRS –
Statement of Financial Position 
€
millions
March 31, 2015
December 31, 2014
Non-current assets
2,372
952
Current assets
1,940
2,046
Assets held for sale
16
14
Total Assets
4,328
3,012
Equity
(88)
(37)
Non-current liabilities
3,025
1,991
Current liabilities
1,382
1,050
Liabilities held for sale
9
8
Total Equity and Liabilities
4,328
3,012
20

First Quarter 2015 –
Earnings Call
Net Debt Reconciliation
€
millions
March 31, 2015
December 31, 2014
Borrowings
2,277
1,252
Fair value of cross currency interest rate swap
(97)
(29)
Cash and cash equivalents
(352)
(989)
Cash pledged for issuance of guarantees
(12)
(10)
Net Debt
1,816
224
21

Fourth Quarter 2014 –
Earnings Call
Reconciliation of net income to Adjusted EBITDA
€
millions
Three months
ended
March 31, 2015
Three months
ended
March 31, 2014
Net (loss) / income
(31)
30
Income tax (benefit) / expense
(17)
16
(Loss) / income before income tax
(48)
46
Finance costs -
net
43
9
Other expenses
-
1
Share of loss of joint-ventures
1
-
(Loss) / income from operations
(4)
56
Depreciation and impairment
32
9
Unrealized (gains) / losses from remeasurement of monetary
assets and liabilities
(1)
2
Unrealized losses on derivatives
46
1
Wise acquisition and integration costs
10
-
Restructuring costs
-
3
Start-up and development costs
4
3
Metal price lag
(7)
2
Gain on Ravenswood OPEB plan amendment
-
(8)
Effect of purchase accounting adjustments
12
-
Other
3
3
Adjusted EBITDA
95
71
22