Exhibit 99.1
|
| 1 |
|
|
|
INTRODUCTION
Paul BLALOCK
2
|
|
Agenda
8:05 – 8:35 AM Automotive market perspectives & Constellium’s offering
P. BASTEN
8:35 – 8:55 AM Increasing our BiW production capacity (US/Europe)
S. LADDYCHUK
8:55 – 9:15 AM Plant presentation
W. OBERHOLZER
9:15 – 9:45 AM Q&A
| 3 |
|
|
|
Forward-looking statements
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 acquisition, which could limit Constellium’s operating flexibility and opportunities; the potential failure to retain key employees as a result of the acquisition or during the integration of the business, the loss of customers, suppliers and other business relationships as a result of the acquisition; disruptions to business operations resulting from the acquisition; slower or lower than expected growth in the North American market for Body-in-White aluminium 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.
| 4 |
|
|
|
| 5 |
|
|
|
AUTOMOTIVE MARKET PERSPECTIVES
& CONSTELLIUM’S OFFERING
PETER BASTEN
| 6 |
|
|
|
Contents
Automotive market perspectives
Market outlook
Sheet based solutions
Extrusion based solutions
BiW market
North America
Europe
Constellium’s offering
| 7 |
|
|
|
AUTOMOTIVE MARKET PERSPECTIVES
| 8 |
|
|
|
Driven by regulation and OEM geographical expansion…
Europe, the US, China, Japan are all setting ambitious CO2 emissions targets within legislation
Comparison of global CO2 regulations for new passenger cars
Same product quality everywhere!
Source: Icct, Constellium internal analysis
9
|
|
…Aluminium for automotive will grow leveraging on its unique properties: Sheet-based solutions
| 5 |
|
fold Increase in global BiW market expected |
Global FRP AI-BiW market forecast act. 2012 – 2020 (kt)
We believe aluminium has an unrivaled
“benefit/cost” position
Potential Ease of
Material Cost weight saving adoption for
vs steel OEMs
UHSS/AHSS
steels 0.8—1.5€/kg 10—20% ++++
Aluminium 3—5€/kg 30—50% +++
Magnesium 10—20€/kg 40—60% +
Carbon Fiber 40—80€/kg 60—70% +
Composites
| * |
|
Outlook excluding any major shift for a new high volume model Source: Constellium internal analysis |
10
|
|
…Aluminium for automotive will grow leveraging on its unique properties: Extrusion-based solutions
Aluminium Body Structure market (kt)
Aluminium CMS market (M units)
Plants on 3 continents to capture global growth: Europe, U.S. and China
Source: Automotive Structures CMS Data base (2014)
11
|
|
BiW NA market: 3% aluminium growth for North American manufactured light vehicles over the next decade
Aluminium net pounds per North American light vehicle
Net pounds per vehicle for select product forms*
Net pounds per vehicle
Net pounds per vehicle
Source: Ducker Worldwide, 2015 North American Light Vehicle aluminium Content Study *Do not include the following other products: rod and bar, fin stock, brazing sheet, forgings and all castings (2015: 327, 2020: 341, 2025: 355 lbs/vehicle)
12
|
|
NA market: aluminium market share based on parts increasing from 6% in 2015 to 26% by 2025
Light vehicle body and closure parts volume share by material
Mild and HSLA AHSS/UHSS Aluminium Sheet Aluminium Extrusions Aluminium VD Castings
Market forecast AI BiW FRP, North America 2012-2025 (kt)
Source: Ducker Worldwide, 2015 North American Light Vehicle Aluminium Content Study, Constellium UACJ market database, May 2015
13
|
|
BiW EU market: strong growth to >700 kt by 2020
Market forecast BiW demand Europe (kt)
*Outlook excluding any major shift for a new high volume model Source: Constellium internal analysis
14
|
|
CONSTELLIUM’S
OFFERING
15
|
|
Aluminium goes beyond light-weighting.
No compromise on Aesthetics!
No compromise on Strength!
No compromise on Design!
Roping Paint bake response Strength Hemming
Corrosion Character resistance lines
LIGHTWEIGHTING
Energy Work absorption hardening
Thermal Isotropy stability Elongation Ductility
No compromise on Safety!
16
|
|
Our BIW portfolio today: original products and latest generation of alloys
SURFALEX®
Perfect surface with stringent hemming
SURFALEX® HF
Perfect surface with High Formability
SURFALEX® HS
Perfect surface with High Strength
STAYBRIGHT ®
A long-lasting, brilliant aluminium product used in decorative trims for cars
FORMALEX®
Forming optimized
FORMALEX® PLUS
Extra formability for complex shapes
LIGHTWEIGHTING
STRONGALEX®
High Yield Strength
SECURALEX®
Crash crushable alloy for structural parts
SECURALEX® HS
High Strength Crash Crushable
SECURALEX®P5/P6
Pedestrian Safety alloy
17
|
|
Our Crash Management System (CMS) extrusion portfolio today
Unmatched alloy portfolio
Ultimate 6xxx Strength 500 capability?
