Constellium SE

Ladies and gentlemen, thank you for standing by. And welcome to Consilium's third quarter 2020 results conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you'll need to press star 1 on your telephone. If you require any further assistance, please press star 0. I would now like to hand the conference over to your first speaker today, Ryan Wentling, Director of Investor Relations. Thank you. Please go ahead, sir.

Thank you, Operator. I would like to welcome everyone to our third quarter 2020 earnings call. On the call today are our Chief Executive Officer, Jean-Marc Germain, and our Chief Financial Officer, Peter Matt. After the presentation, we will have a Q&A session. A copy of the slide presentation for today's call is available on our website at consilium.com, and today's call is being recorded. Before we begin, I'd like to encourage everyone to visit the company's website and take a look at our recent filings. Today's call may include forward-looking statements within the meaning of the Private Security Litigation Reform Act of 1995. Such statements include statements regarding the company's anticipated financial and operating performance, future events and expectations, and may involve known and unknown risks and uncertainties. For a summary of specific risk factors that could cause results to differ materially from those expressed in the forward-looking statements, please refer to the factors presented under the heading Risk Factors in our annual report on Form 20-F. All information in this presentation is as of the date of the presentation. We undertake no obligation to update or revise any forward-looking statements as a result of new information, future events, or otherwise, except as required by law. In addition, today's presentation includes information regarding certain non-GAAP financial measures, Please see the reconciliations of non-GAAP financial measures attached in today's slide presentation, which supplement our IFRS disclosures. I will now like to hand the call over to Jean-Marc.

Jean- Thanks, Ryan. Good morning, good afternoon, everyone, and thank you for your interest in Concelium. Let's turn to slide five, please. Before we discuss our highlights from the third quarter, I want to reiterate that the health and the safety of our employees is our first priority. we continue to follow strict protocols to mitigate the risks from the COVID-19 pandemic. I want to thank our employees for taking these precautions seriously. As the virus continues to spread in many communities around the globe, we must remain vigilant and safe. Now, let's discuss our highlights from the third quarter of 2020. Overall, this was a very good performance for the company. While our business is still recovering from the difficult second quarter, we are clearly on the right track. PARP benefited from strong canned sheet and recovering auto body sheet demand. AS&I is experiencing a solid recovery across its automotive and industry platforms and is benefiting from the successful ramp-up and operational improvement. Aerospace demand remains weak. But there is reason for optimism on the TID side with the recent announcement of preliminary anti-dumping duties in the US. As Peter will show you, all three businesses did a great job on costs. Now, for a few details. Shipments were 354,000 metric tons, a decrease of 11% compared to the third quarter of 2019. Revenue decreased 20% to 1.2 billion euros. Of the roughly 300 million Euro decline in revenue compared to the third quarter of last year, approximately two-thirds was related to lower shipments and one-third was related to lower metal prices. I remind you that while our revenues are affected by changes in metal prices, we operate a fast-through business model to minimize metal risk. Net income of 20 million euros compared to net income of 1 million euros in the third quarter of 2019. Adjusted EBITDA of 126 million euros decreased 9% compared to the third quarter of 2019. This is a strong result, and I want to acknowledge the great cost performance our team delivered again this quarter. Constellium generated 354 million of adjusted EBITDA in the first nine months, a decline of 20% compared to the first nine months of last year. We are establishing guidance of adjusted EBITDA of 450 to 460 million euros in 2020. This guidance is based on our current outlook and does not consider, for example, the severe deterioration in economic conditions due to the COVID pandemic. We look forward to a time, hopefully in the not too distant future, when we can reinstate long-term adjusted EBITDA guidance. Our free cash flow was 75 million euros in the third quarter of 2020. This is an exceptional result in a challenging environment and brings our free cash flow for the first nine months of 2020 to 129 million euros. Based on our current view of market conditions, we expect to generate free cash flow of 100 to 150 million euros in 2020. We continue to deliver on our commitment to be consistent generators of free cash flow. Our leverage was 4.3 times at the end of the third quarter. Deleveraging remains the top priority of ours. I will now hand over to Peter to discuss our financial performance in detail.