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PARIS, March 12, 2024 (GLOBE NEWSWIRE) -- Constellium SE (NYSE:CSTM) today announced its move towards industrial testing of hydrogen utilization in its casthouses, marking a significant step in its commitment to decarbonizing its operations. Recycling and casting are the most energy intensive operations and represent close to 50% of Constellium's direct greenhouse gas (GHG) emissions. Building upon successful laboratory-scale trials conducted in 2022 by C-TEC, Constellium's main R&D center, the Company was ...

PARIS, Feb. 28, 2024 (GLOBE NEWSWIRE) -- Constellium SE (NYSE:CSTM) today announced that it is leading a new R&D initiative called "Close the Loop" in partnership with an ecosystem of recycling companies in France, including INDRA (automotive recycling), GALLOO (metal recycling) and MTB RECYCLING (metal shredding & sorting). Funded in part by the French Environmental Agency ADEME under the France 2030 program, the Close the Loop project aims to develop technologies to dismantle, sort and remelt wrought alum ...

Financial Data and Key Metrics Changes - Shipments decreased by 9% to 336,000 tons in Q4 2023 compared to Q4 2022, with revenue of €1.6 billion down 13% year-over-year due to lower shipments and metal prices [13][14] - Value-added revenue was €681 million in Q4 2023, down 2% from the previous year, while net income fell to €11 million from €30 million [14][37] - Adjusted EBITDA increased by 15% to €171 million in Q4 2023, marking a record performance for the company [15][38] - For the full year 2023, adjusted EBITDA reached €713 million, up 6% from 2022, with free cash flow totaling €170 million [38][58] Business Line Data and Key Metrics Changes - In the P&ARP segment, adjusted EBITDA was €82 million, up 16% year-over-year, driven by improved contract pricing and a stronger mix [33][42] - The AS&I segment saw adjusted EBITDA decrease by 22% to €25 million, impacted by lower shipments in the industrial market [35][44] - The A&T segment reported adjusted EBITDA of €76 million, a 36% increase, with aerospace shipments up around 10% [43][34] Market Data and Key Metrics Changes - The European market is currently weaker, particularly affecting German OEMs, while North America shows stronger demand in automotive [23][68] - The packaging market is expected to grow low to mid-single digits in both North America and Europe, with canstock demand stabilizing [54][66] - The aerospace market remains strong, with major OEMs focused on increasing build rates for aircraft [76][65] Company Strategy and Development Direction - The company plans to return a significant portion of free cash flow towards share repurchases while maintaining financial flexibility for potential M&A opportunities [16][30] - Investments in recycling operations are prioritized to increase recycling content and capacity [24][60] - The company aims to achieve a record adjusted EBITDA of over €800 million by 2025, supported by the startup of the recycling center in Neuf-Brisach [71][82] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about 2024 despite uncertainties in the macroeconomic environment, targeting adjusted EBITDA between €740 million and €770 million [71][30] - The company is focused on cost control and pricing strategies to mitigate inflationary pressures, with expectations for moderated inflation in 2024 [47][36] - The automotive sector is expected to remain strong in North America, while Europe faces challenges [68][105] Other Important Information - The company has authorized a share repurchase program of up to $300 million, expected to begin in the first half of 2024 [30][60] - Net debt decreased to €1.7 billion, with leverage at a multiyear low of 2.3x, within the target range [49][61] - Changes to the presentation of non-GAAP financial measures will be implemented, particularly regarding the treatment of metal price lag [62][50] Q&A Session Summary Question: Timing of the general meeting - The general meeting is scheduled for early May [73] Question: Share buybacks and dilution offset - Management confirmed that share buybacks will initially offset dilution, with potential for more aggressive repurchases post-general meeting [74] Question: Margin expectations for A&T business - Management indicated that margins for the A&T business are expected to remain strong, with a recovery in TID contributing positively [87][88] Question: Impact of weather on Muscle Shoals operations - Management acknowledged that extreme weather impacted operations, leading to potential shipment losses in Q1 [104][105] Question: Supply of scrap in the market - Management expressed confidence in the availability of scrap to meet growing demand, emphasizing the importance of domestic recycling [98][116] Question: Future capacity and production timelines - Management noted that while there are shifts in production timelines, demand remains strong, and capacity expansion is being considered [134][136]

2023 Earnings Call 2 Fourth Quarter 2023 – Earnings Call Recordable Case Rate(1) Ø 6 sites completed multi-year stretches without a recordable case in 2023 Ø Shipments: 336 thousand tons (-9% YoY) Adjusted EBITDA Bridge +15% € in millions Ø Adjusted EBITDA: €171 million (+15% YoY) Strong Q4 results despite significant cost pressures and demand headwinds; Adjusted EBITDA and Free Cash Flow in-line with our prior guidance Ø Shipments: 1.5 million tons (-6% YoY) Ø Net income: €129 million Ø Cash from Operation ...

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) Constellium reported mixed Q4 and strong FY2023 results, including record Adjusted EBITDA, robust Free Cash Flow, and a new share repurchase program [Fourth Quarter 2023 Highlights](index=1&type=section&id=Fourth%20Quarter%202023%20Highlights) Constellium reported mixed Q4 2023 results with declining shipments and revenue, but significant Adjusted EBITDA growth and decreased net income Fourth Quarter 2023 Highlights | Metric | Q4 2023 | Q4 2022 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Shipments (k metric tons) | 336 | 368 | -9% | | Revenue (€ billion) | 1.6 | 1.8 | -13% | | Value-Added Revenue (VAR) (€ million) | 681 | 696 | -2% | | Net income (€ million) | 11 | 30 | -63.3% | | Adjusted EBITDA (€ million) | 171 | 148 | +15% | | Cash from Operations (€ million) | 185 | N/A | N/A | | Free Cash Flow (€ million) | 58 | N/A | N/A | [Full Year 2023 Highlights](index=1&type=section&id=Full%20Year%202023%20Highlights) Constellium achieved record Adjusted EBITDA and strong Free Cash Flow in FY 2023, despite declining shipments and revenue, while improving Adjusted Return on Invested Capital Full Year 2023 Highlights | Metric | FY 2023 | FY 2022 | Change (%) | | :-------------------------- | :------ | :------ | :--------- | | Shipments (k metric tons) | 1,500 | 1,580 | -6% | | Revenue (€ billion) | 7.2 | 8.1 | -11% | | Value-Added Revenue (VAR) (€ billion) | 2.9 | 2.7 | +7% | | Net income (€ million) | 129 | 308 | -58.1% | | Adjusted EBITDA (€ million) | 713 | 673 | +6% | | Cash from Operations (€ million) | 506 | N/A | N/A | | Free Cash Flow (€ million) | 170 | N/A | N/A | | Adjusted ROIC | 11.3% | 11.0% | +30 bps | | Net debt / LTM Adjusted EBITDA | 2.3x | N/A | N/A | [CEO Commentary & 2024 Outlook](index=2&type=section&id=CEO%20Commentary%20%26%202024%20Outlook) CEO Jean-Marc Germain highlighted strong 2023 results and provided a 2024 outlook anticipating varied market demands and continued inflationary pressures, along with 2024 guidance and a 2025 target - Constellium achieved