Al13 +3

ways a step ahead

6EXPLORING THE FUTURE

8 • Shaping the future through innovation10 • Voreppe, Constellium’s

melting pot for ideas12 • Innovation Cells, a new

look at innovation14 • Interview with Professor

Francesco Stellacci

34DELIVERING EXCELLENCE36 • Interview with Peter Basten

38 • EHS, putting safety at the top of the agenda

40 • Health and safety at work42 • Protecting the environment

16MATERIALIZING IDEAS

18 • Aluminium, the strengths of a 21st century material

20 • Global ATI, shaping the sky24 • SSH, leading the way in key markets

28 • EAS, promising trends32 • Recycling, aluminium’s ace card

Contents

Think about aluminium.

Locked inside an atom of aluminium, is a world of opportunities. Constellium’s mission is to unlock that potential and to transform aluminium from a molten metal into a vast range of advanced technology products for our customers.

Innovative ideas are vital for exploring the future and the groundbreaking technologies. At Constellium, we constantly strive to give shape to ideas by drawing on our teams of talented experts, our reputation for manufacturing know-how and our close partnerships with customers.

By turning creativity into technology, we materialize ideas so that our customers from industries including aerospace, automotive and packaging get the high value solutions they are looking for. Throughout this process, our focus is on delivering excellence in everything we do and making sure that we deliver on our commitments. It’s all about dedication and imagination. In action.

2INTRODUCTION2 • 2011 at a glance

4 • Interview with Pierre Vareille

2 3

With over 9,000 employees, Constellium has three business units: Global Aerospace, Transportation and Industry (Global ATI), Specialty Sheet and Extrusions & Automotive Structures, which are supported by a world-class research center in Voreppe, France, and a strong Research and Technology organization. Constellium is recognized as the world leader in aerospace plates, general engineering plates, closure sheets and bright sheets and as the European leader in can body stock and large profi les. Constellium, which has its operational headquarters in Paris, France, generated sales of €3.6 billion in 2011.

2011at a glanceIn markets as diverse as aerospace, automotive, construction, packaging, energy and transportation, Constellium is uniquely positioned to deliver innovative, invaluable, world-class aluminium products and solutions.

Introduction Key fi gures

Key fi gures (Dec. 31st, 2011)

2011 FTE breakdown by geographic area2011 sales breakdown by business unit

2011 FTE breakdown by business segment

2011 sales breakdown by geographic area (Country of invoice)

34% Packaging15% Aerospace11% Automotive13% Other transportation12% Industry

9% Building6% Other

38% Global ATI24% Specialty Sheet34% Extrusions &

Automotive Structures4% Corporate and R&D

48% France22% Germany10% Switzerland

6% Czech Republic1% Slovakia

11% USA2% Asia (China, Japan,

Korea, Singapore)

45% Specialty Sheet30% Global ATI25% Extrusions &

Automotive Structures

15% France28% Germany19% United Kingdom

3% Switzerland16% Other Europe12% North America

5% Asia & Oceania2% Rest of the world

2011 sales breakdown by end-market

Evolution 2009/2011

1200

800

1000

600

200

400

0

2009 2010 2011

871973

1.058

+12% vs

2009

+9% vs

2010

4

3

2

1

0

2009 2010 2011

2,292

2,957

+29% vs

2009

3,555

+20% vs

2010

Volumes (KT)Sales (€M)

11COUNTRIES

22MANUFACTURING

SITES

9,280EMPLOYEES

1R&D CENTER

2003ALCAN ACQUIRES

PECHINEY

2007RIO TINTO ACQUIRES

ALCAN

1999ALCAN ACQUIRES

ALUSUISSE2011

RIO TIN

TO DIV

ESTS

ALCAN ENGINEERED PRODUCTS

ALCAN EP BECOM

ES CONSTELLIUM

CONSTELLIUM

MILESTONES

Shareholding structure

51% APOLLO39% RIO TINTO

10% FSI

4 5

The power of changePierre Vareille, Constellium’s Chairman and Chief Executive Offi cer, looks at the achievements of the past year and the challenges that lie ahead. Safety, customer focus and innovation are among the key priorities.

and notably China, has driven growth, though weakness in the construction industry made it a diffi cult year for extrusions. And last but not least, can stock, our main product in Specialty Sheet, once again achieved record volumes.

What are the prospects looking ahead to 2015?P.V.: They are promising, for some fundamental reasons. In almost every fi eld of manufacturing industry, aluminium is gaining ground over other metals and materials. What’s more, Constellium is focused on the value-added segments of markets which are enjoying real growth and will most probably continue to do so. So although we live in a world of uncertainties, our multi-year contracts with key customers like Airbus, Boeing and major can-makers do give us visibility. Our aerospace prospects refl ect the present market conditions because airlines need to modernize their fl eets with lighter planes that consume less fuel,and they also need to expand those fl eets in areas like Southeast Asia, where tourism is booming. In automotive, China is now the world’s largest market and German cars – which use more aluminium – are the preferred choice. Can stock will also continue its steady growth.

What are your strategic aims?P.V.: We have three key objectives, the fi rst being to focus on our chosen growth segments – aerospace, automotive, packaging and industry. Geographically, we are looking for opportunities to expand our global footprint, in Asia in particular. The second objective is to create product leadership, based on innovative technologies that really are differentiating. The third is excellence in our operations, through Lean transformation and the Constellium Business System. Together with our strong focus on sustainabil-ity and recycling, it’s a strategy we believe will help us achieve our four True North Goals.

And what are those goals?P.V.: They concern Environment, Health and Safety, customer focus, organic growth and innovation. I put EHS FIRST, our com-prehensive approach to Environment, Health and Safety, as our absolute priority. We want everyone to return home from work

Looking back, what’s your view of 2011?Pierre Vareille: It was a year of transition, a very important one. Our main shareholder changed from a corporation to a private equity company, our name became Constellium and we reorgan-ized the business to improve our operations and our cost position, which is the absolute condition to conquer new customers. That included the divestment of AIN, so we are now totally dedicated to aluminium transformation. We also rolled out our investment plan, which includes new casthouses at Voreppe and Issoire for our AIRWARETM technology. Meanwhile, the chairman and chief executive roles were merged, and I’m both proud and honored to hold this new position. All in all, it has been a challenging year, because change is rarely easy; but change we must.

How did Constellium perform as a business?P.V.: Overall, it was quite positive. Sales grew 20%, reaching over €3.5 billion, and we delivered increases in EBITDA and cash fl ow. Production rose by about 10%, to more than 1 million metric tons. In short, it was a period of recovery after two very diffi cult years, due to the general economic climate. For Global Aerospace, Transportation and Industry, the aerospace sector is growing rapidly again after a tough 2008-09, and we sealed important contracts with our key customers. For Extrusions & Automotive Structures, the strong performance of German carmakers in Asia,

safe and sound, and for Constellium to be the industry benchmark for safety. We also need a step change in how we serve custom-ers, by supplying products that almost never lead to a claim and are delivered on time. As for growth, there are huge opportunities in our strategic areas of aerospace, but also in the automotive industry, where aluminium was once for niche markets but is increasingly used in volume cars. In packaging, if we continue to improve our service to customers, we will continue to gain market share. Overall, our target is to triple EBITDA by 2015 and to signifi cantly improve our cash fl ow. Finally, to drive innovation, we will keep investing in R&D to create the breakthrough products of 2020 and 2030. We have had great success in aerospace with AIRWARETM; now we need its automotive equivalent.