(Mpa) 450
7108
UTS New High Strength 400 6xxx Alloys – HSA6
Strength 7003
Shape Complexity/Strength 350 Compromise
Conventional High Strength 6xxx Alloys
Alloy composition/process optimization
Design and next generation CMS
CMS System
Active CMS
Semi active/100% active
Crashbox System
Crashbox innovation Low & Highspeed
Beam System
Springback beam (pedestrian optimized 2nd loadpath beam)
CMS Beam
With integrated pedestrian protection system (SMIF)
Pedestrian System
Pedestrian protection honeycomb
Industrialization
Manufacturing processes: extrusion, bending, forming, welding, bonding…
Scale Up – Prototypes, process optimization & qualification testing
Brunel University: Constellium and JLR Partnership
Rapid prototyping route—Alloy/Process
Collaborative partnerships with Tier 1 & OEM’s
Develop downstream fabrication & joining technologies
18
|
|
Working on tomorrow’s portfolio with a strong R&T commitment
Pushing the limits of aluminium
Ultra High Strength Ultra High Formability More Crash properties Higher Stiffness
Metallurgy, corrosion, Surface treatment Expertise
Providing solutions
For better integration with
other materials
For better manufacturing
efficiency of OEMs
Joining, Welding
Studies
Customizing our offer
From simulation studies in design phase
To specific alloy & conversion developments
Characterization, Simulation, Prototyping, Design, CAD Tools
19
|
|
Our technical development offer
R&T Center “C-TEC”
Strong R&T competencies and full scale manufacturing capabilities in our R&T center in Voreppe, France
Prototyping & testing
Alloy development
Laboratory casting at all scales Hot and cold rolling Heat treatment and quenching
Surface treatment & lubrication
From beaker-scale to continuous pilot line
Analysis and characterization
Design, forming & simulation
Design & forming feasibility simulation
Network of international collaborations
20
|
|
Constellium’s automotive ambitions
Product Current Position Strategic Target
Automotive BiW Sheet Major European Player Major Global Position
(Rolled Products)
Automotive Structures #1 Player in Europe & US #1 Global Position
(Extruded Products)
21
|
|
Summary
Aluminium for automotive expected to experience strong growth in the following years BiW market: 1,200 kt in North America and 700 kt in Europe by 2020 Extrusion market for Body Structures: 120 kt in North America and Europe in 2020
Constellium offers
Full range of automotive patented products across 4 key dimensions (style, light-weighting, design, safety) Crash Management System unrivaled innovation Positioned in Global Top 3 both in BiW and Automotive Structures
Constellium continues to focus on development and innovation
Strong pipeline of next generation alloys and products in development
State of the art R&T center with C-TEC both in Europe and a new hub in the US Around 40 collaborations with external labs, universities & scientific partners
22
|
|
23
|
|
CONSTELLIUM’S
BODY-IN-WHITE FOOTPRINT
SIMON LADDYCHUK
24
|
|
Constellium invests heavily into its global BiW footprint—Focus on the US and EU
January 15, 2014: Announcement of €200m investment in order to develop and expand BiW capacity in Neuf-Brisach and Singen
January 23, 2014: Announcement of $150m investment project into new CALP line in cooperation with UACJ in Bowling Green, Kentucky
January 5, 2015: Acquisition of Wise Metals in Muscle Shoals, Alabama – Up to $750m CAPEX planned to develop BiW capacity & capabilities
April 23, 2015: Announcement of second US CALP line as part of US expansion
All projects are in execution on schedule and on budget
25
|
|
Comprehensive asset portfolio to support BiW growth in the US and in Europe
Expansion in Europe
Europe
Neuf-Brisach, France 1
450 kt rolling mill focused on packaging and automotive
Current BiW capacity of c. 60 kt to be expanded to 160 kt by mid 2016 Initial supply of BiW cold coils to Bowling Green (outer grade)
Singen, Germany
230 kt rolling mill focused on specialties
BiW capacity currently being ramped up to 20kt
…and entry into North American Body-in-White market
Constellium-UACJ 2 BiW JV, Bowling Green, KY
Joint venture between Constellium (51%) and UACJ (49%) 100 kt continuous annealing and pre-treat line (CALP) under construction, SOP mid 2016 Will receive cold coils from Logan, Neuf-Brisach and Muscle Shoals Potential for expansion
Muscle Shoals, AL 3