record **Adjusted EBITDA** of **€713 million** in 2023, including record results in the A&T segment, and generated strong **Free Cash Flow** of **€170 million**, reducing **leverage** to **2.3x**[6](index=6&type=chunk) - Looking ahead to 2024, the company expects strong aerospace demand, modest growth in packaging canstock, healthy automotive demand despite some deceleration, and continued weakness in most industrial markets[6](index=6&type=chunk) 2024 Guidance and 2025 Target | Metric | 2024 Guidance | 2025 Target | | :-------------------------- | :-------------- | :------------ | | Adjusted EBITDA (excluding metal price lag) | **€740 million to €770 million** | **Over €800 million** | | Free Cash Flow | **In excess of €130 million** | N/A | [Share Repurchase Program Announcement](index=1&type=section&id=Share%20Repurchase%20Program%20Announcement) Constellium announced a new three-year share repurchase program of up to $300 million to enhance shareholder value and fulfill employee equity obligations - The Board of Directors authorized a three-year share repurchase program of up to **$300 million**, expiring on **December 31, 2026**[4](index=4&type=chunk)[28](index=28&type=chunk) - The company intends to use a portion of the repurchased shares to satisfy employee equity obligations, thereby limiting future dilution for shareholders[30](index=30&type=chunk) [Group Financial Performance](index=3&type=section&id=Group%20Financial%20Performance) This section overviews Constellium's consolidated financial performance, covering revenue, profitability, cash flow, and liquidity for Q4 and FY2023 [Overall Performance Summary](index=3&type=section&id=Overall%20Performance%20Summary) Constellium's Q4 and FY 2023 group performance saw declining shipments and revenue, offset by increased Adjusted EBITDA driven by A&T and P&ARP segments Group Summary Financials | Metric | Q4 2023 | Q4 2022 | Q4 Var. (%) | FY 2023 | FY 2022 | FY Var. (%) | | :-------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Shipments (k metric tons) | 336 | 368 | (9)% | 1,492 | 1,580 | (6)% | | Revenue (€ millions) | 1,613 | 1,844 | (13)% | 7,239 | 8,120 | (11)% | | VAR (€ millions) | 681 | 696 | (2)% | 2,924 | 2,725 | 7% | | Net income (€ millions) | 11 | 30 | n.m. | 129 | 308 | n.m. | | Adjusted EBITDA (€ millions) | 171 | 148 | 15% | 713 | 673 | 6% | | Adjusted EBITDA per metric ton (€) | 509 | 403 | 26% | 478 | 426 | 12% | - Q4 2023 shipments decreased **9%** due to lower shipments across all segments. Revenue decreased **13%** primarily due to lower shipments and metal prices. **VAR** decreased **2%** due to lower shipments, unfavorable metal impacts, the sale of CED, and unfavorable foreign exchange, partially offset by improved price and mix[8](index=8&type=chunk) - Full year 2023 shipments decreased **6%** mainly due to lower shipments in P&ARP and AS&I. Revenue decreased **11%** due to lower shipments and metal prices. **VAR** increased **7%** due to improved price and mix, partially offset by lower shipments, unfavorable metal impacts, and unfavorable foreign exchange[9](index=9&type=chunk) [Net Income Analysis](index=6&type=section&id=Net%20Income%20Analysis) Net income significantly decreased in Q4 and FY 2023, primarily due to the absence of prior-year one-time gains and higher tax expenses - Q4 2023 net income of **€11 million** decreased from **€30 million** in Q4 2022, mainly due to gains on OPEB and pension plan amendments recorded in 2022 and higher tax expense, partially offset by higher gross profit[19](index=19&type=chunk) - Full year 2023 net income of **€129 million** decreased from **€308 million** in 2022, primarily due to the recognition of **€154 million** in previously unrecognized deferred tax assets and OPEB/pension plan amendment gains in 2022, higher selling and administrative expenses, and higher tax expense, partially offset by higher gross profit and a gain from the sale of CED[20](index=20&type=chunk) [Cash Flow Analysis](index=6&type=section&id=Cash%20Flow%20Analysis) Free Cash Flow slightly decreased in FY 2023 due to higher capital expenditures, despite increased operating cash flows, while investing and financing cash flows also increased Full Year Cash Flow Summary | Metric | FY 2023 (€ millions) | FY 2022 (€ millions) | Change (€ millions) | | :-------------------------- | :------------------- | :------------------- | :------------------ | | Free Cash Flow | 170 | 182 | (12) | | Cash from Operating Activities | 506 | 451 | 55 | | Cash used in Investing Activities | 288 | 270 | 18 | | Cash used in Financing Activities | 182 | 163 | 19 | - The increase in cash flows from operating activities was more than offset by increased capital expenditures, as the company continues to invest in its manufacturing asset base, including recycling and casting investments[21](index=21&type=chunk) - Cash flows used in investing activities in 2023 included **€47 million** of net proceeds from the sale of Constellium Extrusions Deutschland GmbH (CED)[22](index=22&type=chunk) - In 2023, Constellium used cash to reduce short-term borrowings and redeem **$50 million** of its **5.875%** Senior Notes due 2026[23](index=23&type=chunk) [Liquidity and Net Debt](index=7&type=section&id=Liquidity%20and%20Net%20Debt) Constellium maintained strong liquidity and successfully reduced net debt as of December 31, 2023 Liquidity and Net Debt as of December 31, 2023 | Metric | Amount (€ millions) | | :---------------- | :------------------ | | Liquidity | 737 | | Cash & Cash Equivalents | 202 | | Available Committed Lending Facilities & Factoring | 535 | | Net Debt | 1,664 | - **Net debt** decreased to **€1,664 million** at December 31, 2023, from **€1,891 million** at December 31, 2022[25](index=25&type=chunk) [Segment Performance](index=4&type=section&id=Segment%20Performance) This section details the Q4 and FY2023 financial performance of Constellium's key operating segments: P&ARP, A&T, and AS&I [Packaging & Automotive Rolled Products (P&ARP)](index=4&type=section&id=Packaging%20%26%20Automotive%20Rolled%20Products%20(P%26ARP)) The P&ARP segment saw declining shipments and revenue, with Q4 Adjusted EBITDA increasing due to price and mix, but full-year Adjusted EBITDA decreasing from lower shipments and higher costs P&ARP Segment Performance | Metric | Q4 2023 | Q4 2022 | Q4 Var. (%) | FY 2023 | FY 2022 | FY Var. (%) | | :-------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Shipments (k metric tons) | 238 | 254 | (6)% | 1,030 | 1,089 | (5)% | | Revenue (€ millions) | 865 | 1,008 | (14)% | 3,898 | 4,664 | (16)% | | Adjusted EBITDA (€ millions) | 82 | 71 | 16% | 283 | 326 | (13)% | | Adjusted EBITDA per metric ton (€) | 345 | 278 | 24% | 274 | 299 | (8)% | - Q4 2023 **Adjusted EBITDA** increased **16%** due to improved price and mix and overall cost improvements, despite lower shipments. Higher operating costs were offset by favorable metal costs and government grants[11](index=11&type=chunk) - Full year 2023 **Adjusted EBITDA** decreased **13%** due to lower shipments, higher operating costs (inflation, Muscle Shoals challenges), and unfavorable metal costs, partially offset by improved price and mix[12](index=12&type=chunk) [Aerospace & Transportation (A&T)](index=4&type=section&id=Aerospace%20%26%20Transportation%20(A%26T)) The A&T segment achieved strong Adjusted EBITDA growth and record full-year results, driven by improved price and mix, despite slight declines in shipments and revenue A&T Segment Performance | Metric | Q4 2023 | Q4 2022 | Q4 Var. (%) | FY 2023 | FY 2022 | FY Var. (%) | | :-------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Shipments (k metric tons) | 48 | 53 | (9)% | 219 | 223 | (2)% | | Revenue (€ millions) | 408 | 422 | (3)% | 1,728 | 1,700 | 2% | | Adjusted EBITDA (€ millions) | 76 | 56 | 36% | 324 | 217 | 50% | | Adjusted EBITDA per metric ton (€) | 1,583 | 1,079 | 47% | 1,475 | 976 | 51% | - Q4 2023 **Adjusted EBITDA** increased **36%** due to improved price and mix, partially offset by lower shipments (driven by lower transportation, industry, and defense rolled products) and higher operating costs[14](index=14&type=chunk) - Full year 2023 **Adjusted EBITDA** increased **50%** primarily due to improved price and mix, partially offset by higher operating costs due to inflation and increased activity levels. Shipments decreased **2%** due to lower TID rolled products, despite higher aerospace rolled products[15](index=15&type=chunk) [Automotive Structures & Industry (AS&I)](index=5&type=section&id=Automotive%20Structures%20%26%20Industry%20(AS%26I)) The AS&I segment experienced declines in shipments, revenue, and Adjusted EBITDA for Q4 and FY 2023, primarily due to lower shipments and higher operating costs AS&I Segment Performance | Metric | Q4 2023 | Q4 2022 | Q4 Var. (%) | FY 2023 | FY 2022 | FY Var. (%) | | :-------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Shipments (k metric tons) | 50 | 61 | (17)% | 243 | 268 | (9)% | | Revenue (€ millions) | 334 | 428 | (22)% | 1,630 | 1,861 | (12)% | | Adjusted EBITDA (€ millions) | 25 | 31 | (22)% | 133 | 149 | (11)% | | Adjusted EBITDA per metric ton (€) | 500 | 514 | (3)% | 545 | 557 | (2)% | - Q4 2023 **Adjusted EBITDA** decreased **22%** due to lower shipments (including the impact from the sale of CED) and higher costs, partially offset by improved price and mix[16](index=16&type=chunk) - Full year 2023 **Adjusted EBITDA** decreased **11%** primarily due to lower shipments (including CED sale impact) and higher operating costs (inflation), partially offset by improved price and mix[17](index=17&type=chunk) [Changes to Non-GAAP Financial Measures](index=8&type=section&id=Changes%20to%20Non-GAAP%20Financial%20Measures) This section outlines changes in Constellium's non-GAAP reporting, including VAR discontinuation and a revised Adjusted EBITDA definition [Discontinuation of VAR Reporting](index=8&type=section&id=Discontinuation%20of%20VAR%20Reporting) Constellium will discontinue reporting Value-Added Revenue (VAR) as a non-GAAP financial measure, effective Q1 2024, following discussions with the SEC - Constellium will no longer report **VAR**, a Non-GAAP financial measure, starting with the **first quarter 2024** earnings release[32](index=32&type=chunk) [Revised Adjusted EBITDA Definition](index=8&type=section&id=Revised%20Adjusted%20EBITDA%20Definition) Constellium revised its Adjusted EBITDA definition to include metal price lag for consolidated reporting, while retaining its exclusion for segment performance, and maintaining current guidance and leverage calculation methods - The definition of **Adjusted EBITDA** will be revised to no longer exclude the non-cash impact of metal price lag from consolidated **Adjusted EBITDA**[33](index=33&type=chunk) - Constellium will continue to exclude the non-cash impact of metal price lag from its Segment **Adjusted EBITDA**, which is used for evaluating operating segment performance[33](index=33&type=chunk) - The company will continue to provide **Adjusted EBITDA** guidance excluding the non-cash impact of metal price lag, and **leverage** will still be calculated as **Net debt** divided by **Adjusted EBITDA**, excluding metal price lag[33](index=33&type=chunk) [Adjusted EBITDA Reconciliation (Current vs. Future)](index=9&type=section&id=Adjusted%20EBITDA%20Reconciliation%20(Current%20vs.%20Future)) Reconciliation tables illustrate the impact of the revised Adjusted EBITDA definition, specifically the inclusion of metal price lag, on annual and quarterly figures for comparability Adjusted EBITDA Reconciliation (Annual) | (in millions of Euros) | 2023 | 2022 | 2021 | 2020 | 2019 | | :--------------------- | :--- | :--- | :--- | :--- | :--- | | Adjusted EBITDA (current) | 713 | 673 | 581 | 465 | 562 | | less: Metal price lag | (86) | (29) | 187 | (8) | (46) | | Adjusted EBITDA (future) | 627 | 644 | 768 | 457 | 516 | Adjusted EBITDA Reconciliation (Quarterly) | (in millions of Euros) | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | | :--------------------- | :----------- | :----------- | :----------- | :----------- | | Adjusted EBITDA (current) | 171 | 168 | 209 | 166 | | less: Metal price lag | (14) | (27) | (30) | (16) | | Adjusted EBITDA (future) | 157 | 141 | 179 | 150 | [Financial Statements (Unaudited)](index=12&type=section&id=Financial%20Statements%20(Unaudited)) This section presents unaudited consolidated financial statements: income, comprehensive income, financial position, equity changes, and cash flows [Consolidated Income Statement](index=12&type=section&id=Consolidated%20Income%20Statement) The unaudited consolidated income statement shows decreased revenue and net income for Q4 and FY 2023, despite increased full-year gross profit Consolidated Income Statement Highlights | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Revenue | 1,613 | 1,844 | 7,239 | 8,120 | | Gross profit | 178 | 107 | 710 | 672 | | Income from operations | 78 | 60 | 337 | 334 | | Net income | 11 | 30 | 129 | 308 | | Basic EPS (€) | 0.07 | 0.20 | 0.85 | 2.10 | | Diluted EPS (€) | 0.07 | 0.20 | 0.84 | 2.06 | [Consolidated Statement of Comprehensive Income / (Loss)](index=13&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income%20%2F%20(Loss)) The unaudited consolidated statement of comprehensive income/(loss) shows a Q4 2023 comprehensive loss but full-year comprehensive income, influenced by post-employment benefit remeasurements and currency translation Consolidated Statement of Comprehensive Income / (Loss) Highlights | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Net income | 11 | 30 | 129 | 308 | | Other comprehensive (loss) / income | (62) | (74) | (34) | 137 | | Total comprehensive (loss) / income | (51) | (44) | 95 | 445 | [Consolidated Statement of Financial Position](index=14&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The unaudited consolidated statement of financial position shows decreased total assets and liabilities, with increased total equity, as of December 31, 2023 Consolidated Statement of Financial Position Highlights | (in millions of Euros) | Dec 31, 2023 | Dec 31, 2022 | | :--------------------- | :----------- | :----------- | | Total Assets | 4,661 | 4,941 | | Total Liabilities | 3,797 | 4,189 | | Total Equity | 864 | 752 | [Consolidated Statement of Changes in Equity](index=15&type=section&id=Consolidated%20Statement%20of%20Changes%20in%20Equity) The unaudited consolidated statement of changes in equity reflects an increase in total equity for FY 2023, primarily driven by net income despite other comprehensive losses Consolidated Statement of Changes in Equity Highlights | (in millions of Euros) | At Jan 1, 2023 | Net income | Other comprehensive (loss) / income | Share-based compensation | Other | Transactions with non-controlling interests | At Dec 31, 2023 | | :--------------------- | :------------- | :--------- | :---------------------------------- | :----------------------- | :---- | :---------------------------------------- | :-------------- | | Total equity | 752 | 129 | (34) | 20 | 0 | (3) | 864 | [Consolidated Statement of Cash