Constellium SE

Good day and thank you for standing by and welcome to the ConstellU fourth quarter and full year 2021 results. 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 will need to press star 1 on your telephone or touch-tone key. If you require an operator assistance, please press star 0. I would now like to hand the conference over to your first speaker today, Jason Hershiser, Director, Investor Relations. Thank you. Please go ahead, sir.

Thank you, operator. I would like to welcome everyone to our fourth quarter and full year 2021 earnings call. On the call today, we have our Chief Executive Officer, John Mark 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 filing. 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 uncertainty. 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 20F. 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.

Thank you, Jason. Good morning, good afternoon, everyone, and thank you for your interest in our continuum. I want to start by thanking each of our 12,000 employees for their relentless focus on safety and their commitment to serving our customers in these challenging times. I am extremely proud of what we were able to achieve in 2021, and I look to the future with great optimism. Now, let's turn to slide five and discuss the highlights from our fourth quarter performance. Shipments were 385,000 tons. That's up 3% compared to the fourth quarter of 2020. Revenue increased 37% to 1.7 billion euros. This was primarily due to 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 price risk. Our net income of 7 million euros compares to a net income of 26 million euros in the fourth quarter of 2020. Adjusted EBITDA was 147 million euros, 33% above the fourth quarter of 2020, and well above our implied guidance range. Strong end market demand, particularly from our packaging and industrial customers, and better than expected cost performance, helped us overcome continued weakness in automotive caused by the semiconductor shortage, and inflationary pressures across the business. I am very pleased with our strong execution this quarter. We extended our track record of consistent free cash flow generation with 14 million euros in the quarter. Lastly, we demonstrated our commitment to reduce gross debt with a redemption of $200 million of our 2026 notes in November. So now turn to slide six for our full year results. Beginning with safety, our recordable case rate was 1.85 per million hours worked, and very close to our record performance last year. While this is best-in-class performance, we remain committed to continuous improvement in this most important area. I would like to specifically recognize the efforts at Changshun and Deqin in the fourth quarter. Changshun reached more than three years without a recordable case, and Dachin achieved more than 1 million worked hours without a recordable case. For the full year, our shipments were 1.6 million tons, up 10% compared to 2020, as all foreign markets, except aerospace, showed strong year-over-year growth. Revenue increased 26% to 6.2 billion euros. This was primarily due to higher metal prices and higher shipments. Our net income of 262 million euros compares to a net loss of 17 million euros in 2020. Adjusted EBITDA was 581 million euros, 25% above 2020, and notably 3% above 2019, our last full pre-COVID year. This performance is a record for the company and a record for our PARP and AS&I segments. I am particularly pleased with this result, given the fact that aerospace and automotive are still running below 2019 levels. We delivered our third consecutive year of positive free cash flow with a total of 135 million euros in 2021, and we remain very confident in our ability to maintain and improve this performance in the future. Our leverage declined to 3.4 times at the end of the year, down more than a full term from the first quarter of 2021 and at a multi-year low. Overall, I am very proud of our fourth quarter and full year 2021 performance. We delivered strong adjusted EBITDA, solid free cash flow generation, and substantial deleveraging. With that, I will now hand the call over to Peter for further details on our financial performance.