Business and Sustainability Performance Report 2015 01 Inside This Report
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Headquarters Business Tupolevlaan 41–61 and sustainability 1119 NW, Schiphol-Rijk performance The Netherlands report 2015 Corporate offices Infinite Inside this 830 Third Avenue, 9th floor New York, NY 10022 United States report… Washington Plaza opportunities 40–44 Rue Washington Full contents are listed under this flap. 75008 Paris France Max Hoegger-Strasse 6 8048 Zurich Switzerland www.constellium.com About this report Reporting period Financial year 2015 (January 1, 2015 to December 31, 2015) Reporting cycle Annual Date of publication June 2016 Report scope The data or financials relate to Constellium worldwide falling within the scope of consolidation at December 31, 2015. Report content The content of this report is based on our business data and the results of our dialogue with stakeholders, the Global Reporting Initiative G4 requirements and other sustainability ratings and rankings. Global GRI G4 guidelines – Core Reporting Initiative Assurance The report is in compliance with the GRI G4 guidelines and maintains code of reporting as advised by GRI. It is not externally assured. Contact For further information please contact: [email protected] or [email protected] Constellium – Business and sustainability and Business – Constellium performance report 2015 sustainability and Business – Constellium performance report 2015 Ideas. Materialized. www.constellium.com Business and sustainability performance report 2015 01 Inside this report Overview Chief Executive Officer insights 2 We are Constellium. Highlights of the year 4 Our value chain 6 How we are organized 8 We are a global leader in aluminium solutions Overview whose business is to Strategy and markets in focus materialize today’s Achieving our vision 11 In focus: EHS 13 and tomorrow’s ideas. In focus: Lean 14 In focus: Innovation 16 Market trends 18 For us, aluminium is Business unit perspectives: Packaging and Automotive Rolled Products 20 Aerospace and Transportation 22 more than a metal. It Automotive Structures and Industry 23 is part of the solution Governance in focus Board of Directors 26 for tomorrow’s lighter, Executive Committee 28 Our Sustainability Council 30 faster economy. Abundant, endlessly recyclable and reusable, aluminium’s Sustainability in focus Our sustainability targets 32 Our materiality assessment 34 unique properties Engaging with our stakeholders 35 In focus: Aluminium Stewardship Initiative 36 mean that, together Making our products more sustainable 38 Supporting our people 44 with our partners, Making our operations more efficient 50 Doing business responsibly 56 we can shape a future of infinite possibilities Performance in focus Consolidated income statement 61 Consolidated statement of financial position 62 and infinite Consolidated statement of cash flows 63 Share information 64 opportunities. Sustainability performance 65 GRI content index 71 Memberships 76 Forward-looking statements 77 Business and sustainability Business and sustainability 02 performance report 2015 performance report 2015 03 Chief Executive Officer insights Positioned for growth 2015 has been another year of transformation for Our commitment to the United Nations Global Compact “For the fourth consecutive year we support These principles lie at the heart of our Constellium. Pierre Vareille, Chief Executive Officer, reveals the Ten Principles of the United Nations Global commitment to sustainability. In this report Compact (UNGC) in the areas of human rights, we communicate on our progress and have Overview the highlights of the past year, the main actions for 2016 labor, environment and anti-corruption. referenced the UNGC Communication on and the challenges and opportunities that lie ahead. Progress logo where applicable.” In 2015, we completely reshaped Group sales €m Adjusted EBITDA €m Revenue by business unit “Constellium is well-placed our R&T organization and approach Packaging and Automotive to execute its ambitious to drastically reduce process lead Rolled Products €2,748m times from ideation to production. strategy and to continue €5,153m €343m Aerospace and During 2016, we will be opening Transportation €1,355m 5,153 343 to deliver profitable and a new R&T hub in the US in Automotive Structures sustainable growth.” Plymouth, Michigan in order to 280 275 and Industry €1,047m 3,666 further strengthen and expand our 3,495 leadership position in innovation. Finally, Constellium’s University 20.3% Technology Center, a joint project with Brunel University London, has 2013 2014 2015* 2013 2014 2015* Where does Constellium But most importantly, we achieved opened its doors in the UK. We expect What were the key What are your hopes 53.4% a significant improvement in safety, this initiative to cut prototyping times stand today? challenges of the year? and ambitions for 2016? 