Flows](index=16&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The unaudited consolidated statement of cash flows shows increased net cash from operating activities for Q4 and FY 2023, alongside increased cash used in investing and financing activities Consolidated Statement of Cash Flows Highlights | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Net cash flows from operating activities | 185 | 128 | 506 | 451 | | Net cash flows used in investing activities | (127) | (107) | (288) | (270) | | Net cash flows used in financing activities | (15) | (22) | (182) | (163) | | Net increase / (decrease) in cash and cash equivalent | 43 | (1) | 36 | 18 | | Cash and cash equivalents - end of year | 202 | 166 | 202 | 166 | [Supplemental Financial Data](index=17&type=section&id=Supplemental%20Financial%20Data) This section provides supplemental financial data, including segment Adjusted EBITDA and detailed shipments and revenue by product line [Segment Adjusted EBITDA](index=17&type=section&id=Segment%20Adjusted%20EBITDA) Segment Adjusted EBITDA shows strong A&T performance, Q4 growth but full-year decline for P&ARP, and declines for AS&I in both Q4 and FY 2023 Segment Adjusted EBITDA | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | P&ARP | 82 | 71 | 283 | 326 | | A&T | 76 | 56 | 324 | 217 | | AS&I | 25 | 31 | 133 | 149 | | Holdings and Corporate | (12) | (10) | (27) | (19) | | Total | 171 | 148 | 713 | 673 | [Shipments and Revenue by Product Line](index=17&type=section&id=Shipments%20and%20Revenue%20by%20Product%20Line) Shipments and revenue by product line generally declined in Q4 and FY 2023, with aerospace rolled products being a notable exception showing increased full-year revenue Shipments by Product Line (k metric tons) | Product Line | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Packaging rolled products | 172 | 186 | 736 | 809 | | Automotive rolled products | 62 | 61 | 271 | 245 | | Specialty and other thin-rolled products | 4 | 7 | 23 | 35 | | Aerospace rolled products | 22 | 21 | 96 | 76 | | Transportation, industry, defense and other rolled products | 26 | 32 | 123 | 147 | | Automotive extruded products | 28 | 28 | 121 | 117 | | Other extruded products | 22 | 33 | 122 | 151 | | Total shipments | 336 | 368 | 1,492 | 1,580 | Revenue by Product Line (€ millions) | Product Line | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Packaging rolled products | 582 | 697 | 2,596 | 3,326 | | Automotive rolled products | 254 | 275 | 1,156 | 1,154 | | Specialty and other thin-rolled products | 29 | 35 | 146 | 183 | | Aerospace rolled products | 264 | 218 | 1,022 | 728 | | Transportation, industry, defense and other rolled products | 144 | 204 | 706 | 972 | | Automotive extruded products | 211 | 228 | 934 | 949 | | Other extruded products | 123 | 200 | 696 | 912 | | Other and inter-segment eliminations | 6 | (13) | (17) | (104) | | Total revenue | 1,613 | 1,844 | 7,239 | 8,120 | [Non-GAAP Measures Reconciliations & Definitions](index=18&type=section&id=Non-GAAP%20Measures%20Reconciliations%20%26%20Definitions) This section provides reconciliations of non-GAAP financial measures to IFRS and detailed definitions for each non-GAAP metric [Reconciliation of Revenue to VAR](index=18&type=section&id=Reconciliation%20of%20Revenue%20to%20VAR) This section reconciles IFRS Revenue to the non-GAAP Value-Added Revenue (VAR), detailing adjustments for metal costs and metal price lag for quarterly and annual periods Reconciliation of Revenue to VAR | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Revenue | 1,613 | 1,844 | 7,239 | 8,120 | | Hedged cost of alloyed metal | (939) | (1,212) | (4,374) | (5,403) | | Revenue from incidental activities | (7) | (5) | (27) | (21) | | Metal price lag | 14 | 69 | 86 | 29 | | VAR | 681 | 696 | 2,924 | 2,725 | [Reconciliation of Net Income to Adjusted EBITDA](index=18&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This section reconciles IFRS Net Income to the non-GAAP Adjusted EBITDA, detailing adjustments for depreciation, finance costs, and non-recurring items for quarterly and annual periods Reconciliation of Net Income to Adjusted EBITDA | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Net income | 11 | 30 | 129 | 308 | | Income tax expense / (benefit) | 32 | (3) | 67 | (105) | | Finance costs - net | 35 | 33 | 141 | 131 | | Income from operations | 78 | 60 | 337 | 334 | | Depreciation and amortization | 73 | 78 | 294 | 287 | | Restructuring costs | — | 1 | — | 1 | | Unrealized (gains) / losses on derivatives | (2) | (19) | 3 | 46 | | Unrealized exchange losses / (gains) from the remeasurement of monetary assets and liabilities – net | 2 | (1) | 2 | 1 | | Losses / (gains) on pension plan amendments | — | (47) | — | (47) | | Share based compensation costs | 5 | 5 | 20 | 18 | | (Gains) / losses on disposal | 1 | 2 | (29) | 4 | | Metal price lag | 14 | 69 | 86 | 29 | | Adjusted EBITDA | 171 | 148 | 713 | 673 | [Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow](index=19&type=section&id=Reconciliation%20of%20Net%20Cash%20Flows%20from%20Operating%20Activities%20to%20Free%20Cash%20Flow) This section reconciles IFRS Net Cash Flows from Operating Activities to the non-GAAP Free Cash Flow by deducting capital expenditures net of grants received for quarterly and annual periods Reconciliation of Net Cash Flows from Operating Activities to Free Cash Flow | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Net cash flows from operating activities | 185 | 128 | 506 | 451 | | Purchases of property, plant and equipment, net of grants received | (127) | (106) | (336) | (269) | | Free Cash Flow | 58 | 22 | 170 | 182 | [Reconciliation of Borrowings to Net Debt](index=19&type=section&id=Reconciliation%20of%20Borrowings%20to%20Net%20Debt) This section reconciles IFRS Borrowings to the non-GAAP Net Debt, adjusting for the fair value of derivatives and cash and cash equivalents Reconciliation of Borrowings to Net Debt | (in millions of Euros) | Dec 31, 2023 | Dec 31, 2022 | | :--------------------- | :----------- | :----------- | | Borrowings | 1,868 | 2,056 | | Fair value of net debt derivatives, net of margin calls | (2) | 1 | | Cash and cash equivalents | (202) | (166) | | Net debt | 1,664 | 1,891 | [Reconciliation of Net Income to Adjusted NOPAT and Adjusted ROIC](index=20&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20NOPAT%20and%20Adjusted%20ROIC) This section reconciles IFRS Net Income to Adjusted NOPAT and calculates Adjusted ROIC, demonstrating the company's capital allocation effectiveness Reconciliation of Net Income to Adjusted NOPAT and Adjusted ROIC | (in millions of Euros) | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | | Net income | 129 | 308 | | Income tax expense / (benefit) | 67 | (105) | | Income before tax | 196 | 203 | | Finance costs - net | 141 | 131 | | Income from operations | 337 | 334 | | Unrealized losses on derivatives | 3 | 46 | | Unrealized exchange losses from the remeasurement of monetary assets and liabilities - net | 2 | 1 | | Losses / (gains) on pension plan amendments | — | (47) | | Share based compensation costs | 20 | 18 | | Metal price lag | 86 | 29 | | (Gains) / losses on disposals | (29) | 4 | | Tax impact | (103) | (92) | | Adjusted NOPAT (A) | 316 | 293 | | Total Invested Capital (B) (as of Dec 31 of prior year) | 2,794 | 2,653 | | Adjusted ROIC (A)/(B) | 11.3% | 11.0% | [Non-GAAP Measures Definitions](index=21&type=section&id=Non-GAAP%20Measures%20Definitions) This section provides detailed definitions for all non-GAAP financial measures used in the