What kind of Constellium would you like to see in fi ve years’ time?P.V.: I want us to be even more rigorous. I also want to decentral-ize decision-making – so that decisions are taken at the lowest possible level – and to create a system of continuous improve-ment, one where everyone takes part and infl uences their work environment. In short, I want to create an entrepreneurial spirit, so that people take risks and put themselves and their ideas forward. I am very optimistic about the future: throughout all my site visits and all my meetings with our employees, I have formed the unbreakable conviction that we will, all together, create one of the jewels of the European manufacturing industry.

Introduction Interview with Pierre Vareille

I have formed the unbreakable conviction that we will, all together, create one of the jewels of the European manufacturing industry.

7

Exploring the future

8 Shaping the future through innovation10 Voreppe, Constellium’s melting pot

for ideas12 Innovation Cells, a new look at innovation14 Partnerships, the science of working

together

Shaping the future through innovationConstellium has a longstanding tradition for excellence in innovation. With 200 patent families in critical technologies, the company is fully committed to innovation in its products, processes and services. Delivering on that commitment means not just harnessing the talent of our own people, but also working with customers, suppliers, research scientists and academics around the world.

they interface with other materials in an increasingly hybrid world that requires engineering excellence. A major emerging trend endorsed by Constellium is to take a holistic approach to innovation, one that incorporates advanced material design, processing, and the customer’s enabling technologies. A key feature throughout this approach is the extensive use of state-of-the-art numerical modeling. While there is a focus on deliverable solutions, our strategy for innov-ation also includes our processes, particularly in manufactur-ing. Throughout our plants, we use innovation to make these processes safer, more effi cient and to lower energy consump-tion – and to also help create new products. In addition, we are at the forefront of recycling in areas including packaging, and materials from the aerospace and automotive sectors.

Innovation is one of the True North Goals of Constellium’s corporate strategy. Though our business units enjoy a wide range of market-leading positions in Europe and around the world, we are fully committed to developing new products and processes that will further strengthen those positions and satisfy our customers’ unmet needs. A striking achieve-ment is our proprietary AIRWARE™ technology for the aerospace sector. Through innovation, aluminium can also challenge the positions of other widely-used materials, such as PET in certain types of packaging or steel in the automotive sector. In all areas, Constellium actively seeks opportunities to deliver innovative solutions through co-development with its customers.

Exploiting the advantages of aluminiumAt the heart of our strategy for innovation is the search for products and technologies that exploit aluminium’s advantages in lightweighting, strength, formability and durability. The market opportunities for this are already enormous – and will also continue to grow thanks to an increasing trend for capital goods to be multi-material and multifunctional; particularly in the automotive and transportation sectors. This means that our innovation talent is not only focusing on the scope of aluminium technologies themselves, but also how

A world of potential with Open InnovationTo deliver on our strategy, Constellium has created an eco-system for Open Innovation. It’s open, because we believe not just in the expertise of our own scientists, engineers and marketing teams, but also in partnerships with the world outside. At the center of this ecosystem is our advanced R&D facility at Voreppe in France, a world-leading resource for Constellium business units but also for carrying out joint research with our customers. Every year, our customer partner-ships yield research and technologies that set new performance benchmarks for sustainability and effi ciency.Along with Constellium’s world-leading R&D resources, our strategy for innovation also includes partnerships with about 40 universities and international research laboratories, further enhancing our ability to deliver advanced solutions. The Swiss Federal Institute of Technology (EPFL) and France’s ViaMéca mechanical engineering research cluster are just two such partners. Constellium is constantly improving its own organ-ization. Process innovation is supported by R&D and driven by a dedicated technology organization operating a series of technology networks that bring together experts and engineers to industrialize new products and promote best practices at plant level. These Technology Networks cover areas including industrialization, hot and cold rolling, casting, maintenance, molten metal and recycling. Outside learning can be rapidly assimilated into the knowledge management processes through a technology watch. Further resources are provided by Innovation Cells, a unit that supports our business units – from the idea and prototype stages to business plans. At Constellium, innovation really is at the beating heart of everything we do.

98

InnovationExploring the future

A major emerging trend endorsed by Constellium is to take a holistic approach to innovation.

10 11

set of alloys and trademarks including Formalex™ (an Al-Mg alloy) for inner body parts and Surfalex™ for hoods.

Crash management systemsWith car safety a clear priority for manufacturers, Constellium helps its automotive customers by developing innovative crash management systems. One such innovation is the inserted front crash box, placed directly into a vehicle’s longitudinals and now used by several carmakers. Constellium has patented a towing unit that is integrated into a rear crash box. It does not require a towing nut and benefi ts from a reduced welding length and fewer parts. Like the front crashbox, the towing unit is also an exercise in lightweighting. Working with our facilities at Singen, the CRV has developed thinner (down-gauged) and higher-strength aluminium extruded components that maintain crash performance.

CRV Services for third party aluminium users As part of its activities, the CRV also offers a wide range of services to help external manufacturing and processing com-panies implement effective R&D programs. Whether it’s new alloys, new systems for processing, assembling and forming materials, or new applications, CRV knowledge and experience is a powerful resource. Among the services available are design and modeling assistance, metallurgical prototyping, materials characterization, mechanical testing, heat treatment and joining technologies. Together, they enable CRV Services to help customers design and produce cost-effective materials that are perfectly adapted to their needs.

To help customers design and produce cost-effective materials that are perfectly adapted to their needs

Voreppe Constellium’s melting pot for ideasSince it fi rst opened in 1967, the Voreppe Research Center (CRV) has provided a wealth of innovation in aluminium and its alloys. In close cooperation with customers, its many breakthroughs over the years have improved safety and helped make cars and planes lighter, industry leaner and the environment greener.

avoids the need to melt the parts being welded, FSW aims to help customers in the aerospace sector to optimize their material usage and reduce costs. Used to create larger pieces without losing any of the material properties, FSW par-ticularly reduces the manufacturing costs for assembling applications of fuselage and wing substructures. Techniques including FSW and laser beam welding can help signifi cantly reduce the weight of an aircraft. Constellium’s AIRWARE™ technology, used in aircraft including the Airbus A350 or Bombardier CSeries, delivers a 25% reduction in weight when combined with advanced welding techniques and redesign of the airframe.

High formability sheet for the automotive industryWith Specialty Sheet, Voreppe has helped to develop Constellium’s range of Body In White solutions for automotive manufactur-ers, focusing in particular on the formable aluminium needed by demanding, lightweight car designs. The objective has been to achieve a high formability – i.e., the ability of the metal to be formed without failure or defects – in stamping and, for outer panels, hem fl anging at acceptable manufacturing rates without compromising surface appearance or strength. A four-year R&D project involving Voreppe and three external organ-izations has resulted in a series of improvements, and a new

It’s the largest research center devoted to aluminium in Western Europe, it’s home to 200 senior-level specialists and it’s the driving force behind innovation at Constellium — the Voreppe Research Center (CRV).

Key roles in supporting the businessEquipped with the latest scientific hardware, prototyping equipment and modeling technology, the CRV has three key roles to play: to develop innovative, sustainable, value-added solutions for customers; to provide opportunities for future business growth and to support our technology networks in sharing best practices for our processes. In terms of organiza-tion, the CRV is based around multidisciplinary teams dedicated to three key markets (aerospace, automotive and rigid pack-aging). It also has teams specializing in core competencies (metallurgy, surfaces & corrosion, numerical modeling & applications, and the casting & recycling process) and support (characterization, testing, prototyping and castshop). The breadth of expertise at CRV can be gauged by looking at tech-nologies provided by these units.