26.3% with 20% fewer recordable cases by at least 50%, and then transfer 2015 proved to be another year of compared to 2014. those processes to our plants at The performance of our Muscle Over the last four years, we have transformation and development, speed and with minimal risk. Shoals facility continues to be high laid the foundations for growth and a year of marked improvement in Has your BiW on our agenda because its results are and success. Our quality and on- our performance. From a financial among the main factors impacting our time delivery performance have strategy changed? stock price. We have taken a number improved dramatically, thanks to I want first to highlight the record perspective, how did the Full-time equivalent employees (FTE)** BiW definitely remains our core focus of corrective actions and these will the implementation of our Lean performance of our Automotive for mid to long-term growth. business perform? continue during the months ahead. Transformation program, and Structures and Industry segment. 2015 showed a clear improvement We are optimistic. this has solidified our reputation Constellium has become a leading In the US, our strengthened partnership in our performance. We experienced among customers. In parallel, our BiW strategy demands 10,699 global supplier of structural with UACJ positions us as the only strong growth in shipments (up 39%) components for the automotive global player in this promising market. a long-term transformation that will At the same time, we have made while our revenue was up 41% to industry. The recovery of our We have started the qualification of our undoubtedly be accompanied by focused investments to strengthen €5.2 billion. Our adjusted EBITDA aerospace business also reflects our first US BiW finishing line in Bowling challenges, but we are on track to our leadership position in the was €343 million, an increase of commitment to continuous operational Green, Kentucky. We expect to soon execute our ambitious plan. aerospace market and to become FTE by geographic region 25% due to the acquisition of Wise improvement. The teams should announce the location of the first of a partner of choice for automotive France Switzerland Metals, a record performance in be especially proud of the renewed two additional finishing lines scheduled manufacturers in the US and Europe USA Eastern Europe the Automotive Structures and What progress did you make contract we signed recently with to be launched before the end of for both extruded and rolled products. Germany Asia Industry segment, and a marked on sustainability in 2015? Airbus. Finally, packaging remains the the decade. As a result, our Adjusted EBITDA more recovery in the Aerospace and bedrock of Constellium and proves to We made significant progress than doubled in the last four years. 2% In Europe, the ramp-up of the new Transportation segment. be highly resilient in all circumstances. in many areas of sustainability. 6% finishing line in Neuf-Brisach is I expect 2016 to be a breakthrough Efficient cash conservation and One of the most important initiatives 7% We completed the acquisition of Wise expected to significantly increase our year that will demonstrate our working capital management of the year was the introduction of Metals early in 2015. This represents BiW capacity as early as 2017. continuing success. I am very 39% are key financial targets. With our a new Supplier Code of Conduct, a major step forward in our strategy. confident about the future. strong liquidity, we believe that which outlines the standards 20% Despite disappointing financial results Thanks to the outstanding efforts What about innovation? we are well-positioned to execute of integrity we expect from our in 2015, we expect the Muscle Shoals of our teams of talented and Innovation, and more generally our strategy. suppliers. Our work with suppliers facility to enable us to become a committed individuals, Constellium is Research and Technology (R&T), is and the monitoring of their global leader in the packaging market well-placed to execute its ambitious 26% one of the key pillars for our success. performance triggered our promotion and to play a role of paramount from Silver to Gold Recognition Level strategy and to continue to deliver importance in our Body-in-White We have outstanding results in this by EcoVadis, a well-known agency profitable and sustainable growth. (BiW) strategy in the US. field, with 2015 seeing a new record that specializes in sustainable * Includes Wise Metals’ sales from the date of acquisition, number of patents from Constellium’s development and ethics. Pierre Vareille which occurred on January 5, 2015 Chief Executive Officer Technology Center,