report, including VAR, Adjusted EBITDA, Free Cash Flow, Adjusted ROIC, and Net Debt - **Value-Added Revenue (VAR)** is defined as revenue, excluding revenue from incidental activities, minus cost of metal (adjusted for metal price lag, other alloying metals, freight out, and realized hedging gains/losses). It aims to reflect value-added elements by removing metal cost impact[54](index=54&type=chunk) - **Adjusted EBITDA** is defined as income/(loss) from continuing operations before income taxes, joint venture results, net finance costs, other expenses, and D&A, adjusted for restructuring, impairment, unrealized gains/losses on derivatives and foreign exchange, metal price lag, share-based compensation, and other non-recurring items. It is used by management to measure profitability and assess core operating performance[55](index=55&type=chunk)[57](index=57&type=chunk)[58](index=58&type=chunk) - **Free Cash Flow** is defined as net cash flow from operating activities less capital expenditure, net of grants received. It measures net cash generated or used by the business, considering operating activities and capital expenditure requirements[60](index=60&type=chunk) - **Adjusted Return on Invested Capital (Adjusted ROIC)** is defined as **Adjusted Net Operating Profit after Tax (Adjusted NOPAT)** divided by Invested Capital. It assesses the effectiveness of capital allocation[61](index=61&type=chunk) - **Net debt** is defined as borrowings plus or minus the fair value of cross currency basis swaps net of margin calls less cash and cash equivalents and cash pledged for guarantees. It provides a measure of indebtedness by considering both external debt and cash balances[63](index=63&type=chunk)

[Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) This section provides an overview of Constellium's financial performance for Q4 and full year 2023, including key metrics, CEO commentary, 2024 outlook, and a new share repurchase program [Fourth Quarter 2023 Performance Highlights](index=1&type=section&id=Fourth%20Quarter%202023%20Performance%20Highlights) Constellium reported a decrease in shipments and revenue for Q4 2023 compared to Q4 2022, primarily due to lower shipments and metal prices, while Adjusted EBITDA saw a significant increase, driven by stronger results in the A&T and P&ARP segments | Metric | Q4 2023 | Q4 2022 | Change (%) | | :----------------------- | :------ | :------ | :--------- | | Shipments (thousand metric tons) | 336 | 368 | -9% | | Revenue (billion Euros) | 1.6 | 1.8 | -13% | | Value-Added Revenue (VAR) (million Euros) | 681 | 696 | -2% | | Net income (million Euros) | 11 | 30 | -63% | | Adjusted EBITDA (million Euros) | 171 | 148 | +15% | | Cash from Operations (million Euros) | 185 | N/A | N/A | | Free Cash Flow (million Euros) | 58 | N/A | N/A | [Full Year 2023 Performance Highlights](index=1&type=section&id=Full%20Year%202023%20Performance%20Highlights) For the full year 2023, Constellium achieved record Adjusted EBITDA and strong Free Cash Flow, despite a decrease in shipments and revenue, while also improving its Adjusted Return on Invested Capital and reducing net debt leverage | Metric | FY 2023 | FY 2022 | Change (%) | | :-------------------------------- | :------ | :------ | :--------- | | Shipments (million metric tons) | 1.5 | 1.6 | -6% | | Revenue (billion Euros) | 7.2 | 8.1 | -11% | | Value-Added Revenue (VAR) (billion Euros) | 2.9 | 2.7 | +7% | | Net income (million Euros) | 129 | 308 | -58% | | Adjusted EBITDA (million Euros) | 713 | 673 | +6% | | Cash from Operations (million Euros) | 506 | N/A | N/A | | Free Cash Flow (million Euros) | 170 | N/A | N/A | | Adjusted ROIC | 11.3% | 11.0% | +30 bps | | Net debt / LTM Adjusted EBITDA | 2.3x | N/A | N/A | [CEO Commentary and 2024 Outlook](index=2&type=section&id=CEO%20Commentary%20and%202024%20Outlook) CEO Jean-Marc Germain highlighted Constellium's strong 2023 results, including record Adjusted EBITDA and strong Free Cash Flow, despite inflationary pressures and demand headwinds, projecting higher Adjusted EBITDA and Free Cash Flow for 2024 - Constellium achieved **record Adjusted EBITDA of €713 million** and **strong Free Cash Flow of €170 million** in 2023, reducing leverage to **2.3x**[6](index=6&type=chunk) - For 2024, the company expects **strong aerospace demand**, **stabilized canstock demand with modest growth**, **healthy automotive demand**, and **continued weakness in most industrial markets**[6](index=6&type=chunk) 2024 Outlook | Metric | 2024 Outlook | | :-------------------- | :----------- | | Adjusted EBITDA | €740 million - €770 million | | Free Cash Flow | > €130 million | - Constellium remains confident in achieving its long-term target of **over €800 million in Adjusted EBITDA by 2025**[6](index=6&type=chunk) [Share Repurchase Program Announcement](index=1&type=section&id=Share%20Repurchase%20Program%20Announcement) Constellium announced a new three-year share repurchase program of up to $300 million, expiring in December 2026, aimed at increasing shareholder value and limiting future dilution by satisfying employee equity obligations - The Board of Directors authorized a **three-year share repurchase program of up to $300 million**, expiring on **December 31, 2026**[4](index=4&type=chunk)[6](index=6&type=chunk)[28](index=28&type=chunk) - The company intends to use a portion of repurchased shares to satisfy employee equity obligations, thereby limiting future dilution for shareholders[30](index=30&type=chunk) [Group Financial Results](index=3&type=section&id=Group%20Financial%20Results) This section details Constellium's consolidated financial performance, including shipments, revenue, net income, cash flow, liquidity, and net debt for the reported periods [Group Summary Financials](index=3&type=section&id=Group%20Summary%20Financials%20%28Shipments%2C%20Revenue%2C%20VAR%2C%20Net%20Income%2C%20Adjusted%20EBITDA%29) Constellium's group performance in Q4 2023 saw a decline in shipments and revenue, primarily due to lower volumes and metal prices, while Adjusted EBITDA increased, and for the full year 2023, shipments and revenue also decreased, but VAR and Adjusted EBITDA improved, driven by better price and mix and stronger A&T segment results | Metric | Q4 2023 | Q4 2022 | Q4 Var. (%) | FY 2023 | FY 2022 | FY Var. (%) | | :-------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Shipments (thousand metric tons) | 336 | 368 | (9)% | 1,492 | 1,580 | (6)% | | Revenue (million Euros) | 1,613 | 1,844 | (13)% | 7,239 | 8,120 | (11)% | | VAR (million Euros) | 681 | 696 | (2)% | 2,924 | 2,725 | 7% | | Net income (million Euros) | 11 | 30 | not meaningful | 129 | 308 | not meaningful | | Adjusted EBITDA (million Euros) | 171 | 148 | 15% | 713 | 673 | 6% | | Adjusted EBITDA per metric ton (Euros) | 509 | 403 | 26% | 478 | 426 | 12% | - Q4 2023 revenue decreased **13%** primarily due to lower shipments and metal prices, partially offset by improved price and mix, while VAR decreased **2%** due to lower shipments, unfavorable metal impacts, the sale of CED, and unfavorable foreign exchange, partially offset by improved price and mix[8](index=8&type=chunk) - Full year 2023 revenue decreased **11%** due to lower shipments and metal prices, while VAR increased **7%** primarily due to improved price and mix, partially offset by lower shipments, unfavorable metal impacts, and unfavorable foreign exchange[9](index=9&type=chunk) [Net Income Deep Dive](index=6&type=section&id=Net%20Income%20Deep%20Dive) Net income significantly decreased in both Q4 and full year 2023 compared