Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB · BMV:CEMEX/CPO
Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB — Cemex SAB DE CV — Q2 2019 Earnings Presentation
34 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Jul 25, 2019
Slide 1: Exhibit 3
Exhibit 3
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intend, but are not limited to, these forward-looking statements to be covered by the safe harbor provisions for forw
Slide 3: Sales decreased 3% like-to-like in 2Q19 on lower volumes
Sales on a like-to-like basis decreased by 3% during 2Q19 due to lower consolidated volumes partially mitigated by price increases in all of our regions Higher consolidated prices for our three core products on a like-to-like basis, both sequentially and year over year Consolidated volumes for cemen
Slide 4: Free cash flow conversion rate reached 34% during 2Q19
Free cash flow conversion rate1 reached 34% during 2Q19 Free cash flow Millions of U.S. dollars 1 Free cash flow conversion rate = free cash flow after maintenance capital expenditures / operating EBITDA 9
Slide 5: Good progress on our A Stronger CEMEX targets
Good progress on our “A Stronger CEMEX” targets Initiatives Progress Targets Asset sales US$822M1 US$1.5 – 2.0B by 2020 Operational initiatives / cost reduction US$75M US$230M by 2020 (US$170M of which are expected to be captured in 2019) Total debt plus perpetuals reduction US$571M US$3.5B by 2020
Slide 6: Regional Highlights
Slide 7: Mexico: pricing strategy and cost reductions partially mitigated drop in volumes
Mexico: pricing strategy and cost-reduction initiatives partially mitigated drop in volumes Volumes decreased for our three core products during 2Q19 mainly due to post-election transition process and muted investment from the private sector Operating EBITDA margin declined due to lower volumes, hig
Slide 8: Mexico: favorable sequential performance in demand indicators
Mexico: favorable sequential performance year to date in several indicators of demand for our products Remittances (B MXN) SCT budgetary investment (B MXN) Public sector individual mortgages (B MXN)1 Commercial banking mortgages (B MXN) 1 Includes: Banjercito, CFE, CONAVI, FONHAPO, FOVISSSTE, Habita
Slide 9: United States: top-line growth despite adverse weather
United States: top-line growth despite adverse weather in several markets Quarterly prices for our three core products up both sequentially and on a year-over-year basis Volumes for ready-mix and aggregates increased by 3% and 9%, respectively, while domestic gray cement volumes decreased by 3% duri
Slide 10: South, Central America and the Caribbean: improved year-over-year pricing
Quarterly regional cement, ready-mix and aggregates prices on a like-to-like basis increased by 3%, 1% and 4%, respectively, on a year-over-year basis Operating EBITDA for the region decreased 14% during the quarter on a like-to-like basis with a margin decrease of 2.4pp, due to lower volumes, highe
Slide 11: Europe: EBITDA and margin expansion from pricing and cost reductions
Europe: EBITDA and EBITDA margin expansion driven by favorable pricing dynamics and cost-reduction initiatives Higher quarterly regional prices for our three core products on a year-over-year basis Decrease in regional volumes for our three core products during 2Q19 on a year-over-year basis mainly
Slide 12: Asia, Middle East and Africa: higher regional prices
Asia, Middle East and Africa: higher regional prices for our three core products during 2Q19 Quarterly increase in regional prices for our three core products, both in local-currency and US-dollars terms, on a year-over-year basis Decrease in quarterly regional volumes for our three core products ma
Slide 13: 2Q19 Results
2Q19 Results
Slide 14: Operating EBITDA decreased 14% like-to-like
Operating EBITDA during 2Q19 decreased 14% on a like-to-like basis mainly due to lower volumes and unfavorable product-mix effect Cost of sales, as a percentage of net sales, increased 2.1pp during the second quarter of 2019 mainly reflecting higher volumes of purchased cement and higher maintenance
Slide 15: Free cash flow: working-capital investment to reverse in 2H19
Free cash flow: expect most of year-to-date working-capital investment to reverse in 2H19 Average working capital days
Slide 16: Total debt plus perpetuals declined by US$751 million
Pro-forma total debt plus perpetuals has declined by US$751 million under our A Stronger CEMEX plan -571M Millions of U.S. dollars 1 Debt adjusted for IFRS 16 2 Divestment of most of our white-cement business for approximately US$180 million which is expected to close during 2H19 Total debt plus per