Acquired by Constellium in January 2015 450 kt rolling mill focused on cansheet Expansion up to c. 700 kt planned over the next years
Tri-Arrows/UACJ, 4 Logan, KY
Joint venture between UACJ/ Tri-Arrows and Novelis 900 kt rolling mill focused on cansheet Will supply BiW cold coils to Bowling Green finishing plant
Ravenswood, WV 5
Rolling mill focused on aerospace
Potential long-term supply of 5xxx coils to the Bowling Green facility Potential long-term supply (2025-2030) latent hot mill capacity reserves for auto body sheet development
Constellium 6 Location to be decided
BiW investment project annou in 2015 with a target of creating finishing capacity for up to 200 kt of BiW
R&T new US hub, 7 MI
26
|
|
CONSTELLIUM’S
EUROPEAN BiW FOOTPRINT
27
|
|
Europe – Two world-class integrated production sites backed by strong R&T capabilities
Ideally positioned in Europe’s industrial heartland
Sites
Neuf-Brisach
(France)
Singen
(Germany)
C-TEC
(France)
Distinctive Assets
Most highly integrated rolling mill in Europe, from recycling to coating World class recycling shop (aluminium processing scrap, UBCs & other used products)
Capacity: 450 kt
Expansion project in full swing with additional 100 kt BiW capacity
Special surfaces and specialties Capacity: 230 kt
BiW production starting in 2015 (20 kt capacity)
Metallurgy, material characterization, formability, recycling Biggest automotive research center in Europe (aluminium) Surface treatment & coating pilot lines
28
|
|
Neuf-Brisach offers a full product portfolio – BiW capacity of 160 kt, on track to meet mid-2016 SOP target
Neuf-Brisach – BiW highlights
Current capacity of c. 60 kt
Comprehensive product mix, inners/outers, 5xxx and 6xxx alloys
Diversified customer portfolio with German premium manufacturers and French OEMs
Strong growth in most recent years (>25% p.a.)
New 100 kt state of the art CALP line under construction and first coil targeted for Q2/16 – Commercial start in Q4/16
2017 total capacity of 160 kt BiW
Capabilities
Neuf-Brisach, France
Dimensions
Maximum width: 1920 mm Thickness: 0.7 – 2.5 mm
(3.2 mm with new CALP line) Cut to length
Surface condition
EDT or Mill Finish Chemical conversion coatings / passivation
29
|
|
Neuf-Brisach – Investment in new CALP line
Hall 4
CALP line
Entry area
(uncoiler 1 & 2)
Hall 4
CALP line
Degreasing area
Hall 4
CALP line Furnace area
Hall 4
CALP line Quench area
30
|
|
Neuf-Brisach – Investment in new CALP line
Hall 4
CALP line
Entry area
(uncoiler 1 & 2)
Hall 4
CALP line
Degreasing area
Chemcoater
Hall 5
Steel structure of the surface treatment area
31
|
|
Singen entered BiW market in 2015 focusing on structural parts
Singen – BiW highlights
Singen has entered BiW market by upgrading existing equipment
BiW production currently in ramp-up
Full capacity of c. 20 kt in 2016
Focus
- inners & structures
- 5xxx and 6xxx alloys
- thickness capability of up to 4mm for selected products
Complementary capabilities to Neuf-Brisach
Latent hotline capacity
Capabilities
Singen, Germany
Dimensions
Maximum width: 1580 mm Thickness: 0.8 – 4.0 mm Cut to length
Surface condition
EDT (max thickness
2.8 mm) or mill finish Chemical conversion coatings/passivation
32
|
|
CONSTELLIUM’S
US BiW FOOTPRINT
33
|
|
34
|
|
Bowling Green—Plant capabilities
Dimensions
Maximum width: 2200 mm Thickness: 0.8 – 3.2 mm
Surface condition
EDT or mill finish
Chemical conversion coatings/passivation
Lubrication
Stamping oils Protection oils
Hot melt dry lubricants
35
|
|
Investing in new BiW capacity in the US
Overall BiW expansion CAPEX reduced to $620m by 2022, vs. $750m initially forecasted, and cash out phasing reviewed
Transfer of non-packaging products to Ravenswood Optimize timing of projects Increase accuracy of project specifications Utilize global cold mill resources
Casting and hot mill capacity increase in Muscle Shoals
Building of 2 additional finishing lines (location to be defined)
Line 2: 100 kt of BiW coils capacity, production to start in 2018
Line 3: 100 kt capacity, production to start on 2021/2022, subject to customer demand
36
|
|
Constellium in Muscle Shoals – Comprehensive investment project started
Muscle Shoals
450 kt rolling mill focused on can sheet Hot and current cold rolling with capacity reserves – expansion up to c. 700 kt Widest hot mill in the US
One of the last “available” capacity reserves in the US for BiW
Excellent customer reputation, entrepreneurial culture