AIRWARE™ and Friction Stir Welding for lighter aircraft For Global ATI, CRV expertise in Friction Stir Welding (FSW) has been a major asset. A solid-state joining process that

1110

Voreppe Research CenterExploring the future

12 13

Innovation Cells a new look at innovationInnovation Cells is a unit of Constellium that takes the idea of Open Innovation to a different level. A combination of business and development experts, it provides materials and innovation consulting services to Constellium and industry at large.

For all its complexity, innovation is rather like baking a cake: there are many different recipes for a successful outcome. At Constellium, our main focus is on the world-class R&D center at Voreppe, supported by a network of partnerships with top universities and research facilities. However, we can also draw on Innovation Cells, a special unit created in 2008 on the campus of our strategic research partner, the Swiss Federal Institute of Technology in Lausanne (EPFL). Innovation Cells specializes in creating new business from new products and applications that are complementary to Constellium’s core activities.

From innovation to deliveryA cross-functional organization, Innovation Cells brings business and technical experts together under one roof to provide a range of innovation services to Constellium and third parties alike. These include materials engineering, new product development and innovation management. Its task is not to carry out funda-mental research, but to find ways of refining, developing, prototyping and successfully delivering customer ideas that have already been proved at lab scale. The overriding aim of the organization is to take ideas, materialize products and then deliver revenues. Equally importantly, customers can be advised when to terminate a line of development, should there be a lack of market potential.

The approach has helped numerous Constellium projects across its various divisions, with a fl agship example being the develop-ment of Corevo, an aluminium foam. The manufacturing process invented at EPFL’s Mechanical Metallurgy Laboratory for the foam is radically different and more economical than current alternatives. In terms of applications, it has real potential in a number of areas, and notably the automotive industry (see box for details). Constellium backed the idea and asked the experts at Innovation Cells to help. Their response, in the form of support for development, industrial scale-up, customer and application scouting and business case defi nition has resulted in a highly sustainable product that will soon be ready for launch.

Identifying the right marketA different kind of service has been provided for Constellium’s Specialty Sheet business unit in Singen, Germany. Innovation Cells was able to sharply reduce the time to market for a new high-strength aluminium alloy that the business unit had developed, but for which they had yet to select the best-suited target of its many application areas. Innovation Cells helped to identify a launch application and customer, and also provided estimates of the potential size of the market, leading to a new product and new business for Specialty Sheet.With expertise that includes both aluminium and composite

material technology, Innovation Cells also provides its services to third parties outside Constellium. Though the work carried out is largely confidential, projects have been successfully completed for Saint-Gobain in the construction industry, Logitech in consumer electronic devices and Philip Morris in non-tobacco markets. For 3A Composites (former Alcan Composites) Innovation Cells initiated a project to see if com-posites could be used to produce more durable bridges, and helped establish the fi rst pilot projects. The result is a new product line now commercialized by 3A Composites as Banova, a balsa-based bridge decking material that is 80% lighter than conventional offerings. As with all its projects, Innovation Cells is clearly focused on identifying the potential of a new product or process and then developing it into a successful business. In an increasingly complex, multi-material world, that focus is a highly valuable asset.

Innovation CellsExploring the future

Innovation Cells

1312

Innovation Cells brings business and technical experts together under one roof to provide a range of innovation services.

FOAM FOR A SUSTAINABLE WORLD

Corevo aluminium foam can support sustainable, ‘green’ technologies in a variety of different application areas. Consisting of 70% air, the aluminium foam material is an excellent conductor

of heat and cooling for either liquids or gases. In cars, for example, a cooling unit made from Corevo could replace the conventional radiator, reducing its size and weight, and boosting its effi ciency. More importantly, it would give engineers an opportunity to re-design the cooling system entirely – potentially integrating it with the crash management system and achieving even greater weight reduction. Electric cars will meanwhile have an increasingly important role to play in sustainable motoring as battery performance continues to increase, delivering ever-greater vehicle power and range. However, with more power comes more heat. Corevo casings for the batteries in electric cars could provide effective cooling, and re-route heat to other areas of the car.

14 15

Partnerships the science of working togetherConstellium has established links with leading universities and research centers as part of its global approach to innovation. Professor Francesco Stellacci, a world expert on nanomaterials, discusses where those links might lead us in the future.

Why are interfaces important for the aeronautics and automotive sectors?F.S.: Because these industries are becoming multi-material environments; they’re about putting different materials together to get the best out of them. The problem is that we use relatively simple methodologies to do that: by bolting or soldering. But if we really controlled the interface of these two materials we could achieve properties that are far beyond a simple sum of the two materials’ properties. We could make aluminium very tough or very soft, just by controlling the interface with other materials.

How could that be exploited?F.S.: Think of an airplane wing. It needs some fl exibility so it can bend with the air, according to the mechanical stresses over the wing, but has to be particularly hard, so that it doesn’t crack if it hits something. Now, if it had two materials that co-existed with a great interface – so that some parts were extremely hard and others very good at bending – that would be very exciting.

How else could this be applied to industry?F.S.: I believe future materials will be able to perform more functions than they do now. So in aerospace, but also the auto-motive industry, we could have materials that change color as they start to degrade, enabling a visual inspection. Food cans could be made to start corroding if the food inside had gone bad and you’d know just by touching the can.

Along with Constellium’s world-leading R&D resources, our strategy for innovation also includes partnerships with about 40 European universities and international research laboratories. Our research center at Voreppe, France, for example, works closely with the Suisse Technology Partners laboratory in Neuhausen in Switzerland and the ViaMéca mechanical engineering research cluster in France. A key partnership for advanced technology in lightweight materials has been established with the Swiss Federal Institute of Technology in Lausanne, where the world renowned expert in nanomaterials, Francesco Stellacci, was appointed Constellium Professor in 2010. Here, Professor Stellacci looks at the future possibilities for aluminium and other materials.

What areas does your work cover?Francesco Stellacci: My work focuses on the interfaces of different materials and how we can take advantage of those to create new opportunities. What’s important to understand is that at the nano scale, materials show different properties than normal, and novel phenomena happen. For example, if we impose a nanometric structure on the surface of a material, such as aluminium, we can give it special interfacial properties; like making it superhydrophobic, so that it strongly repels water.

How could this be taken further?F.S.: In the car industry you could think of a material that is very hard when interacting with small mechanical stresses – so a pebble would bounce off the hood without leaving a scratch –but in a crash, it would bend in on itself and absorb all the energy, protecting the occupants. These are all instances where you want multiple functions from the same material and I think in the future we’ll be able to engineer these functions.

Just how far could this go?F.S.: In a span of 20 to 50 years, I think metals and other materials will be able to self-heal, at least small cracks. It won’t of course be a single component matter, it will be an integrated system of multiple materials being together.

How? Metal has no innate intelligence telling it how to self-heal.F.S.: When a bone breaks, it’s not your brain that tells your bone to re-heal. There are stimuli within the material that push toward the bone having a continuous structure. There is research now in composite materials that if capsules within a composite are broken, they release chemicals to re-form the material itself. You could one day have metals that release chemicals and re-form if their continuity is broken, or chemicals in the surface paint to do that. Remember, there’s a lot more complex self-healing in nature. If a lizard loses its tail, the entire tail grows back. That’s not in sight for materials now, but maybe in 200 years it will be.

Interview with Professor Francesco StellacciExploring the future

I believe future materials will be able to perform more functions than they do now.

Constellium partners with about 40 universities and international research laboratories.

