Constellium SE

Hello everyone and welcome to today's Constellium third quarter 2024 earnings call. My name is Drew and I'll be your moderator today. During today's call we will have a Q&A session. To register a question please press star followed by one on your telephone keypad and if you wish to withdraw your question then it is star followed by two. I'll now turn the call over to Jason Hershiser, Director of Investor Relations to begin. Please go ahead Jason.

Thank you, Drew. I would like to welcome everyone to our third quarter 2024 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 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. Before turning the call over to John Mark, I wanted to remind everyone that earlier this year, we revised the definition of adjusted EBITDA at the consolidated level based on prior discussions with the SEC. The new definition will no longer exclude the non-cash impact of metal price lag. We will continue to provide investors and other stakeholders with the non-cash metal price lag impact as it is necessary to get a true assessment of the economic performance of the business. Our segment adjusted EBITDA will continue to exclude this impact, and any guidance we provide for adjusted EBITDA will also exclude the impact. And with that, 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 would like to start with safety, our number one priority. Our recordable case rate was lower in the third quarter, leading to a rate of 1.9 per million hours worked for the first nine months of the year. While this safety performance puts us among the best in manufacturing, the rate is still higher than where we want it to be. We all need to constantly maintain our focus on safety to achieve the ambitious target we have set. It is a never-ending task for our company and one that we take very seriously. Turning to our financial results, shipments were 352,000 tons, down 5% compared to the third quarter of 2023, mainly due to lower shipments in ANT and ASNI. Revenue of 1.6 billion euros decreased 5% compared to last year, primarily due to lower shipments. Partially offset by higher metal prices. We have run into technical difficulties. Can you hear me? 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 3 million euros in the quarter compares to net income of 64 million euros in the third quarter last year. As a reminder, The third quarter last year included a €36 million gain related to the sale of our CED business in Germany. Adjusted EBITDA was €110 million in the quarter, though this includes a negative impact at Vale in Switzerland of €17 million as a result of the flood. This also includes a negative non-cash impact from metal price lag of €3 million. If you were to exclude the impact of the flood and the impact of metal price lag, as Jason mentioned earlier, the real economic performance of the business reflects adjusted EBITDA of 130 million euros in the quarter compared to the 168 million euros we achieved last year. Looking across our end markets, packaging demand remained healthy during the quarter. While the backlog in aerospace remains robust, Aerospace demand has started to slow down and shift to the right, as commercial aerospace OEMs are dealing with supply chain challenges and continue to struggle to increase build rates. Automotive demand during the quarter started to soften in North America, while weakness accelerated during the quarter in Europe. We experienced a sharp decline in demand in North America in most industrial markets, and further weakness in most industrial and specialties markets in Europe. Jack will go through our detailed segment performance in a few moments. Moving now to free cash flow. Our free cash flow in the quarter was negative 10 million euros, which includes a negative impact at valet of 6 million euros as a result of the flood. I am pleased to report that we continued our share buyback activities in a quarter. During the quarter, we repurchased 1.2 million shares for 21 million U.S. dollars. I am also pleased to report that our new recycling center and casting center in Nefrisac started up in September, slightly ahead of schedule and below budget. Our leverage at the end of the third quarter was 2.8 times, which is slightly above our target leverage range. As you can see, the third quarter was very challenging for us. as demand continued to weaken during the quarter in several end markets, and the weakness has now spread to some other end markets. In addition, the flood in Valley had a significant impact on our financial results during the quarter. I will give you a full update on the current situation in the Valley a little later on. With that, I will now hand the call over to Jack for further details on our financial performance. Jack?