to the prior year, primarily due to the absence of one-time gains recorded in 2022 (OPEB/pension plan amendments, deferred tax assets) and higher tax expenses, despite higher gross profit - Q4 2023 net income **decreased by €19 million** (from **€30 million to €11 million**) primarily due to gains on OPEB and pension plan amendments recorded in 2022 and higher tax expense, partially offset by higher gross profit[19](index=19&type=chunk) - Full year 2023 net income **decreased by €179 million** (from **€308 million to €129 million**) primarily due to the recognition of **€154 million** in previously unrecognized deferred tax assets in 2022, 2022 OPEB/pension plan amendment gains, higher selling and administrative expenses, and higher tax expense, partially offset by higher gross profit and a gain from the sale of CED[20](index=20&type=chunk) [Cash Flow Performance](index=6&type=section&id=Cash%20Flow%20Performance) Free Cash Flow for full year 2023 slightly decreased to €170 million, as increased cash from operating activities was offset by higher capital expenditures, while operating cash flows improved, investing activities saw a net outflow including proceeds from the CED sale, and financing activities resulted in a higher net outflow due to debt reduction | Metric | FY 2023 (million Euros) | FY 2022 (million Euros) | Change (million Euros) | | :-------------------------------- | :------------------ | :------------------ | :----------------- | | Free Cash Flow | 170 | 182 | (12) | | Cash flows from operating activities | 506 | 451 | 55 | | Cash flows used in investing activities | (288) | (270) | (18) | | Cash flows used in financing activities | (182) | (163) | (19) | - The increase in cash flows from operating activities was more than offset by increased capital expenditures, as the company invested in maintaining and growing its manufacturing asset base, including recycling and casting investment in Neuf Brisach, France[21](index=21&type=chunk) - Cash flows used in investing activities in 2023 included **€47 million** of net proceeds from the sale of Constellium Extrusions Deutschland GmbH (CED)[22](index=22&type=chunk) - In 2023, Constellium used cash to reduce short-term borrowings and redeem **$50 million** of its 5.875% Senior Notes due 2026[23](index=23&type=chunk) [Liquidity and Net Debt Position](index=7&type=section&id=Liquidity%20and%20Net%20Debt%20Position) Constellium maintained a strong liquidity position at the end of 2023 and successfully reduced its net debt compared to the prior year, reflecting improved financial health | Metric | December 31, 2023 (million Euros) | December 31, 2022 (million Euros) | | :------------- | :---------------------------- | :---------------------------- | | Liquidity | 737 | N/A | | Cash & Equivalents | 202 | N/A | | Available Facilities | 535 | N/A | | Net Debt | 1,664 | 1,891 | [Segment-Specific Performance](index=4&type=section&id=Segment-Specific%20Performance) This section analyzes the financial performance of Constellium's key operating segments: Packaging & Automotive Rolled Products, Aerospace & Transportation, and Automotive Structures & Industry [Packaging & Automotive Rolled Products (P&ARP)](index=4&type=section&id=Packaging%20%26%20Automotive%20Rolled%20Products%20%28P%26ARP%29) The P&ARP segment experienced a decline in shipments and revenue for both Q4 and FY 2023, however, Q4 Adjusted EBITDA increased due to improved price and mix and better cost management, while full-year Adjusted EBITDA decreased due to lower shipments, higher operating costs, and challenges at the Muscle Shoals facility | Metric | Q4 2023 | Q4 2022 | Q4 Var. (%) | FY 2023 | FY 2022 | FY Var. (%) | | :-------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Shipments (thousand metric tons) | 238 | 254 | (6)% | 1,030 | 1,089 | (5)% | | Revenue (million Euros) | 865 | 1,008 | (14)% | 3,898 | 4,664 | (16)% | | Adjusted EBITDA (million Euros) | 82 | 71 | 16% | 283 | 326 | (13)% | | Adjusted EBITDA per metric ton (Euros) | 345 | 278 | 24% | 274 | 299 | (8)% | - Q4 2023 Adjusted EBITDA increased **16%** due to improved price and mix and overall cost improvements, despite lower shipments, with higher operating costs offset by favorable metal costs and government grants[11](index=11&type=chunk) - Full year 2023 Adjusted EBITDA decreased **13%** due to lower shipments, higher operating costs (inflation, Muscle Shoals challenges), and unfavorable metal costs, partially offset by improved price and mix[12](index=12&type=chunk) [Aerospace & Transportation (A&T)](index=4&type=section&id=Aerospace%20%26%20Transportation%20%28A%26T%29) The A&T segment demonstrated strong Adjusted EBITDA growth in both Q4 and FY 2023, driven by improved price and mix, despite a slight decrease in overall shipments, with aerospace rolled products shipments increasing while transportation, industry, and defense (TID) rolled products declined | Metric | Q4 2023 | Q4 2022 | Q4 Var. (%) | FY 2023 | FY 2022 | FY Var. (%) | | :-------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Shipments (thousand metric tons) | 48 | 53 | (9)% | 219 | 223 | (2)% | | Revenue (million Euros) | 408 | 422 | (3)% | 1,728 | 1,700 | 2% | | Adjusted EBITDA (million Euros) | 76 | 56 | 36% | 324 | 217 | 50% | | Adjusted EBITDA per metric ton (Euros) | 1,583 | 1,079 | 47% | 1,475 | 976 | 51% | - Q4 2023 Adjusted EBITDA increased **36%** due to improved price and mix, partially offset by lower shipments and higher operating costs, with aerospace rolled products shipments increasing but more than offset by lower TID rolled products shipments[14](index=14&type=chunk) - Full year 2023 Adjusted EBITDA increased **50%** due to improved price and mix, partially offset by higher operating costs (inflation, increased activity levels)[15](index=15&type=chunk) [Automotive Structures & Industry (AS&I)](index=5&type=section&id=Automotive%20Structures%20%26%20Industry%20%28AS%26I%29) The AS&I segment experienced declines in shipments, revenue, and Adjusted EBITDA for both Q4 and FY 2023, primarily driven by lower shipments of extruded products, including the impact from the sale of CED, and higher operating costs | Metric | Q4 2023 | Q4 2022 | Q4 Var. (%) | FY 2023 | FY 2022 | FY Var. (%) | | :-------------------------- | :------ | :------ | :---------- | :------ | :------ | :---------- | | Shipments (thousand metric tons) | 50 | 61 | (17)% | 243 | 268 | (9)% | | Revenue (million Euros) | 334 | 428 | (22)% | 1,630 | 1,861 | (12)% | | Adjusted EBITDA (million Euros) | 25 | 31 | (22)% | 133 | 149 | (11)% | | Adjusted EBITDA per metric ton (Euros) | 500 | 514 | (3)% | 545 | 557 | (2)% | - Q4 2023 Adjusted EBITDA decreased **22%** due to lower shipments and higher costs, partially offset by improved price and mix, with shipments decreasing **17%** due to lower other extruded products, including the impact from the sale of CED[16](index=16&type=chunk) - Full year 2023 Adjusted EBITDA decreased **11%** due to lower shipments and higher operating costs (inflation), partially offset by improved price and mix, with shipments decreasing **9%** due to lower other extruded products, including the impact from the sale of CED[17](index=17&type=chunk) [Non-GAAP Financial Measures & Reconciliations](index=8&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section outlines Constellium's non-GAAP financial measures, including definitions, future presentation changes, and reconciliations to comparable IFRS measures [Changes to Non-GAAP Financial Measures