17

18 Aluminium, the strengths of a 21st century material

20 Global ATI, shaping the sky24 SSH, leading the way in key markets28 EAS, promising trends32 Recycling, aluminium’s ace card

Materializing ideas

18 19

A fi rst choice for packaging applications Can and foil are the best known aluminium end-uses in the packaging sector. Aluminium provides an absolute barrier protecting goods. It contributes to the effi cient production, storage, distribution, retailing, and usage of many products such as drinks, food and medicines.

A large variety of other applications The building and construction sector extensively uses alu-

minium for its high strength-to-weight ratio, its long service life with low maintenance requirements, its high refl ectivity and its huge design fl exibility with a wide choice of surface fi nishes: solar panels, facade sheets, window frames, shading devices, etc., are only examples of building applications.

Thanks to its excellent thermal conductivity, aluminium has now replaced copper in automotive heat exchangers and is used in molds.

With a specific bright finish, aluminium can be used as a refl ector for lighting applications.

Aluminium intrinsic values

Aluminium the strengths of a 21st century materialWorldwide demand for aluminium products is on the rise. Partly a result of demographic growth and higher purchasing power in emerging countries, the increase also refl ects the fact that aluminium is replacing other materials, thanks to its unique combination of properties. Being lightweight, strong, formable, resistant to corrosion and endlessly recyclable are just some of those properties.

Accounting for just over 8% of the earth’s crust weight, aluminium is the most abundant metal on the planet and the third most common element after oxygen and silicon. And since industrial production started slightly more than 100 years ago, aluminium has become increasingly important in our lives: we cannot fl y, travel by high-speed train, high-performance car or fast ferry without it. We cannot get heat or light into our homes and offi ces without it. Our society depends on it to preserve food, medicine and provide electronic components for our computers.

Fit for purpose in transportation applications Aluminium has about one-third the density of steel, is corro-sion-resistant and its strength can be adapted to requirements by modifying the composition of the alloy. This has made aluminium the material of choice in many transportation applications: planes, trucks, high-speed trains (in particular double-decker cars) and also freight cars for coal, marine ves-sels, passenger cars, bicycles, etc. Use of aluminium reduces fuel consumption and CO2 emissions, and/or larger payloads and longer distances. In addition, aluminium is an excellent shock-absorber which is increasingly used in crash-manage-ment systems (bumpers) for improving safety in cars.

Materializing ideas

75 % of all the aluminium ever made is still in productive use.

Aluminium provides a twist on the traditional life cycle in that, once born, it never dies. Endlessly recyclable, it exists in a continuous loop of formation and transformation.

THE LIFE CYCLE OF ALUMINIUM

Bauxite ore,the raw material

for aluminium, is mined.

A chemical processturns bauxite into alumina powder.

Alumina is smeltedinto aluminium by electrolysis.

Casthouse

Metal is alloyed and processed

by casting, rolling or extrusion.

The resulting materials

are manufactured into products.

Each of these products

has its own usable lifetime.

Recycling returns it to the production

process.

2.7g/cu. cmTHE DENSITY

OF ALUMINIUM

100%AND INFINITELY

RECYCLABLE

20 21

ready worldwideLeader in the sky

#1 co.worldwide

in aerospace plates

#1worldwide in general

engineering plates

Al+313

22 23

Strength, where it’s neededAside from aerospace, the other major Global ATI markets are transportation, defense and industry. In the transportation sector, Constellium is Europe’s market leader in tank trailers and dump bodies, and is #1 in North America for railcar and roof coil. It has also built up a major business in fast ferry and yacht construction thanks to its breakthrough alloy SEALIUM®, which has outstanding strength and weather/fatigue resistance. Aluminium’s inherent combination of light weight and strength is also increasingly being used by the defense sector in armored vehicles, where manufacturers require the highest levels of blast and ballistic protection.

Services and industrial capabilityRounding out Constellium’s offer in the Global ATI area is its #1 position worldwide in general engineering plates for industry; a position driven by the expertise at its three manu-facturing plants – at Issoire, France; Ravenswood, West Virginia in the United States; and Sierre/Steg in Switzerland. Though the plants are key to both the development and production of plates, sheets, extrusions and coils, they also have another important role to play in Constellium’s all-round solution for Global ATI customers. A wide range of engineering services are also available, particularly pre-machining and advanced welding to optimize manufacturing by the customer, along with recycling, which involves collecting and re-using the scrap from customers’ machining and production processes.

Global Aerospace, Transportation and Industry

Global ATIshaping the skyConstellium’s Global Aerospace, Transportation and Industry business unit provides a broad spectrum of aluminium solutions. Working closely with customers to determine their needs, we are able to design and manufacture products that help make travel safe and sustainable.

Constellium’s ability to create, manufacture and recycle new aluminium alloys has established the company as the benchmark for the aerospace industry. Its products are found in passenger planes from Boeing and Airbus, military aircraft including Lockheed Martin’s F-35 Joint Strike Fighter and in various space-craft and launchers stretching back three decades. Constellium is a worldwide leader in the aerospace market for aluminium, the #1 worldwide in general engineering plates and the European leader in aluminium precision sand castings.

A constant evolutionThat success is due to two main factors : aluminium’s intrinsic ability to reduce aircraft weight and Constellium’s combination of technical innovation and industrial experience. For aircraft designers, using the latest aluminium alloys means that speed and payloads can be increased, while fuel requirements can be reduced. Constellium then takes these characteristics to another level with its proprietary portfolio of advanced alloys, including ground-breaking technologies such as AIRWARE™. Further breakthroughs are being targeted in the years ahead, as Constellium develops new products to meet its customers’ evolving needs. Meanwhile, in line with the company’s fi rm commitment to recycling, aluminium is recovered from aircraft that have reached the end of their service lives and is melted down for re-use.

Materializing ideas

“Key markets are picking up and set for future growth”

What were the highlights of 2011? The key highlight was a sharp pickup in demand from the aerospace industry, in particular with Boeing and Airbus, which had reduced inventories. Meanwhile, the transportation and marine sector recovered in the US and continued to grow in Asia. Internally, two new casthouses for AIRWARE™ began production at Voreppe and Issoire, while a new $46 million stretcher was installed at Ravenswood.

What is the market evolution, and what challenges lie ahead?The outlook is very encouraging. Aluminium has made real technological progress in aerospace, compared with alternative materials like titanium or carbon fi bers, and the recycling factor is growing in importance. The challenges are to keep improving our service to customers as we increase production, and to keep pace with their needs, both technologically and geographically.

What is your strategy?First, it’s to keep innovating, and to bear in mind that we’re not just selling alloys or products; we need to take into account all the design, manufacturing and recycling at the customers’ end. The future lies in complex hybrid solutions, so we will also focus on how aluminium can interface with other materials in aerospace and transportation. Finally, we will leverage our global presence.

Christophe Villemin, President Global ATI

ID CARD

2011 SALES VOLUMES €1.024 billion

44% Aerospace 36% Transportation 19% Industry

KEY CUSTOMERSAirbus, Boeing, Dassault, Embraer, Freight Car, America, SpaceX, Reliance, Bombardier, Ryerson, Thyssen Krupp, etc.

