Constellium SE

Hello and welcome to today's Constellium fourth quarter and four year 2022 results call. My name is Bailey and I'll be the moderator for today's call. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star followed by one on your telephone keypad. I would now like to pass the conference over to Jason Hershiser, Head of Investor Relations. Please go ahead.

Thank you, Bailey. I would like to welcome everyone to our fourth quarter and full year 2022 earnings call. On the call today, we have our Chief Executive Officer, John Mark Germain, our Chief Financial Officer, Peter Matt, and Jack Guo, our CFO designate. 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 statement, please refer to the factors presented under the heading Risk Factors in our annual report on Form 20F. All information in the presentation is as of the date of the presentation. We undertake no obligation to update or revise any forward-looking statements that involve 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. Without further ado, I'd like to turn the call over to John Mark.

Thank you, Jason. Good morning, good afternoon, everyone, and thank you for your interest in Concilium. Let's begin on slide five. I want to start by thanking each of our 12,500 employees for their relentless focus on safety. Safety is our number one priority and a key pillar of our sustainability strategy. I am pleased to report that we delivered, again, best-in-class safety performance in 2022. reducing our recordable case rate for the year to 1.8 per million hours worked. I would like to specifically recognize several of our sites for their excellent safety performance. Our Changchun joint venture in China completed 3 million hours without a recordable case in 2022. Muscle Shoals, Nesprizac, Ravenswood, Zingen, and Vale Operations all completed 1 million hours without a recordable case. And finally, 12 of our sites completed 2022 with zero recordable cases. Our safety journey is never complete, though, and we all need to remain focused on this critical priority every day. We remain fully committed to achieving our safety target to reduce our recordable case rate to 1.5 per million hours by 2025. Now, let's turn to slide six and discuss the highlights from our fourth quarter performance. Shipments were 368,000 tons, down 5% compared to the fourth quarter of 2021. Revenue increased 8% to 1.8 billion euros as a result of improved price and mix, partially offset by lower metal prices and lower 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 price risk. Our value-added revenue, which reflects our sales, excluding the cost of metal, was 696 million euros, up 18% compared to the same period last year. Our net income of 30 million euros in the quarter compares to net income of 7 million euros in the fourth quarter of 2021. As you can see in the bridge on the right, adjusted EBITDA was 148 million euros, slightly above the fourth quarter of 2021, and in line with our prior guidance. Also, we extended our track record of consistent free cash flow generation with 22 million euros in the quarter. Looking across our end markets, aerospace demand was very strong, with shipments up around 50% compared to last year for the third quarter in a row. Automotive shipments were up double digits in the quarter versus last year, with new platform launches driving our growth. Packaging shipments were down in the quarter due to inventory adjustments across the channel at most can makers and operating challenges at our plants in Mussel Shoals, which, as we discussed last quarter, were in large part due to a shortage of experienced engineers and operators. While we are seeing signs of weakness across certain industrial markets, our industrial business overall performed well. The combination of improved mix Pricing power and solid execution by our team in overcoming significant inflationary pressures drove our strong results, which Peter will discuss later in more detail. Now let's turn to slide seven for the full year highlights. For the full year, shipments were 1.6 million tons, or up slightly compared to 2021. Revenue increased 32% to 8.1 billion euros. This was primarily due to higher metal prices and improved price and mix. Our net income of €308 million compared to net income of €262 million in 2021. Adjusted EBITDA was €673 million or up 16% compared to last year. This performance is a record for the company and a record for our ANT and AS&I segments. We delivered our fourth consecutive year of positive free cash flow with a total of 182 million euros in 2022, which was also a record for the company. As many of you recall, in April last year at our Annals Day, we began reporting our Return on Invested Capital, or ROIC, and said we would update our ROIC at the end of each calendar year. For 2022, We achieved the ROIC of 11%, up 120 basis points from 9.8% in 2021. As you can see on the bottom right of the slide, we demonstrated our continuing commitment to deleveraging, ending the year at 2.8 times or down 0.6 times from the end of 2021. Overall, I am very proud of our fourth quarter and full year 2022 performance. We demonstrated our pricing power by delivering record adjusted EBITDA and record free cash flow in 2022, despite significant inflationary pressures. With that, I will now hand the call over to Peter for further details on our financial performance. Peter.