Presentation](index=8&type=section&id=Changes%20to%20Non-GAAP%20Financial%20Measures%20Presentation) Constellium announced future changes to its non-GAAP financial measures presentation, effective Q1 2024, following discussions with the SEC, including discontinuing Value-Added Revenue (VAR) reporting and revising the definition of consolidated Adjusted EBITDA to no longer exclude the non-cash impact of metal price lag - Constellium will **no longer report Value-Added Revenue (VAR)**, a non-GAAP financial measure, **starting in Q1 2024**[32](index=32&type=chunk) - The definition of consolidated Adjusted EBITDA will be revised to **no longer exclude the non-cash impact of metal price lag**, however, metal price lag will continue to be excluded from Segment Adjusted EBITDA and Adjusted EBITDA guidance[33](index=33&type=chunk) Adjusted EBITDA Reconciliation (Current vs. Future Definition) | (in millions of Euros) | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | | :--------------------- | :------ | :------ | :------ | :------ | :------ | | Adjusted EBITDA (current) | 713 | 673 | 581 | 465 | 562 | | less: Metal price lag | (86) | (29) | 187 | (8) | (46) | | Adjusted EBITDA (future) | 627 | 644 | 768 | 457 | 516 | | (in millions of Euros) | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | | :--------------------- | :------ | :------ | :------ | :------ | | Adjusted EBITDA (current) | 171 | 168 | 209 | 166 | | less: Metal price lag | (14) | (27) | (30) | (16) | | Adjusted EBITDA (future) | 157 | 141 | 179 | 150 | [Non-GAAP Measures Definitions](index=21&type=section&id=Non-GAAP%20Measures%20Definitions) This section provides the definitions for Constellium's key non-GAAP financial measures, including Value-Added Revenue (VAR), Adjusted EBITDA, Free Cash Flow, Adjusted Return on Invested Capital (Adjusted ROIC), and Net Debt, explaining their relevance to management and investors - **Value-Added Revenue (VAR)** is defined as revenue, excluding revenue from incidental activities, minus the cost of metal (adjusted for metal price lag, other alloying metals, freight out, and realized hedging gains/losses), reflecting the value-added elements of activity by eliminating metal cost impact[54](index=54&type=chunk) - **Adjusted EBITDA** is defined as income/(loss) from continuing operations before income taxes, joint ventures, net finance costs, other expenses, and D&A, adjusted for restructuring, impairment, unrealized gains/losses on derivatives and foreign exchange, metal price lag, share-based compensation, and other non-recurring items, serving as a key measure for profitability and operational performance[57](index=57&type=chunk)[58](index=58&type=chunk) - **Free Cash Flow** is defined as net cash flow from operating activities less capital expenditure, net of grants received, measuring net cash generated or used by the business, considering operating activities and capital expenditure requirements[60](index=60&type=chunk) - **Adjusted Return on Invested Capital (Adjusted ROIC)** is defined as Adjusted Net Operating Profit after Tax (Adjusted NOPAT) divided by Invested Capital, used to assess capital allocation effectiveness[61](index=61&type=chunk) - **Net debt** is defined as borrowings plus or minus the fair value of cross currency basis swaps net of margin calls less cash and cash equivalents and cash pledged for guarantees, providing a useful measure of indebtedness by considering cash balances against total external debt[63](index=63&type=chunk) [Non-GAAP Reconciliations](index=18&type=section&id=Non-GAAP%20Reconciliations%20%28VAR%2C%20Adjusted%20EBITDA%2C%20Free%20Cash%20Flow%2C%20Net%20Debt%2C%20Adjusted%20NOPAT%2FROIC%29) This section provides detailed reconciliations of Constellium's non-GAAP financial measures, including VAR, Adjusted EBITDA, Free Cash Flow, Net Debt, and Adjusted NOPAT/ROIC, to their most directly comparable IFRS financial measures for various periods Reconciliation of Revenue to VAR | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Revenue | 1,613 | 1,844 | 7,239 | 8,120 | | Hedged cost of alloyed metal | (939) | (1,212) | (4,374) | (5,403) | | Revenue from incidental activities | (7) | (5) | (27) | (21) | | Metal price lag | 14 | 69 | 86 | 29 | | **VAR** | **681** | **696** | **2,924** | **2,725** | Reconciliation of Net income to Adjusted EBITDA | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Net income | 11 | 30 | 129 | 308 | | Income tax expense / (benefit) | 32 | (3) | 67 | (105) | | Finance costs - net | 35 | 33 | 141 | 131 | | Income from operations | 78 | 60 | 337 | 334 | | Depreciation and amortization | 73 | 78 | 294 | 287 | | Metal price lag | 14 | 69 | 86 | 29 | | **Adjusted EBITDA** | **171** | **148** | **713** | **673** | Reconciliation of Net cash flows from operating activities to Free Cash Flow | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Net cash flows from operating activities | 185 | 128 | 506 | 451 | | Purchases of property, plant and equipment, net of grants received | (127) | (106) | (336) | (269) | | **Free Cash Flow** | **58** | **22** | **170** | **182** | Reconciliation of borrowings to Net debt | (in millions of Euros) | At Dec 31, 2023 | At Dec 31, 2022 | | :--------------------- | :-------------- | :-------------- | | Borrowings | 1,868 | 2,056 | | Fair value of net debt derivatives, net of margin calls | (2) | 1 | | Cash and cash equivalents | (202) | (166) | | **Net debt** | **1,664** | **1,891** | Reconciliation of Net income to Adjusted NOPAT and Adjusted ROIC | (in millions of Euros) | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | | Net income | 129 | 308 | | Income from operations | 337 | 334 | | Metal price lag | 86 | 29 | | Tax impact | (103) | (92) | | **Adjusted NOPAT (A)** | **316** | **293** | | Total Invested Capital (B) (prior year) | 2,794 | 2,653 | | **Adjusted ROIC (A)/(B)** | **11.3%** | **11.0%** | [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) This section presents Constellium's unaudited consolidated income statement, statement of comprehensive income, statement of financial position, and statement of cash flows [Consolidated Income Statement](index=12&type=section&id=Consolidated%20Income%20Statement) The unaudited consolidated income statement shows Constellium's financial performance for Q4 and full year 2023, detailing revenue, cost of sales, gross profit, operating income, net income, and earnings per share CONSOLIDATED INCOME STATEMENT (UNAUDITED) | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Revenue | 1,613 | 1,844 | 7,239 | 8,120 | | Cost of sales | (1,435) | (1,737) | (6,529) | (7,448) | | Gross profit | 178 | 107 | 710 | 672 | | Selling and administrative expenses | (81) | (76) | (302) | (282) | | Research and development expenses | (15) | (16) | (52) | (48) | | Other gains and losses - net | (4) | 45 | (19) | (8) | | Income from operations | 78 | 60 | 337 | 334 | | Finance costs - net | (35) | (33) | (141) | (131) | | Income before tax | 43 | 27 | 196 | 203 | | Income tax (expense) / benefit | (32) | 3 | (67) | 105 | | Net income | 11 | 30 | 129 | 308 | | Basic EPS (Euros) | 0.07 | 0.20 | 0.85 | 2.10 | | Diluted EPS (Euros) | 0.07 | 0.20 | 0.84 | 2.06 | [Consolidated Statement of Comprehensive Income / (Loss)](index=13&type=section&id=Consolidated%20Statement%20of%20Comprehensive%20Income%20%2F%20%28Loss%29) The unaudited consolidated statement of comprehensive income/loss presents the total comprehensive income or loss for Q4 and full year 2023, including net income and other comprehensive income/loss items such as remeasurements on post-employment benefits, cash