CHANGING THE GAME WITH AIRWARE™

Launched in 2010 after a 10-year program at Constellium’s Voreppe R&D center, AIRWARE™ is a breakthrough range of products designed for all parts of an aircraft structure (fuselage, wings and tail fi ns). Drawing on a complex structure

developed using nanotechnology, the range offers plane manufacturers three key properties: it is 25% lighter than conventional materials, making it possible to optimize the design of structural parts and reduce CO2 emissions; its superior resistance to corrosion and fatigue extends heavy maintenance intervals to 12 years; and its 100% recyclability makes a major contribution to a sustainable aerospace industry. Not surprisingly, leading manufacturers are now turning to AIRWARE™, rather than composites, for their next generation of aircraft. The technology has been selected by Airbus for its wide-body A350-XWB, by Bombardier for its single-aisle CSeries and in space transportation by SpaceX for its payload launchers.

24 25

Beverage, food, automotive...

#1 worldwide

in closure sheets

#1 in Europe

in can body stock

#1 worldwide

in bright rolled and pre-treated solar surfaces

Al+313

ways sustainable

26 27

hoods and door panels, and heat exchangers. Automakers are under growing regulatory pressure to produce ‘greener’, more economical cars. By using aluminium they can achieve signifi cant direct weight reductions, which in turn allows them to reduce fuel consumption and improve performance. This major trend toward greater economy, lower emissions and recycling provides a signifi cant opportunity for Constellium. Though these are key growth areas for Specialty Sheet, Constellium is also able to exploit a number of niche markets where aluminium’s ability to refl ect light, resist weathering and provide aesthetic appeal are highly valued. Applications range from the construction industry, solar panels, lighting and cosmetics to industrial parts.

A wealth of partnerships Constellium’s expertise in Specialty Sheet draws on a number of key assets: customer relationships, state-of-the-art produc-tion facilities at Neuf-Brisach (France) and Singen (Germany), advanced R&D center at Voreppe (France), competent people and partnerships. Constellium works closely with its customers, supporting them all the way from early innovation to technical support at their own plants.

Constellium’s Specialty Sheet business unit has two major markets: packaging and automotive. Each market exploits the unique strengths of aluminium to its own advantage.

Light, strong, versatile and infi nitely recyclableFor packaging, aluminium provides an excellent barrier to oxygen, light and moisture. Its inherent strength means that less than 100 microns – the thickness of a human hair – is suf-ficient for the wall of a beverage can that can be endlessly recycled. Constellium is Europe’s #1 supplier of can body stock, and is also a major supplier of end and tab stock, food stock and foilstock. The company is the #1 producer worldwide of sheet for closures, such as those increasingly favored by wine producers. Constellium is meanwhile playing a leading role in recycling, a key business and environmental commitment. Its plant at Neuf-Brisach in France is the largest fully integrated facility in Europe that combines state-of-the-art casting, rolling, fi nishing and end-of-life recycling.

Cutting CO2 emissions in carsFor the automotive industry, aluminium’s light weight is proving a game-changer in car design, economy and CO2 emissions. Constellium’s Specialty Sheet offer focuses on Body In White, where aluminium can replace large steel parts, for example, in

Specialty Sheet leading the way in key marketsFrom aluminium beverage cans to car panels and self-cleaning solar refl ectors, Constellium’s Specialty Sheet business unit serves a wide range of applications. Its leadership positions in different markets are backed by advanced production and R&D facilities, along with a fi rm commitment to sustainability.

Specialty SheetMaterializing ideas

ID CARD

2011 SALES VOLUMES €1.633 billion

77% Packaging 23% Automotive and customized solutions

KEY CUSTOMERS3A Composites, Amcor, Ardagh, Canpack, Comital, Crown, Daimler, PSA, Rexam, ThyssenKrupp, Valeo, etc.

SUPPORTING CUSTOMER INNOVATION:THE FUSION™ BOTTLE

One of many examples of Constellium’s ability to meet customer needs in Specialty Sheet was the support provided to Rexam, a major customer in the beverage can segment, in its development of the aluminium FUSION™ bottle. Constellium’s expertise in Drawn Wall Ironing technology helped Rexam to create a highly innovative packaging alternative to glass for the drinks industry, ideal for products such as premium beers. Aluminium’s shatterproof qualities make the

FUSION™ bottle particularly attractive for stadium venues, nightclubs and concert events, along with more generalized applications. Available in eye-catching matt or refl ective fi nishes, the aesthetic qualities of aluminium provide many opportunities for design by OEMs, while the re-sealable closure offers further advantages for consumers, particularly those on the move. Like all aluminium cans, FUSION™ bottles are infi nitely recyclable, for example in Constellium’s plant in Neuf-Brisach.

“A record year”

What were the highlights of 2011?It was our best year on record in four key areas: safety, which is an absolute priority for us; fi nancial performance – with record sales volumes, profi ts and market share; product quality; and industrial performance. We also signed major long-term contracts with key customers in the can and automotive segments, which have positioned us well for the future. However, we must be relentless in improving everything we do, in order to meet customer needs.

How is the market evolving, and what challenges lie ahead?The outlook is positive. We have been growing in can stock at 6% a year for nearly a decade and we continue to believe in the strength of this market. Now we expect automotive to continue to grow rapidly. Two key challenges will be to further stimulate recycling in packaging in Europe, and, in automotive, to combine a process of standardization – thereby driving costs down – with one of customization, enabling us to optimize solutions and design.

What are the key features of your strategy?Our strategy of sustainable and profi table growth has four pillars: building good competitive positions by rigorously selecting our target market segments and maintaining strong long-term relationships with selected large customers; operational excellence (commercial and industrial); optimized metal management and recycling; and fi nally growth, which means geographical development and new product innovation. This strategy has proven successful in the last few years.

Laurent Musy, President Specialty Sheet

28 29

#1in Europe

in large profi les and hard alloys

Lighter, safer & greener Al13

ong the way

+3

30 31

Supporting transportation, renewable energy and building designConstellium’s pioneering expertise in manufacturing large profi les for rail and bus customers has established it as the #1 supplier in Europe, where half of the railcars built today are made of Constellium’s profi les. This market is set to grow as governments appear increasingly willing to devote resources to improving their rail networks rather than to encourage more car use by building new highways. In the energy market, Constellium provides critical solutions including heat sink sys-tems for renewable energy sources and the storage of nuclear material during the dismantling of power stations.A similarly broad range of markets is served by the production of hard and soft alloys, where Constellium is the #1 and #3 in Europe respectively. Hard alloy bars are produced for machining into silencer systems or anti-vibration devices for the automotive sector and other industrial uses. Soft alloys are widely used by the building industry in windows, doors and curtain wall systems.

Strength in depthThough Constellium’s focus is on extruded products, its expert-ise also enables the company to provide a range of fi nishing operations including welding, machining, and surface treatments to optimize products and reduce customers’ internal cycle times. EAS has industrial strength in real depth, with 10 plants in Europe – in the Czech Republic, France, Germany, Slovakia and Switz-erland – plus further Automotive Structures facilities in the United States and China. R&D support is provided by Constellium’s advanced center at Voreppe, France.

Extrusions & Automotive StructuresMaterializing ideas

Constellium’s EAS business unit is based around four main product areas: automotive structures, which are primarily Crash Management Systems (CMS); large extruded profi les, including those used for the bodies of railcars and buses; hard alloy extrusions for industry and soft alloy extrusions for a variety of applications.

Improving car safety performanceAluminium CMS solutions are playing a major role in making cars safer for drivers, passengers and pedestrians alike in the event of an accident. As a leading innovator in the sector, Constellium’s contribution to this key area of road safety is not confi ned to manufacturing end products, in the form of light-weight car bumper beams and crash boxes. Its involvement starts further downstream at the design and development stages, where its engineers work closely with premium global OEMs to find the right solution at a competitive price. This market is particularly service-oriented, and requires a rapid, cost-effective response to customer needs. Constellium also provides additional safety components including side-impact safety beams and front-end structures. As with other parts in aluminium, they enable automakers to simultaneously improve safety and reduce a car’s weight, fuel consumption and carbon emissions.