Slide 17: Healthy consolidated debt maturity profile
Millions of U.S. dollars 1 Convertible Subordinated Notes include only the debt component of US$517 million; total notional amount is about US$521 million Avg. life of debt: 4.4 years Healthy consolidated debt maturity profile Total debt excluding perpetual notes as of June 30, 2019: US$11,048 milli
Slide 18: 2019 Outlook
Slide 19: 2019 guidance
2019 guidance 1 Including perpetual and convertible securities Consolidated volumes Cement: (4%) to (1%) Ready mix: (1%) to 1% Aggregates: (1%) to 1% Energy cost per ton of cement produced (1%) to 0% Capital expenditures US$850 million Maintenance CapEx US$300 million Strategic CapEx US$1,150 millio
Slide 20: Why 2H19 EBITDA is expected to be better than 1H19
Why 2H19 EBITDA is expected to be better than 1H19 Expected healthier public sector spending in Mexico Higher pricing levels in the U.S. and Europe Implemented price increases in April in a significant part of our footprint in both regions Higher cement volumes anticipated in U.S. and Europe due to
Slide 21: Appendix
Mecnex
Slide 22: Consolidated volumes and prices
Decrease in consolidated volumes for our three core products during the quarter on a year-over-year basis During 2Q19, year-over-year regional volumes increased for ready-mix and aggregates in the U.S. Increased consolidated prices for our three core products during 2Q19, in local-currency and US-do
Slide 23: Other income statement items during 2Q19
Other income statement items during 2Q19 Other expenses, net, of US$34 million, mainly due to severance payments and impairment of assets Loss on financial instruments of US$2 million, mainly resulting from the derivatives related to GCC shares Foreign-exchange loss of US$17 million resulting mainly
Slide 24: Additional information on debt and perpetual notes
Additional information on debt and perpetual notes Currency denomination Interest rate 1 Includes convertible notes and leases, in accordance with International Financial Reporting Standard (IFRS) 2 Calculated in accordance with our contractual obligations under the 2017 Facilities Agreement, as ame
Slide 25: Additional information on debt
Additional information on debt Total debt1 by instrument
Slide 26: 6M19 volume and price summary: Selected countries
6M19 volume and price summary: Selected countries
Slide 27: 2Q19 volume and price summary: Selected countries
2Q19 volume and price summary: Selected countries
Slide 28: 2019 expected outlook: Selected countries
2019 expected outlook: Selected countries
Slide 29: 2018 Sales and EBITDA pro forma
2018 Sales and EBITDA pro forma1 1Q 2Q 3Q 4Q 2018 Reported 3,381 3,805 3,748 3,450 14,383 Discontinued operations (79) (103) (97) (89) (368) IFRS 16 Others & eliminations 3 (1) 0 (4) (2) Pro forma1 3,305 3,701 3,651 3,356 14,013 Sales 2018 EBITDA 2018 1Q 2Q 3Q 4Q 2018 Reported 535 714 704 604 2,557
Slide 30: 2018 Sales and EBITDA pro forma: regional information
2018 Sales and EBITDA pro forma1: regional information 1Q 2Q 3Q 4Q 2018 Mexico 801 868 858 776 3,302 USA 856 989 999 905 3,748 Europe 748 952 908 836 3,445 SCA&C 455 462 442 425 1,784 AMEA 375 353 359 346 1,434 Others & eliminations 71 77 85 68 301 CEMEX 3,305 3,701 3,651 3,356 14,013 1Q 2Q 3Q 4Q 20
Slide 31: Statement of cash flows, indirect method
6M18 originally reported1 6M18 restated2 Cash flows from (used in) operating activities Profit (loss) 437 418 + Discontinued operations 0 (7) + Adjustments for income tax expense 102 101 + Adjustments for depreciation and amortization expense 412 509 + Adjustments for impairment loss (reversal of im
Slide 32: Statement of cash flows, indirect method (continued)
Statement of cash flows, indirect method (continued) 6M18 originally reported1 6M18 restated2 Cash flows from (used in) investing activities + Proceeds from sales of property, plant and equipment 29 28 - Purchase of property, plant and equipment 213 365 - Purchase of intangible assets 69 68 - Purcha
Slide 33: Definitions
Definitions 6M19 / 6M18 Results for the first six months of the years 2019 and 2018, respectively AMEA Asia, Middle East and Africa Cement When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for reported cement volumes changed from total dom
Slide 34: Contact information
Contact information Stock Information NYSE (ADS): CX Mexican Stock Exchange: CEMEXCPO Ratio of CEMEXCPO to CX: 10 to 1 Investor Relations In the United States +1 877 7CX NYSE In Mexico +52 81 8888 4292 ir@cemex.com Calendar of Events October 24, 2019 Third quarter 2019 financial results conference c