flow hedges, and currency translation differences CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME / (LOSS) (UNAUDITED) | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Net income | 11 | 30 | 129 | 308 | | Other comprehensive (loss) / income | | | | | | Remeasurement on post-employment benefit obligations | (46) | (24) | (16) | 157 | | Income tax on remeasurement on post-employment benefit obligations | 10 | 4 | 2 | (35) | | Cash flow hedges | 9 | 19 | 7 | (8) | | Income tax on cash flow hedges | (2) | (5) | (1) | 2 | | Currency translation differences | (33) | (68) | (26) | 21 | | Other comprehensive (loss) / income | (62) | (74) | (34) | 137 | | **Total comprehensive (loss) / income** | **(51)** | **(44)** | **95** | **445** | [Consolidated Statement of Financial Position](index=14&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) The unaudited consolidated statement of financial position provides a snapshot of Constellium's assets, liabilities, and equity as of December 31, 2023, compared to December 31, 2022, showing changes in current and non-current items CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED) | (in millions of Euros) | At Dec 31, 2023 | At Dec 31, 2022 | | :--------------------- | :-------------- | :-------------- | | **Assets** | | | | Current assets | 1,820 | 2,056 | | Cash and cash equivalents | 202 | 166 | | Inventories | 1,098 | 1,320 | | Non-current assets | 2,841 | 2,871 | | Property, plant and equipment | 2,047 | 2,017 | | Goodwill | 462 | 478 | | Deferred tax assets | 252 | 271 | | **Total Assets** | **4,661** | **4,941** | | **Liabilities** | | | | Current liabilities | 1,388 | 1,693 | | Trade payables and other | 1,263 | 1,467 | | Borrowings (current) | 54 | 148 | | Non-current liabilities | 2,409 | 2,486 | | Borrowings (non-current) | 1,814 | 1,908 | | Pension and other post-employment benefit obligations | 411 | 403 | | **Total Liabilities** | **3,797** | **4,189** | | **Equity** | | | | Equity attributable to equity holders of Constellium | 843 | 731 | | **Total Equity** | **864** | **752** | | **Total Equity and Liabilities** | **4,661** | **4,941** | [Consolidated Statement of Cash Flows](index=16&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) The unaudited consolidated statement of cash flows details the cash inflows and outflows from operating, investing, and financing activities for Q4 and full year 2023, showing the net increase in cash and cash equivalents CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED) | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | Net income | 11 | 30 | 129 | 308 | | Net cash flows from operating activities | 185 | 128 | 506 | 451 | | Net cash flows used in investing activities | (127) | (107) | (288) | (270) | | Net cash flows used in financing activities | (15) | (22) | (182) | (163) | | Net increase / (decrease) in cash and cash equivalent | 43 | (1) | 36 | 18 | | Cash and cash equivalents - end of year | 202 | 166 | 202 | 166 | [Supplementary Operational Data](index=17&type=section&id=Supplementary%20Operational%20Data) This section provides additional operational insights, including a breakdown of Adjusted EBITDA by segment and detailed shipments and revenue by product line [Segment Adjusted EBITDA Breakdown](index=17&type=section&id=Segment%20Adjusted%20EBITDA%20Breakdown) This section provides a breakdown of Adjusted EBITDA contributions from each of Constellium's operating segments (P&ARP, A&T, AS&I) and Holdings and Corporate for Q4 and full year 2023 SEGMENT ADJUSTED EBITDA | (in millions of Euros) | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :--------------------- | :------ | :------ | :------ | :------ | | P&ARP | 82 | 71 | 283 | 326 | | A&T | 76 | 56 | 324 | 217 | | AS&I | 25 | 31 | 133 | 149 | | Holdings and Corporate | (12) | (10) | (27) | (19) | | **Total** | **171** | **148** | **713** | **673** | [Shipments and Revenue by Product Line](index=17&type=section&id=Shipments%20and%20Revenue%20by%20Product%20Line) This section details Constellium's shipments and revenue across various product lines, including packaging, automotive, aerospace, and industrial products, for Q4 and full year 2023, highlighting the performance of each category SHIPMENTS BY PRODUCT LINE (thousand metric tons) | Product Line | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Packaging rolled products | 172 | 186 | 736 | 809 | | Automotive rolled products | 62 | 61 | 271 | 245 | | Specialty and other thin-rolled products | 4 | 7 | 23 | 35 | | Aerospace rolled products | 22 | 21 | 96 | 76 | | Transportation, industry, defense and other rolled products | 26 | 32 | 123 | 147 | | Automotive extruded products | 28 | 28 | 121 | 117 | | Other extruded products | 22 | 33 | 122 | 151 | | **Total shipments** | **336** | **368** | **1,492** | **1,580** | REVENUE BY PRODUCT LINE (in millions of Euros) | Product Line | Q4 2023 | Q4 2022 | FY 2023 | FY 2022 | | :------------------------------------------ | :------ | :------ | :------ | :------ | | Packaging rolled products | 582 | 697 | 2,596 | 3,326 | | Automotive rolled products | 254 | 275 | 1,156 | 1,154 | | Specialty and other thin-rolled products | 29 | 35 | 146 | 183 | | Aerospace rolled products | 264 | 218 | 1,022 | 728 | | Transportation, industry, defense and other rolled products | 144 | 204 | 706 | 972 | | Automotive extruded products | 211 | 228 | 934 | 949 | | Other extruded products | 123 | 200 | 696 | 912 | | Other and inter-segment eliminations | 6 | (13) | (17) | (104) | | **Total revenue** | **1,613** | **1,844** | **7,239** | **8,120** | [Company Information & Legal Disclosures](index=10&type=section&id=Company%20Information%20%26%20Legal%20Disclosures) This section provides an overview of Constellium SE and includes important disclaimers regarding forward-looking statements [About Constellium](index=11&type=section&id=About%20Constellium) Constellium SE is a global leader in developing innovative, value-added aluminum products for diverse markets including packaging, automotive, and aerospace, generating €7.2 billion in revenue in 2023 - Constellium (NYSE: CSTM) is a global sector leader in innovative, value-added aluminum products for packaging, automotive, and aerospace markets[39](index=39&type=chunk) - The company generated **€7.2 billion** of revenue in 2023[39](index=39&type=chunk) [Forward-looking Statements](index=10&type=section&id=Forward-looking%20Statements) This section serves as a disclaimer for forward-looking statements within the press release, highlighting that such statements involve inherent risks and uncertainties that could cause actual results to differ materially from those projected, and the company undertakes no obligation to update them - The press release contains forward-looking statements subject to risks and uncertainties inherent in the industry and markets, as well as specific to Constellium's business and operations[37](index=37&type=chunk) - Key risks include market competition, economic downturn, business disruptions, geopolitical tensions, inability to meet customer demand, supply disruptions, inflation, hedging policy effectiveness, loss of key employees, and indebtedness[37](index=37&type=chunk) - Actual results may differ materially from forward-looking statements, and the company undertakes no obligation to update or revise them, except as required by law[37](index=37&type=chunk)

Wall Street expects a year-over-year increase in earnings on lower revenues when Constellium (CSTM) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on February 21 ...