Extrusions & Automotive Structures promising trendsConstellium is a market leader in several areas of aluminium extrusion, drawing on its in-depth experience and reputation for quality. It is also a major player in the lightweighting technology behind making cars safer and ‘greener’.

ID CARD

2011 SALES VOLUMES €0.96 billion

53% Soft alloy extrusions 22% Hard alloys 13% Large profi les12% Automotive structures

KEY CUSTOMERSAudi, Daimler, General Motors, BMW, Porsche, CAF, Jaguar, Raynaers, Stadler, Schuco, Strojmetal, etc.

DRIVING EFFICIENCIES WITH BMW

The strengths of EAS in solution design and manufacturing are being deployed for BMW with a Crash Management System and front-end parts for its 1 and 3 Series platforms. A compact system that features highly effi cient energy absorption and excellent crash performance, the BMW L7 solution is being produced at Constellium’s highly automated, state-of-the-art lines at Gottmadingen (Germany) and at its Changchun facility in China. Between the two sites, production is scheduled to reach 750,000 sets a year at peak manufacturing. Drawing on Constellium’s experience and technical expertise in CMS, the L7 is providing a lightweight and cost-effective solution for BMW’s large volume car needs. The signifi cant lightweighting in the 10-model family will also contribute to savings in CO2 emissions.

“A step change in productivity”

What were the highlights of 2011?We strengthened our leadership position in crash management systems for the automotive industry with a record year for orders, with lifetime sales of over €500 million, while expanding our facilities in Europe, the USA and China to match demand. We also announced a new €11 million extrusion press for installation in Singen, Germany. It was a very good year too for hard alloys and large profi les, where we are also market leaders.

How is the market evolving, and what challenges lie ahead?Aluminium use in the automotive sector is expanding rapidly and Constellium’s CMS and structural solutions are very much a part of that. In extrusion, the key challenge comes from the fact that the competition is ruthless. Unlike other sectors, the extrusion market is more fragmented, more active and carries a lower entry cost. We therefore need to keep optimizing our industrial organization to increase productivity and performance.

What is your strategy for dealing with that?We have to be equally ruthless in our pursuit of internal effi ciency, through Lean Manufacturing, quality programs and operational excellence in all areas. Equally importantly, we need to keep delivering great customer service, which is not just about delivering on time and on budget, but also about being quick to respond. Finally, we’ll continue to invest in our strategic market segments and support our joint customer developments.

Paul Warton, President Extrusions & Automotive Structures

32 33

RecyclingMaterializing ideas

Recycling aluminium’s ace cardAluminium technology wears its green credentials with pride. Recycling, which is close to 100% in some customer applications, gives not only an access to an increasing source of raw material, but is also a way to reduce carbon emissions and improve the sustainability of many industries and products.

is increasingly purchasing aluminium scrap and recycling it. In fact, more than 25% of Constellium’s metal needs are now covered by scrap collected from our customers’ production units or from end-of-life products. Finally, and perhaps most signifi cantly, recycling is the solution for customers who face ever more demanding regulation. Major operators in the food and beverage packing industry, for example, are increasingly looking to see which packaging – out of glass, plastic and aluminium – has the smallest carbon footprint. And over the lifetime of a product, the case for aluminium is getting stronger by the day. With 64% of all beverage cans recycled in Europe in 2010 – a fi gure which the industry aims to lift to 75% by 2015 – there is a clear case for sustainability. A can is typically produced, fi lled, sold, recovered, recycled and returned to the shelves in 60 days. In industries such as construction, automotive and transportation, recycling rates in Europe have already reached 95% to 100%, helping major corporations to achieve their sustainability objectives.

Leading role for ConstelliumConstellium’s own plants make a huge contribution to the com-pany’s recycling efforts – processing about 300 KT of external scraps. Meanwhile, the company is also pursuing specifi c industry initiatives, such as in aerospace, where a closed loop is secured with our customers to collect scraps from their production pro-cesses. The recycling rate is close to 80%, a signifi cant fi gure given that about 12,000 aircraft will reach their end-of-life over the next 20 years. Recycling, as in all industrial and consumer areas of aluminium, is both a resource for the company and a means of supporting the environment.

Recycling is a vital component of Constellium’s business and a key priority for our strategy moving forward. As a company, and a member of the European Aluminium Association, we are determined to keep improving our own recycling efforts and to drive up the rates in industry and among consumers.

Aluminium scrap, an environmentally-friendly resource Recycling aluminium scrap requires only 5% of the energy needed for producing primary aluminium from bauxite (aluminium ore) and reduces CO2 emissions by 95%. While buying primary aluminium will still be necessary to meet growing demand for aluminium products, Constellium

RECYCLING AIRWARE™

AIRWARETM is the new low-density aluminium technology developed by Constellium for aerospace applications.The recycling of Constellium’s AIRWARE™ alloy chips was initially thought to be impossible. However, by combining the expertise of teams at Issoire, in conventional alloy chip recycling, and our Voreppe research center in AIRWARE™ casting, the company has patented a new process that makes AIRWARE™ the greenest option on the aerospace market.

CAN RECYCLING FOCUS AT NEUF-BRISACH

Neuf-Brisach is a state-of-the-art integrated rolling, fi nishing and recycling facility. In 10 years, it has more than doubled its recycling capacity, which includes internal and external scrap and end-of-life products from industry and consumers. Large volumes of used beverage cans from across Europe are shipped here and recycled into rolling slabs for packaging applications.Constellium’s Specialty Sheet business unit uses its Neuf-Brisach plant to recycle cans collected through international initiatives and partnerships. These include the “Every Can Counts” initiative with can manufacturers, France’s network of Canibal collector/compactors, which are being installed in cities around the country, and also Returpack in Sweden, where Constellium has an exclusive contract to recover used beverage cans.

RECYCLING: PRESERVING EARTH’S NATURAL RESSOURCES

End-of-life products

Customer products(Manufacturing process)

Secondary Aluminium(Outside scrap)

Recirculating internal scrap

Primary Aluminium

CONSTELLIUM SEMI PRODUCTS(Manufacturing process)

End products

Customer scrap

35

36 Driving excellence in sales and production

38 EHS, putting safety at the top of the agenda

40 Health and safety at work42 Protecting the environment

Delivering excellence

36 37

Delivering excellence Interview with Peter Basten

Driving excellence in sales and productionConstellium is committed to excellence in all aspects of its business, both above and below the line. Peter Basten, Vice President Strategy, Business Development and Business Improvement, discusses the way various programs are deployed to address different areas of Constellium’s activities.

equipment and processes. We’ve also completely changed our purchasing function, which is now centralized rather than handled at individual plant level, and optimized the transportation arrangements for our fi nished goods to custom-ers. Over two years we’ve saved in total €116 million by reducing our addressable cost base (i.e., excluding raw material costs) by more than 5%.

Can you give an example of this kind of approach?P.B.: The scrapping of can body stock coils at our Neuf-Brisach plant sometimes reached many coils a month. We discussed this, and introduced a Daily Management review, which is basic-ally a stand-up meeting at 8.00am where we look at the coils marked for destruction and see how we can save those coils or immediately address the problem. As a result, the number of coils scrapped was halved – and that’s a major fi nancial saving.

