Constellium SE

Ladies and gentlemen, thank you for standing by, and welcome to the Constellium First Quarter 2021 Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker 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. Please be advised that today's conference may be recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, Brian Wendling, Head of Investor Relations. Please go ahead.

Thank you, Operator. I would like to welcome everyone to our first quarter 2021 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 Constellium.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 Securities 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 statement. As a result of new information, future events are otherwise accepted 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 would now like to hand the call over to Jean-Marc.

Jean- Thank you, Ryan, and good morning, good afternoon, everyone. Thank you for your interest in Concelium. I'd like to turn to slide five and discuss the highlights from our first quarter results. Shipments were 385,000 tons. That's down 2 percent compared to the first quarter of 2020. This decline was primarily as a result of lower aerospace shipments and lower packaging shipments from the strike and adverse weather in mussel shoals. I want to highlight that our automotive shipments increased 10% year over year, and both rolled and extruded automotive shipments reached record levels, despite the automotive shutdowns in the quarter resulting from the shortage of semiconductors. Revenue decreased 7% to 1.3 billion euros. This decline was primarily due to weaker price and mix and lower shipments in aerospace, partially offset by higher metal prices. Remember, while our revenues are affected by changes in metal prices, we operate a pass-through business model, which minimizes our exposure to metal risk. Our net income of 48 million euros compares to a net loss of 31 million euros in the first quarter of 2020. As you can see in the bridge on the top right, adjusted EBITDA was 121 million euros, a decline of 26 million euros, driven by lower results at ANT from weak aerospace demand, partially offset by stronger performance at ASNI and PARC. These results include more than 10 million euros of negative impact from a combination of the strike at Muscle Shoals, adverse weather in the U.S. Southeast, and the effect of the semiconductor shortage on automotive production. Free cash flow was strong at 46 million euros in the quarter. As you can see in the chart at the bottom right, we have delivered significant and consistent free cash flow over the past two years. We look forward to extending our track record in the coming quarters and years. Now, let's turn to slide six, and let's look at our sustainability performance in 2020. At Constellium, the health and safety of our employees is our top priority. Our safety results are among the best in the industry, and we remain committed to continuous improvement. Constellium achieved a record low recordable case rate of 1.82 incidents per million hours worked in 2020. While this is something to be proud of, we will continue to push for further improvement. I also want to highlight our 33% reduction in waste sent to landfills compared to 2015, and specifically call out our team at Muscle Shoals for an excellent job. Despite showing improvement in energy efficiency, our result was significantly negatively impacted by lower levels of production due to the COVID pandemic. We look forward to getting back on track toward our target of a 10% reduction from 2015 levels. Coastalium continues to receive external recognition of our sustainability efforts. We received AS&I certifications at our plants in Zingen, Neuf-Prisac, D'Alenfeld, and Gottmaningen. Further, we achieved the Ecovallis Platinum rating, a AA rating from MSCI, and Prime from ISS. Next, I would like to provide our 2020 results for the two sustainability performance targets, or SPTs, contained within our landmark sustainability-linked bond. For greenhouse gas emissions intensity, we reached 0.732 tons of CO2 equivalent per ton of sales. This improvement was despite lower operating levels at our plants that negatively impacted our results. For recycled input, our use of recycled aluminum declined roughly 6% from 2019 to 586,000 tons. This was due to lower activity and shipment levels in 2020 from the COVID-19 pandemic. As we announced in February, we expect to achieve our target of 685,000 tons of recycled input primarily through an investment in recycling capacity in Europe. We remain on target to hit each of these SPTs at the relevant measurement dates. Over the course of 2021, we will develop our 2030 sustainability strategy, which will establish a new set of sustainability targets and the steps to achieve them. With that, I will now hand the call over to Peter for further details on our financial performance.