Engineering team ramped-up over the last months to more than 90 FTE
Projects launched across entire value stream
Expansion of casting capacity and capabilities
Increase of pre-heating capacity Investment in process capability Hot mill revamp and capacity increase New cold rolling mill scheduled
37
|
|
| 3 |
|
Finishing lines to be supplied by Constellium’s global rolling mill system and UACJ |
Rolling mills – Constellium
Pre-heating Hot rolling Cold rolling
300 kt Continuous annealing and pre-treatment line (“finishing”)
| 3 |
|
finishing lines |
(incl. 1 line with UACJ)
Rolling mill – UACJ (Logan)
Pre-heating Hot rolling Cold rolling
38
|
|
We are making it happen…
Strong automotive heritage demonstrated in Europe
Full global commitment to the Body-in-White sector Set-up of Bowling Green finishing facility with UACJ
Extensive CAPEX program to support automotive growth in US and in Europe
Successful implementation track record to date
Use of international benchmark in project management Bowling Green Joint Venture with UACJ
Addition of BiW capability in Singen plant New CALP line in Neuf-Brisach plant
World Class R&T support from our global R&T network
39
|
|
40
|
|
MUSCLE SHOALS PLANT
WES OBERHOLZER
41
|
|
From the outside…
42
|
|
From the inside…
The third largest supplier of the can market in North America Strategically located to supply automotive sheet to US market Produce coils to supply the demand for beverage can stock (and trailer roof)
Current Headcount:
1,338 employees
Surface:
110 acres of covered surface
Annual Production Capacity:
468 kt
End stock Tab stock Body stock
Trailer Roof
43
|
|
Key figures
Can Body Stock
75%
Trailer Roof
5%
Production Split
Can End/Tab
20%
Turnover Production Headcount
2013
| 1 |
|
250 M$ |
384 kT
| 1 |
|
306 employees |
45 temporary workers
2014
| 1 |
|
353 M$ |
398 kT
| 1 |
|
285 employees |
42 temporary workers
44
|
|
Trust-based and long-term relationship with a large panel of key customers and partners
BEVERAGE
45
|
|
Process at Muscle Shoals
Element 13
5 Stand HSCCL
Pusher Packing/ Cast House Hot Line Furnace Shipping
3 Stand Finishing Realise
116’’ Mill
46
|
|
Element 13
47
|
|
Element 13 (continued)
EL 13 reclaims UBC, class scrap, and other common alloy scrap into molten aluminium
48
|
|
Element 13 (continued)
Crucibles transfer molten aluminium to Alloys Casting Operation
49
|
|
Casting
Molten aluminium is then cast using Electromagnetic Casting Technology (EMC) to produce non-scalp ingots (95% non-scalp rate)
50
|
|
Pusher Furnace
After Casting, ingots are sent to the Pusher Furnace for preheating, and homogenized for hot rolling
51
|
|
Hot Rolling
Aluminium ingots are reduced to coil form through a series of mill operations at the hot line
52
|
|
3-Stand
After being processed at the hot line, 3104 alloy is then sent to the 3-Stand for rolling to customer specified gauge
53
|
|
Sheet Finishing
After the 3-Stand, coils are then sent to the Slitters The coils are slit to the final width, post-lubed, and inspected
54
|
|
5-Stand
After being processed at the hot line, 5000 series alloys are then sent to the 5-Stand for cold rolling to finish gauge
55
|
|
High Speed Cleaning and Coating Line
After being processed at the
5-Stand the coils are leveled, cleaned, treated, coated, waxed, and trimmed to width Our HSCCL is considered the fastest coil coating line in the world!
56
|
|
High Speed Cleaning and Coating Line
At our Packing and Shipping department we do a final inspection of the material, and verify the proper identification and staging prior to shipment on truck or rail
57
|
|
58
|
|
CONCLUSION
PIERRE VAREILLE
59
|
|
Recent Developments
Negotiated improved terms of our revolving credit facility, which is expected to increase Q4 liquidity by €145m
Resolved a recent scalper outage at Neuf-Brisach, accelerated scheduled October maintenance, expect Adjusted EBITDA to shift from Q3 to Q4 with limited H2 impact
Establishing a North American R&T center in Michigan to have our engineers closer to our current and future NA customers
60
|
|
Key Takeaways
Solid plans to reduce total CAPEX by €150m from 2015 thru 2017 with no change in scheduled launch of the first 100 kt BiW line scheduled for 2018
Total Constellium CAPEX 2015 2016 2017 2018
Initial forecast €400m €450m €350m €265m
Revised forecast €350m €400m €300m €300m
61
|
|
Q & A
62