How does BEST fi t in?P.B.: BEST has been running for several years and the focus is on all levers of sales excellence: practices, processes, people and performance. In 2011, though, we looked at two particular areas – risk management in our contracts (metal and FX) and Lean in Sales.

Can you tell us more about these?P.B.: The risk refers to the fact that our customers want a known or fixed price for the aluminium they buy, whereas our cost is based on a fl uctuating rate at the London Metals Exchange. To protect ourselves against potential losses, we take out hedging positions on the futures market. This is particularly

What is the context for operational excellence in Constellium?Peter Basten: We have a longstanding culture of improving the way we work because, as a manufacturing company, every improvement in our production processes has a direct effect on the bottom line. Our approach is two-fold; to reduce costs and improve the productivity of people and machines; and sec-ondly to improve the top line, with a better approach to the market, better pricing and better service to the customer.

How are you delivering on these?P.B.: We have two improvement programs underway – Cost Improvement Initiatives (CII) on the cost and productivity side and Building Excellence in Sales Today (BEST) on the revenue side. CII is a two-year program that started in 2011 and focuses on reducing operational, purchasing and SG&A costs, while BEST looks at all aspects of sales.

What are the main features of CII?P.B.: It involves a range of measures at plant level; reviewing our organization, improving our scrap rates, optimizing main-tenance spend and improving energy effi ciency. As an example, we use a lot of gas and electricity in our furnaces, so we’ve undertaken major projects to improve the fuel effi ciency of our

important since we are no longer a primary producer. So, the sales force needs to be educated about that risk and to work closely with the fi nance department, who arrange the hedging with brokers, and with the metal purchasing department. As for Lean Sales, the focus is on maximizing the time spent with customers, improving profi tability, and minimizing time on order intake, invoices or claim management services. As with all our operational excellence programs, we have achieved a great deal, but can always improve.

So what’s next?P.B.: The CBS (Constellium Business System) is the next step. We will still have CII in 2012, to really reduce our cost base struc-turally. Then we will launch a comprehensive lean program throughout all the plants and sites of our company. This program will encompass new standards, new KPIs and new tools to improve our operational performance, from the worskshop to headquarters. The CBS, which will be led by Pierre Vareille will transform Constellium into a unique company, with unmatched quality and service to our customers, competitive-ness and people empowerment. It will involve every employee of Constellium since we will embark together on this exciting but never ending journey.

…The CBS will transform Constellium into a unique company, with unmatched quality and service to our customers, competitiveness and people empowerment.” Peter Basten

38 39

Environment, Health and SafetyDelivering excellence

This systematic approach applies not only to our own staff, but also to all our contractors.

Achieving ISO standards Along with training, EHS FIRST, is supported by rigorous internal audits, which are carried out each year to assess its effectiveness. However, we do not rely solely on the inspections of our own plant and function managers. All our plant ISO certifi cates are regularly renewed, following inspections by external audit-ors, while any new plants acquired by Constellium have two years to implement EHS FIRST, including these certifi cations. ISO recognition is important as it shows the world outside that Constellium operates to international standards and provides us with a means of checking that our systems are working properly.

Safety BreakthroughEHS FIRST has clearly proved to be effective. However, this is not where the story ends. Constellium has launched an ambi-tious new program for site safety, entitled Safety Breakthrough, which aims to deliver the same kind of step change in safety improvement as we have already achieved. Building on the foundation of EHS FIRST, Safety Breakthrough will target specific areas where we can improve. Rules and Standard Operating Procedures, for example, will be reviewed with the involvement of the people affected by them to ensure they are suffi ciently clear and can be easily applied. Meanwhile, front line managers will be encouraged to drive ever-greater safety compliance on the shop fl oor. EHS is of fundamental importance because it’s about personal safety and the operational excel-lence of the business; and Constellium is committed to both.

For Constellium, the safety of our people is of paramount importance, especially when it comes to operating furnaces at 800° Celsius, molten metal casting, hot rolling and powerful extrusion presses. Environment, Health and Safety has long been a priority, notably with a key turning point coming in 2003 with the release of EHS FIRST, our company-wide EHS system at all sites, both manufacturing and R&D. It’s a continual improvement process that embraces everyone, from board level to teams on the shop fl oor. And it works. Accidents have been reduced by a factor of four between 2004 and 2011.

Internal effi ciency, external recognitionWhile EHS FIRST aims for the internal implementation of best practices, it also includes external recognition by certifi cation to ISO standards such as 14000 and 18000. Internally, the delivery emphasis is on line management, and plant managers in particular. Training is clearly an important part of delivering those best practices, with all our managers completing a mandatory EHS FIRST Leadership training course that lasts two days. In addition, site-specifi c training is provided for everyone, while further training modules are available in areas such as risk management, leadership safety tours, compliance with rules management, man-machine interface safety and machine safeguarding.

EHSPutting safety at the top of the agendaConstellium recognizes the overriding importance of Environment, Health and Safety in a dynamic industrial environment such as ours. A systematic approach across the company has delivered real benefi ts in recent years, but there is still work to be done.

ENHANCING FRONT LINE SAFETY

Much of the focus for the Safety Breakthrough will be on Front Line Managers and their role in driving further improvements in shop-fl oor safety. A starting point for this is already underway in the form of an assessment tool that all Front Line Managers at our plants have been completing. The checklist, which covers a broad range of safety operating issues, is then reviewed with the manager’s supervisor, followed by an agreement on the next development steps to improve their capabilities. The results of the company-wide exercise will be reviewed with sites, Business Units and HR to see if action needs to be taken at corporate or local level, and in what particular form – training or coaching, for example. This EHS decision-making process closely follows Constellium’s lean approach – by fi rst analyzing the situation and then defi ning the actions to be taken, step by step.

“Success so far, but now for the next level”

How far up the agenda is EHS at Constellium?It’s very obvious at management leveI that there is real ownership. If you go to a meeting, even at corporate level, the fi rst topic is always EHS. Executive management wants to be regularly updated and plays an active role in further developing this approach. After all, you cannot run a business successfully without running it safely.

What’s the idea of Safety Breakthrough?We are in the top quartile in the metal industries for safety, but that’s no longer enough. Our ambition is to be up among the very best across all industries, if not to become the best manufacturing company in the world for safety. We want everyone to return safe and well after a day worked at Constellium. By 2015, we want to have reduced yearly accident fi gures by a factor of six and to have eliminated serious incidents altogether.

How do you sum up Constellium’s message on EHS?We have come a long way and been successful, but now we want to achieve a step change in safety. The key to this will be the empowerment and involvement of all our employees, because that’s what creates ownership. It’s not so much about systems anymore, because we have those in place. It’s about the people and leadership.

Walter Bürgi, Director Environment, Health and Safety

40 41

Health and safety at workThe health and safety of our employees is of paramount importance to Constellium. Though the company enjoys a top-quartile performance in this area, we are now looking to achieve a further improvement in accident reduction at our facilities worldwide.

