Constellium SE

Good day and thank you for standing by. Welcome to the Constellium third quarter 2021 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 this session, you will 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 Today, Ryan Wendling, Director of Investor Relations. Thank you. Please go ahead.

Thank you, Operator. I would like to welcome everyone to our third 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 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 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-S. 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, 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 would now like to hand the call over to Jean-Marc.

Jean-Marc Jean- Thanks, Ryan. Good morning, good afternoon, everyone, and thank you for your interest in Constellium. Let's turn to slide five and discuss the highlights from our third quarter results. I would like to start with safety, our number one priority. Our year-to-date recordable case rate was 1.8 per million hours worked, in line with our record performance in 2020. I would like to specifically recognize the efforts at Neuf-Brisach, Zingen, and Gottmaningen. Each of these locations achieved more than 1 million hours worked without a recordable case in the third quarter. Shipments. were 395,000 tons, that's up 12% compared to the third quarter of 2020. Revenue increased 35% to 1.6 billion euros. This was primarily due to higher metal prices and higher shipments. 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 99 million euros compares to a net income of 20 million euros in the third quarter of 2020. Adjusted EBITDA was a record 143 million euros, 14% above the third quarter of 2020 and 3% above our result from the third quarter of 2019 pre-pandemic. Strong in market demand, particularly from our packaging and industrial customers, and solid cost control helped us overcome the reduced contribution from aerospace, the continued impact from the semiconductor shortage, and increased inflationary pressures. I am very pleased with our team's strong execution again this quarter. Looking forward, we are updating our 2021 adjusted EBITDA guidance to a range of 550 to 560 million euros. that compares to our previous guidance of 545 to 560 million euros. We extended our track record of consistent free cash flow generation with 40 million euros in the quarter, bringing our total to 121 million euros through the first nine months. We continue to expect free cash flow in excess of 125 million euros in 2021. Moving now to leverage, As you can see in the chart on the bottom right, our leverage declined to 3.6 times at the end of the third quarter, down a full turn from the first quarter, and at a multi-year low. We remain committed to reducing our leverage to our long-term targets of 2.5 times. We are also acting on our commitment to reduce gross debt with our recent announcement of the redemption of $200 million of our 2026 notes. Overall, I am very proud of our third quarter performance. We delivered strong adjusted EBITDA, solid free cash flow generation, and further deleveraging in excess of our expectations. With that, I will now hand the call over to Peter for further details on our financial performance.