Constellium SE

If you would like to register a question during today's events, please press star followed by one on your telephone keypad. And I'd like to hand over to Jason Hirscheiser, Director of Investor Relations. The floor is yours. Please go ahead.

Thank you, Elliot. I would like to welcome everyone to our fourth quarter and full year 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 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 different 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 Martin.

Thank you, Jason, and good morning, good afternoon, everyone. Thank you for your interest in Constellium. Let's begin on slide five. I want to start by thanking each of our 12,000 employees for their commitment and relentless focus on safety, our number one priority. Our recordable case rate this year of 1.95 per million hours worked was slightly higher than last year, but I am pleased to report that we continue to deliver best in class safety performance. Our safety journey is never complete, 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 by 2025. Now, let's turn to Site 6 and discuss the highlights from our fourth quarter performance. Shipments were 336,000 tons, down 9%. compared to the fourth quarter of 2022 due to lower shipments in each of our segments. Revenue of 1.6 billion euros decreased 13% 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 681 million euros, down 2% compared to the same period last year. Our net income of 11 million euros in the quarter compares to net income of 30 million euros in the fourth quarter of last year. As you can see in the bridge on the top right, adjusted EBITDA was €171 million in the quarter, up 15% compared to last year and in line with our prior guidance. Also, we extended our track record of consistent free cash flow generation with €58 million in the quarter. The combination of pricing power, Improved mix and solid execution by our team drove strong results in the quarter, which Jack will discuss later in more detail. Now turn to slide seven for the full year highlights. For the full year, shipments were 1.5 million tons or down 6% compared to 2022. Revenue of 7.2 billion euros was down 11% as improved price and mix in each of our segments was more than offset by lower shipments and lower metal prices. A net income of €129 million compares to net income of €308 million in 2022. As a reminder, last year included €154 million related to the recognition of deferred tax assets that were previously unrecognized. Adjusted EBITDA was €713 million or up 6% compared to last year. This performance is a record for the company and a record for our A&T segment. We delivered our fifth consecutive year of positive free cash flow with a total of €170 million in 2023. We achieved adjusted return on invested capital of 11.3% in 2023, which is up 30 basis points compared to last year. As you can see on the bottom right of the slide, we finished 2023 with leverage of 2.3 times or down half a term from the end of 2022. Overall, I am very proud of our fourth quarter and full year 2023 performance. We demonstrated our pricing power again by delivering record adjusted EBITDA and strong free cash flow in 2023. I am also pleased to announce today that our board has authorized a share repurchase program of up to $300 million that expires in December 2026. We expect to begin the program in the first half of this year. Now that we are within our target leverage range, returning capital to our shareholders is an important part of our strategy moving forward, and we believe it will help drive shareholder value creation. We look forward to updating you on our progress each quarter. With that, I will now hand the call over to Jack for further details on our financial performance.