Delivering excellence Health and safety

SafetyConstellium’s concern for employee safety is reflected in the continuous improvements we have been able to achieve in recent years. In fact, the average Recordable Case Rate (RCR) improvement between 2007 and 2011 was about 17%, year on year. Since 2008, these fi gures include all persons on site – whether our own employees, project contractors or visitors. Though the improvement rate has dipped since 2009, it is still about 8% year on year, while Constellium’s overall performance belongs to the industry’s best-in-class group of companies. There are several reasons for this:

Implementation of our EHS FIRST Management System at all sites since 2003;

Continuous improvement of the system through specific programs;

Leadership Safety Tours at all sites since 2004.The main focus in recent years has been on fatality and serious injury prevention, involving a range of programs covering man-machine interface, molten metal safety, contractor manage-ment, risk management of non-routine activities, working at height, truck driver safety and hazardous energy control.In response to a fatal accident in 2010, extensive work was carried out in 2011 to improve the stacking of materials, along with a guide to best practice. Constellium is determined

to maintain this focus on serious injury risks and is deploying processes in the scope of the Safety Breakthrough that will empower managers and operational staff to deal with safety matters more effectively. For 2012, the targets are an RCR of 0.4 and a maximum of three serious injuries. To achieve these Safety Breakthrough objectives, work is underway to further strengthen safety leadership at all levels, with a particular focus on Front Line Managers. The objective is to improve compliance with procedures, particularly by involving employees in the development and revision of those procedures. Meanwhile, the roles and responsibilities of staff involved in risk management are being more precisely assigned to make the process even more effective. Along with increasing individual buy-in, sites are also implementing action plans to close any gaps which may be preventing them from achieving a safety breakthrough.

HealthThe key focus in 2011 was on further improving hazardous substance management. The relevant directive was completely revamped, and the approval process for using hazardous substances was improved, particularly for substances of major concern. Users of such substances have to regularly provide evidence that they search extensively for less hazardous alternatives and, if available, have to switch to them.Many sites have implemented their individual employee health improvement programs (including engineering solutions for noise reduction, elimination of ergonomic risks due to technical solutions, etc.).

8

6

4

2

0

2009 2010 2011

5

7

6

Serious injury development

Includes serious injuries as per Constellium defi nition (injuries with a risk of death, major complications or permanent disability). Rates are calculated per 1,000,000 working hours.

35

asbestos-related cases

other cases

occupational disease rate (per 200,000 h)

30

20

10

15

25

5

0

2009 2010 2011

11

31

0.50

0.56

0.432623

26

11

Health Performance Development

Recognized occupational health cases.

2009

0.77

2010

0.71

2011

0.64

0.8

0.6

0.4

0.2

0

Includes medical treatment, restricted work and lost time injuries as well as fatalities. Rates are calculated per 200,000 working hours.

Recordable Case Rate development

For 2012, the targets are a Recordable Case Rate of 0.4 and a maximum of three serious injuries.

42 43

Protecting the environmentConstellium actively supports sustainable development, both through its own initiatives and within the industry organizations such as the European Aluminium Association. Improving the energy effi ciency of our plants, through new equipment, optimization of existing systems or sharing of good practices, is a continuous process.

Delivering excellence Environment

At Constellium, we care about people and the environment. Our commitment to the environment means a great deal more than just having policies on paper: it’s also about promoting a culture of respect – a core value of our company, developing sustainable strategies and investing in equipment and training to reduce the footprints of our facilities. Through technically advanced solutions and innovative processes, we work tirelessly to reduce our energy consumption and greenhouse gas emissions. In 2013, the aluminium industry will be integrated into the European Union (EU) Emission Allowance Trading System. These regulations present an opportunity for Constellium to be innovative in preventing and minimizing adverse environ-mental outputs, including waste, emissions and discharges. We also look forward to helping our customers to do the same.

Operating within the EU’s regulation for Registration, Evalu-ation, Authorization and Restriction of Chemical (REACH) frame-work, Constellium has implemented REACH in a coordinated manner with customers and suppliers.

In addition, our sites are ISO 14001 and OHSAS 18001 certifi ed, underlining the fact that the environment is at the forefront of our concerns for our employees and the wider community.

Some InitiativesIn terms of environmental impact, the work carried out at various sites in Europe and the United States over the course of 2011 shows just how Constellium’s commitment is turned into practical energy-saving initiatives.

Děčín: key improvements in three areasA broad range of improvements have been made at our plant in the Czech Republic, improving its energy efficiency and underlining Constellium’s highly practical approach to sustain-ability. A new production workshop lighting project, using the latest T5 fl uorescent tubes, has led to a 70% reduction in energy consumption while improving the actual lighting conditions. A new boiler has meanwhile been installed at the plant, saving an impressive 2,000 MWh, and further gains in energy effi ciency have been achieved by the introduction of variable speed drives in the casthouse compressors.

Valais: optimizing plant and equipmentA new treatment process at the Steg casthouse has created energy savings of 140 MWh a year, while optimization of the homogenization furnace has further cut consumption. In the plate shop, annual savings of more than 1.5 MWh have been achieved in particular through optimizing pumps.

Ravenswood: more effi cient furnacesAn upgrading of the melting furnace with regenerative burners has delivered a 30% improvement in its energy effi ciency. Mean-while, the organizing of a best practices workshop has enabled technicians to optimize the setting of regenerative burners on another unit – producing a 20% increase in energy effi ciency. Elsewhere, an upgrade project at the Soaking Pit has enabled what were two separate heat treatments to be combined into one on the same piece of equipment.

Neuf-Brisach: new burners boost effi ciency, save energyThe installation of oxyfuel burners for the recycling furnace has improved energy effi ciency by more than 40% and increased productivity. An electromagnetic stirrer installed at the end of the year on a melting furnace is set to make a 10% energy saving, while a plant boiler project to recover more heat from the melting furnaces’ exhaust will deliver energy improvements of more than 30% in that area.

Singen: focus on melting furnaces and water consumption Alterations to two melting furnaces have been among the main energy saving projects at the Singen casthouse. Water consump-tion at the plant has been a particular target in recent years, with a reduction of 28% being achieved between 2009 and 2011.

Environmental indicatorsDelivering excellence

Coordination: Corporate Communications Department, 2012Design and production: All Contents

Written by: Trevor Huggins (English Service)Photo credits: © Constellium, A. Doyen, T. Lang, D. Sarraute and G. Uféras.

-3.4%GHG DIRECT EMISSIONS

-6.9%TOTAL WASTE PER

KT PROCESSED

Energy conservation

(1) Energy consumption per processed unit, consolidated with a normative approach through the different Constellium processes.2010 performance was penalized by a lower activity level compared to 2006.Main energy sources: Natural Gas (57%) and Electricity (36%)

2010 2011 VarianceEnergy (TJ) 11,085 11,155 +0.6%

Specifi c energy consumption (1) (Ref: 100 in 2006) 100.3 97.3 -3.0%

Air emissions2010 2011 Variance

NOx (metric t) 461.86 476.71 +3.2%

Particulate materials (metric t) 148.84 123.43 -16.5%

SO2 (metric t) 320.33 319.27 -0.3%

VOC (metric t) 355.33 319.75 -11.1%

GHG direct emissions2010 2011 Variance

Total (KT eq. CO2) 555 536 -3.4%

Water consumption2010 2011 Variance

Total Water (cu. m) 25,654,778 26,634,972 +3.9%

out of which

– ground water 22,503,381 23,445,728 +4.3%

– surface water 2,810,997 2,863,480 +1.8%

– water from the public net 340,400 325,764 -4.5%

Water used per KT processed (cu. km/KT) 21.43 21.51 +0.4%

Waste

Among the Hazardous Waste, salt slags, drosses and skimmings (casting and recycling activities) represent 84% and are subject to recovery of reusable materials.

2010 2011 VarianceTotal Waste (T) 76,284 73,453 -3.8%

out of which

– hazardous waste 73% 78%

– non hazardous waste 27% 22%

Total Waste per KT processed 63.73 59.32 -6.9%

Constellium Headquarters Tupolevlaan 41-611119 NW, Schiphol-RijkThe NetherlandsPhone: +31 20 654 9780

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www.constellium.com