Constellium SE

I will now hand over to your host, Jason Hershiser, Director of Investor Relations, to begin. Jason, please go ahead.

Thank you, Nadia. I would like to welcome everyone to our third quarter 2023 earnings call. On the call today, we have our Chief Executive Officer, John Mark Germain, and our Chief Financial Officer, Jack Guo. 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 concilium.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 meeting 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 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 John Mark.

Thank you, Jason. Good morning, good afternoon, everyone, and thank you for your interest in Constellium. Let's begin on slide five and discuss the highlights from our third quarter results. I'd like to start with safety, our number one priority. Our recordable case rate was higher in the third quarter, leading to a rate of 2.1 per million hours worked for the first nine months of the year. While the safety performance puts us among the best in manufacturing, the rate is higher than where we want it to be, and we have done better in the past. This is a humbling reminder that while always We strive to deliver best-in-class safety performance. We need to constantly maintain our focus on safety to achieve the ambitious targets we have set. It is a never-ending task for our company and one we take very seriously. Turning to our financial results, shipments were 369,000 tons, down 5% compared to the third quarter of 2022 due to lower shipments in each of our segments. Revenue of 1.7 billion euros decreased 15% compared to last year as improved price and mix was more than offset by lower shipments and lower 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 value-added revenue, which reflects our sales excluding the cost of metal, was 704 million euros, up 5% compared to the same period last year. Our net income of 64 million euros in the quarter compares to net income of 131 million euros in the third quarter last year. As a reminder, the third quarter of last year included 142 million euros related to the recognition of deferred tax assets that were previously unrecognized. As you can see in the bridge on the top right, adjusted EBITDA of 168 million euros in the quarter was up 5% compared to last year and it is a new third quarter record for the company. ANT adjusted EBITDA is a new third quarter record as well and increased 34 million euros compared to last year. PARP adjusted EBITDA decreased 11 million euros and ASNI adjusted EBITDA decreased 9 million euros in the quarter compared to last year. Holdings and Corporate was a headwind of 6 million euros in the quarter. Looking across our end markets, aerospace demand remained very strong, with shipments up over 20% compared to last year. Automotive demand decelerated slightly during the quarter, but remained above prior year levels. Packaging shipments were down in the quarter, though canned stock demand appears to have stabilized following the last several quarters of destocking. We continue to experience weakness in most industrial markets, especially in Europe. We continue to face significant inflationary pressures, which Jack will discuss in more detail. But thanks to our pricing power, contractual protection, improved mix, and solid execution by our team, we are managing the current environment well. Moving now to free cash flow. Our free cash flow in the quarter was strong at 78 million euros. This does not include the proceeds which were received from the sale of our soft alloy extrusion business in Germany, which I am very pleased was closed at the end of September. As you can see on the bottom right of the slide, our leverage at the end of the quarter was 2.5 times, which is an important milestone for the company. Our free cash flow generation and EBITDA growth allows us to naturally deliver further over time and over the long term we look to have a more balanced approach to capital allocation. Overall, I'm very proud of our third quarter performance. Looking forward, we like our end market positioning, and we are optimistic about our prospects for the remainder of this year and beyond. Looking at the balance of 2023, macroeconomic and geopolitical risks remained elevated, and we expect inflationary pressures to continue. While we were not impacted by the UAW strike in the third quarter, we do expect some impact in the fourth quarter. Despite these pressures, as well as continued weakness across several of our end markets, we are maintaining our prior guidance. We expect to finish 2023 with adjusted EBITDA in the range of €700 to €720 million, which would be a new record for the company. and we continue to expect free cash flow in excess of 150 million euros in 2023. We also remain confident in our ability to deliver our long-term target of adjusted EBITDA of over 800 million euros in 2025. With that, I will now hand the call over to Jack for further details on our financial performance.